Third Quarter 2023 Highlights | |
Gold produced | 41,561 ounces |
Average gold price realized | |
Revenue (000s) | |
Gross Profit (000s) | |
Income before taxes (000s) | |
Net Income (000s) | |
Earnings per share – Basic | |
EBITDA (000s) | |
Free Cash Flow before working capital (000’s) | |
Free Cash Flow after working capital (000’s) |
Mr.
The Company will host a video conference call on
This release should be read in conjunction with the Company’s Financial Statements and Management’s Discussion and Analysis (“MD&A”) for the three and nine months ended
Operational highlights – Third Quarter 2023
- Mine production was 2.0 million tonnes (“t”) of ore in the quarter.
- Ore stacked on the heap leach facility (‘HLF”) in the quarter was 2.3 million tonnes at an average grade of 0.65 grams per tonne (“g/t”).
- Gold production was 41,561 ounces (“oz”) in the quarter.
Financial highlights – Third Quarter 2023
- Gold sold in the quarter was 40,623 oz, at an average realized price1 of
$2,583 (US$1,926 ) per oz. - Recognized revenue was
$105,1 million based on sales of 40,623 oz of gold in the quarter. - Operating earnings were
$18.3 million in the quarter. - Income before tax was
$10.5 million for the quarter. - Net income was
$5.6 million , or$0.08 per share on a basic basis and$0.08 per share on a diluted basis for the quarter. - Cash costs1 were
US$1,224 per oz of gold sold in the quarter. - All-in sustaining costs (“AISC”)1 were
US$1,484 per oz of gold sold in the quarter. - EBITDA1 were
$34.6 million in the quarter, or$0.52 per share1 in the quarter. - Free cash flow1 before working capital was
$18.2 million in the quarter. - Free cash flow1 after working capital was
$25.2 million in the quarter. - Cash and cash equivalents were
$18.9 million atSeptember 30, 2023 .
Third Quarter and YTD 2022/2023 Operating Results
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Operating data | |||||||
Ore mined | t | 1,997,519 | 2,060,062 | 6,500,794 | 5,555,335 | ||
Waste mined | t | 3,093,063 | 3,054,624 | 8,312,576 | 7,491,690 | ||
Total mined | t | 5,090,582 | 5,114,686 | 14,813,370 | 13,047,025 | ||
Strip ratio | w:o | 1.55 | 1.48 | 1.28 | 1.35 | ||
Mining rate | tpd | 55,332 | 55,594 | 54,261 | 47,791 | ||
Ore stacked on pad | t | 2,321,719 | 2,070,840 | 6,929,257 | 5,256,031 | ||
Ore stacked grade | g/t Au | 0.65 | 0.89 | 0.75 | 0.84 | ||
Throughput (stacked) | tpd | 25,236 | 22,509 | 25,382 | 19,252 | ||
Gold ounces produced | oz | 41,561 | 50,028 | 124,749 | 106,441 | ||
Gold ounces sold | oz | 40,623 | 44,925 | 123,534 | 99,023 |
Notes - | Strip ratio: waste to ore (“w:o”) |
Mining rate: tonnes per day (“tpd”) | |
Gold production and sales
During the three months ended
During the three months ended
Mining
During the three months ended
Total tonnes mined were 1% lower during the three months ended
Processing
During the three months ended
Ore stacked on the HLF increased by 12% for the three months ended
Ore stacked for the quarter had an average grade of 0.65 g/t Au, compared to 0.89 g/t Au in the prior comparable period in 2022. Grades were impacted in Q3 mine sequencing which resulted in a higher portion of lower grade material being mined.
As at September, 2023, the Company estimates there are 92,735 recoverable oz within mineral inventory.
Capital
The Company incurred a total of
(1) sustaining capital of
- scheduled capital component rebuilds on mobile mining fleet of
$5.2 million , - upgrades and capital component rebuilds on material handling system of
$1.2 million , and - other ongoing sustaining capital initiatives of
$0.1 million ;
(2) capitalized stripping of
(3) $5.9 million spend on growth capital expenditures including exploration, and;
(4) $1.1 million adjustment to the Company’s asset retirement obligation during the quarter.
Third Quarter and Nine Months 2023 Financial Results
Expressed in 000s, except per share amounts | THREE MONTHS ENDED | NINE MONTHS ENDED | ||||
2023 | 2022 | 2023 | 2022 | |||
Financial data | ||||||
Revenue | $ | 105,127 | 100,698 | 320,478 | 229,533 | |
Gross profit | $ | 19,899 | 15,697 | 65,518 | 64,859 | |
Net income (loss) | $ | 5,631 | (8,595) | 22,576 | 24,579 | |
Earnings (loss) per share – Basic | $ | 0.08 | (0.13) | 0.34 | 0.38 | |
Earnings (loss) per share - Diluted | $ | 0.08 | (0.13) | 0.34 | 0.38 |
Expressed in 000s, except per share amounts | As at | As at | |
Financial position | |||
Cash and cash equivalents | $ | 18,879 | 20,572 |
Working capital | $ | 140,280 | 94,687 |
Property, plant and equipment | $ | 671,003 | 670,813 |
Total assets | $ | 1,016,118 | 1,016,806 |
Long-term debt | $ | 188,905 | 184,512 |
Revenue
For the three months ended
Cost of goods sold
Cost of goods sold was
Depreciation and depletion
Depreciation and depletion was
Liquidity and Capital Resources
At
2023 Outlook
Note that cost information in this Outlook section, including AISC1 and capital, are in US currency to allow for ease of comparison with our peers, who often report in US currency.
