Victoria Gold Corp VITFF

SP Drop

[barringtondolby]

Any ideas why the big drop in the SP today. Yesterday's news seemed positive.

[givemeabreak1]

Barrington a couple of reasons 1.Large Low grad deposits are more leveredged to the POG.   Think about it this way!  Assume a low gold company has an all in cost of $1500 and ounce and the selling POG is $1650.  So the profit margin is $150.  A $50 drop in the POG makes their new profit margin $100.  So they essential had a 33% decrease in profit.  A large high

[barringtondolby]

Appreciate you response, thank you.  It still seems this SP drop is more than a drop in the gold price, we have seen the price of gold flucuate, at times substantially, over the last 12 months, butI I do not rember this SP dropping like it has today.

[givemeabreak1]

Barrington I am not sure you understand what I was saying.  Generally speaking a share price drop is really about the price drop of gold in relation to the affect on margin!  For example the gold price is down $11.50 an ounce today so that is less than 1%.  However the gold stock does not fall by 1% but rather the price drop in relation to margin. So rough guess Victoria Gold All

[Pete1986]

Lol, u make it to simple.  Margins are an important factor, however, its more about future expected margins than current ones.  Since input factors should decline significantly (and already did compared to Q2), AISCs should go down significantly as well. For next year I expect AISCs of around 1200 USD and gold prodcution similar to 2022.  Assumng gold price goes down to 1500 USD

[Swingandmiss]

And then factor in that the company has no guidance for the remainder of the year. Of course this will sell off more than its peers. This CEO is tone deaf to what the market is telling him, or doesn't care. And for anyone that says "he has 1% of the company so share price matters", I say he will just keep collecting his fat salary while most of us on this board are trying not to

[givemeabreak1]

The good news is that there are not that many shares out!!!!!!!!!!!!!!  Yet lol

[barringtondolby]

Watching to days action, and what happened yesterday, I am beggining to wonder if there is manipulation going on, and I cannot reason why!

[barringtondolby]

should be begining to wonder

[Whateverrr]

Correct, below.  OCD always used to say they ( retail ) were on the same amazing bus as John and management.  So obtuse to state that.  He and a few couldn't quite figure out that management especially John here at VG since 2007 was benefitted enormous amounts of shares which went exponential once he was CEO. ( essentially ALL of his shares were compensation package and NOT

[Human7]

OCD hasn't been here for months and you're still quoting him and assuming he tapped out. More likely the guy literally died than to let your mentions go unanswered like this. 

[OCB1234]

Still alive & well, my friend. I got quite busy with travel & golf earlier in the year and just didn’t have the time to keep up with the board. I finally put my sticks away for the winter, so I plan on being more involved here going forward.   A lot of disappointment recently with VGCX and, quite frankly, the entire precious metals sector as a whole. After I retired in 2017, I took a

[MVargas]

So what happened to your 10+ years of posting history? I don't know of any 100k+ oz producer that has performed as poorly as Victoria which is down 50% YTD.  I own shares in KRR which is up almost 10% YTD. Victoria filed a Short Form Base Shelf Prospectus this week - signalling a share offering?

[OCB1234]

"So what happened to your 10+ years of posting history?" No idea. But if you're looking for my past posts to prove how wrong I was about Victoria up to now, go for it. Me? I look forward, not behind. :)

[kegman]

I am hoping if they do put out shares it goes directly for Raven and only Raven and debt remediation.  NO BYN.  Using Victoria to float a financing for BYN would be fraud.  Yes, I said it.  Have a great holiday everyone.  

[OCB1234]

I don't believe the current cash flow is ticketed for Raven so you may be right about the proceeds of a share offering being targeted for further drilling there. Especially considering VGCX is planning on doing another robust 25k meter drilling program there next year. 

[powerman]

Victoria is committed to keeping their % ownership of BYN so if they did not partisipate in the offering they will certainly be buying more shares of BYN. And Yes Victoria will also do another share offering/dilution and all friends of Victoria Gold will be happy with getting shares at a bargain basement sale price. So if you are jealous then you can buy on the market for a similarly low price

[OCB1234]

"Victoria is committed to keeping their % ownership of BYN..." I would love to see Victoria buy out Banyan and get that potential 4M oz AurMac deposit with his wife running the business aspect of the company with John focusing on the mining ops. 

[kegman]

There is not enough of a workforce to have three mines operational.  Sell BYN and incorporate Raven into production.  Selling BYN at 10% discount to present price should garner a lot of interest if it is that good.  I am betting no one would step up.  

[OCB1234]

"Selling BYN at 10% discount to present price...."  Why in the world would the McConnells ever want to do that?!

[kegman]

Because .37 is still more than it is worth. Bah humbug! Lol. And.....how much debt could that wipe out? You could never sell that much byn without tanking the price. Time to shovel out the driveway!  

[EdwardBlake]

John needs to focus on Raven, Banyan is a waste of VGCX shareholders' resources.

