Member Info for perroverde

Yep. That’ll do nicely. And great to hear them already talking of commercial mining (open cast). Sounds like Johnno and James are going mining!

https://soundcloud.com/armchairtrader/net-zero-infrastructure

Jonny I don’t have time or inclination to argue the toss but don’t disagree that it’s big and it carries risk, not least re Vast’s ability to fund even the relatively small amounts required to buy it and get it moving. However personally I believe it has massive potential. It’s going to be v interesting to see what happens.

I know I'm a lone voice in the wilderness in thinking that Ghaghoo may be rather better than just someone else's black hole problem child, but I urge folk to have a watch/listen to this new video/podcast by BOD/James Campbell which gives a very interesting overview of his views on it, plans for it and its potential - from 12.02 onwards for those not interested in BOD itself!

https://www.youtube.com/watch?v=UZa3jp0wvFA&authuser=0

I agree - well worth watching.
I also think that the section in the middle on Ghaghoo and James's views on it, and plans for it, should be required viewing for all the naysaysers over on Vast board about it being just a 'black hole problem child which no-one wanted'. It clearly has massive potential with a very good risk/reward aspect to BOD shareholders.

Angel, Cast to add to and part-answer your posts the market’s valuation in an instamce like this would (should!) probably be based on discounted cashflow ie overall revenue less cost to extract/sell less any debt to repay, tax to pay etc, discounted for the time value of the duration it tales to realise that cashflow (presumably low) and the risk profile (so fairly low too I would guess?). In context, Mars1 revenue was $246m, took 2 years to achieve and cost R29m ($2m ish at todays rate). That’s at 2000/2001 prices remember. So if Thorny ends up being say ‘only’ half the size of M1, at today’s prices you could easily be talking similar numbers for total revenue, cost, time and risk profile. Frankly even if it was a quarter of the size it would imply a dcf of several times’ todays mcap. That said, Castaways point about dilution is of course key, but once the resource is proven, to raise the money to cover costs to mine would hopefully be done at a much higher share price than today’s and could probably be done at least in part by other means than straight equity. The Company would need to put out a very clear message of intent for all that to work, of course!

Castaway that’s correct IMO. There’s a fourth option of course - prove the commerciality and sell it on, concemtrate on Botswana (and maybe Zimbabwe). The trouble with a royalty arrangement is 1) the time itt takes to generate revenue (over which control may be limited and 2) potential for lack of control over how it’s mined, trust issues etc
For me, my preference would be, in order: 1) a straight sale - as you say a resource of even say half the size of M1 would be worth perhaps $200m at today’s prices which even discounted appropriately would net BOD a sum several times today’s mcap. 2) ‘‘grow some’ and mine it!- as you say, it’d be relatively cheap to do in RSA - your $2-3m probably correct in my view - and the costs probably largely bankable. 3)JV (but why give half away?!) and lastly Royalty agreement (for the above reasons).
All just my view.
What do other people think?

Very exciting times, I don’t think the market gets the significance of this drill. It will be game-changing if successful . Fingers crossed!

Not sure if we’re allowed to post this sort of link on here but I thought quite interesting regarding lab grown diamonds (and Ziminskiso a man who knows what he’s talking about)

https://www.youtube.com/watch?v=pekpZvYd-XQ

And if only you’d checked your facts before accusing, eh RRR!
Have a lovely weekend all!

Hear hear Firwood, you couldn't make this circus up!

RealtimeRob et al: I'm not interested in getting into deep conversation about this but I think you may need to check facts, The rule you refer to states 3 years from election, not appointment. Appointment was May 18 but election was November 2018 at the AGM. I suspect that Fatty Cornish would have been all over them if a breach had occured, that being what he's there for (partly anyway).

Some very interesting photos posted from Thorny River today, the drilling of the ‘connect section’ has presumably started already. Looking v promising - JC all smiles!

You’ve gone all cynical Sandy! Lol

https://www.proactiveinvestors.co.uk/companies/news/958443/vast-resources--botswana-diamonds-talk-acquisition-of-ghaghoo-diamond-mine-958443.html

Sandy I agree re the podcast and this being a fantastic opportunity, but I think you're missing a point re busking, there's a big difference between 'busking' for a high risk project in an exotic postcode (Vast know all about that, after all!) and busking to international institutions who have already previously lent (and been repaid, I understand) for this very project several times the money likely to be required for it this time round and 'busking' for a few million to re-start an existing mine in a 'safe' jurisdiction which took years to develop, has had $250m spent on it and has an existing infrastructure capable of generating cashflow in a few short months.

JamesJohn I’m with you on that. Like a lot of people I’ve had a bit of a downer on what’s left of my holding in Vast in recent months, but this is a new direction and is being done with sensible people in a sensible jurisdiction. James Campbell says he knows how to make the mine work (and if anyone knows how to, it’s him). Finance for Botswanan projects is likely to be much easier than for elsewhere in Southern Africa and has been previously done for this very asset with major international institutions for multiples of what’s likely to be needed to get Ghaghoo up and running again. And there’s an experienced diamond miner lurking in the background in the area in the form of BOD’s rich and experienced partner Burgundy. It’s a deal appeared from leftfield, is fairly complex and is therefore perhaps unsurprisingly been viewed with suspicion by many shareholders. They need to take a closer look IMO.

Just watching from the sidelines here (though I am a LTH)- is anyone actually bothering to look at what Ghaghoo actually is, as opposed to moaning about all Vast's other issues? I urge you to take a look, it's very interesting!

Hi His2jen (and everyone!) yes I happen to know a bit about Ghaghoo having looked at it (and even discussed it with James Campbell) a while back. Although doing better lately, Gem had serious corporate financial issues a little while back, and were forced to clean up their balance sheet, and concentrate on core operations and geographical locations - Botswana/Ghaghoo being neither. They spent over $100m on Ghaghoo (I think $115m IIRC) - mostly funded by debt from major international institutions. The operation was put on care and maintenance. It will need a few quid spending on it but nothing outrageous, and likely easily largely debt-funded as it won't take long and with James Campbell's expertise and knowledge will be relatively easily done. It fits in well geographically and operationally with BOD's other sites in Botswana too.

And for those asking why Gem are selling - they have serious corporate issues and pressure to clean their overstressed balance sheet up. And why a relatively small stake for BOD? - as a holder there selfishly I’m delighted, AP needs BOD’s expertise, remember who makes the real money in a gold rush - the suppliers of the equipment and the know-how. It’d a great move for both imo.