My thoughts on the value of Victoria Gold.My thoughts on the value of Victoria Gold.
At of the end of April, 2020, VGCX will report their first quarter with the 10 month 'stub year' report ending Dec 31st, which will include gold sold for the period of Sept. to Dec 31st. I wonder what it will say?
As per VG's Dec. 4th, 2019 press release, announcing their revised technical report, it shows an annual production estimate of 220,000 ozs of AU and a Post Tax, NPV, @ 5% discount, of CDN$1,034,000,000 at an average price for AU of US$1300. and an exchange rate of .75 CDN to US.
Divide 220,000 ozs per year by 12 months and it equals 18,333 ozs per month
In November, 2019 they reported 13,000 ozs of Dor shipped , (since first AU pour in September) which contained 10,400 ozs of Au and 1600 ozs of Ag at a price of US$1480 for the AU. So, not full production numbers, but ramping up to full, hopefully in early 2020.
Happily the price of AU is now US$ 1600 +/-, and the exchange rate is .70.
So, refer back to the chart that accompanied the Dec 4th release and scan right and down, to find what the NPV (in full production) will be today.
Look at the coordinates for .70 and 1600. It shows a NPV of CDN$1,642,000.000.
nearly 63% more than the press release estimated, at the time!
Divide that number by the outstanding share count, 58,380,000 and you get CDN$29.13.
Now, I'm not saying VGCX.TO will immediately go to that price but, I am saying that once VG report income and establish a P/E ratio approximating what any other producing gold mine does, we can expect a serious re-rate for this stock.
In the absence of an established P/E ratio (due to lack of E, at the moment) this is, as far as I am concerned, the only way to value VGCX.