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Dal Brynelson, President and CEO of
Vangold Resources Ltd. gave silberinfo, the first German speaking
Investor Letter and Online Platform about silver, the following interview:
I.
Introduction
The subject
„Commodities“ – and especially Gold and oil –
resounds throughout the land – and beyond. The interest from all sides
does not seem to vanish but increase sustainable. The fundamental reasons for
an ongoing and yearlong appreciation of “real asset” prices are
many but basically simple. To get the “big picture” best, follow
the articles on this website and look everywhere for Mr Ferdinand Lips, read
his words and you will find what you need to know “fundamentally”
and “how to do it correctly”.
To participate in the young
commodities and Gold/Silver Boom, there are many possibilities. The best one
is physical ownership. The second best is the investment in those companies
who produce commodities and Gold & Silver:
Mining companies. As there are so many mining companies out there, the
question left is: Which one? Ask
three people and you will receive three different answers. This is good but
as we have to prioritize in any aspect of life, the subject is now not as
simple anymore.
Just like a 3-star chef
cook, who must take care that his ingredients are of the highest quality
available in the market, you must take care that the companies you select are
the best ones out there. Only the best ingredients must go into you cooking
pot. Only then you will have a unique and delicious time afterwards. In this
connection we are pleased to present you an interview the President of Vangold Resources Ltd., Mr Dal Brynelsen. Vangold is a Canadian exploration company with
many ongoing projects in Gold, base metals oil and gas – in three
different countries. Vangold is
not only an explorer but already a producer of oil as well. Therefore Vangold distinguishes itself in many kinds from
other exploration companies. First to name would be their widely and highly
diversified portfolio of different commodities and Gold which makes this
company relatively more stable during corrections of certain commodities
which can occur at different times. Last (but not least) to name would be the
number of their projects. This creates a “buffer” for potential
complications at a project. For all the reasons “in between” we
adivse to visit their website www.vangold.ca
For the reason that Vangold already produces oil (and is generating
proceeds), the company does not need to do capital increases in form of newly
issued shares. This leads to a low dilution of equity. This makes Vangold “as good as Gold” – as
same with Gold, the supply can not get increased arbitrarily and
continuously. This leads us to the initially mentioned “simple
reason” why commodities and especially Gold are fundamentally
prospective these days.
Enjoy the interview with Dal
Brynelsen and remember the words of Ferdinand Lips
from our last interview with him:
“A farmer as well is seeding in spring-time to
harvest in autumn!”
–
so you can enjoy the fruits of your
labour to the fullest and have a surpassing meal. –
–
II.
Exclusive Interview with Vangold
Resources Ltd.
silberinfo: Dear Mr.
Brynelson, which of your various projects do you personally judge as the most
promising?
Dal
Brynelson: The three high
impact gas wildcats in Alberta; the oil field “Killam” in
Alberta, of which we own 26%; Feni Island and Mt. Penke in Papua, New Guinea;
and the copper/cobalt anomalies in Uganda.
silberinfo: Can you estimate
when Vangold will produce the
first ounce of gold? What is your time scope?
Dal
Brynelson: On oil production,
black gold is going to $1,000,000 net per month by February of 2006. Gold
production could be 2 – 3 years.
silberinfo: What is the
vision of Vangold?
Dal
Brynelson: Resource
conglomerate to generate spin-off of public subsidiaries, and to maximize
shareholder value.
silberinfo: Vangold is positioned well with various projects;
in order to combine activities into a bundle, there is the assumption of a
possible spin-off in the future. What is your opinion?
Dal
Brynelson: Q2 2006, maybe?
silberinfo: Vangold is planning a private placement of 3
million shares with a price of $0.25 for each unit. The current share price
is approximately at the same level resp. below. Where is the advantage for
the investor? How many shares are minimum for an order?
Dal
Brynelson: Sold out, sorry.
silberinfo: On July 25th,
2005 there was a block trade on the Toronto SE of 2.5 million shares. Do you
have more information?
Dal
Brynelson: There was a
large Fund repositioning.
silberinfo: At many projects
Vangold is holding a significantly
low stake, whereas at other projects Vangold
is controlling with a stake of 50%. Why is that?
Dal
Brynelson: Lower risk
deals, larger position. Simple.
silberinfo: How do you see
the future development of the gold price?
Dal
Brynelson: It’s going
higher.
silberinfo: Do you plan
forward sales?
Dal
Brynelson: No.
silberinfo: Vangold’s Feni Island
project has similarities with the mine of Lihir, which has problems with the
production costs. How do you see this point?
Dal
Brynelson: Lihir has mainly
solved their problems. I wish I had a problem with a 50 million ounce
deposit.
silberinfo: How high is the
monthly cash-burn rate of Vangold?
