RE:RE:From Alexco Q2 Financialsyoshka2000 wrote: I see, is this important in some way? Why is the share value lagging so much with such a stable goldmine in Canada?
It is important disclosure that should have been provided to Victoria shareholders by the company, but we had to get it from a third party. Time will tell whether Victoria's investments into Banyan will utlimately be profitable, but Banyan needs much higher gold prices in order to be able to finance the cost of a new mine development, especially considering the current inflationary enviroment and rising interest rates. The cost of building Victoria's Eagle gold mine today would be much higher than the the company's current market cap.
The share prices of almost all gold companies have been lagging this year - mostly on declining gold prices and very low market sentiment. VGCX is down 34% from a year ago compared to a 27% decline for the GDXJ so Victoria has underperfomed compared to many of its peers.
IMO a contributing factor is management performance and not meeting investor expectations that have been well documented.
In an interview with Crux investor 2 weeks ago, JM is still pushing getting to a "production rate" of 250k ounces in 2023. He says that the biggest component of that increase in production will be going to year-round stacking with a non-stacking period reduced from 8 weeks this year to 4 weeks next year. Even if true that is woefully insufficient to be a major part of the production increase. In a February 25 interview with Commodity TV JM said that this year they shut down in mid-January and are starting back up today - a 5-week maintenence period. H2 production in 2022 was less than H2 production in 2021. So a 4-week shutdown period in 2023 will be 1 week less than 2022.