Couldn't see a thread for vgm following the transition from rvd and now producing gold at Vatukoula in Fiji. Looking to ramp up to a rate of 110,000 oz per annum by mid 2009 with current rate of production probably a little over 60,000 oz per annum.

Making good progress towards their targets.

Got to disagree cynic..... this rose I think from 1p+ to 2.6p last and settled back to 2.3p now rising steady as you say on back of gold price and xmas/ indian demand. If we get past 3p, good profit made and expect to fall back to 2.5p but who knows how far it will go, early days plus good rns's .,.emu

may be, but not for me i think ..... i hold CEY and POG, both of which and of course are NOT rising and even falling!

The market caps are far too big now Cynic.....better to pick some midcap gold producer-explorers.....CLF-MIRL-MML....all isable also AVM (Aim) (not in) but seems to be doing fine....( I can never ever get that one right)......

too big for whom? ...... POG drives me nuts, but i think it's a damn good company; CEY is slightly more speculative but is actually producing and has good and proven reserves

I'm not saying that they are bad companies...they are tremendous firms...but they are too big and the small investor needs swings in the market...hence midcaps that are rising such as the ones cited above make better for the Isa....

ah - well my perspective is slightly different as i deal in CFDs ..... which of your 4 above do you rate the most highly and i'll check it out

Cluff Gold....(CLF) looks more and more promising.....I hold all three.

ah yes indeed - cluff is another excellent company, though for some reason i have never checked it out

I'm hoping for the sp to climb perhaps as high as 150p.....in time....I tried to get a cfd on it.....too small a cap..I was told....perhaps you might have better luck....

cynic must have bought a mil, gone to 3.06p .,.

cluff CFD is easy as is VGM as it happens (no i didn't emu!)

Managed to get a spread on CLF....can't understand why I was turned down a week ago.....

broken well through 3p and going on, next test is 3.5p

stick with it, I see 5p on the horizon......also get into Greatland before too long

Took my profit quite some time ago, so it's all yours for now..

This reccommendation from todays Sunday Telegraph should do no harm to prospects for VGM
Questor share tip: Vatukuola is a small-cap play on high gold prices
Gold really has been the investment of the decade rising from around $250 an ounce to more than $1,300 now. With the US looking likely to start printing money again, prospects for the metal still look rosy.

By Garry White, Questor Editor
Published: 9:00PM BST 30 Oct 2010

Comment

The company is ramping up production at what was once known as the Emperor Gold Mine, which is on Fiji?s largest island, Viti Levu. Vatukoula Gold Mines

3.31p

Many libertarians believe the price will continue to go up as fiat currencies or monetary units that are not backed by gold devalue. However, Questor believes the best way to play the elevated gold price is through gold companies increasing production. One smaller miner based in Fiji is Vatukoula Gold Mines, and the shares are a new speculative buy today.

The company is ramping up production at what was once known as the Emperor Gold Mine, which is on Fijis largest island, Viti Levu. The mine has been producing gold for 80 years almost continuously. However, operations stopped when the gold price was low. It is estimated that the mine currently contains 4.3m ounces of gold and the company is targeting production of 100,000 ounces per year.

Vatukoula is also exploring the area surrounding the mine, which it believes is highly prospective for new gold finds.

Underground mining has a high-fixed cost base. This means that at a time of low production cash costs are high, but as production increases the cost of producing each ounce falls. In the 12 months ending in August, the cash cost for producing each ounce of gold was $664 per ounce. This should fall further next year as production rises.

The companys target for production in the last financial year was 50,000 ounces, announced in May. The company managed to surpass this and produced 59,658 ounces. In

the current year, it expects production to rise to about 25pc, moving towards our annual production rate of 100,000 ounces of gold per year.

Because underground mining is energy intensive, the company plans to build a wood-fired power station at the site to provide for its own energy needs.

The Fijian government is stable and supportive of the mine. Note the mining title has been held by foreign companies for more than 70 years. Vatukoula has a five-year tax holiday from the government, with royalty payments on gold sales being just 3pc.

The company has about 13m in cash and debt of about $400,000. The shares are not paying a dividend and, based on analysts forecasts, are trading on a prospective earnings multiple of just 4.1 times. As the company increases production, this multiple is likely to move higher as the shares re-rate.

The Aim-listed company is small, with a market capitalisation of 135m, and so it should be treated as a speculative play. However, Questor expects the shares to be re-rated as production increases and cash costs fall. There is also some exploration interest around the site in Fiji. The company is also expected to move into profit this year. Buy.

One thing that they don't mention is the 50 for 1 consolidation due on 8th November. Not that it should, IMO, put off prospective purchasers.

I wont buy them.

I wont buy them.

Check this out for background info
www.vgmplc.com