There was a time not too long ago when I wasn’t a fan of Victoria Gold (TSX-V:VIT). The company had 850 million shares outstanding and had ran overbudget on the construction of the Eagle Gold Mine in the Yukon.

That was then, and this is now. Remember, every moment in the market is unique and when we stay entrenched in views and do not allow new information to enter our decision making then we probably won’t have very good results over the long run.

Two weeks ago at a conference in Palm Beach, Florida I spent about an hour chatting with Victoria Gold CEO John McConnell . I was impressed by his level of confidence and calm demeanor. This is a man (a leader of a BIG team) who has built Canada’s next gold mine, and he has done it against a backdrop of naysayers who said he couldn’t. I feel like John is as motivated by creating jobs in the Yukon, and making shareholders money, as he is by simply proving that this project works and proving the naysayers don’t know what they’re talking about.

Victoria Gold CEO John McConnell

After a recent 15 for 1 share consolidation Victoria has a tight share structure consisting of 57.23 million shares and the company stands to generate US$100 million of free cash flow per year. At a US$300 million market cap VIT shares certainly aren’t expensive and my eventual upside goal is to see VIT reach a C$1 billion market cap (~150% increase from current level).

This morning Victoria delivered an updated resource estimate which included an increase in annual production to 220,000 ounces of gold per year. This is not a small project!!

  • Reserves increase from 2.7 Million to 3.3 Million ozs Au
  • Annual production increases from 200,000 ozs to 220,000 ozs Au
  • Cash Costs1 per Au ounce: US$577
  • All-in Sustaining Costs (“AISC”)2 per Au ounce: US$774
  • Post tax Net Present Value @ 5% discount = $1,034 million

Click here to read the full Victoria Gold NR.

While many weren’t paying attention the VIT share rollback and much higher share price (due to a much smaller share count), along with newly crowned producer status, has made Victoria Gold an attractive potential investment holding for many institutional investors. Uplisting to the TSX (Q1 2020) and getting an NYSE listing will be the final feathers in VIT’s cap which will make it a staple gold producer holding among institutions. The buying from these institutions has only just begun and makes one wonder just how far VIT shares can run (VIT is up ~15% since the share consolidation on November 20th).

My initial upside target for VIT is C$10.00 which I believe can be reached within a couple of months. If all goes well during the first year of production (along with a strong gold price environment) I can envision VIT shares trading as high as C$17.50 by this time next year.

VIT.V (Weekly – 5 Year)

I am a Victoria Gold shareholder and I plan to remain one until at least double-digit share prices (C$10.00+). Victoria Gold is an Energy & Gold sponsor company.


The article is for informational purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. Victoria Gold Corp. is a high-risk venture stock and not suitable for most investors. Consult Victoria Gold Corp’s SEDAR profile for important risk disclosures.

EnergyandGold has been compensated for marketing & promotional services by Victoria Gold Corp. so some of’s coverage could be biased., EnergyandGold Publishing LTD, its writers and principals are not registered investment advisors and advice you to do your own due diligence with a licensed investment advisor prior to making any investment decisions.

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