It's only 50c a poke,my belated perspective on VG "The Play"First no one expected or had covered the finances for "lose of containment". Insurance?
All of the following is just my opinion.
Thank you to all the ppl with their opinions and insight. :)
This is in hindsight and now a closer look at not just the physical aspect of recovery but also the machinations of the financing leads me to suspect that VG will be an enity as long as recovery is in play or cash and YTG remediation $$$ is available. Share price will bang around under a buck or whatever the remaining assets are valued at in case of BK or VG as for creditor protection.
Two things VG needs now is to produce some gold (within a set time) and right now a $$$ injection.
It is readily apparent and this is a note to myself also, that moving forward, to really look at shares outstanding, shares in play, current ask and if I want to pay that $ amt. And in the case of mining how stick can the company bring to bear in case of an "event".
The mine cost
is just that (physical build). it has a fixed build cost and in fact the assests are written down over time (declining balance).
The inventory (in the ground or in this case pregnant solution) is 0$ until to market. I've always said that and have taken heat for it, whatever... lol
The inventory in ground (this one is repeatly played on what the share price should be and why it's where it's at,
it's nonsense and it's part of the risk). The price of the delivered goods to make it to book as cash is the major factor on long term survival especially if there's a limited cash runway.
VG is a one mine show (with dreams of all sorts of future producing mines). Companies with multiple mines in production have a better chance of taking a "hit".
In this case anything above the .50 was market "trader" driven. ;) In the case of this mine note that a supplier CAT put money in (as equipment 50m$) I'm not in a mood to rip the financing package apart. But...
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As part of the Term Sheet, Osisko has also agreed to purchase on a private placement basis, 100,000,000 common shares of Victoria at a price of C$0.50 per common share (the “Private Placement”), for total financing by Osisko of C$148 million including the Royalty Purchase (the “Financing”).
In connection with the Financing, Victoria has entered into an arrangement with Orion Mine Finance (“Orion”) and Caterpillar Financial Services Limited (“Caterpillar”) with respect to a construction financing package totaling approximately C$505 million in aggregate (including the Financing) that is expected to fully fund the development of the Project through to commercial production.
******
https://osiskogr.com/en/osisko-acquires-gold-royalty-on-victoria-golds-fully-financed-shovel-ready-eagle-gold-project-in-canada/
https://resourceworld.com/osisko-sells-victoria-gold-shares-to-orion/
For the "devil in the details" of financing the comments in this article may be of interest
https://seekingalpha.com/article/4155494-victoria-gold-unexpected-twist-financing-package-will-be-completely-different#comments
Of course tihs is now circling out there.
https://www.slatervecchio.com/class-action/victoria-gold-corp-securities-investigation/
BTW
Here's the next gig (gamble) ;)
https://www.osiskomining.com/wp-content/uploads/20230502-OSK-GF-JV-annoucement-EN.pdf
Best