Victoria Gold Corp
Victoria’s transformation and growth has been significant over the past twelve months, including the completion of two major corporate transactions adding a total of 4.4 million ounces of gold that are National Instrument 43-101 (“NI 43-101”) compliant to the Company, and successfully completing the Phase 1 drill campaign at the Helen Zone located at the Cove project in Nevada, USA.
I previously mentioned that VIT has been performing in line with Robert McEwen's Junior Exploration Index that is composed of 30 top tier junior exploration companies
. The comparison was made since the index hit its highs in June 2009.
Now I have gone back did a little research to find out when the index hit its highs and lows since the beginning of 2007 and then compared VIT's stock price with the index on those days.
Index High: 11/07/07 18.68 VIT on that day: .84
Index Low: 12/05/08 3.23 VIT on that day: .18
Index dropped 83% from top to bottom.
VIT dropped 79% from top to bottom
Conclusion: The index and VIT's stock performance are very close to one another. Why is this an important point? You simply do not want to own a junior gold stock that consistently under performs its peer group. As VIT gets closer to getting into production most analyst believe that VIT will be re-rated (accorded a higher evaluation than it is currently - relative to its peer group and the gold they actually have in the ground). Presently, based on reserves in the ground, VIT is selling at 1/3 the value of its peer group of junior exploration companies.
Therefore, at a minimum I expect VIT to perform in line with its peer group index of leading junior gold exploration companies, and potentially significantly outperform its peer group as VIT gets closer to production. Near term catalyst to unlock that value could be drilling results from recent drilling at Santa Fe (I would expect to hear about some of their drilling results within the next month or so), completing the pre-feasibility study at VIT's Eagle property by year-end, completion of engineering studies and go-ahead for builing an adit at VIT's Cove property, and any additional input from VIT regarding additional planned drilling in the coming months. So we have a lot going for us at VIT, and strong tail wind behind us as gold continues to surge well beyond the $1,000 area.
. The comparison was made since the index hit its highs in June 2009.Now I have gone back did a little research to find out when the index hit its highs and lows since the beginning of 2007 and then compared VIT's stock price with the index on those days.
Index High: 11/07/07 18.68 VIT on that day: .84
Index Low: 12/05/08 3.23 VIT on that day: .18
Index dropped 83% from top to bottom.
VIT dropped 79% from top to bottom
Conclusion: The index and VIT's stock performance are very close to one another. Why is this an important point? You simply do not want to own a junior gold stock that consistently under performs its peer group. As VIT gets closer to getting into production most analyst believe that VIT will be re-rated (accorded a higher evaluation than it is currently - relative to its peer group and the gold they actually have in the ground). Presently, based on reserves in the ground, VIT is selling at 1/3 the value of its peer group of junior exploration companies.
Therefore, at a minimum I expect VIT to perform in line with its peer group index of leading junior gold exploration companies, and potentially significantly outperform its peer group as VIT gets closer to production. Near term catalyst to unlock that value could be drilling results from recent drilling at Santa Fe (I would expect to hear about some of their drilling results within the next month or so), completing the pre-feasibility study at VIT's Eagle property by year-end, completion of engineering studies and go-ahead for builing an adit at VIT's Cove property, and any additional input from VIT regarding additional planned drilling in the coming months. So we have a lot going for us at VIT, and strong tail wind behind us as gold continues to surge well beyond the $1,000 area.
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thomas4124
City
Rancho Palso Verdes
Rank
President
Activity Points
2198
Rating
Your Rating
Date Joined
11/03/2007
Victoria Gold Corp
Symbol
VIT
Exchange
TSX-V
Shares
496m
Industry
Metals & Minerals
Website