Vane Minerals Share Discussion Threads

[martin c-j] 13/5/2013 12:20

I just listened again to the Minesite presentation posted by josephrobert, and it leaves me scratching a large hole in my head, trying to understand what has gone wrong since May last year. Firstly, all exploration has stopped. That is for both copper and uranium. Secondly the new chief exec has decided to leave after just over a year at the company. Whether he was pushed or he jumped we don't know. I think he has been good for the company and am sorry to see him go.

On the plus side, mexico continues to produce revenues and they are processing more ore than ever. On the minus side, grades are lower and direct costs are higher. Curiously, the amount of precipitate in inventory has remained exactly the same for 3 quarters. Does this mean the Merril Crowe unit is not operating?

It is clear the company is preserving cash, but are they adding to their cash reserves or just treading water. The much delayed full year results in June will tell us all. I thought Vane had turned the corner with their maiden profit in the interims last september. But since then they have lost their way, and given shareholders much cause for concern. Wish I knew what was going!!

[thinking] 13/5/2013 09:17

I also think its a positive update, confirms consistent production only variable is quality and price which is not in their control and have to agree that it could have been worded more positively and punchy, its almost 'by the way' we ahave done this......

[gazza102] 13/5/2013 09:01

Martin agreed. They normally say pleased to announce... Not this time

They could try to be a bit more positive...

[martin c-j] 13/5/2013 08:34

I don't think that's a bad update. Really just shows they are consistent in production and still making money. Surprised there wasn't more of a bounce in the share price.

[thinking] 13/5/2013 07:38

VANE Minerals plc (AIM: VML)

("VANE" or the "Company")

Mexico quarterly operations update -- 1 January to 31 March 2013 ("Q1")

VANE announces a production update from its gold and silver operations in Mexico which are operated by its wholly-owned subsidiary, Minerales VANE S.A. de C.V.

Highlights

-- 1,139 oz. Au and 19,380 oz. Ag produced in Q1 (Q4 2012: 1,154 oz. Au and 17,830 oz. Ag)

-- 8,697 tonnes of ore processed during Q1 (Q4 2012: 7,856 tonnes) with average grades

5.62g/T Au and 97g/T Ag (Q4 2012: 6.36g/T Au and 96g/T Ag)

-- Average recovery rate of 78.4% Au and 77.1% Ag (Q4 2012: 79.5% Au and 77.7% Ag)

-- Total revenue for Q1 of US$1,924,656 (Q4 2012: US$2,411,318)

-- Direct production cost of $782 per oz. Au equivalent or $14.5 per oz. Ag equivalent (Q4

2012: $688 per oz. Au equivalent or $13.2 per oz. Ag equivalent)

-- 38.3 tonnes of concentrate and 38.4kg of precipitates held in inventory at period end (Q4

2012: 34.9 tonnes and 38.4kg of precipitates)

-- All gold and silver sold unhedged

Revenues for Q1 were in line with the guidance previously announced. All of the revenue generated in Q1 originated from our joint venture with MET-SIN.

Costs of production increased from those in Q4 2012 due to the cumulative effect of temporarily lower gold grades from ore produced while completing mine development work, decreasing metal prices, and the impact of foreign exchange due to the appreciation of the Mexican Peso against the US Dollar. Gold grades have now improved since completion of development work post period end and these should be reflected in the results for Q2 2013.

Commenting today, David Newton, CEO of VANE said: "The increase in tonnes of ore processed is encouraging and demonstrates consistency of production. Despite the recent decline in commodity prices, we are confident that our Mexican business will continue to make a positive cash contribution."

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

[josephrobert] 11/5/2013 20:16

Presentation of Uranium from May 2012 worth reviewing imo - starts @ 7mins

[martin c-j] 10/5/2013 11:49

Here's a link to Energy Fuels website with their latest set of results and news of permitting for their second mill. They are the only game in town for uranium in the USA, and really hold all the cards re VML's uranium portfolio. VML can no longer count on any help from their JV partners Uranium-1.

[spaceparallax] 10/5/2013 10:15

VML have long been guilty of having fingers in too many pies.

[martin c-j] 09/5/2013 10:06

I don't see why they couldn't find a buyer for Wate. It is a proven breccia pipe and is a long way down the permitting stage. The White Mesa mill will need a regular supply of ore from nearby resources, so why wouldn't they buy Wate. Or at least take over permitting and give VML a share at a later date. I expect they will do the latter with something like $250,000 in cash. All in my wildest guess/opinion.


