CA - Victoria Gold: A Solid Buy-The-Dip Candidate

2024-04-08 11:04:14 ET

Summary

• Victoria Gold Corp. had a decent 2023 despite a brief setback due to wildfires, but will have a much better 2024 from a financial standpoint with the recent gold price strength.
• However, the real improvement in free cash flow will arrive next year as we see higher production at much lower operating costs combined with lower capex.
• In this update, we’ll dig into the company’s Q4 and FY2023 results and where the stock’s updated low-risk buy zone lies:

While it was a rough start to the year for the Gold Miners Index ( GDX ), the index has bounced back sharply since March. This has been in line with my view that we were likely to see a significant recovery for the GDX in the latter portion of Q1 given that an abnormally weak January and February has typically led to a very strong March, and the strength in the index exceeded my expectations with a 21% return for the month. Fortunately, the index has seen continued follow-through into April and is now outperforming the Nasdaq 100-Index (NDX, QQQ ) year-to-date....

For further details see: