Make Kitco Your Homepage

Victoria Gold boosts net income as production in Yukon ramps up

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.