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The Company's Eagle Gold Project in Yukon Canada hosts a National Instrument 43-101 compliant Reserve of 2.3 million ounces of gold.
Message: VIT New Presentation: Compeling Valuation
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According to Rodmond & Renshaw, LLC - their 12 month target price is C$2.50. This price
target is based on selling at 2 x its Net Present Value. Their calculation of VIT's NPV is based
all of VIT gold resources - not just our Eagle and Cove property.
I want you to pay special attention to slide #21 and #26 for VIT's new March presentation:
The NPV figures ONLY include our Eagle and Cove Property.
Slide #21 Illustrates: for every 10% increase in the price of gold - the Net Present Value of VIT increases 51%.
Slide #26 Shows that VIT's Net Present Value based on $900 gold = $219 million = Present Value per share $.87
(Fully diluted shares 250 million)
Net Present Value based on $1,100 gold = $491 million = Present Value per share $1.96
Rodmond & Renshaw's analysis predicts that VIT should be selling at 2 x it Net Present Value - with comparable companies
selling at 1.50 to 2.50 X their Net Present Value.
Therefore: at $900 gold - the VIT's fair value should be 2 x .87 NPV = $1.74
at $1100 gold - VIT's fair value should be 2 x 1.96 NPV = $3.92
In previous posts I mentioned that the price of gold is by far the most significant factor in determining the fair value of VIT.
Drilling results going forward will definitely be a factor in VIT valuation but the price of gold based on VIT existing resources
is far more relevant at the present time.
Most of you know that I feel that the price of gold is significantly undervalued - and my opinion is shared by other experts that
are, by far, more knowledgably than I am - Jim Sinclair sees gold over $1600 per ounce next year. Do the simple math above
based on his target price for gold and you are looking at NPV for VIT @:
$1,200 Gold = NPV $2.95
$1,300 Gold = NPV $4.45
$1,400 Gold = NPV $6.71
$1,500 Gold = NPV $10.31
$1,600 Gold = NPV $15.56
Keep in mind that the figures above only reflect NPV and they do not include the probability the VIT may be selling at a price
above its NPV. These figures do not include any additional stock offerings to fund these projects.
Here is the LINK: http://www.vitgoldcorp.com/site/victoria_gold/assets/pdf/VIT_corp_slides_March_22_2010.pdf
Anyway you slice it, VIT has a compelling valuation even if the price of gold just stagnates and stays at $1100 per ounce.
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