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Victoria Gold reports net income of $17.1 million in Q2, reduces production expectations for 2022

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(Kitco News) - Victoria Gold (TSX: VGCX) informed today that during the three months ended June 30, 2022, the Eagle Gold Mine in Yukon produced 32,055 ounces of gold, similar to the 32,140 ounces of gold production in Q2 2021.

The company said that for the three months ended June 30, 2022, it recognized revenue of $69.4 million compared to $63.5 million for the previous year's comparable period, adding that the increase in revenue is attributed to a higher average realized price, partially offset by a lower number of gold ounces sold.

The company's Q2 2022 net income was $17.1 million, or $0.27 per share, compared to a net income of $1.3 million in Q2 2021.

According to a press-release, production at the Eagle Gold Mine for 2022 is expected to be close to the lower end of original guidance, of between 165,000 and 190,000 ounces.

"Reduced production expectations are the result of increased unplanned down time within the crushing and conveying circuit. Unplanned down time is high due to lower maintenance productivities as a result of recruitment and retention challenges within the Canadian, and specifically the Pacific Northwest, mining labour market,” the company said.

The company noted that all-in sustaining costs for 2022 are expected to be close to the top end of original guidance, of between US$1,225 and US$1,425 per oz of gold sold.

Victoria Gold explained that increased cost expectations are the result of lower production, combined with high inflation, specifically with respect to fuel pricing which impacts many cost inputs.

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.

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