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Friday, Mar 29, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Gold

Victoria Gold reports 50% increase in gold sales during Q1

The Yukon miner produced 12,683 more ounces than Q1 last year

Victoria Gold reports Q1 results, has 55% increase in gold production
Photo via Victoria Gold

Victoria Gold Corp. (TSX: VGCX) had a strong start to the year in terms of gold production and sales, but the company generated about $5.3 million less in gross profit than the first three months of last year.

On Thursday, the Yukon mining company announced its financial results for the quarter ending March 31 and mined about 1.33 million tonnes of ore, a 62 per cent increase from the first quarter of 2022. The amount of ore the company stacked on the heap leach pad increased by 138 per cent in comparison to Q1, 2022 at an average grade of 0.86 g/t Au.

The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) in Q1 totalled $26.38 million, a 12.7 per cent decrease from the $30.22 million generated in Q1 last year.

Cash and cash equivalents for the quarter totalled $23.6 million, a 14.5 per cent increase from the $20.6 million Victoria had in the previous quarter ending December 31.

Gold sales rose by 50 per cent year-over-year to 38,201 ounces and gold production also increased by 50 per cent compared to the first quarter of 2022 with Victoria generating 37,619 ounces.

The company’s gross profit in Q1 totalled $20.98 million with operating earnings of $17.8 million during the quarter. Victoria had cash costs of $1,508 per ounce sold and sold gold at an average realized price of $2,526.

Read more: Calibre Mining’s discoveries at Eastern Borosi hold promise for extended lifespan

Read more: Calibre Mining reports record revenue and gold sales for Q1 2023

CEO expects steady increase in gold sales

Victoria’s President and CEO John McConnell feels the start of the year at the Eagle Gold Mine has been successful.

“During previous years, the Mine underwent a period during the winter where no ore was stacked on the heap leach pad,” said McConnell. “We have now proven that year-round stacking is feasible and this has resulted in record first quarter production, including ore tonnes mined and stacked on the heap leach pad as well as gold production,” he added.

McConnell expects a 10-20 per cent annual increase in gold production and sales during the remainder of 2023.

During the quarter, Victoria incurred $16.9 million in capital expenditures.

Victoria Gold had a total sustaining capital of $6.3 million encompassing various components, which included scheduled capital component rebuilds amounting to $3.2 million for their mobile mining fleet.

It also allocated $1.3 million for upgrades and capital component rebuilds on their material handling system. A portion of the capital equaling $1.0 million was directed towards the construction of a water treatment facility.

Lastly, they set aside $0.8 million for other ongoing sustaining capital initiatives.

Read more: Calibre Mining to purchase 50% of production royalty in Eastern Borosi, Nicaragua

Read more: Calibre Mining starts drilling high-grade gold at Eastern Borosi open pit

The company had stripping activities amounting to $7.6 million, growth capital expenditures totalling $4.0 million and a $1.0 million adjustment to its asset retirement obligation during Q1.

Victoria expects to generate between 160,000-180,000 ounces this year. The company’s shares dropped by 6.32 per cent Friday to $9.34 on the Toronto Stock Exchange.

 

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