Victoria Gold Corp (VGCX)

0
0

Hi,

Would like any insights on Victoria Gold Corp (VGCX). It does not have the same visibility as AEM, ABX, KL, K but seems to have decent potential. Thanks.

Marked as spam
Asked on February 13, 2021 4:47 pm
3 views
0
Private answer

Hi Jason,

First off, you can't lump Victoria as those you listed. Those are all senior gold producers and have a much longer track record of execution. This is why they have more visibility.

Victoria was an exploration and development company and only recently began producing at its Eagle Ford property. As such, it is now considered a junior producer, a step up from an E&D company. Juniors carry more risk than seniors because they are usually less diversified and have higher debt loads.

Case in point, Victoria only has one producing mine. Should anything go wrong at that one site, it would have a material impact on the company. The good news, it appears to have a clean balance sheet which IMO, is a must in the industry.

Over the next year, it looks to ramp up production to approximately 200,000 oz per year, up from the 120,000 oz it produced in 2020. That is some healthy growth. It also appears to have several opportunities for expansion at Eagle Ford. One area of concern, is that it dubs itself a low cost miner - however at 1,225/oz in 2020, that is actually quite high. I am unclear if that will drop as production expands, as I have found no guidance for 2021 AISCs. I'm assuming it would, but can't find 2021 outlook.

Overall, it looks like a solid Junior mining company. Just be prepared for more volatility than the ones you mentioned above.

Mat

Marked as spam
Posted by Mathieu Litalien
Answered on February 14, 2021 8:09 am