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Victoria Gold boosts net income fivefold in Q4 2020

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(Kitco News) - Victoria Gold (TSX-VGCX) announced that gold production from the company’s Eagle mine in Yukon was 42,436 ounces in the Q4 2020. Gold production for the full-year 2020 was 116,644 ounces.

Gold sales were 40,023 ounces at an average realized price of US$1,883/oz during the fourth quarter and 72,052 ounces at an average realized price of US$1,882/oz, over the inaugural two quarters of commercial production (all amounts are in Canadian dollars unless otherwise indicated).

Recognized revenue was $98.2 million based on sales of 40,023 ounces of gold in the fourth quarter. Recognized annual revenue since declaring commercial production was $178.7 million based on sales of 72,052 ounces of gold.

Operating earnings were $39.8 million for the fourth quarter. Annual operating earnings were $66.9 million. Free cash flow was $20.6 million or $0.33 per share in the fourth quarter. Free cash flow was $48.0 million or $0.78 per share for the 6 months period since achieving commercial production.

All-in sustaining costs were US$1,206 over the second half of 2020, which was below the mid-point of guidance.

The company reported income of $54.9 million for Q4 2020, compared to income of $10.1 million for the previous year’s comparable period.

Gold production at the Eagle gold mine for 2021 is estimated to be between 180,000 to 200,000 ounces.

Victoria Gold's 100%-owned Dublin Gulch gold property is situated in central Yukon Territory, Canada, approximately 375 kilometers north of the capital city of Whitehorse, and approximately 85 kilometers from the town of Mayo.

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 gold mine is Yukon's newest operating gold mine.

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