Vatukoula Gold Share Discussion Threads

[janyboy9] 19/3/2012 10:40

...I HOLD IN MY HAND REASSURANCE FROM VGM THAT ONE DAY WE WILL SEE A PROFIT









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[p3dr036] 19/3/2012 10:34

Slow and steady is the way!
Some light at the end of the tunnel - but it is a long tunnel.

Hopefully we will get near to 65,000 ozs gold output by year end. While, I would not be surprised to see a short fall, anything over 60,000 ozs would be good I feel.

[janyboy9] 19/3/2012 10:30

...........D PAXTON.........



GOLD JAM BIOFUEL PROFITS.. ALL COMING TOMORROW
.........BUY NOW.............................





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[kibes] 19/3/2012 10:25

'Power issues: Vatukoula is to partner with the Fiji Sugar Corporation on a biomass power project. Power from this plant could significantly reduce power costs for the mine replacing much of the current, expensive, diesel power production.'

Dream on! When will be the next placing to help pay for it I wonder?

[pro_better] 19/3/2012 10:18

FAIRFAX 19/03/12


Vatukoula Gold Mines report rising gold production for the three months to end Feb in this Q2 operational update

The mine, in Fiji, reported a Q2 profit £0.9m versus a loss of £2m for Q2 last year.

The company reported gold production of 14,315oz for the three months to end Feb up from 13,868oz a year earlier.

Cash production costs of $1,419/oz show improvement on the $1,530/oz seen last year.

Grades improved significantly to 2.34g/t within the oxide circuit.
Recovery rates fell to 78.85% from 81.9% yoy.

Better grades and probably better grade control appears to be making a significant difference and have held down cash costs through the quarter.

The company appears on track for production of 65,000oz for the full year.

The key issue considered by the market at present is that of underground development. The mine needs sufficient working faces to maintain its target production rate. A lack of available production faces previously held production back in the past but is being rectified by the team at Vatukoula.

Expansion of available production faces should help the mine to raise gold production to its future target of 100,000ozpa in future years.

Power issues: Vatukoula is to partner with the Fiji Sugar Corporation on a biomass power project. Power from this plant could significantly reduce power costs for the mine replacing much of the current, expensive, diesel power production.

Cash costs will be determined by diesel power costs and by management control on head grades and mine related costs.

Conclusion: The rise in gold production through the quarter is impressive and the management control of costs seems to be having good effect. While rising oil prices are likely to raise costs over the next few months, better management of the mine should offset much other cost inflation. A reduction in oil prices could lead to a significant increase in margins as the company starts to open up new areas of higher grade gold production.

[phillis] 19/3/2012 09:57

VGM has always run at a loss
Previously it capitalised "development" expenditure which if written of as incurred would have meant losses
It was all magicked away as an an exceptional

[janyboy9] 19/3/2012 09:20

smarm - 19 Mar'12 - 08:11 - 1322 of 1324

"Will that ever get built? Where is the money coming from to build it?"

...............................


GOOD POINT --- BUT IT HAS ALREADY BEEN PAID FOR !!!!!!!

BUT I BET VGM THINK YOU HAVE FORGOTTEN (LIKE SMARM HAS)AND DO ANOTHER PLACING TO GET MONEY FOR THE BIOMASS PLANT (AGAIN)



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Placing Announcement

RNS Number : 5430H

Vatukoula Gold Mines PLC


31 May 2011 AIM: VGM

Vatukoula Gold Mines plc


Fundraising of GBP6 million to fund Asset Development and Biomass Power Plant


Use of Proceeds


Part of the funds raised will be used to fund the biomass power project. Indications from the FSC indicate that the biomass project will be commissioned in 2012 and will provide between 10 and 15 Megawatts to the Vatukoula Gold Mine. Based on the initial financial model for the project, we estimate the project will reduce our cash costs per ounce by up to US$ 140.

David Paxton, CEO of Vatukoula Gold Mines, commented:

"We are pleased to announce the GBP6 million placing that will allow the Company to fund the development of our asset and also fund the biomass power project. The development program is a key part of our long term strategy, and the Management believe this area of focus holds significant potential for the future of the Vatukoula mine. We will keep our shareholders informed with our progress of this key development program."

[kibes] 19/3/2012 09:16

Well I'm not buying back into this on that news. They are producing 60,000 oz but only just breaking even. As usual they are talking about 100,000 oz but I have given up believing that. And reducing power costs with sugar production? They are just grasping at straws. At this production rate they are not worth anything like 70p in my opinion.

