Vatukoula Gold Share Discussion Threads

[chinese investor] 19/2/2014 09:16

Will The Price Of Gold Go Up Today ?

[chinese investor] 17/2/2014 13:50

China's "unfolding credit crunch" is having an unforeseen and dramatic impact on gold prices as investors urgently stock up on the precious metal as a form of financial protection against a sharp correction in the world's second largest economy.


This is the main reason why gold prices have unexpectedly shot up more than 10pc to breach $1,300 (£776) an ounce for the first time since November against the prevailing forecasts for weaker demand made by many industry experts at the beginning of the year, according to Adrian Ash, head of research at gold trading platform BullionVault.com.


Gold traded on the Shanghai Gold Exchange has also reached a three-month high.


Rebounding is part of the reason for the rise, said Ash, adding: "Gold lost 30pc and silver nearly 40pc last year. The world economy will struggle to deliver all the good news priced in by that crash. But China's unfolding credit-crunch looks central right now."


Uncertainty is growing over China's ability to sustain the rapid rates of economic growth it has seen over the past decade amid concern over high-levels of debt among its provincial governments. These concerns have helped to drive sharp falls across emerging markets since the beginning of the year.


Ash argues that capital flight is happening at a rapid rate in China because of the $1.8 trillion of funds that have flooded into unregulated, non-bank "wealth management products" which offered very high yields, up to 17 times as much as cash deposits. It is feared that many of these funds are now trading at a loss, setting up a crunch moment for China's economy.

"Bullion traders never knew before what would happen to prices if China hit trouble," said Ash, "because we've never before seen Chinese demand plumbed into the world market so deeply. Its jewellery buyers, together with rising mining costs worldwide, helped finally put a floor under gold in 2013. But while that kind of consumer demand will never drive prices higher, capital flight by wealthier households and Chinese money managers certainly can."

According to Ash, the first default which could be a sign of China's credit bubble bursting was reported two weeks ago when a $50m coal-mining bond failed to repay investors on maturity. He says that about $875bn of other such products are due to mature in 2014 and that Beijing has few answers available to tackle the problem.

"Gold's 2014 rally had been steady before, far quieter than the rebound from last spring's record crash," he said. "But rising for seven of the past eight weeks, something it hasn't managed in two years, gold has now risen for six trading days running. That's a very rare move, last seen when gold neared its peak above $1900 during the euro crisis, US debt downgrade and UK riots of August 2011."

Meanwhile, uncertainty continues to surround a 500-tonne discrepancy in China's gold import figures and its domestic supply. The unaccounted-for Chinese gold has helped to fuel market speculation that the People's Bank of China may be stockpiling, or that bigger volumes are changing hands on the grey market as a hedge against financial turmoil.

However, other brokers have said that the rise in gold prices last week above the commodity's 200-day moving average was mainly because of the fall in the dollar against a basket of other currencies. Commerzbank said that SPDR Gold Trust, the world's largest gold exchange-traded fund, raised its holdings above 800 tonnes of the precious metal for the first time.






According to Gold Money, bulls also returned to the market after Janet Yellen signalled that the US Federal Reserve will continue to prune back its stimulus measures. "Western buyers and vaults are now back in the frame amid the more bullish market sentiment," said Roland Khounlivong, head of dealing for the broker.

[chinese investor] 17/2/2014 08:12

Good Start !

[chinese investor] 14/2/2014 15:06

$120 oz increase in the Price of Gold this year.

That's £4 million (50,000 * £80) increase in Annual Profits....
....or decrease in Annual Losses !

[124asd] 14/2/2014 13:26

Atlantic - Yes you are right about the Chinese... No doubt they will keep him on his toes however I don't think that he deserves the chance after his incompetence.

Production guidance isn't important as they have never given an accurate guide. With all the investment they should finally be in a good position to grow.

[atlantic57] 14/2/2014 11:56

124 The Chinese investors are now on board at board level so maybe just maybe Paxton will have some one looking over his shoulder.

I am not interested in production guidance !

a) Let us see how the latest 'plan' works out in terms of actual production.

b) The price of gold is of course very significant.

[chinese investor] 14/2/2014 11:51

Looking Good !

[124asd] 14/2/2014 11:10

Why do we need a head office in London? I suppose that Paxton likes being in Jermyn St so he can buy some shirts for when he goes on his holiday to Fuji. Wouldn't it be a good idea for the directors to take a cut in salary in line with their performance...

What does Paxton actually do apart from raise money at a time when the shares are at an all time low? That surely takes some skill... You have to wonder where his interest lie don't you think, because he has done nothing for long term holders.

