- Shares in Victoria Gold (VGCX) have dropped this morning after the company missed expectations in its first quarter as a commercial gold producer
- For the three months ending September 30, the company mined 2.1 million tonnes of ore, resulting in total gold production of 35,312 ounces
- Total gold sales came to 32,029 ounces, generating more than C$80.5 million in revenue
- The company had previously estimated total production for the second half of 2020 to be between 85,000 and 100,000 ounces of gold, but this has now been revised to between 72,000 and 77,000 ounces
- Victoria Gold is currently down 10.31 per cent to $14.18 per share
Shares in Victoria Gold (VGCX) have dropped this morning after the company missed expectations in its first quarter as a commercial gold producer.
For the three months ending September 30, 2020, the Toronto-based mining company mined 2.1 million tonnes of ore from its Eagle Gold Mine in the Yukon, which began commercial production on July 1.
While the amount failed to meet previous forecasts due to unforeseen bottlenecks, it resulted in total gold production of 35,312 ounces at an all-in sustaining cost of C$1,752 per ounce.
Based on total sales of 32,029 ounces at an average realised price of $2,512 per ounce, Victoria Gold generated more than $80.5 million in revenue, with operating earnings reaching $31.6 million.
At the end of the quarter, the company had $40 million in cash and cash equivalents, after repaying $35.6 million in payments against the company’s debt facilities for the prior nine months.
“These transformative efforts have set Victoria Gold and its stakeholders up to begin reaping great benefit from all of the past and continuing efforts,” said John McConnell, President and CEO of Victoria Gold.
“Aside from the usual teething issues and learning curve experiences common to all start-ups, we are very pleased with our progress as we have moved in to and beyond commercial production and remain highly confident the best is yet to come over a very long mine life,” he added.
With a number of optimisation processes still underway, Victoria Gold has revised its production guidance previously announced on July 14.
Back then, the company had hoped to produce between 85,000 and 100,000 ounces of gold during the second half of 2020, but this has now been dropped to between 72,000 and 77,000 ounces.
Victoria Gold is currently down 10.31 per cent to $14.18 per share at 10:25am EST.