VITFF - Victoria Gold: A Tough Start To Commercial Production

• Victoria Gold released its Q3 results last week and reported gold production of 35,300 ounces, tracking well below its H2 2020 guidance.
• Given the lower gold sales than expected and increased sustaining capex, all-in sustaining costs came in well above the industry average at $1,315/oz.
• Fortunately, the higher gold price made up for the much higher than expected costs, with the company reporting an all-in sustaining cost margin of $571/oz.
• I see more attractive opportunities elsewhere in the sector, but any drop below C$11.00 would significantly improve the valuation here.

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