Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Victoria Gold’s (TSE: VGCX) Eagle gold mine in Canada’s Yukon territory has produced 25,068 oz. of gold from the start of this year until the end of May, and is expected to achieve commercial production at the end of the second quarter or early in the third quarter.
In a release, the company’s management noted that productivity in May was impacted by covid-19. “May production numbers were below our expectations as we felt the impact of coronavirus measures on productivity,” John McConnell, the company’s president and CEO, said in a release.
Between January and the end of May, Victoria mined and stacked 2.4 million tonnes of ore grading 0.84 g/t gold
Between January and the end of May, Victoria mined and stacked 2.4 million tonnes of ore grading 0.84 g/t gold and produced 25,068 oz. as a result.
The company has also made a $7.1-million principal repayment on its secured credit facility at the end of May. The next principal and interest payment is due at the end of August; the company has the option to repay this debt early.
Victoria wholly owns the 555-sq.-km Dublin Gulch property in central Yukon, which hosts the Eagle and Olive gold deposits.
Proven and probable reserves across Eagle and Olive total 155 million tonnes grading 0.65 g/t gold for a total of 3.3 million oz. Cut-off grades for the reserves vary with deposit and material type and range from 0.15 g/t gold to 0.58 g/t gold.
Based on a technical report released last December, the Eagle mine is expected to produce an average of over 210,000 oz. of gold a year at all-in sustaining costs of $774 per oz. over a mine life in excess of 10 years.
Midday Wednesday, Victoria Gold’s stock was down 5.3% on the TSE. The company has a C$755 million market capitalization.
(This article first appeared in the Canadian Mining Journal)
