Victoria Gold Corp T.VGCX

Opportunistic Hedging?

[MVargas]

Slide 31 of Corporate Presentation is entitled Opportunistic Hedging.

The last of the ill-advised Call Options associated with the original financing expire today.  The bill due today is 20,000 x ($2040 - $1485) = US$11 million.

That wouldn't have been so bad if not for the decision to sell forward 30,000 oz in 2023 for $1863/oz.

To promote this as "Opportunistic Hedging" is somewhat clueless.

[Human7]

Clever wording to be sure. 

[Greatdaysahead]

30k/180K is about 16% of the production being sold at 1863 usd. Not sure to understand why they decided so when they have been quite bullish about POG in their 2022 communications. But it's always easier to know what was the best decision after...What would have been the POG if USD interests rates were higher than 2 months ago. We can see today's how how correlated POG and interests

[MVargas]

Sure, hindsight is 20-20, but gold company investors generally invest because they are bullish on the gold price and do not want some of the upside diminished by forward sales, otherwise there are other companies to invest in. Maybe bury such hedging in the quarterly MDA instead of in your current Corporate Presentation, especially when the hedges are already underwater? Better still, issue a

[kegman]

I am thinking John should have a George Costanza moment.  Whatever you think you should do, do the opposite.  I want to hedge....nope, roll the dice.  If the history was better you could just shrug off the move.  Unfortunately this just is another example of a bad management move.  He has to wear it.  I do not know the man or wish him any ill will.  WE just need

[Greatdaysahead]

yes, your are right about gold exposure. Investing in VGCX is for me a way to have an indirect Gold exposure in order to diversify my portfolio and hedge as well my non-based currency assets. I should have diversify my total gold exposure into other Gold producers but VGCX looked to me like a nice safe play.   Regarding the hedging, from the FS 2022: "In December 2022, the

[MVargas]

Gda, your assumption of a gold price that averages $2,050 for the 9 remaining hedge dates results in 30,000 ozs sold at $1,863 instead of $2,012.50.  A loss of $4,485,000 as your calcs show. Not terribly expensive insurance against a falling gold price, especially when you still have a lot of debt to repay.  It is equivalent to the revenue from 2,229 oz of production at a gold price of