Copper-zinc exploration in the Flin Flon-Snow Lake VMS Belt

Recent Results Include 6.69% Copper Over 71.69 Metres and 3.74% Copper Over 21.77 Metres

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Message: Deeper discount

Deeper discount

posted on Jul 25, 2009 10:44AM

With the rally in copper prices over the last six months, VMS is effectively trading at a significantly greater discount (perhaps half) of where it would have been valued before the rally. So, if you would have bought at $.15 in January, you should see it as a better buy now at $.26 with the current copper improvement. Of course the world is often dumb to relative valuation changes, so strategic buyers prosper while technical folks get spun off the moving playing field. My approach currently, which I only recommend to the criminally insane (those who have had a brain transplant from a male bovine donor) is to re-invest about 20% (max) of confirmed gains from copper majors into similar spec plays, in this case VMS for example. I am currently putting dribs of gains from Centenario, QUA and IMN back into VMS, despite being a net seller up to the end of June. While some overall markets may be slightly overbought copper looks great long term . Patience and balance are the key ingredients at this point since our management looks totally onside with shareholder interests.

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Jul 27, 2009 04:43PM
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