[chinese investor] 14/2/2014 10:22

I've Done Some Calculations !

Loss On Extraction For The Last Quarter Was $(80 * 11,400) = $900,000 (i.e. £600,000).
Total Loss Was £4,000,000.
The Difference, £3,400,000, was Head Office costs. Exchange Rates Etc.

For The Current Quarter :-
Gain On Extraction Could Be $(250 * 12,000) = $3,000,000 (i.e. £2,200,000).
So We Could Still Be Making A Loss !

[fangorn2] 14/2/2014 09:42

VGM still wont be making a profit though....

[chinese investor] 14/2/2014 08:22

$1,350 oz Next !

Chinese Investor (VGM) 10 Feb'14 - 09:09
$1,300 oz Soon !

[atlantic57] 13/2/2014 13:35

124asd This is indeed a world class resource so as you say if gold goes north the potential is there!

With a much higher gold price even at current levels of production the current market cap is ludicrously low.

It will be some months before we can assess whether Paxton can indeed oversee a turn around in production targets.

However Given Paxtons Record we will have to wait and see!

[chinese investor] 11/2/2014 16:40

Looking Good !

[atlantic57] 10/2/2014 15:01

Chinese Vgm unless the gold price rockets has a lot do in my view!

1) Paxtons record is one of sustained Gross incompetence ! The share price was £2.40 but he waits till it has dropped to 6 p before doubling the shares in issue.He is still in charge.

2) There have been a number of mine initiatives in the last few years all have failed.
Will this one succeed ?

3)We are still waiting for the final 20 million dollars to come into the Companies coffers so the development work has to yet to start.

[augustusgloop] 10/2/2014 13:23

With POG @ $1,300 and 45,000 oz production per year - I would expect losses of £10m or more.

POG $1,500 and 60,000 oz production is probably about the minimum required to realistically cover all costs and keep at a decent level of development.

[chinese investor] 10/2/2014 09:09

$1,300 oz Soon !

[chinese investor] 05/2/2014 09:22

So 45,000 oz is the New Annual Target - far more realistic !

[atlantic57] 05/2/2014 08:53

Act123 ThE Company do not appear to have any understanding of the geology of the mine. The KEY INDICATOR WOULD APPEAR to be the grades but the Management seem to be hoping that these will improve.

Yes the share price should rise from these levels but i suggest Chinese adjusts the header.

Unless the gold price explodes ie above 2300 dollars an ounce i would have thought 25 was a realistic target.

[mmelody] 04/2/2014 13:58

POG irrelevant here. They'll bleed it dry. I'm out and off...

[atlantic57] 04/2/2014 13:57

Chinese it is dangerous to fall in love with a stock!

If the gold price goes up then clearly there is a potential for vgm price to rise even at 50k per year which basde on their recent record is all that they are capable of.

However given Paxtons record which at best would be described as gross incompetence i would not bank on it.

[chinese investor] 04/2/2014 10:39

"Another major factor influencing the gold price is China's strategy is to make its Renminbi ("RMB") freely exchangeable and as an international reserve currency.
The Chinese government has been preparing for this since 1996 when China made RMB exchangeable under current account.
To achieve its goal, China would have to substantially increase its current gold holding of 1,054 tonnes, which represents 1.2% of China's total foreign reserve of US$3.662 trillion in September 2013.
In comparison, gold holding accounts for 50% to 70% of foreign reserves for the US and most of the European Union countries.
In order to increases its gold holding to the global average of 10% of foreign reserves, China needs to acquire an additional 7,706 tonnes gold, in par with the US gold holding of 8,133 tonnes."

[stevea171] 04/2/2014 10:17

Perfect summary of past plans coming to nothing every year ....

"Often, but not always, forward-looking statements can be identified by the use of words such as 'plans', 'expects', 'is
expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'believes', or variations (including negative variations) of such words and phrases, or state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of VGM and/or its subsidiaries, investment assets and/or its affiliated companies to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements."

[stevea171] 04/2/2014 09:35

Complete basket case!

How is it Paxton is still there after more than 5 years of unmitigated disaster leading to more disaster?

What happened to the Cayzer Prince high grade gold deposit that was supposed to have been developed with mining commenced yonks ago?

Not 1 mining area that they develop do they ever mine successfully. This has been going on since the mine restarted. They keep moving the goal posts every year with no explanatuion of why the last plan didn't work and why they are starting off on new plan x spending vastly more money. $40 million on this latest plan with shareholders diluted to nothing. This has been a bottomless pit that this company pours money into and at the same time lines the pockets of all execs and non-execs.

Zero mining competance, zero credibility.