VICTORIA GOLD NOW COVERED WOOD GUNDY ANALYST $24.00 TARGETVictoria Gold (VGCX-TSX, Outperformer Rated, C$24.00 Price Target) Gold Producer With Upside Potential In Tier 1 Jurisdiction, Initiating At Outperformer. We have initiated coverage on Victoria Gold Corp. with an Outperformer rating and a C$24.00 price target. Victoria operates the Eagle gold heap-leach mine on its Dublin Gulch property in the Yukon. The mine reached commercial production in 2020, and we estimate a nine-year mine life, producing an average of 232koz/annum at a robust AISC of $750/oz. Victoria trades in line with peers, but we believe Victoria should trade at a premium to peers due to its increasing production profile, exploration upside, strong free cash flow generation and M&A potential. The mine produced ~164koz in 2021, and we forecast production will increase to 207koz for 2022. The company is implementing operational optimization plans to achieve 250koz/annum gold production by 2023. In terms of exploration upside, Victoria has identified mineralization ~300m below the planned Eagle pit, and believes this could potentially extend the mine life to 2040. There is also significant regional exploration upside, especially at the Raven target, which management has highlighted as a priority. We expect resource updates in H1/22 for both Eagle Deep and Raven which will outline the organic growth opportunities. We forecast strong free cash flow generation for Victoria with yields of over 20% from 2023 onwards. For 2023, we forecast C$211M of free cash flow and the company should be largely debt free. We also view Victoria as an attractive M&A target as a low-cost, +200koz/annum producer with strong free cash flows located in a politically stable jurisdiction. (