Q: oDO you think Victoria Gold is a buy at its present price range?
5i Research Answer:
VGCX is quite cheap at 10X earnings, but has struggled this year. It is a bit leveraged, with debt more than 2X cash flow, but strong earnings growth is expected next year. Historical earnings have been quite volatile. Its last quarter was a fairly large 'miss'. It produced 125,000 ounces of gold in the first nine months of 2023, with cash costs of $1,224/ounce. All in costs were $1,484/ounce. We would like to see these costs lower, for more earnings leverage. Insiders own 3%, Orion Mine Finance owns 30%. We would consider it a good, but not great, mid-cap gold.