Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


'Production Ramp-up Expected to Increase' at Yukon Gold Project
Research Report

Share on Stocktwits


An operational update on Victoria Gold is provided in a BMO Capital Markets report.

In an April 7 research note, BMO Capital Markets analyst Andrew Mikitchook reported that Victoria Gold Corp. (VGCX:TSX; VITFF:OTCMKTS) is expected to increase gold production significantly at its Eagle mine in the Yukon, with commercial production starting in late Q2/20 or early Q3/20.

The latter "remains a key deliverable for Victoria's valuation, and we are monitoring progress closely," he added. Until commercial production commences, the Canadian gold company will likely remain in a break even status or close to one, according to BMO's modeling.

While operations continue at Eagle, Victoria Gold is adhering to a COVID-19 action plan to minimize risks to its employees.

Mikitchook reviewed the production from Eagle to date, which totaled 27,822 ounces (27,822 oz). In 2019, the mine produced 17,214 oz and in Q1/20, produced 10,608 oz, both lower than BMO's estimates of $20,000 oz and 23,000 oz, respectively.

Stacking was restarted earlier this year and amounted to 888,000 tons in March, exceeding BMO's forecast. Of the total stacking, though, only a small part was "likely under leach for any significant portion of Q1/20," noted Mikitchook. "This is a timing adjustment, and we expect this production to roll over into Q2/20 and beyond."

BMO has an Outperformer rating and a CA$14 per share target price on Victoria Gold, which is currently trading at around CA$7.60 per share.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from BMO Capital Markets, Victoria Gold, April 7, 2020


Analyst's Certification
I, Andrew Mikitchook, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.

Company Specific Disclosures

Disclosure 16: A research analyst has extensively viewed the material operations of Victoria Gold.

Disclosure 17: Victoria Gold has paid or reimbursed some or all of the research analyst's travel expenses.

For Important Disclosures on the stocks discussed in this report, please click here.


Want to read more about Gold investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe