September 1st, 2011
Dear Shareholders and Partners of Virgin Gold Mining Corporation:
Congratulations to all of us for becoming richer today as our asset in Virgin Gold Mining Corporation increased by 4.5% overnight. I am referring to the Virgin Gold Convertible Preferred Share (VG-CPS) price increment of five(5) cents effective today, 1st of September 2011. If you did not subscribe for more VG-CPS yesterday, you should reconsider because I assure you that:-
One, the VG-CPS price will continue to increase every month over the next few years until we are ready for public listing, regardless of the gold price movement.VG-CPS will continue its uptrend momentum because this corporation is growing more valuable every single day. Our image, our credibility and the stability of this corporation gives our shareholders and partners a great deal of confidence. As our share price increases steadily over time, VGMC will become wealthier and have greater financial power to invest in many more profitable operations.
Two, the price of gold will continue to increase over the next few years. My personal view is that the price of gold will reach USD3,000 per ounce before 2015. The price of gold will increase due to many factors in particular the devaluation of the US dollar and economic instability of the Western World, both of which are still miles away from any potential solutions.
The United States is almost 15 trillion dollars in debt and the situation will only become worse. The United States Dollar (USD) has lost 90% of its value since 1971 after President Nixon cancelled the direct convertibility of USD to gold. Even when America and Europe has not recovered from the 2008 financial crisis, inflation is already catching up. Central banks like the European Central Bank (ECB), Australian, Chinese, Brazilian and Indian central banks have had no choice but to keep raising interest rates for the past 12 months due to inflation. Inflation in the simplest terms in our business means a higher price for gold. So shareholders can be assured of even higher dividend in the coming years as CPS dividend is paid in ounces of gold.
As I mentioned earlier, the price of our share will continue to increase month after month throughout 2012 and beyond. Increments of our share price make our corporation wealthier. Our market capitalization is equal to our share price multiplied by the number of shares. In fact, we all know that VG-CPS is extremely undervalued at the moment. Base on a Price-Earnings Ratio – P/E ratio of 15 and a gold price of USD1, 700 per oz.; 1 share of VG-CPS should be priced at 15 x 0.0001oz. (monthly dividend per share) x 1700 (assumed gold price per troy oz.) x 12 (12 months in a year) = USD30.60 @ USD30.
We are three (3) to four (4) years away from reaching public listed company requirements. Hence our share price is only a dollar and fifteen today. By the time we get listed, our share price should not be lower than USD30 because we will use the next few years to grow our corporation and furthermore we are confident that by then, the price of gold will not be lower than it is today.
My medium term objective starting from 2012 is to transform VGMC into a financial holding corporation focusing on gold and other precious mineral ventures. Unless there is a seriously exceptional opportunity to own a gold mine outright, I do not want to bring this corporation down that road. VGMC has been focusing on making other people’s cup full and reaping maximum benefits. That will continue to be our investment strategy going forward.
As we continue growing to the next level, we are beginning to explore the opportunity of holding stakes in silver and platinum group metals (PGMs) mining ventures. It is getting more and more expensive to invest in new gold mining ventures these days. We are still able to do so right now because all of our deals and options were concluded when the price of gold was in the hundreds, a few years ago.
Our board of directors wants me to transform VGMC into a sustainable wealthy corporation. To be a wealthy corporation and to be a corporation of value and trust that qualifies itself to be a public listed company; I will continue to implement practical measures going forward.
There is a simple saying that, “one should choose their friends/spouse carefully because it will decide their destiny”. At VGMC, we are able to choose who we want to work with and we can even choose the type of shareholders we prefer because we are a private corporation. There will be no place for shareholders who just want to take a “quick-bite” in VGMC, if you know what I mean.
I am very proud and glad to have a large group of shareholders around the world that holds a long term perspective on VGMC. We are also very fortunate to have a board of directors who are very wise and brilliant in their advisory role. Our Executive team work very hard and are fully committed to achieve our corporate mission and vision. We have many partners around the world who are working very closely with us to ensure that they will be part of our success. To conclude, I can confidently assure everyone that this VGMC team has all it takes to go all the way to reach the next level of success.
I would like to take this opportunity to congratulate and welcome qualified shareholders to our VG Premier office in Dubai. Enjoy your visit and have safe trip. I know for sure that you will be very proud to be shareholders after this. And always remember that if it weren’t for you, we wouldn’t have made it this far. You make this possible and together we will achieve more.
Thank you.
