RE:RE:RE:RE:Just Imagine....Well it's interesting Kegman how they managed to earn $1.77 per share in 2021 with only 159K ounces production if their ground operations were such a failure as you're suggesting and the new Coeur manager wasn't even at VG at that time. I'm not denying that the new guy isn't doing a good job but just sayin that it's not like they weren't initially making good strides in 2021.
In 2021 VG had $356 million in Revenue and a $110 million in net income, AISC was $1196 US and and average realized gold price of $1790 US an ounce, so margins of about $600 US an ounce (kinda looks similar to today's margins). But then in 2022 the wheels started to come off the cart and so what changed?
Have a look at page 3 of the 2021 financials and so my point is that it hasn't been all doom and gloom. And then don't forget VG had some major infrastructure build expenses in 2022 and 2023 yet still kept drilling so in all fairness VG management deserves a little credit here although I'm sure there are still some long time VG shareholders that still want to see management burned at the stake and frankly they need to get over it.
Anyway, the good news is that the worst should now be behind us and if they can get the financials anywhere close to where they were in 2021 the share price won't be trading in the $6 to $7 range like it is right now for much longer. With gold at these levels, 2024 margins are tracking similar 2021 margins and that tells me it's only matter of time before the share price reflects this.
2021_vit_q4_fs.pdf (vgcx.com)
2021_vit_q4_mda.pdf (vgcx.com) It's still evident that VG shareholders have adopted a once bitten twice shy and a show me attitude and so the ball is now in VG management's court to prove they've got this ship turned around! If VG can produce 185K ounces this year at these margins, it shouldn't be too hard to see results trending similar to those in 2021. I posted earlier today that VG is currently trading at about a FWD PE ratio of 10x (based on RBC's current 2024 EPS estimate of .69 cents). If VG earned $1.77 a share in 2024 and traded at a 10x PE, that's $17.70 a share! At a 15x PE which is more historic PE for VG, that's over $26 a share. Can they get there? well I believe they can and I'm willing to wait around to find out.
HB77