TORONTO, March 23, 2021 (GLOBE NEWSWIRE) -- Victoria Gold Corp. (TSX-VGCX) (“Victoria” or the “Company”) is pleased to announce results for the fourth quarter and year ended December 31, 2020. The Eagle Gold Mine achieved commercial production on July 1, 2020. As a result, financial results highlighted herein for the year ended December 31, 2020 are based on the 6 months from the declaration of commercial production through to December 31, 2020. Prior to achievement of commercial production, operational revenues and expenses were capitalized to long-term assets.
Gold sales were 40,023 ounces at an average realized price1 of US$1,883/oz during the fourth quarter and 72,052 ounces at an average realized price1 of US$1,882/oz, over the inaugural two quarters of commercial production. All amounts are in Canadian dollars unless otherwise indicated.
Mr. John McConnell, President and CEO commented, “As previously press released, gold production in the second half of 2020 was 77,748 ounces, which exceeded the top end of guidance. All in sustaining costs were US$1,206 over the second half of 2020, which was below the mid-point of guidance. Compared to the third quarter, the fourth quarter of 2020 achieved a 20% increase in gold production coupled with a 15% decrease in all in sustaining costs per ounce. We expect material improvements in production and unit costs to continue in 2021 as the Company benefits from recently completed operational improvements and the increasing inventory of recoverable gold on the heap leach pad. Note that due to the Company’s seasonal stacking plan, 2021 production will be weighted toward the second half of the year, as it was in 2020.”
This release should be read in conjunction with the Company’s December 31, 2020 Financial Statements and Management’s Discussion and Analysis (“MD&A”) available on the Company’s website or on SEDAR.
Operational Highlights
Achieved commercial production at Eagle Gold Mine on July 1, 2020
Mine production in the fourth quarter was 2.2 million tonnes of ore. Mine production for the twelve months was 7.5 million tonnes of ore.
Ore stacked on the heap leach pad in the fourth quarter was 2.3 million tonnes at an average grade of 0.81 grams per tonne (g/t). Ore stacked for the twelve months, was 7.3 million tonnes at an average grade of 0.84 g/t.
Gold production was 42,436 ounces in the fourth quarter. Gold production for the twelve months was 116,644 ounces.
Financial Highlights
Gold sold in the fourth quarter was 40,023 ounces, at an average realized price1 of $2,453 (US$1,883) per ounce. Gold sold since declaration of commercial production was 72,052 ounces, at an average realized price1 of $2,480 (US$1,882) per ounce.
Recognized revenue was $98.2 million based on sales of 40,023 ounces of gold in the fourth quarter. Recognized annual revenue since declaring commercial production was $178.7 million based on sales of 72,052 ounces of gold.
Operating earnings were $39.8 million for the fourth quarter. Annual operating earnings were $66.9 million.
Cash costs1 were $1,013 (US$777) per ounce and all-in sustaining costs (“AISC”)
1 were $1,459 (US$1,120) per ounce of gold sold for the fourth quarter. Cash costs1 were $1,039 (US$788) per oz and all-in sustaining costs (“AISC”)1 were $1,589 (US$1,206) per ounce of gold sold since declaring commercial production.
Free cash flow1 was $20.6 million or $0.33 per share1 in the fourth quarter. Free cash flow1 was $48.0 million or $0.78 per share1 for the 6 month period since achieving commercial production.
Cash and cash equivalents were $56.1 million at December 31, 2020 after repaying $39.8 million of principal against the Company’s debt facilities for the year ended December 31, 2020.
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1 Refer to “Non-IFRS Performance Measures” section.?
Fourth Quarter and Full Year 2020 Operating Results
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