[fangorn2] 19/3/2012 09:07

Cheers Paulo.
Fingers crossed that these guys can turn it around.One hopes all this devlopment work will be worth it.

[paulo92] 19/3/2012 08:46

Fang, I believe the costs are so high because the development work is affecting the average grade processed, i.e. they are shifting a lot of material to open the stope availability. The RNS quotes that they are at 550sqm and they need 1000sqm to hit the 100kpa target. This figure could be an interesting one to watch as we move forward.

All in all a very lukewarm response from the market...

[fangorn2] 19/3/2012 08:34

Out of interest why are costs still so high - is it the impact of the development work only or are other input costs(Labour for example) higher as well.

Given this is Fiji we are talking about why aren't costs similar to those of say MML , in the Philippines?

[chinese investor] 19/3/2012 08:06

No surprises.

[janyboy9] 19/3/2012 08:00

SUGAR ARE YOU SURE ????????????VGM SHOULD FORGET GOLD AND GO INTO SUGAR CANE PRODUCTION



................................................





FROM FT



Sugar soars to 30-year high as supply fears grow
By Jack Farchy in London
The price of sugar has jumped to a 30-year high as the Brazilian harvest has tailed off sharply, hardening expectations of a shortage.
Traders believe that prices could soar over the coming months as the market faces a supply shortfall driven by smaller-than-forecast crops in important growing countries from Brazil to Russia and western Europe.

In depth Global food crisis
Sugar suffers biggest sell-off in 30 years
Traders warn of further sugar volatility
Sugar merchant forecasts jump in demand
Indian crop doubts send sugar soaring

At the same time, inventories are at their lowest levels in decades. "All buyers we see are buying on a hand-to-mouth basis," said Peter de Klerk of Czarnikow, the London sugar merchant.
That has pushed prices up sharply, with raw sugar futures in New York soaring 135 per cent from a low of 13 cents in May.
On Tuesday ICE March sugar rose 4 per cent to a peak of 30.64 cents a pound, surpassing the level reached in February and rising to their highest point since 1980, when prices jumped to nearly 45 cents.

[ross k] 19/3/2012 07:51

The way I read it there down, Smarm, allbeit small.

[smarm] 19/3/2012 07:48

But costs rising again and gold price falling. Looks precarious until they get the sugar plant up and running.

S

[cockney sparrow] 19/3/2012 07:15

VGM RNS Shows a healthy profit. great.

[nielsc] 18/3/2012 21:37

Charleyduck,

Yes I've probably read both those bits, but hadn't remembered reading that huge post. Very good. I too stuck with VGM as they fell, but finally halved my holding around 140p. I doubled up again at 70p and added a few more last week.

Hope Q2 shows VGM are on track for their more cautious target.

Cheers,
Niels

[charleyduck] 18/3/2012 20:00

By way of explanation for the long post of mine posted above by yanzui. I did it for the Motley Fool site because VGM was my pick for their 2012 competition (you have to justify your pick by the end of Feb at the latest).

I did not post it here as I believe most of you know all that detail – but equally, I do not mind that yanzui did so – and thanx for nice comments.

Yes Niels, you will have read the stuff about the indications of a turn round before – it was in my post on Chipperfrd's gold stocks thread on 14th Feb. Yet another bit was from my post 10596 earlier on this thread, you may have read that before too !! – so lots of cobbling together !!

The 10596 post, on the 23rd February, was the rationale behind a half year split in the order of 30k ounces for this half and 35k ounces for the second half being evidence of VGM's continuing recovery.

14,500 ounces for Q2 would take us just over the 30k and this would demonstrate VGMs recovery was still on track.

Of course I would like it to be more than that – next week we will know - GLA

[kemo4] 18/3/2012 19:54

yanzui - thanks for this excellent post - a fair a balanced assesment. Although I think this H1 production will be arounf 30,000 ounces with the balance being done in H2.

[nielsc] 16/3/2012 14:57

blik,

Hopefully VGM management will be nursing the share price back to full health
shortly ;-)

Cheers,
Niels

[blik] 16/3/2012 14:54

Patience! This isn't a hospital!!

[blowitall] 16/3/2012 11:59

Thanks Yanzui for the post.
Keeping fingers crossed that we really are about to see the profits of our patients...not before time.
Keep the faith!

[stodgy88] 16/3/2012 11:42

i agree -thanks.