GREY:VITFF - Post by User
Comment by
HoneyBadger77on Feb 21, 2024 6:54pm
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Post# 35892113
RE:41982 Ozs Produced and only 36601 Sold! That's 5381 Ozs!!!
RE:41982 Ozs Produced and only 36601 Sold! That's 5381 Ozs!!!As per the conference call this morning the Osisko 5% NSR is counted as produced ounces but is not included as revenue or an expense. On the Q4 production of 41,982 ounces produced, the 5% NSR would equate to about 2100 ounces paid to Osisko. The 1% NSR to Franco Nevada is included in accounting.
Something else to consider though is that VGCX paid down about $15 million debt (CAD) in Q4 which is equivalent to about 22.5 cents a share, so if you add that to the .04 cents of net earnings without the debt payment they would have had about 27 cents EPS in Q4. However, I believe $5 million of that $15 million debt payment came out of cash on hand (which now stands at $15 million vs. the $20 million they had prior to the debt payment) so the actual EPS that went to debt would have been about 14 cents not 22.5. Q4 EPS Consenus was for 20 cents, so 14 cents plus 4 cents = 18 cents Q4 EPS without the debt payment.
The total interest on debt in 2023 was $21 million CAD or a bit over $5 mil CAD per quarter vs. about $10 million total interest in 2022 and so they need to get their debt paid down to reduce these interest expenses which is apparently now a main focus for them in 2024. I also see that their total debt actually increased by $6 million CAD in 2023 to $190 million CAD vs. the ~ $184 million CAD in 2022 despite their $21 million CAD debt payment(s) and so I'm guessing that's atleast in part what got investors attention today. However, as a previous poster mentioned today, the majority of their major expenses are now behind them and 2024 should be a much better year with increased FCF to pay down their debt. The forward gold sales will help to reduce risk so overall I'm not too concerned and see 2024 as the turning point for VGCX. If gold were to go to $2300 US or higher in the latter part of the year, we'll be looking at a very good 2024. A couple more quarters of improvement are still needed to confirm VGCX is back on track.
HB77