VITFF - Victoria Gold: Ignore The Weak Q1 Results

2024-06-09 09:28:24 ET

Summary

• Victoria had a tough Q1 with lower production and higher costs, impacted by unplanned maintenance, with a further impact from lower grades.
• Unfortunately, this led to AISC margins dipping year-over-year, which diverged from its peer group, and we saw minor share dilution from a flow-through raise.
• In this update, we’ll dig into the Q1 results, the Q2 margin outlook, and whether the stock is worthy of a spot in one’s portfolio.

With the Q1 earnings season out of the way for the Gold Miners Index ( GDX ) where we saw an average realized gold price of $2,070/oz, all eyes are now on the upcoming Q2 results. Given that the average realized gold price is sitting above $2,300/oz quarter-to-date, Q2 will bring with it much stronger financial results on balance, and one producer set to benefit is Victoria Gold (VITFF). This is because the company had a weaker than planned Q1 operationally, but should see increased production at higher margins as the year progresses. In this update, we’ll dig into the Q1 results, the Q2 margin outlook, and whether the stock is worthy of a spot in one’s portfolio....

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