The biggest cash drain for VML is the annual fees on all those uranium licenses and targets.

[kiwimonk] 08/5/2013 17:47

joseph, yes.

[josephrobert] 08/5/2013 12:46

Yep, little interest at the moment. The difficulty I think is ascertaining a value to the uranium assets. There is some help from a presentation illustrating the expected size of waite, at the end of 2010 if memory serves. The problem is that the uranium price is a lot lower than it used to be, on the other hand it is above the cash cost. There are a few other sites mentioned by name and a lot of licences. While it would be worthwhile looking back and finding out what vml bought the licences for, it would also be interesting to see how much similar transactions are going through at. Picking figures out the sky would a figure of 15-20, 000usd for each, plus a deal more for Waite, and maybe somewhere between for some other licences? Would our uranium licences then be worth more than the current total market cap?

[martin c-j] 08/5/2013 09:09

Interesting mark down from Shore Capital this morning on no volume at all. Might see some sells going through later on, but nothing happening at the moment.

[josephrobert] 01/5/2013 13:31

Some nice price action going on. The combination of an indication of shareholder value being crystallized in yesterday's news, the technical picture and investor board apathy in tandem looks favourable imo. Remember there was a director who bought 200000 pounds worth of this stock some time ago; must have been a reason to sink that much cash in such a small stock.

[josephrobert] 30/4/2013 13:51

My view is that promises haven't been delivered, and that's why David Newton is out. DN didnt have the background to deliver and imo didnt have the credibility required. I assume he was brought in to facilitate a Corporate Action, that never happened. I think the directors also need David to go because of the vulnerability to cash as outlined today. On the other hand he could have done the uranium deal, and it is about the small print. The wording if today's news may suggest that is correct. They dont need DN for the minutiae, or to manage such a small company. Selling assets they don't get cashflow from and can't develop seems a no brainer for a company with a little cash on the books. I couldn't tell how much the uranium is worth, but Waite is worth something, the rest I guess not much more, perhaps a recent broker note can give some guidance? Personally I would suggest, at cash flow neutral, this company is valued at cash, plus listing, plus exploration knowledge. Not uranium asset(s). No real value for copper assets, a little for the gold.

[gazza102] 30/4/2013 11:18

Combo - Surely a bit more than their Market cap!!!!!

[combo83] 30/4/2013 10:25

My initial interpretation is they are going to wind down the company, sell their assets, and deliver the proceeds to shareholders. The question is how much they will get as they are not in a strong position to negotiate a good deal.

[kemche] 30/4/2013 10:05

Unmitigated disaster. The volume yesterday was "canny" to say the least. Not suggesting even for a moment that those who dumped may have gotten a whiff of what was on the offing today of course. Leaves us with the day job of donning our rosy specs (now covered in excrement) and dusting off the tried and tested "upside arguments" - databases, umpteen thousand years of experience, copper and uranium "assets", supposed cashflow etc. So we have tried the ex city boy, the "independent" research, talk of elephantine deposits, forays into copper, uranium, gold and silver - what next.
Why are they not knocking down our door for the U and copper assets one may ask. Funding for resource tiddlers is effectively non-existent especially for one with such a successful record as Vane. That leaves the court case (and we all know the speed with which these things progress)and the divestments (having already been told that will take some time - quelle surprise!).
And so as Marley would say we continue to "Wait in Vane".

[gazza102] 30/4/2013 09:52

Cerrito - You could well be right re Auditors and you also Katsy.

[cerrito] 30/4/2013 09:43

One has to ask oneself why they are having to delay until June publishing their 2012 financials given that iut is such a simple operation; they give pretty good trading updates but one wonders if they are having issues with their auditors.
There was a slight fall in the silver price in the first quarter but the average would have been $30+ so the real pain will come in the second half-I see that as of now the price has recovered somewhat to $24+

[knowing] 30/4/2013 09:29

So now worth £1.88M based on

-- 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)

Could be a good trade available

[dropside] 30/4/2013 09:21

opaldouglas - the court case and the potential damages may become the strongest reason to invest here, until they sort out the uranium sale, the copper and Mexico.

[gazza102] 30/4/2013 08:48

priced to go bust and its looking that way. Very negative RNS. Why??? At least try and put a positive spin on it.