All amounts are in Canadian dollars unless otherwise indicated. This release should be read in conjunction with the Company’s Financial Statements and Management’s Discussion and Analysis (“MD&A”) for the three months ended
Mr.
Operational Highlights – First Quarter 2021
- Mine production was 1.6 million tonnes of ore.
- Ore stacked on the heap leach pad was 1.0 million tonnes at an average grade of 0.87 grams per tonne (g/t).
- Gold production was 26,759 ounces.
Financial Highlights – First Quarter 2021
- Gold sold was 27,538 ounces, at an average realized price1 of
$2,274 (US$1,795 ) per ounce. - Recognized revenue of
$62.7 million based on sales of 27,538 ounces of gold. - Operating earnings were
$22.3 million . - Net income of
$31.8 million , or$0.51 per share and$0.48 per share on a diluted basis. - Cash costs1 of
$903 (US$713 ) per ounce and all-in sustaining costs (“AISC”)1 of$2,009 (US$1,586 ) per ounce of gold sold. - EBITDA1 of
$57.1 million . - Free cash flow1 deficiency of
$21.0 million , or a deficiency of$0.34 per share1. - Cash and cash equivalents of
$21.6 million atMarch 31, 2021 after repaying$13.4 million of principal payments against the Company’s debt facilities.
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1 Refer to “Non-IFRS Performance Measures” section of this News Release.
First Quarter 2021 Operating Results
Three months ended | Three months ended | ||
Operating data | |||
Ore mined | Tonnes | 1,562,230 | 946,479 |
Waste mined | Tonnes | 4,675,295 | 1,565,964 |
Total mined | Tonnes | 6,237,525 | 2,512,443 |
Strip ratio | (waste to ore) | 2.99 | 1.65 |
Mining rate | Tonnes/day | 69,311 | 27,911 |
Ore stacked on pad | Tonnes | 950,513 | 887,700 |
Ore stacked grade | g/t Au | 0.87 | 0.83 |
Throughput (stacked) | Tonnes/day | 10,567 | 9,867 |
Gold ounces produced | ounces | 26,759 | 10,544 |
Gold ounces sold | ounces | 27,538 | 10,179 |
Gold production and sales
During the three months ended
During the three months ended
Mining
During the three months ended
Total tonnes mined were 248% higher in Q1 2021 as we advanced phase 2 waste stripping within the open pit versus Q1 2020. The resulting average daily mining rate for Q1 2021 was 69.3 k tonnes per day compared to 27.9 k tonnes per day during Q1 2020.
Processing
During the three months ended
Ore stacked on the pad was similar in Q1 2021 versus the prior comparable period in 2020. In the first quarter of both 2020 and 2021, the Company operated under the seasonal stacking plan wherein stacking of ore on the heap leach pad is curtailed for the 90 coldest days of the year, January through March.
Stacked ore grade for the quarter was 0.87 g/t Au, compared to 0.83 g/t Au in the prior comparable period in 2020. Some material in phase 2 of the open pit which was expected to be waste was mineralized and above cut-off grades; as such a portion of waste was converted to ore, which resulted in a minor increase in overall tonnes and ounces with a small decrease in grade, compared to expectations.
As at
During the first quarter of 2021 and through the date of this press release, a number of improvements related to material handling within the process circuit have been completed. These corrective measures are significantly improving reliability and plant uptime and, in turn, will improve ore stacking and gold production on a go forward basis.
Capital
The Company incurred a total of
First Quarter 2021 Financial Results
Three months ended | Three months ended | ||
Financial data | |||
Revenue | $ | 62,749,024 | - |
Gross profit | $ | 24,831,749 | - |
Net income (loss) | $ | 31,800,928 | (47,366,083) |
Earnings (loss) per share – Basic | $ | 0.51 | (0.82) |
Earnings (loss) per share - Diluted | $ | 0.48 | (0.82) |
As at | As at | ||
Financial position | |||
Cash and cash equivalents | $ | 21,559,380 | 56,136,314 |
Working capital | $ | 21,104,261 | 25,370,418 |
Property, plant and equipment | $ | 598,583,334 | 579,617,049 |
Total assets | $ | 768,886,772 | 776,760,617 |
Long-term debt | $ | 194,613,211 | 209,660,142 |
(1) Note that the table above does not present comparative statistics for revenue and cost of goods sold for the prior comparable quarter as
Revenue
For the three months ended
Cost of goods sold
Cost of goods sold of
Depreciation and depletion
Depreciation and depletion was
Net income (loss)
The Company reported net income of
Liquidity and Capital Resources
At
2021 Outlook
Management believes 2021 production and financial guidance remain achievable assuming there is no significant impact on operations at the
The Company produced 26,759 ounces of gold during the first quarter of 2021. The Company’s 2021 gold production guidance at the
The Company’s AISC21 per ounce of gold sold during the first quarter of 2021 was
The Company has initiated ‘Project 250’ aimed at increasing the average annual production of the
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1 Refer to “Non-IFRS Performance Measures” section.
Qualified Person
The technical content of this news release has been reviewed and approved by
Annual General Meeting & Conference Call
The Company will hold its Annual General Meeting (“AGM”) on
Considering the Company recently held a conference call in relation to its year ended
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.
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 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 the 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
Source:
2021 GlobeNewswire, Inc., source