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Victoria Gold Corp. (VGCX.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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13.46-0.18 (-1.32%)
At close: 04:00PM EDT
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  • J
    Jazenevc
    They beat estimates despite low seasonal production. Not sure, though, whether the market cares.
  • J
    Jazenevc
    In my opinion, today’s market reaction presented an opportunity to add more shares. I re-read the earnings release few times and do not see any big negative issues. Perhaps, projected cost increase for 2022 is the only one visible, but gold price is already substantially higher than they had in 2021. This covers all cost increase while gold production is guided higher in 2022 and substantially higher in 2023. Of course, this is mining and one-mine company; anything can happen. However, upside potential is clearly higher than downside here.
  • S
    SafetyFirst
    This stock just seems to be out of favor with investors. Not flashy enough I guess.
  • C
    CrunchTime
    VITFF - Victoria Gold Corp/Wiki
    otcwiki.net
  • J
    Jazenevc
    Share price is ridiculously low here for gold knocking at 2000.
  • S
    Sandy
    this company is finding gold galore so not sure what the drop is all about
  • K
    KEL
    Back in @ 13.08 US$. Haven't been here in a while but things looking good for the next few years. If gold prices hold up of course........Kel (was here when mine opened)
  • B
    Bucky
    Shame on Victoria management for running a profitable gold miner with a PE around 11. They should instead be doing what the majority of miners do.
    Maximize production to deplete reserves as fast as possible while returning nothing to shareholders in order to supply the bullion banks with as much gold as possible to assist them with managing the POG.
  • J
    Jazenevc
    Quietly digging out gold in Yukon is arguably the best business on this planet now.
  • B
    Bucky
    Q42021 earnings per share of $.57 US if I have my US/CDN dollar conversion right.
  • T
    Tyler
    everyone will want to buy st $18 before the stock market crashes of course..
  • G
    George
    all the good paydirt is gone
  • J
    Jazenevc
    The earnings look strong, share price reaction is ridiculous so far.
  • Y
    Yahoo Finance Insights
    VGCX.TO is up 4.93% to 18.10
  • K
    KEL
    Drop is understandable in my opinion. Second half forecast update shows less production and higher AISCs than previous forecast from July. That being said, we're already almost 1/2 way through Q 4 and most of the improvements in the process machinery has been completed.
    Table is set for full production (200,000 oz or more) in 2021. Always some kinks to work out as production ramps up. Cash position and balance sheet looks good. Debt being paid down.
    Will continue to hold and possibly add............Kel
  • k
    kristof.naessens1
    Ramp-up at 75%, for those who missed it, it's at page 3 of the November-Zurich presentation

    https://www.vitgoldcorp.com/site/assets/files/6373/191110-vit_nov_corp_wnov_and_appendix-web.pdf
  • F
    ForReal?
    NO the share price is not where it is because of Orion or CDE. There is no secret negative elements that only certain sellers are aware of. Read the news releases, all of the metrics are there, read the excuses for bad production and cost numbers. This is why your share price is deservedly where it is. There may be some liquidity problems in the end of q1 or during q2 of this year, cash crunch very possible. Diltuion? Taking on some more debt ? Who knows. Go read the Seeking Alpha deep analysis of current stock price and state of VG. Many of us think similar to this including the large institutional investors and larger co's who seek M&A with the right projects and companies. Can the SP go up from here ? Sure. POG could gift it some increase depending on price per ounce increase or since the mine is not being run particularly well, there are lots of places that could be improved. Like most chat boards this is filled with big time bulls so no one will post about articles which are not glowing on said stock. Seeking Alpha / Victoria Gold - google it.
  • K
    Kroptie
    Victoria Gold: Great News From Yukon
    Dec. 7, 2019 6:14 AM ET|21 comments | About: Victoria Gold Corp. (VITFD)
    Peter Arendas
    Peter Arendas
    Long only, commodities, research analyst
    (3,603 followers)
    Summary
    The Eagle Gold Mine ramp-up progresses well; more than 10,000 toz gold have been already produced. Commercial production should be reached in Q2 2020.

    The volume of reserves increased by more than 20%, almost to 3.3 million toz gold.

    The projected annual production volume grew to 220,000 toz gold at an AISC of $774/toz.

    Some conservative calculations show that if the ramp-up process goes well and the gold price stays above $1,400/toz, Victoria Gold's share price should approach the $17.5 level.

