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.

thanks harrycat looks good for 215p today

i see all the pi have left this to the long players don't be fooled by this share still has a long way to go this is a no brainer

Nice recovery!

bought back in last week at 1.95p am very happy to see this rise, back in the money again.,.

VGM looks cheap at 180p now.

it's not a stock i care for much, but i would not be at all surprised to see sp hit 200 dma ..... btw, only canaries go cheep!

and emu's, if it hits the 200 dma i'll have to stick my head somewhere dark......

up your arse - or does the sun from there?

Good rns, should be very busy by next xmas.,.

"We are very encouraged by the initial results from the drilling programme, which show further mineralisation close to surface and possible down dip and along strike extensions of the Vatukoula ore bodies. Our focus remains on developing the exploration potential of the mine to expand current production and we look forward to reporting additional drill results."

"The combination of extensive historical mining data, minimal exploration over the last 30 years, and modern exploration techniques provides an exceptional opportunity for Vatukoula to undertake exploration in the Tavua Caldera. Vatukoula is a world class gold deposit, with over 7 million ounces of gold produced to date, and a further 3.9 million ounces in Resources."

VGM is facing some difficulty now.

so i guess it wasn't that cheap at 180 then

Am 30% down on these , Tom W bought more for his gold fund at 100p and thinks they are a long term hold. That was before the latest update.

I'm very down :((

110p... looking very grim... could go sub 100p.

re post 408 - i shall very unkindly say that only those no-brainers bought ...... sorry bb, hlyeo and aldo

made me good money in the past but agree should have sat on hands.,.

Excelent write up on VGM in last few days by Ross Jones of Scrazy. Show the Company to be very cheap going forward.....



Buy Vatukoula at 91.125p
Says Ross Jones of t1psim.com

We own a shed load of these shares in our fund I declare this at the start. We are damn glad we hold them as they are dirt cheap. Let me also declare that! However, the share price of Fiji focused miner Vatukoula Gold Mines has been in the doldrums as of late. The last six months have seen the miner come off a high of circa 225p to where the shares currently trade at 91.125p, valuing the company at just 85.4 million. A trend of disappointing short term production downgrades and swollen costs associated with longer term focused mine developments coupled with a surprise ( if relatively small) placing at 125p, has seen solid downward pressure on the share price which simply does not reflect the fundamentals of the outstandingly strong long term bull case.

Our view is that the price weakness is a great opportunity for the long term investor and hence we have bought more at these depressed levels and here is why.

Forecasts for full year Gold production has been consecutively revised down over the last two quarters and for the current year to August 31st the management has now provided guidance of 55,000 ounces having produced 41,487 ounces up to the end of Q3. The company is paying the price of over promising and under delivering but has focused itself upon accelerating its long term mine development aimed at enhancing production capacity. In the short term this has seen lower than forecast grades processed and costs become swollen, but in the long run should position the company well to hit its target 100,000 oz output level. We reckon it will be shooting at that level by early 2012.

The stock market does not treat short term disappointment well and in this transitory period leading up to full output there is scope for continued share price weakness here. But once target output is reached, at 100,000 ounces ($1,500 Gold) and forecast costs per ounce of circa $880 Vatukoula will be generating free cash of 39.1 million. With insiders recently buying reasonable amounts of stock at 110p (CEO & Chairman) and Vatukoula currently trading on a projected multiple of just 2.2 the bad news, and disappointment are more than discounted here. The long mine life and potentially economically attractive exploration upside provide further justification for investment here. The current share price weakness should be seen as a buying opportunity.

I would add as a potential bonus that there is no reason why output could not be hitting 130,000 oz by the end of 2012 as some higher grade open pit deposits near the main mine are exploited. That would alter the maths materially both by increasing output but also by reducing unit costs by (perhaps) $100 oz. Moreover the company is also working on a biomass fuel provision system which could be onstream within a year and would cut cash costs by $140 oz. And finally, we think that gold is heading a lot higher than $1500. You can play with the maths yourself but under some circumstances this company is now trading on a cashflow multiple of little more than 1.

Ross Jones
www.t1psim.com

13/07/2010

Is it a case of " well ,he would say that " being paid and working for Tom Winnfirth's GOLD Fund who's largest holding is VGM

VGM third biggest holding in Winnies successfull Gold fund........

Top 10 Holdings
Stock Name Fund %

Ascot Mining 7.85
Great Panther Silver 6.21
Vatukoula Gold Mines 5.89
Hambledon Mining Plc 5.54
Ariana Resources 4.88
First Majestic Silver 4.57
Athol Gold 3.46
Angel Mining 3.26
Romios Gold 3.18
Sovereign Mines 3.11

http://www.t1psim.com/pdf/Gold%20Fund%20Issue%2027.pdf

Not a big fan of Winnies but he does seem to get most of his miners right these days.