RE:RE:RE:Bad results even when you have the bar already so lowSwingandmiss wrote: Interesting how everyone is now piling on. Did these same conditions exist when the stock went to $22
Not everyone, but mostly verbal diarrhea from a former disgrunted shareholder who bought his first shares at $2.30 (pre-split) and sold out at 36 cents, lol!
Victoria's market cap now down to C$593 million. Including interest payments during construction, it cost more than that to build the Eagle mine and it would cost a lot more than that to build it today.
Would any major or mid-tier miner be willing to offer $600 million for Victoria and get all of its millions of ounces of reserves and resources and exploration properties for free? What chance would a $10/share offer for Victoria have of being accepted by the BOD and its shareholders? Yet here we are at $9.20/share.
All gold stocks are in an unreasonable recent decline, but Victoria seems to have been hit harder than most. Some of this is aggressive shorting which has been quite profitable so far. Its near-term fortunes probably rely more on a rebound in the price of gold than anything else and this is true of their peers.
However, not to be discounted is the continuing failure for the company to meet its forecasts. I was expecting production of 40k+ ounces in Q2. The 165k to 190k forecast for 2022 production was obviously NOT sandbagging and Project 250k is looking like a pipe dream. The 165k for this year seems barely doable, but companies get rewarded for meeting the high end of guidance or exceeding guidance. How do you increase production by 50% to get to 250k? Certainly you need more than working an extra 2 weeks in Q1 and screening fines in advance of tertiary crushing. As I've said before, please lets get to 200k oz/yr before talking about 250k.
In short, you need to up the mining rate of ore/waste which declined in H1 to 8 million tonnes from 11.8 million tonnes in H1 of 2021 and stack much more ore on the HLP. We're told that the reduction is due to "mine sequencing" - whatever that means, but that is not an acceptable explanation.