Vast in 1% club...?11 Jun 2022 01:59
I want to remind those few that hold vast shares, what they actually hold. 99% of exploration companies are set up as lifestyle companies to benefit those that set them up. Most never even drill a hole. Some actually do drill some holes. most find nothing. Those that are lucky enough to have found something, would have diluted you to death, along the way. (normal practice IMO) those that have been lucky to find something, will never have the money to bring them to production, They have to find a Major to buy the asset. Now lets look at Vast: They Have an asset at BP. The6 have a plant set up and running. They Have been working away for the last 18 months, ironing out any production problems they come across. (normal practice). Now they are about to start the ramp up in earnest, within days / weeks imo. Vast are most likely in the 1% club of mining companies that have got to this stage. It's not a massive asset, it has to be said. But saying that, Vast have other assets that are are on the go and will be earning (profitable) monies this year. But they are still in that 1% club. Not only that they have a Market cap of just £12-13 million fully diluted, with money in the bank for the first time in a long time. Yes this company has been going for many years, under other management. Yet the Market cap is still only £15m. With all that past dilution, and AP getting a mine up and running, is in itself a miracle. This is information that anyone thinking of investing in a commodity of any type should take note of. Most are not like vast and wont become one of the 1% club. You will have to wait more than a few years to see results. Most likely 5/10 years plus, from start of exploration, to the ramp up its self. Also many many tens of millions of pounds.If not hundreds to billions of pounds, all depending on the size of the assets. You are delusional if you think you will not get diluted, at some point along the way. With hindsight its best to wait until that company gets to the stage vast are at now. But you will normally have to pay a massive premium to get in. Not here though... research this (both good and bad bits), look at the rns and decide for yourself.. I have, and will top up in reasonably small qtys until the inevitable re-rate arrives.. I'm not saying it will be days, perhaps a few weeks, but imo it will come..
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