    Victoria Gold (OTCPK:VITFD) started gold production at its newly built Eagle Gold mine only in September. The first gold was poured on September 18 and the first doré shipment was made on October 8. On November 20, a stock reverse split was made. Reverse splits are usually followed by a share price decline, and Victoria was no exception. However, on December 4, the company announced some great news that provided a significant boost to the share price.

    On October 9, Victoria Gold announced the shipment of 2,450 toz doré containing 83.3% gold and 8.7% silver. It means that by October 8, Victoria produced at least 2,040 toz gold and 213 toz silver. The subsequent long period of silence was broken on November 18, when the company decided to make a reverse stock split on the 15:1 basis. It means that as of November 20, Victoria Gold has only 57,226,296 issued and outstanding shares instead of 858,394,437 issued and outstanding shares. The aim of the share consolidation was to attract more institutional investors, improve liquidity and to prepare the company for up-listing to the TSX later this year.

    On November 25, Victoria announced that 10,400 toz gold and 1,600 toz silver were produced over the first two months of production. As the production ramp-up is only in its early phase, the production volumes are not too high. However, despite it, Victoria stated that the operation is cash-flow positive:

    "Precious metals are being sold as produced and, based on current production and gold prices, the Company’s cash inflows from precious metal sales exceed cash operating costs and sustaining capital."

    ChartData by YCharts
    However, the positive production news was outweighed by the negative impacts of the stock reverse split. A rapid change came only this week. Victoria Gold announced a new reserve estimate and a new mine plan for its newly built mine. And both the updates are very positive. The volume of reserves increased by 22%, from 2.7 million to 3.3 million toz gold. The expected average annual gold production increased by 10%, from 200,000 to 220,000 toz gold, with an AISC expected at $774/toz.

    The new resource and reserve estimates are based on 58 holes drilled since the 2016 feasibility study and they include the Eagle as well as Olive deposits. The measured and indicated resources contain 4.73 million toz gold, at a gold grade of 0.66 g/t. The inferred resources contain further 571,000 toz gold, at a similar gold grade. A major part of resources (almost 62%) is included in the reserves category. The reserves contain 3.26 million toz gold, at a gold grade of 0.64 g/t.

    Source: own processing, using data of Victoria Gold

    The mine is still expected to reach commercial production during Q2 2020. Another good news is that not only the volume of reserves but also the volume of expected annual production increased. The mine should be able to produce 220,000 toz gold at an AISC of $774/toz. If these projections are correct, the mine should be highly profitable at the current gold price of approximately $1,475/toz. Moreover, if the projections are correct, the company is significantly undervalued.

    Victoria Gold's market capitalization is $358 million. As of the end of August, the company held cash of $35 million and debt amounted to $225 million. Assuming that no major changes occurred, Victoria Gold's enterprise value is around $550 million right now. But at the current gold price and USD/CAD exchange rate, the after-tax NPV(5%) of the project is approximately C$1.3 billion, or $975 million (table below).

    Source: Victoria Gold

    However, as stated by the company, the above mentioned calculations don't include debt-related expenses such as interest or principal payments. Moreover, Victoria Gold sold a 5% NSR royalty to Osisko Gold Royalties (OR). It means that not 220,000 toz gold but only 209,000 toz gold per year should be attributable to Victoria Gold. To be more conservative, let's calculate only with 200,000 toz gold for Victoria Gold, at a more conservative AISC of $800/toz and a gold price of $1,400/toz. Even under these circumstances, the mine should be able to generate free cash flow around $120 million per year.

    Victoria Gold's peers usually trade at price-to-free-cash-flow ratios well above 10. For ex
  • B
    Bucky
    Good earnings report and operations update. Now it seems obvious why CDE has taken an 18%interest. And most likely will make a buyout offer for the rest of Victoria in the near future at a nice premium. Do not sell.
  • k
    kram
    Victoria Gold: Eagle Gold Mine Reserves Increase

    by 20% to 3.3 Million Ounces Gold



    Toronto, ON / December 04, 2019 / Victoria Gold Corp. (TSX.V-VIT) (“Victoria” or the “Company”) is excited to announce a new Technical Report, prepared to a Feasibility Study level, for the Eagle Gold Mine. This release reflects Canadian currency unless noted otherwise.
    Reserves increase from 2.7 Million to 3.3 Million ozs Au
    Annual production increases from 200,000 ozs to 220,000 ozs Au
    Cash Costs(1) per Au ounce: US$577
    All-in Sustaining Costs (“AISC”)(2) per Au ounce: US$774
    Post tax Net Present Value @ 5% discount = $1,034 million
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