2023 Production Guidance remains unchanged at the
Prior to the impacts of the East McQuesten wildfire, which led to the evacuation of the Eagle mine site in late July and early August, the Company expected to achieve annual production in the top half of the Guidance range. After considering the impact of the evacuation, the Company expects production to be in the lower half of the Guidance range.
The seasonality experienced in 2021 and 2022, where gold production was lower in the first half of the year compared to the last half of the year, has been reduced in 2023 as the Company has successfully demonstrated the feasibility of year-round stacking on the heap leach pad. Seasonality is further moderated as gold ounces in inventory, primarily on the heap leach pad, is higher than in previous years and regularly scheduled maintenance periods, which were previously weighted to the first quarter, are now spread over the year.
Cost Guidance for 2023 remains unchanged and AISC1 are expected to be between
As a result of the East McQuesten wildfire and resulting mine site evacuation, the Company expects AISC1 to be in the top half of the Guidance range.
Sustaining capital, not including waste stripping, is estimated at
Capitalized waste stripping is estimated at
Growth capital related to
Qualified Person
The technical content of this news release has been reviewed and approved by
Video Conference Call Details
The video conference call to discuss the 2023 third quarter operating and financial results and updates will take place on
Zoom Video Conference Details
Join Zoom Meeting
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Meeting ID: 854 2509 6311
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A playback version will be available following the call on the Company’s website at www.vgcx.com.
About the Dublin Gulch Property
Victoria Gold's 100%-owned Dublin Gulch gold property (the “Property”) is situated in central
The Property covers an area of approximately 555 square kilometers, and is the site of the Company's Eagle and Olive Gold Deposits. The Eagle and Olive deposits include Proven and Probable Reserves of 2.6 million ounces of gold from 124 million tonnes of ore with a grade of 0.65 grams of gold per tonne. The Mineral Resource for the Eagle and Olive Gold Deposits has been estimated to host 245 million tonnes averaging 0.59 grams of gold per tonne, containing 4.7 million ounces of gold in the "Measured and Indicated" category, inclusive of Proven and Probable Reserves, and a further 36 million tonnes averaging 0.63 grams of gold per tonne, containing 0.7 million ounces of gold in the "Inferred" category.
Non-IFRS Performance Measures
The Company has included certain non-IFRS measures in this new release. Refer to the Company’s MD&A for an explanation, discussion and reconciliation of non-IFRS measures. The Company believes that these measures, in addition to measures prepared in accordance with International Financial Reporting Standards (“IFRS”), provide readers with an improved ability to evaluate the underlying performance of the Company and to compare it to information reported by other companies. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures presented by other issuers.
Cautionary Language and Forward-Looking Statements
This press release includes certain statements that may be deemed "forward-looking statements". Except for statements of historical fact relating to Victoria, information contained herein constitutes forward-looking information, including any information related to the intended use of proceeds from the Term Facility and the Revolving Credit Facility, the amended terms and conditions of the Loan Facility, and Victoria's strategy, plans or future financial or operating performance. Forward-looking information is characterized by words such as “plan”, “expect”, “budget”, “target”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may”, “will”, “could” or “should” occur, and includes any guidance and forecasts set out herein (including, but not limited to, production and operational guidance of the Corporation). In order to give such forward-looking information, the Corporation has made certain assumptions about its business, operations, the economy and the mineral exploration industry in general, in particular in light of the impact of the novel coronavirus and the COVID-19 disease (“COVID-19”) on each of the foregoing. In this respect, the Corporation has assumed that production levels will remain consistent with management’s expectations, contracted parties provide goods and services on agreed timeframes, equipment works as anticipated, required regulatory approvals are received, no unusual geological or technical problems occur, no material adverse change in the price of gold occurs and no significant events occur outside of the Corporation's normal course of business. Forward-looking information is based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those described in, or implied by, the forward-looking information. These factors include the impact of general business and economic conditions, risks related to COVID-19 on the Company, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, anticipated metal production, fluctuating metal prices, currency exchange rates, estimated ore grades, possible variations in ore grade or recovery rates, changes in accounting policies, changes in Victoria's corporate resources, changes in project parameters as plans continue to be refined, changes in development and production time frames, the possibility of cost overruns or unanticipated costs and expenses, uncertainty of mineral reserve and mineral resource estimates, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, final pricing for metal sales, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, requirements for additional capital, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcomes of pending litigation and labour disputes, risks related to remote operations and the availability of adequate infrastructure, fluctuations in price and availability of energy and other inputs necessary for mining operations. Although Victoria has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in, or implied by, the forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The reader is cautioned not to place undue reliance on forward-looking information. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding Victoria's expected financial and operational performance and Victoria's plans and objectives and may not be appropriate for other purposes. All forward-looking information contained herein is given as of the date hereof, as the case may be, and is based upon the opinions and estimates of management and information available to management of the Corporation as at the date hereof. The Corporation undertakes no obligation to update or revise the forward-looking information contained herein and the documents incorporated by reference herein, whether as a result of new information, future events or otherwise, except as required by applicable laws.
For Further Information Contact:
President & CEO
Tel: 604-696-6605
ceo@vgcx.com
__________________________
1 Refer to the “Non-IFRS Performance Measures” section.
Source:
2023 GlobeNewswire, Inc., source