Victoria Gold Corp VITFF

One year ago

[MVargas]

Gold price in Can$ = $2,450
Oil Price in US$ = $92.83
VGCX Share price = $17.24

Currently:
Gold price in Can$ = $2,626
Oil Price in US$ = $68.29
VGCX Share price = $8.34

Major cost is labour paid in Canadian dollars
Second highest cost is fuel down $34/barrel from a year ago.
Share price down more than 50%

[Greatdaysahead]

Should they finally begin to deliver as per their guidance (high range) and we should see a pps between the two... 3 weeks before 1Q prod nbrs...little impact from oct failure so expecting at least same prod than q1 2022?

[MVargas]

Same production as Q1 2022 just won't cut it.  They need to produce a minimum of 30k ounces in Q1 to put them ontrack to meet the mid-point of guidance, but for the year they really need to produce the upper end of guidance which corresponds to the newly updated mine plan, or 180,000 oz.  Really 30k ounces this quarter is not a very high bar to meet, especially with the promised

[hcahoon]

MVargas.  What would you consider a resonable multiple to a $2.00 a share price. 5 times, 10 times, inbetween, more or less? At 5 we are only looking at $10 per share. Is that fair value? h

[MVargas]

hcahoon, it's hard to say as the earnings multiple depends on a lot of factors.  The GDXJ that includes 98 junior gold and silver mining companies has a P/E of 19.52 as I write.  VGCX currently has a P/E of 15.3 based on TTM (trailing 12 mos) earnings of $0.55.   If it were to maintain that P/E, then just a doubling of earnings in the next 12 months would double the share

[hcahoon]

Yes it is, as you say, a many factored ratio. I'm hoping with a productive year and the all critical gold price remaining stable or better, we may see a 10 P/E ratio. Interest rates will likely tell the story for gold price. h

[Research67]

Definitely a good start:-) No time to celebrate, a quick tip of the glass and back to work! Great timing on this accomplishment!