Why Invest in Victoria Gold?


  • Eagle
    • Fully Permitted
    • Post-tax NPV5% greater than $500M
    • 200,000 oz gold annually
    • Strip ratio less than 1
    • AISC less than US$650/oz
    • 1 year construction period
  • District Scale Exploration Potential
    • Olive-Shamrock, Potato Hills Trend, Rex-Peso, Falcon
  • Yukon
    • Secure jurisdiction, pro-mining
    • Impact Benefits Agreement in place with First Nation
    • Excellent Infrastructure
  • Treasury
    • $63 M cash, no debt
  • Management team
    • Northern mine building and operating experience

Victoria Today

  • Project Highlights
    • Fully permitted
    • Conventional open pit
    • Valley leach
    • Good infrastructure
    • Yukon - secure, pro-mining jurisdiction
    • First Nation - Benefits Agreement in place
  • Strategic Investors
    • Tom Kaplan's Electrum Fund
    • Sun Valley Gold
    • Kinross Gold
Capitalization
Share Price $0.63
Basic Shares O/S (M) 504
Warrants & Options (M) 69
Market Cap $317M
Cash (Nov.30, 2016) $63M
Debt $0
Enterprise Value $254
 

Strengths and Opportunities

Victoria's Strengths:

  • One of few shovel ready projects with all permits in hand in a low- geopolitical risk jurisdiction
  • Low cost (operating & capital) and high margin nature of Eagle Gold ensures that it should be built in most conceivable gold price scenarios
  • Project benefits from some established infrastructure (including power and camp) and well understood metallurgy
  • With the exception of a small NSR royalty payable, Victoria Gold provides unencumbered exposure to Eagle Gold
    • Investors, as well as corporates, likely to be focused on this
  • Exposure to Canadian Dollar provides hedge against strengthening US dollar which is often associated with weakening gold price
    • Conversely, in a rising gold price environment on the back of a weakening US Dollar, Canadian Dollar strength would limit optionality

Opportunities:

  • Significant near-term catalysts including next tranche of financing and commencement of construction should lead to equity re-ratingt
  • Attractive exploration targets not fully incorporated into the mine plan with additional drilling at Olive Zone not fully incorporated in the mine plan
  • Several additional technical opportunities to increase value above feasibility study model including year-round leaching
  • Prior to and during the development of Eagle Gold, Victoria Gold is an attractive takeover target
    • very prospective region
    • Ideal target for companies with large Canadian tax pools
    • Value received in a take-over would need to be weighed against value proposition and risks associated with stand-alone scenario

Corporate Responsibility



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