Victoria Gold boosts net income as production in Yukon ramps up
(Kitco News) - Victoria Gold (TSX-VGCX) announced Friday that during the three months ended March 31, 2021, the Eagle gold mine produced 26,759 ounces of gold, compared to 10,544 ounces of gold production in Q1 2020. The company was primarily focused on operations ramp up throughout 2020 and declared commercial production on July 1, 2020.
For the three months ended March 31, 2021, the company sold 27,538 ounces of gold at an average realized price of $2,274 (US$1,795) resulting in revenue of $62.7 million.
The company reported net income of $31.8 million for the three months period ended March 31, 2021, compared to a net loss of $47.4 million for the previous year’s comparable period. The increase in net income for the three months period ended March 31, 2021 is the result of operating earnings, unrealized and realized gains on derivative instruments and foreign exchange gains.
The company noted that its 2021 gold production guidance at the Eagle gold mine of 180,000 ounces to 200,000 ounces is unchanged. Victoria said that gold production is expected to be strongly weighted to the second half of the year due to the seasonal stacking of ore on the Eagle leach pad.
Victoria Gold's 100%-owned Eagle gold mine 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 Eagle gold mine is Yukon's newest operating gold mine.