[OCB1234]

They are planning another 25k+ meters drilling program @ Raven next year. I just hope they don't dilute to pay for it. They are making enough money to pay for it via free cash flow.

[kegman]

Maybe we get Tara a boyfriend and she can dump John.  New and Strategic.........investor.  Hmmm.   John will then be forced to hang out with the sled dogs and work on VGCX.  Imagine that!

[OCB1234]

From what I understand Tara is very well respected so, if AurMac is the real deal, then just buy out the company and let her take care of the business aspect and let John play in the dirt @ Eagle, Raven & AurMac, which is what he does best. 

[kegman]

Simple economics my friend.  If Eagle cannot get enough employees or supplies to run one mine, how can they do two?  Raven will have to be pulled into Eagle system to be economic in these times.  No sense building another plant at another site.  Cost to build a mine right now up there will be 2-3 times Eagle cost.  Not the right time.  Opportunity cost......I am

[hcahoon]

You've said it all Kegman and I have to agree. h

[RdlBama]

Down on the southern front, Lahontan is getting clobbered. Karma is a b!tch John.

[BigJake]

I agree as well, putting cash in BYN before getting eagle to design production rates was insane, unless of course you own shares in BYN.

[givemeabreak1]

Or unless you hold a sizeable royalty!

[OCB1234]

It's about adding up the ounces (Eagle + Raven + AurMac) and then teeing up the company for a lucrative takeout, not building another mine. 

[kegman]

OBwon.  Use the force.  Someone has to build a second mine operation for Aur Mac.  If it is not feasable there is no value.  If there was, VGCX would have been taken out by now,  Valuations at these prices ...BYN and VGCX.  Do you think they make sense?  Multiple the shares by the price.  If VGCX is at its present value are you teling me BYN is worth .41 per

[BigJake]

Very good to hear from people who live in the real world 

[Human7]

I think the depressed VGCX share price has rattled the real world thinking. Trying to dump on a world-class junior like Banyan is difficult to do, but people are doing their best to take out their frustrations.

[kegman]

Okay....not picking on you but World Class Junior?    No hope to bring to fruition without major dilution.....many more times  intense than VGCX needed.  Unlesss VGCX can prove ultimately profitable with no more fall backs.....BYN is dead in the icey frost up there.  That is just the business case.  Tara is nice, I get it.  John is a great husband.  WE need

[Human7]

I base world-class junior on 3 out 5 main stage speakers at PDAC put it in their top 5 juniors worldwide, as i recall. You gotta figure they've all looked at the basics. Mulitple picks is pretty heavy evidence. Will it be many more times intense dilution needed than VGCX? i'd like to see the case for and against. I'm not good at that. Looking to show Tier 1 ounces and steady newsflow

[kegman]

I am not bashing BYN, it is just not a worthwhile endeavour right now for VGCX.  Do you think inflation has hit up there?  Do you think any new mine will be at least 2X what VGCX paid.  Dilution on VGCX forced a 15 for 1 rollback.  Too much actually.  I would think BYN would be in for far more expense and raising money at this level would get them at 1 million shares in no

[Human7]

kegman... re the inflation, is that not common to everyone? Mines will get built. And as per your other post, gold price can impact things. Gold was what when victoria got the green light? the current POG covers the spread now, no? $500? And do we really think there's much downside to gold right now? Byn just did a raise to cover next year. No one seems to think it was a bad one

[Human7]

ok, so that's the longest set of REs ever. Here's one more :)

[OCB1234]

Only 'people who live in the real world' know, for better or for worse, that Victoria and Banyan are joined at the hip. Always have been, always will be. Just something all of us VGCX investors have to deal with. 

[Whateverrr]

LMAO.  One of the funniest comments I have ever read here.

[MVargas]

I'm not whateverrr and no I wasn't going to give you a hard time about past posts. When you completely disappeared from the board along with all past history, I thought perhaps someone had you banned or that you voluntarily asked Stockhouse to remove you.  Just wondering . . . 

[OCB1234]

Just a temporary hiatus, MVargas. I didn't realize I would lose my past posting history. Oh, well,,,,,,

[Greatdaysahead]

https://www.sedar.com/GetFile.do?lang=EN&docClass=9&issuerNo=00006065&issuerType=03&projectNo=03474327&docId=5334506 MVargas Reading the short form prospectus, I note it is not only about new issue but also "secondary offering and could be a mix of shares/debts/warrants Past offering were new issue and less "opened" as this one let a great flexibility for

[givemeabreak1]

Pete you are complicating the question. It was a simple question why on 1 day only did the share price drop farther than the gold price. As far as your scenario if their margin were double it share price could very well double.

[barringtondolby]

You have put iit nto context thank you. I confess I have not followed VGCX for very long,,and was not fully versed on their production costs, I very much appreciate you giving them to me. However, I thought today's reaction to the gold price was a bit over the top, but as you point out, the decline in the SP just about matches the decline in their margins. Interesting! Appreciate your comments