Victoria Gold (TSX: VGCX) this morning had some negative news, in that they have reduced their 2021 guidance with just two weeks of the year left to go. The guidance cut follows delays at their Eagle Gold Mine.
Originally, the company had provided production guidance for the fiscal year of between 180,000 and 200,000 gold ounces, which was to be produced at an all-in sustaining cost of between US$1,050 and US$1,175 per gold ounce. As of this morning, the company has cut that guidance rather significantly.
Victoria Gold now anticipates 2021 production to be “up to 10% below previous guidance of 180,000 ounces,” which drops production estimates to roughly 162,000 gold ounces. All in sustaining costs meanwhile are to be 5% higher than the previous US$1,175 high end estimate, placing the figure at an estimated US$1,233.75 per ounce.
The changes in guidance are a result of the company seeing delays in the receipt of driplines used for the heap leach pad to deliver leach solution to stacked ore. With a delay of 5 weeks, less solution was provided to the pile than required, slowing production significantly. Normal leaching has now resumed, with those gold ounces now expected to be produced in the first part of 2022.
Victoria Gold last traded at $14.96 on the TSX.
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