Victoria Gold Stock Forecast: Canada is no stranger to the gold fever – the country had its first ever gold rush in 1867 in the small town of Eldorado. Aptly named, the town went from a mere 50 residents to over 4000 in a short period – all in search of the famous yellow ore.
Due to poor production efforts and incapable oversight, this original mining location dried up within a year – taking the 3,950 new residents with it.
Today’s miners and gold prospectors have technology on their side. For instance, Victoria Gold Corp.
Victoria Gold Controls Yukon’s Largest Gold Mine
Victoria Gold Corp is a mining operation headquartered in Toronto, Canada. Victoria Gold Corp’s Eagle Gold Mine is the Yukon’s newest and largest gold mine – in Yukon’s history.
Eagle’s conventional open-pit process has a crushing plant that puts the ore through three various stages, two leaching processes, and an absorption/desorption recovery. The mine is operational year-round, has always-open road access, and year-round personnel.
Employees work on a fly-in/fly-out rotation via the commercial airstrip located near Mayo, and are housed in a camp large enough for 300 people all year long, well equipped with all necessary items. Power is supplied from a Yukon grid.
As the mine continues to ramp up production, Victoria Gold Corp expects to employ 350 to 400 personnel. This makes Victoria a significant contributor to the local economy, communities, and the territory as a whole.
The mine is located on tribal lands of the Nacho Nyak Dun people, with whom Victoria Gold Corp has an agreement for comprehensive provision of cooperation and benefits.
Eagle Gold Project Overview
This project has an incredible combination of rich mineral deposits, an enviable location with infrastructure already in place, and a knowledgeable team of managers.
The Yukon Territory has always been known for its rich deposits, and this location is perfect proof – surveying has shown the Eagle Gold Project to have around 3.6 million ounces of gold.
The project also has a very low waste-to-collection ratio of less than 1 to 1. The location’s mineral characteristics are also favorable to lower-cost processing.
Is Victoria Gold Corp Stock A Buy?
Victoria Gold Corp is one of the leading gold development, exploration, and mining companies in Canada. Their newest mine, the Eagle Gold Project, is located in the Dublin Gulch in Yukon Territory, hosts over two million ounces.
Operations are currently underway – in fact, they poured the first ounces of gold from Eagle Gold Project near the end of Summer 2019. But more on their current production stats later in this piece.
Once Victoria reaches optimal mining levels, its operational costs are expected to be around $550 per mined ounce.
Shareholders of the Victoria Gold Corp are uniquely positioned – this find is highly leverageable as it’s the largest ever gold mine in the history of the Yukon Territory.
Also, all of Victoria’s projections are based on a gold price of around $1,200 USD per ounce. Currently, gold prices in Canada are holding steady at $2459 CAD, or roughly $1822 USD.
Other strengths, as noted on Victoria’s website, include:
- Around 70% of all costs are in Canadian dollars
- Canadian gold prices are at an all-time high
- Reserve fund totaling $20 million due to COVID-19
- Heap leach allows for 76% recovery
Risks of Investing In Victoria Gold Corp
April 2020 was quite a successful month for Victoria Gold Corp. Mining saw a significant uptick from Q1. During the month of April, the company mined over 6,000 ounces of gold from their Eagle claim. Their year-to-date ore mined total is 17,312 ounces.
The risk posed at this time appears to be maintaining the 200,000-ounce-per-year target they’ve claimed is possible at the Eagle site. However, their current monthly average ore mined is 4,328 ounces.
Granted, April was successful – but in order to hit their target mined amount, the group would need to secure at least 22,836 ounces each month for the rest of 2020. Is this possible?
According to the company, yes. Substantially higher outputs are expected throughout upcoming months as they’re able to successfully leach more ore. COVID-19 caused the company to shut down, but only temporarily.
Safety precautions have been established and all health regulations and procedures are being closely followed.
Will Victoria Gold Corp Competitors Beat It?
Victoria Gold has several competitors in the gold mining industry. Victoria’s top 10 competitors include:
- Wesdome Gold Mines
- Seabridge gold
- Equinox Gold
- Dundee Precious Metals
- Perseus Mining
- Equitable Group
- New Gold
- Orla Mining
- Sabina Gold & Silver
- Atlantic Gold
Like its competition, company success is highly tethered to the price of gold. And the price of gold tends to be inversely correlated to confidence in government.
Some argue an increasing supply of money boosts the price of gold, but the most recent boom didn’t prove the case conclusively. History shows that when confidence in governments plummets, the price of gold soars as people hoard it.
So Victoria Gold has less to worry about from competitors and is more concerned about the price of the underlying metal itself.
Victoria Gold Corp Stock Forecast: The Bottom Line
Overall, even with certain risks, gold is a good investment – and Victoria Gold Corp appears to be a good long-term investment. It’s a strong a buy contender at this time.
Analysts project that within a year’s time, Victoria share price could rise by approximately 15% and in five years by as much as 50% or more. If you’re into long-term projections and don’t mind sitting on your portfolio, this could be a great stock for you to invest in.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.