Vane Minerals Share Discussion Threads

[combo83] 08/11/2012 08:32

Perhaps Idaho is anticipated to be a more exploration-permit friendly region? They're probably as exasperated as the rest of us with the red tape in New Mexico. If it means less delays and more drilling results it's a good move.

[kooba] 08/11/2012 08:08

not sure why when we have umpteen targets already and mcghee peak where we are waiting to have the funds to diamond drill what we think may be commercial that we start diversifying...the problem with vane in the past has been that they couldn't resist amassing loads of assets [licences] that the company didn't have the wherewithall to explore let alone develope and i have been pleased to see a tidier model emerge.so somewhat surprised at the need for more targets for copper exploration being added....especially without any management comment on the reason why and the potential therein...lets hope we are not going back to bad habits and this really is something that was too good to refuse and will be all explained in due course.

[martin c-j] 08/11/2012 07:57

Way to go Idaho! Free spuds for everyone. Bit outside the area but at least they are trying.

[cerrito] 03/11/2012 15:34

From UK analyst
anyone have a copy of this?
Northland Capital kept its "buy" stance on Vane Minerals (VML) with a target price of 1.5p despite minor forecast downgrades to reflect the new profit sharing terms. The broker cites the non-inclusion of increased gold production for reasons to be more optimistic than these downgrades may suggest. Northland expects the group's joint-venture with Met-Sin in the La Rasta district to be in development in the fourth quarter of 2012 and production to commence in 2013. The shares dropped by 0.075p to 0.9p

[combo83] 02/11/2012 11:41

Cerrito, agree. I also had my concerns that there may have been tension within the JV with Vane taking 60% of profits until they recover 150% of capex. It seemed slightly unfair to Ruiz as the capex investment turned out to be ongoing. Whether that tension was real or imagined, I do think 50/50 is ultimately better for Vane and reduces the risk of the JV breaking up in acrimony as you put it.

Opal, yes it will be interesting to see which concession/s they have lined up for development and what grades they are anticipating, etc. I suspect the production costs per ounce will fall if the new mill is located centrally to the new concessions.

[cerrito] 02/11/2012 09:47

One of the risks that has been on my radar but I have not ventilated here has been the the Mexican JV would beak up in acrimony...easy to do but the way I have chosen to interpret this morning's RNS is that it is quite mature.
You are right Combo good to have some info on what is going to happen to the tpd mill and as you say opaldouglas in the last line of your 398 the issue of concessions not very clear.
I guess we need to defer judgement on Mexico till we see the financial six months plus from now and trust that the silver price stays at least $32.
We have to recognize that £ results will be impacted if relative strength of £ against $ of the last 6 weeks continues.

[argylerich] 02/11/2012 08:53

That was quick reporting, new man seems to be getting a grip.

[opaldouglas] 02/11/2012 08:34

Combo, that makes sense.

Hopefully Vane will release more info regarding programme for construction/start of production and exactly which sites Met Sin will be targeting initially etc.

[combo83] 02/11/2012 08:18

Opal it looks like they will start to develop the existing concessions in Q4 and feed that ore through both the SDA Mill and the new Met-Sin mill when it's constructed next year.

Not surprised Ruiz wants to construct the mill this time, probably to provide them with an excuse to renegotiate the profit sharing to 50/50. Still, a 10% smaller cut on an anticipated 100% increase in revenues is still good news for Vane. It's not quite the tripling in revenues we were hoping for -- assuming similar grades it would work out at 1.67x current profits, not bad at all.

Not having to invest capex in constructing Met-Sin is also good for Vane's cash position. However, it does seem to suggest that Vane's 200 tpd ball mill will remain in storage for the foreseeable future.

[opaldouglas] 02/11/2012 07:41

I anticipated Q3 revs wouldn't be great, but not that bad. On the plus point it looks like its only a blip and revs will pick up again for Q4 and beyond.

Bit unsure about the JV with Met-Sin, is this referring to Vanes known concessions or additional concessions?!?

[thinking] 02/11/2012 07:19

VANE announces expansion of its Mexican operations &

Mexico quarterly operations update - 1 July to 30 September 2012 ("Q3")

VANE is pleased to announce expansion of its Mexican operations and a quarterly update on its operations in Mexico.

Highlights

Joint Venture

-- VANE to commence development work on Joint Venture ("JV") mines other than La Colorada in Q4 2012, with the aim of bringing additional mines into production during 2013

-- Met-Sin (JV partner controlled by the Ruiz family) to construct a 100tpd (tonne per day) processing mill in La Rastra solely at its own expense, with construction expected to commence during 2013

-- Any excess production from JV mines, over and above that required to adequately feed VANE's existing SDA Mill, may be processed through the La Rastra mill, thus enabling production and JV revenues to increase

-- As a result of this expansion the pre-tax profit from the JV will be split between VANE and Met-Sin on a 50:50 basis (from the current 60:40 split) effective 1 January 2013

Quarterly Update on Mexican Operations

-- As expected, due to the processing of lower grade ore from Diablito in June and timing issues concerning revenue recognition, total revenue of US$1,385,889 was generated in Q3 (Q2 2012: US$2,772,286) (Profits from Diablito are 100% VANE as this project is outside of the JV)

