Numbers and conclusions Trading value on June 24th, 2024 ~ $7.39
Trading value on June 25th, 2024 ~ $1.35
Recent Book Value ~ $8.86
Shares outstanding ~ 67.7M
Book Value x ~ 67.7M shares outstanding = ~ $600M
1.5 x Book Value = ~ $900M
$100/oz per ounce of reserves x Open Pit Mineral Reserve for Eagle and Olive 2.584M oz (Technical Report effective date December 31st 2022) = ~ $258.4M
Resource 4.4M oz + Reserve 2.3M oz (from VGCX May 2024 Corporate Presentation)
$100/oz per ounce of reserves x 6.7M oz = ~ $670M
Gold Inventory based on cost = ~$176M (from VGCX May 2024 Corporate Presentation)
It is not hard to imagine that as a going concern, and given some time, Victoria Gold could have extricated itself from this mess.
Instead, a message is being sent that even a mid-size, growing gold producer may not survive a moderately serious incident.
A forced liquidation of assets is unlikely to attract the prices one might expect during normal business conditions.
Other jurisdictions will pick up all of the “slack” (that is to say, gold production).
IMO