Dal
Brynelson: $50,000 per
month Canadian cash flow positive now.
silberinfo: What is the
sentiment of the citizens and government of Papua, New Guinea
with regard to gold mining?
Dal
Brynelson: Very supportive.
silberinfo: For 2005, Vangold projected proceeds of 4 to 5 million CAD
and 12 to 20 million CAD for 2006. How realistic are these figures to be
achieved from the perspectives and developments of today?
Dal
Brynelson: Move these
figures ahead six months, and we are right on track.
silberinfo: How do you
explain the disappointing share price action of the last months, despite positive
news from your side?
Dal
Brynelson: It is a bad
market, but it’s getting better.
silberinfo: For which
project in Papua, New Guinea do you see the biggest
potentials and which priorities do the remaining projects enjoy?
Dal
Brynelson: Feni Island, Mt. Penke.
silberinfo: What would you
explain to an interested investor to win him as a shareholder for Vangold?
Dal
Brynelson: It’s the
only company I know you can buy into for $0.30 CAD a share, which is hedged in
huge oil and gas and international mining properties. Our management is very
experienced and aggressive.
silberinfo: What kind of
future perspectives and views do you give all Vangold
shareholders so that they stay loyal?
Dal
Brynelson: Look at the 12
deals we’ve done in the last 12 months. That’s why we are 60%
institutional.
silberinfo: Thank you for this interview and all the best
personally and with Vangold.
© by silberinfo 2005
If you wish to publish this
interview, please drop us a line at team@silberinfo.de
III.
Price-Technical Evaluation:
Exchange: Vancouver;
Symbol: VAN.V; Latest price: $0.33 (10/05/05)
With the end of the +20year
gold bear market, the share price of Vangold
hit a low of about $0.07 at the end of 2001 and was heavily fluctuating up to
$0.25 until the middle of 2003. After having successfully broken out above
the green trendline in the beginning of 2003, a final pullback to
this new support line at $0.19 was made at the middle of the year whereafter
a strong move up to $0.7 and $0.93 at the end of the year followed. In only 2
years the share price of Vangold
increased 13-fold. Subsequently, the share price went into a correction for
about one year all the way down to the green trendline at $0.22. As this
strong support line was holding once more after many tests, the price shot up
to $0.49 to mark the new resistance line. Subsequently, the price went down
again to the green support line at $0.25.
The highly volatile
movements since 2003 were not a “boom” but a consolidation period
in form of a triangle. Typically for triangular formations, the price
fluctuates in between the supportive and resistive legs (trendlines) in 4
waves. After the 4th wave has touched the lower leg, typically the
impulse movement begins, meaning that either the lower or upper leg will be
broken and either a crash or boom occurs. As we can see from the below share
price movement of Vangold, the
impulse movement started to go to the upper leg since the middle of 2005 what
can be judged as a first bullish sign. The second bullish sign just occurred
a few days ago: The price broke
the upper resistance line. What we are now witnessing is the termination of
the triangular formation which is a “Thrust”. In accordance with
the latest positive and prospective fundamental developments of Vangold, silberinfo
estimates that the thrust will be to the upside. The purpose of such a
triangular price formation is to explosively take the previously marked (numative)
resistance, which was marked with wave 1 ($0.93), as a new and strong support
zone, so that thereafter a sustainable boom can start.
- The RSI-Index recently
managed to break above the second grey line. One can see from the first
resistive grey trendline what happens when it gets broken. We suspect the RSI
now to rise high all the way to the intersection point of the black and red
trendlines, whereafter a correction to the intersection of the grey and green
trendlines is possible (as it was occurring before).
- Relative to the
HUI-Goldmining Index, the share price of Vangold
was as well fluctuating within a triangle meaning that if Vangold is now going to thrust to the upside, it
is most likely that Vangold will
outperform the HUI by large and explosively.
© by silberinfo
2005
Das Team silberinfo
ist Herausgeber des ersten deutschsprachigen Börsenbriefes und Betreiber
der ersten deutschsprachigen Online-Plattform zum Thema Silber. Weitere
Informationen zu globalen Rohstoff- und Edelmetallmärkten, sowie ein
Forum (mit fachkundigem Publikum) finden Sie unter www.silberinfo.de
By : Silberinfo.de
www.silberinfo.de
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Information
contained herein is obtained from sources believed to be reliable, but its
accuracy cannot be guaranteed. It is not intended to constitute individual
investment advice and is not designed to meet your personal financial
situation. The opinions expressed herein are those of the author and are
subject to change without notice. The information herein may become outdated
and there is no obligation to update any such information. The author, 24hpm,entities in which they have an interest, family and
associates may from time to time have positions in the securities or
commodities discussed. No part of this publication can be reproduced without
the written consent of the author.
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