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20/20/12 on Oct 07, 2013 3:15pm
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https://www.theaureport.com/pub/co/458 Companies Request More Information VGQ:CA 10.30 -0.05 Today 5d 1m 3m 1y 5y 10y Last: 10.30 Change: -0.05 Change(%): -0.48% Volume: 11.79k Open: 10.32 High: 10.35 Low: 10.28 52Wk High: 11.11 52Wk Low: 7.55 Experts Commenting on This Company Ralph Aldis Brent Cook Adrian Day Michael Gray Quinton Hennigh Eric Lemieux Shane Nagle Brian Ostroff Lawrence Roulston Rick Rule Pierre Vaillancourt Visit Company Website View Company News Virginia Mines Inc. Virginia Mines Inc. TICKER: VGQ:TSX Virginia Mines Inc. is a mining exploration company with a royalty of 2.2% on the world-class Eleonore gold deposit, which is in a new district that is now considered a new mining camp. Virginia works relentlessly on many projects in various stages of growth to develop … read more The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision. Expert Comments: The Gold Report Interview with Brent Cook (9/18/13) "I've owned Virginia Mines Inc. or its predecessor for 12 years. The company sold Éléonore, a very high-grade deposit, to Goldcorp, which is putting it into production. Virginia retained a 2.5–3.5% royalty on Éléonore. The mine will produce on the order of 600 Koz/year. That royalty—probably the best royalty held by a company that's not a major mining company—rolls straight back to Virginia. If you're positive on the gold price, this is the safest bet possible. Virginia is also moving forward on a number of other projects. Plus, Virginia's CEO, André Gaumond, is the most sincere, hardworking and honest guy around." More > The Gold Report Interview with Adrian Day (9/11/13) "I also think there's a lot of value in some of the smaller royalty companies or companies that are morphing into royalty companies. Virginia Mines Inc. is one of my long-term favorite companies. It is still essentially an exploration company. It has used the prospect-generator model for many years, meaning it generates prospects and brings in joint venture partners, which is a low-risk exploration model. Then Virginia discovered the Eleonore deposit that it sold to Goldcorp, which is now building that mine. Eleonore will be producing in the last quarter of 2014. That's going to change Virginia from a pure exploration company to much more of a royalty model because for Virginia this means anywhere from $25–35M a year, for 17 years, in cash flow. That's a fairly wide range, but this is a complicated royalty where the maximum royalty doesn't kick in until about the third full year of production. "As the aggregate production increases, the royalty moves up and revenue increases. If you look at the NPV of the Eleonore royalty, the discounted value of that future cash flow stream, you'll see that it's worth over $300M. That is the entire market cap of Virginia, so everything else you're getting for free. Virginia has $41M in cash. It has other deposits that are fairly advanced, including a base metal project called Coulon, which is continuing to advance." More > Gary Bourgeult, Seeking Alpha (7/26/13) "There are a couple of things Virginia Mines Inc. has going for it: Geographic safety, as all its deals are located in Canada, and one of the best exploration teams in North America. . .if its exploration team continues to perform well, that could really be a competitive advantage that few companies could match. It would ensure solid revenue streams for decades." The Gold Report Interview with Ralph Aldis (7/24/13) "Virginia Mines Inc. is up 11.9% [over the last three months]. . .it is a junior that has upside. Eleonore is being put into production by Goldcorp Inc. and Virginia is already getting paid a big royalty. Virginia CEO André Gaumond arranged to get preproduction royalties from that royalty agreement with Goldcorp and has been getting them on Eleonore for the last couple of years. This is one situation where if you look at the value of the royalty, or you look at the value of the assets that Virginia Mines has, you're either getting one or the other for free." More > Eric Lemieux, Laurentian Bank Securities (7/9/13) "Virginia Mines Inc. has announced the signing of a strategic alliance with Altius Minerals Corp. for the exploration of mineralization in the Labrador Trough, Québec. . .it is a mutually beneficial arrangement that will allow the companies to share knowledge and attract eventual strategic partners. . .we maintain our Top Pick rating and $13.75 target price for Virginia Mines. . .the company's strong financial flexibility and key partnerships will allow it to remain active in exploration." more comments