Victoria Gold: A Tough Start To Commercial Production

Summary

Victoria Gold released its Q3 results last week and reported gold production of 35,300 ounces, tracking well below its H2 2020 guidance.

Given the lower gold sales than expected and increased sustaining capex, all-in sustaining costs came in well above the industry average at $1,315/oz.

Fortunately, the higher gold price made up for the much higher than expected costs, with the company reporting an all-in sustaining cost margin of $571/oz.I see more attractive opportunities elsewhere in the sector, but any drop below C$11.00 would significantly improve the valuation here.We’re now more than three-quarters of the way through the Q3 Earnings Season for the Gold Miners ( GDX ) and the most recent name to report its results is Victoria Gold ( OTCPK:VITFF ). The company was able to achieve commercial production amid COVID-19 at its Eagle Gold Miner in the Yukon Territories but had a tough first quarter of operations and […]

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