RE:RE:Market cap normalizationkegman wrote: The gold in the ground has value. The constant over promising and under delivering and then the subsequent lack of transparency by management is what lead the stock down and then the 'partners' shorted the he!! out of it. Waiting for short report today and that won't even show the last few days this week. I agree, we were a $8-$10 stock. Market said no though. If we have a pull back on gold lets see how hard VGCX pulls back. If the shorts stay away I am thinking not too much. Second thoughts OBWON? Mr. Vargas? Even a blind squirrel finds some nuts. I trimmed a bit yesterday at $8.05. Enough to clear up some margin. GLTA
No second thoughts Kegman.
Nothing has changed except the POG which floats all boats.
I sold my last 29,500 shares last Sept at an avg price of $5.73 and used the proceeds to purchase 300,000 shares of MOZ which has since doubled.
In 2023 VG produced 166,730 oz at an AISC of US$1488 and a realized price of $1,929 - a margin of US$441/oz. Total debt decreased by a mere C$10.8 million in 2023. For every US$100 increase in margin between POG and 2024 AISC, net additional after tax cash flow is ~C$18 million. Total debt outstanding at end of 2023 was C$236 million.
Due to hedging, VG does not get full benefit of rising gold price. If 2024 average realized price is $2200 and AISC is $1600, the $600 margin is ~US$160/oz greater than 2023 which, based on production of 180,000 oz, will net an additional C$$29 million in after-tax cash flow. A $2300 POG will produce an additional C$18 million in after-tax cash flow for a total of C$47 million - still nowhere enough to repay C$236 million in debt by end of 2025.
Be thankful that the recent rapid increase in the POG has turned a loss into a nice gain, but IMO there are better opportunities elsewhere in the gold or silver space.