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.

Glad to see these creeping back up, got greedy and bought at wrong time.,.

Actually going up today!

This is a disaster now - 70p

It's all a disaster :((

solg and eog are similar stocks that some promoted as being the next sliced bread

A well respected Pi has just bought in,so took a look and came up with this interesting post.


My Dad's (ex geologist) take:-

This is a worldclass deposit that has produced 7m ounces of gold so far and still has a resource of over 4m ounces with recent exploration pointing to more to come. Reserves of around 800k ounces, sufficient for the next eight years will be increased with infill drilling and new access from the inclined shaft now being developed from 18 to 21 level.

The mine closed due to high costs in 2006 when the gold price was circa $600. Final days struggling meant no development or maintenance and they resorted to highgrading around one of the shaft pillars which damaged it. Assume the price required for disciplined mining at reserve grade as a profitable going concern was 20% higher say $720. Now inflate that at 5-6% compound per annum to 2012 gives an equivalent gold price of around $1000 an ounce. (Not the suggested possible $800 from the ever optimistic management.) That kind of reduction can only occur in about three years time when the new green electric power station is up and running. So by year end august 2012 they might be approaching the long promised 100k ounce annual output at a true cost coverage rate of circa $1000 ounce. Meanwhile at a goldprice of perhaps $1800 and rising there should be $80m surplus at last. Allocate $25 for tax $30m for growth and exploration and $25m for a dividend to long suffering shareholders. If such dividend was 5% of market cap, then that cap would be $500m or £323m over five times the present sorry level of £0.59. It is clear that only gold price optimists would invest in this risky high cost producer but one does not have to be a raging goldbull to see attractive upside possibilities and very little downside left!


The management must be told to stick to their knitting and fully explore their fijian leases BUT NOT TO WASTE SHAREHOLDERS FUNDS EMPIRE BUILDING IN OTHER LANDS! There are many years life left in Vatukoula and shareholders can reallocate their dividends if they so desire as can management holders. Other valuation parameters; at todays market cap $91m resource ounces are valued at $23 per ounce few significant longlife economic deposits are being uncovered today as cheaply as this, then you could not build a new mine at such a small cost. UK mining analysts tend to be over conservative in their longterm gold price forecasts having been consistently wrong for the last ten years, on quite reasonable forecasts this mine can be very profitable again. Finally one has to hope that promoter Paxton has taken a leaf out of Peter Hambros book and is now under-forecasting this years 65k ounce output.


There is a new mine management team in place and development must be opening new stope faces by now, if they can make a slightly better job of sorting ore from waste, and putting higher grades through the mill the future will be bright. Q1 15.5 Q2 16.5 Q3 18 Q4 20 m ounces would get us to 70m ounces fingers crossed. There still remains the tantalising potential for new discoveries both within the mining lease already revealed and in the surrounding ground along the caldera rim. The best place to look for a mine is near a large mine.

Also this from Kingworld.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/20_London_Trader_-_We_are_Witnessing_a_Historic_Bottom_in_Gold.html

sold all of mine today , this is one of tom winnfirths favourites bought KMR with the proceeds

VGM is too cheap now at 60p... BUY

you must be joking!

Flooding in Fiji , maybe that's why they seem cheap ? but not if the mine as been effected by the heavy rain.

malaise looks much more than just some short term flooding

50p should be the bottom... not a penny less. Good buy.

Wouldn't touch it above 40p.......sub 40p and might be interested.

some twit went back in when he'd already made a profit on this one and now has to sit on his hands and watch.,.

not even an emu would do that .... must be a real knobhead

Told you so Cynic, ok just 50% right

Accident and rain hit Vatukoula gold mine

StockMarketWire.com

Shares in Vatukoula, the Fijian based gold producer, have fallen nearly 5% amid speculation of excessive water ingress at the company's Vatukoula gold mine.

Due to the effects of the recent heavy rainfall in Fiji, the country's infrastructure has been impaired. As a result some of the company's employees who live outside of the Vatukoula and Tavua communities have been unable to attend work or have had to attend to their homes.

Ingress of water into the mine has rendered some minor areas inaccessible but otherwise production areas remain unaffected.

On Sunday evening water ingress into the Smith Shaft carried debris into the shaft which at the time was transporting 11 miners in a man-riding cage to the underground workings and in the process causing minor injuries. All of the injured miners were taken to the neighbouring medical clinic.

David Paxton, CEO of Vatukoula Gold Mines, commented: "To date, we believe that there has been no material effect on the production forecasts as a result of the ongoing rains or the minor accident in the shaft."

At 10:15am: (LON:VGM) share price was -1.25p at 53p

Well, it's not too bad, just a bit of rain.

That's what Noah said!

30p now... what a disaster.

They need a big umbrella!