Ver is Gold February 2013 Presentation by Mariusz Skonieczny
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looks like they’re continuing to bring down the expectations of production. At least the toll milling opportunity looks to be on track. I wonder what the remaining operational risks are to finish starvation canyon and what hurdles need to be taken to sign the toll milling conditions. They need to start showing some consistent and improving cash flows without significant dilution. Only then will the shares slowly rebound. Valuation remains silly, even if only have their plans succeed, but they just need deliver on promises.
“They need to start showing some consistent and improving cash flows without significant dilution.” Yes I agree however, consistent and improving cash flows do not come from promises and fancy investors’ presentation. What will drive the cash flows is Starvation and tolling. As long as these two things get delayed, the improvements in cash flows will get delayed. Previously, I was talking about how it was everything about fixing the plant. Now this is behind us. Now it is everything about Starvation and tolling. Until this is done, nothing matters. They project Starvation to be contributing ore to the mill in March. I say no way. It will be May.
Well said Mariusz. Fortunately, there’s the stockpile to keep cash coming in the door over the next three to six months and NOLs to protect the cash flow from taxes.
Seriously though, how can they expect anyone to believe they can go from zero ore out of starvation to full production in two quarters when they missed expectations on SSX by a mile. Admittedly there were a few, er, distractions going on at that time, but I’d be impressed if they hit your may target.
I fully agree Marius, they need to get Starvation and Tolling going. Its going to be delayed. I’d say May is optimistic. In any case, the depressed share price, is definitely reflecting this. The fact that the share price movement has been creeping down, must seem like torture to other market participants, which is creating a self fulfilling continuation of selling. My relatively simple (but hopefully!) robust valuation, still indicates IV to be somewhere between 5-10 dollars a share, dependent on the extent of the toll milling contracts and the gold price. Hopefully the share price will continue to decline over the next months as things get delayed.
You are right that it is a torture to other market participants. People just can’t take this anymore. Look yesterday, the price hit as low at $1.39 per share. I don’t know if the share price reflects the delays because based on my conversation with the management yesterday, they appear to be on track. But you and I know very well that with the miners, they are on track until they are not.
We’ll see what happens.
Do we know if the mill has been tested at throughput rates averaging 4,500 tpd or more without any parts issues?
During the summer they were able to run the mill as high as 5,000 tpd. But they can only run it for several days at this rate. To sustain this kind of rate, they would need addition grinding. At this point, they can consistently run between 4,000 and 4,500 tpd.
To update everyone on the Starvation, they are already stockpiling ore. Technically, they could already be taking this ore and running it through the mill, but the contractor will not do it yet. Per regulation, they need ventilation and second escape done to be allowed to put Starvation into production. So basically they need to complete this which should be finished mid-March.
As far as the tolling, they are still testing the ore from some interested parties. Once the testing is complete, they can go back to them and finalize their agreement.
I think that Starvation and tolling are likely to happen about the same time but as I always say, I am sure there will be some delays.
The shares seem to have gone insane, ah well at least i bought some more, a bit higher up of course. Seems like a forced seller, or maybe i am completely missing the point. Interesting volatility dynamics, this stock is definitely quite the case study. We will see in due time how th operations pan out
It doesn’t matter if it is a forced seller, unhappy seller, weak seller, stupid seller, or whatever seller. It is a seller or sellers. They have had it with the company or their clients have had it with them and are redeeming money. It doesn’t matter if the Starvation or tolling are going to happen. They want out but there are very few buyers. The buyers are almost nonexistent because they are too fearful to come anywhere close to this stock. And plus don’t forget gold and silver are in a bubble .
I’m down 62% on Veris. Which means I can now pick up for 38 cents what I wanted to buy before at $1. Sounds like a good deal to me.
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