Kenneth Elinger
CEO and President of Virgin Gold Mining Corporation
Congratulations to all of us for becoming richer today as our asset in Virgin Gold Mining Corporation increased by 4.5% overnight. I am referring to the Virgin Gold Convertible Preferred Share (VG-CPS) price increment of five(5) cents effective today, 1st of September 2011. If you did not subscribe for more VG-CPS yesterday, you should reconsider because I assure you that:-
One, the VG-CPS price will continue to increase every month over the next few years until we are ready for public listing, regardless of the gold price movement.VG-CPS will continue its uptrend momentum because this corporation is growing more valuable every single day. Our image, our credibility and the stability of this corporation gives our shareholders and partners a great deal of confidence. As our share price increases steadily over time, VGMC will become wealthier and have greater financial power to invest in many more profitable operations.
Two, the price of gold will continue to increase over the next few years. My personal view is that the price of gold will reach USD3,000 per ounce before 2015. The price of gold will increase due to many factors in particular the devaluation of the US dollar and economic instability of the Western World, both of which are still miles away from any potential solutions.
The United States is almost 15 trillion dollars in debt and the situation will only become worse. The United States Dollar (USD) has lost 90% of its value since 1971 after President Nixon cancelled the direct convertibility of USD to gold. Even when America and Europe has not recovered from the 2008 financial crisis, inflation is already catching up. Central banks like the European Central Bank (ECB), Australian, Chinese, Brazilian and Indian central banks have had no choice but to keep raising interest rates for the past 12 months due to inflation. Inflation in the simplest terms in our business means a higher price for gold. So shareholders can be assured of even higher dividend in the coming years as CPS dividend is paid in ounces of gold.
As I mentioned earlier, the price of our share will continue to increase month after month throughout 2012 and beyond. Increments of our share price make our corporation wealthier. Our market capitalization is equal to our share price multiplied by the number of shares. In fact, we all know that VG-CPS is extremely undervalued at the moment. Base on a Price-Earnings Ratio – P/E ratio of 15 and a gold price of USD1, 700 per oz.; 1 share of VG-CPS should be priced at 15 x 0.0001oz. (monthly dividend per share) x 1700 (assumed gold price per troy oz.) x 12 (12 months in a year) = USD30.60 @ USD30.
We are three (3) to four (4) years away from reaching public listed company requirements. Hence our share price is only a dollar and fifteen today. By the time we get listed, our share price should not be lower than USD30 because we will use the next few years to grow our corporation and furthermore we are confident that by then, the price of gold will not be lower than it is today.
My medium term objective starting from 2012 is to transform VGMC into a financial holding corporation focusing on gold and other precious mineral ventures. Unless there is a seriously exceptional opportunity to own a gold mine outright, I do not want to bring this corporation down that road. VGMC has been focusing on making other people’s cup full and reaping maximum benefits. That will continue to be our investment strategy going forward.
As we continue growing to the next level, we are beginning to explore the opportunity of holding stakes in silver and platinum group metals (PGMs) mining ventures. It is getting more and more expensive to invest in new gold mining ventures these days. We are still able to do so right now because all of our deals and options were concluded when the price of gold was in the hundreds, a few years ago.
Our board of directors wants me to transform VGMC into a sustainable wealthy corporation. To be a wealthy corporation and to be a corporation of value and trust that qualifies itself to be a public listed company; I will continue to implement practical measures going forward.
There is a simple saying that, “one should choose their friends/spouse carefully because it will decide their destiny”. At VGMC, we are able to choose who we want to work with and we can even choose the type of shareholders we prefer because we are a private corporation. There will be no place for shareholders who just want to take a “quick-bite” in VGMC, if you know what I mean.
I am very proud and glad to have a large group of shareholders around the world that holds a long term perspective on VGMC. We are also very fortunate to have a board of directors who are very wise and brilliant in their advisory role. Our Executive team work very hard and are fully committed to achieve our corporate mission and vision. We have many partners around the world who are working very closely with us to ensure that they will be part of our success. To conclude, I can confidently assure everyone that this VGMC team has all it takes to go all the way to reach the next level of success.
I would like to take this opportunity to congratulate and welcome qualified shareholders to our VG Premier office in Dubai. Enjoy your visit and have safe trip. I know for sure that you will be very proud to be shareholders after this. And always remember that if it weren’t for you, we wouldn’t have made it this far. You make this possible and together we will achieve more.
Thank you.
Kenneth Elinger
CEO and President of Virgin Gold Mining Corporation
