Victoria Gold in the Crosshairs

Long-Term Price Case$1,500/oz.
Flagship ProjectEagle Gold Project
Resource Base (Proven & Probable)2,663,000 ozs.
Resource Base (M&I, Inclusive of Reserves)4,082,573 ozs.
Fully-Diluted Shares 953,000,000
Fully-Diluted Market Cap$295,430,000
Average Annual Production200,000 ozs.
IRR37% ($1,400/oz. Au)
Debt Coverage307%
Cash Flow$129,000,000
Future Cash Flow$160,000,000
Market Cap Valuation per Resource Ounce$72
Share Price Valuation by Resources in the Ground.004 ($5.71)
Resource Valuation as a Percentage of Market Cap5%
Market Cap Valuation$816,310,471
Cash Flow Multiple2x
Future Market Cap$918,578,925
Future Market Cap Growth211%
PMCV15 (Projected Market Cap Valuation at 15%)$0.96/sh.

Notes: All Values in U.S. Dollars.

The quality of the Eagle Project is presently reflected in its Market Cap. As a producer, we expect a modest re-rating. We also think there is a mounting possibility of a takeover in the next 6 months. We think an acquirer would pay about $600M for the company.

Leave a Reply

Your email address will not be published. Required fields are marked *