-- 7,995 tonnes of ore processed during Q3 (Q2 2012: 8,105 tonnes) with average grades 5.36g/T Au and 105g/T Ag (Q2 2012: 5.70g/T Au and 127g/T Ag)
-- Average recovery rate of 76.8% Au and 76.5% Ag (Q2 2012: 80.6% Au and 77.8% Ag)
-- 979 oz. Au and 19,100 oz. Ag produced in Q3 (Q2 2012: 1,028 oz. Au and 22,147 oz. Ag) at a direct production cost of $802 per oz. Au equivalent or $14.5 per oz. Ag equivalent (Q2 2012: $763 per oz. Au equivalent or $13.9 per oz. Ag equivalent)

-- 62.6 tonnes of concentrate (Q2 2012: 63.1 tonnes) and 38.4kg of Merrill Crowe high grade precipitates held in inventory at period end
-- All gold and silver sold unhedged
-- VANE is confident that production grades and revenue for Q4 will increase and be consistent with results achieved prior to the Q3 rainy season

David Newton, CEO of VANE, commented: "The agreement with our joint venture partner provides VANE with a secure long term future in Mexico and enhances our ability to grow the joint venture business by increasing production in the medium term. The Q3 results for our gold and silver operations are satisfactory as they take into account one month's production from lower grade ore produced by our Diablito Mine resulting in operating expenses on two mines, but generating ore for stockpile to ensure against interruption in mill feed."

Revenues for Q3 were lower than in the prior period, partly due to timing issues regarding revenue recognition, as a large concentrate shipment was made at the end of Q2, and partly due to a month of processing lower grade ore produced from the Diablito Mine ahead of its planned closure. This production fed the Company's SDA Mill during the month of June and was recognised as revenue in Q3. This production facilitated the build-up of a substantial inventory of JV ore from the La Colorada Mine ahead of the rainy season, which can impact road conditions and therefore the ability of the JV to transport ore to the SDA facility on a timely basis. The Company is pleased to announce that this action has provided the SDA Mill with sufficient feedstock and ensured that there was no disruption from lack of ore during the rainy season. Mining of the higher grade ore remaining in the Diablito Mine referred to in previous updates is underway and is expected to be concluded within Q4, when the mine will close. The Diablito Mine is owed 100% by VANE so all profits arising from production belong to VANE and are not shared as per the JV agreement.

Kristopher K. Hefton, BSc Geology, Chief Operating Officer VANE Minerals plc who meets the criteria of a qualified person under the AIM Rules - Note for Mining and Oil & Gas Companies, has reviewed and approved the technical information contained within this announcement.

[opaldouglas] 26/10/2012 17:47

Well its been an interesting week! Lets see if any news is forthcoming next week.

[gazza102] 26/10/2012 11:54

Talking of Uranium. Have you seen the price. A bit low!!!!

At least this board has gone back to normal!!!!!

[martin c-j] 26/10/2012 10:52

A couple of interesting articles on the future for Uranium. May be some life in the old dog yet.

[kooba] 24/10/2012 22:26

Well we should be getting our Mexico quarterly update early November...last positive update was 9th August..but as far as I am aware copper programme is being paced to cash flow and uranium is almost mothballed...could be the McGhee peak diamond drilling is to commence if we have had a positive quarter with some good grades down Mexico way.

[christianf12] 24/10/2012 22:23

The 500k at 1.1p was a buy. It went through when the bid was 0.9p and the offer was 1p.

Nice deramping chaps, you must be desperate to buy first thing : ))

Reverse psychology eh : ))

Paying 1.27p end of day on a 1.15p offer.

Good luck getting some stock tomorrow. Even better, why not sell and help fill the buy orders?

[martin c-j] 24/10/2012 22:00

It wouldn't surprise me that the MMs work in tandem with the pump and dump crew. I think most small cap shares are fodder for manipulation. That being said VML are putting together a decent set of numbers consistently from Mexico, and hopefully they use those revenues to find some copper. McGhee Peak has some promise, and could be worth a lot of money.

ps And if someone is pumping and dumping then he has 2 million shares to get rid of that he bought at 0.9p. He's possibly unloaded 500k at 1.1p and is looking to unload the rest a little higher.

[velvetide] 24/10/2012 21:01

I see a cup and handle. Anyone for tea?

[doughboy66] 24/10/2012 20:41

Well i`m sitting on a big loss but i`m certainly not going to buy anymore in a hurry.

Hardly a volume in the grand scheme of things and i bet i find more copper in my pockets than VML will ever do.

I hope i`m wrong but ramp away :)

[christianf12] 24/10/2012 20:36

1.5-2p tomorrow judging by the trades and momentum and general lack of stoc available today : )

The long termers don't like newcomers making quick gains as they are sitting on big losses.

Time to average down lads before we are in the 2-3p range.

[combo83] 24/10/2012 20:32

Quite a few of the user names which have suddenly materialized are familiar from the TOP traders thread. Seems they have orchestrated a ramp imho.