Below is a my summary comments from a 27 page analyst report published by Rodman and Renshaw on February 17th.
C$2.50 twelve month price target is based on selling at 2 times its Net Asset Value of C$1.22. North American gold produces are presently selling at 1.5 to 2.5 times their net asset values.
Net Asset Value is based on gold resources; average gold prices; and discounting anticipated cash flows from Cove and Eagle @ 5% per year.
Average gold price assumptions are listed below:
$1,050 - 2010 $995 - 2011 $$975 - 2012
Based on other valuation metrics (market capitalization - gold resources and location of those resources), VIT is presently undervalued anywhere from 16% to 56%.
Catalysts for Unlocking Potential Value:
1. Drilling Results - Santa Fe (soon) - Eagle (later this year) - Other properties (late this year)
2. Pre Feasibility report due in 1st quarter 2010 for VIT's Eagle property
3. Obtaining permits for adit for Cove - Early 2011
Cove production from bulk sampling is expected in early 2012 - starting out at 24,000 ounces - 48,000 ounces in 2013, and 86,000 ounces in 2014.
Eagle production - 135,000 ounces in 2014 - ramping up to 185,000 ounces in 2015 at an average cost of $US $525 per ounce.
Net revenue starting out in FY 2014 - ramping up through 2017
