Victoria Gold Corp: Forward P/E of 2

Jason Hamlin has graciously allowed me to share just one of his “paid subscriber stock picks” with you for FREE!  Victoria Gold Corp
https://goldstockbull.com/members/signup.phpUse “coupon code” HOMMEL for $100 off, good for the next 10 signups.

My analysis:  Victoria Gold Corp is a great near term producer with a forward P/E ratio of 2!  This means investors have a high probability of a 100% return on investment, or greater, within about a year.  (Assuming everything works out, and gold prices are stable, or going higher.)

Compare to:
Paid Stock Pick:
Market Cap, $20.5 million USD.
Resources of 2.4 million oz. of gold at 4g/t. 
2.4 million oz. x $1400 gold = $3360 million 
$3360 million Resources / $20.5 million Market Cap = Leverage: 163 to 1.
For the name of this stock send $240 to:
https://www.paypal.me/JasonHommel or bibleprophesy@yahoo.com

Victoria Gold Corp, VIT.V
Market Cap, $264 million MC
Resources of 2.6 million oz. of gold at 0.7g/t. 
2.6 million oz. x $1400 gold = $3640 million 
$3640 million Resources / $264 million Market Cap = Leverage: 13.8 to 1.

If we just compare Market Cap to Resources in the ground, Victoria Gold Corp at first appears ten times as expensive as my Paid Stock Pick.  Also, my stock pick has over 5 times higher grades!

However, Victoria Gold Corp is a near term producer, with mine construction 95% complete. So, it would be better to value Victoria Gold Corp on expected Price to Earnings ratio.

The expected earnings are $130 million per year, based on 200,000 oz. of gold production at $750/oz. of AISC costs.P/E is the market cap divided by those earnings.$264 million / $130 million = 2.03.
That is a very, very low P/E ratio.  An “extremely” low PE ratio is about 5, or 7.  Let’s say 6.$130 million x 6 = $780 million is where we might expect the market cap to rise to.$780 / $264 = 2.95.  So the stock price could likely rise by a factor of 3, or by about 200% over the next year or so.  Or at least by 100% being very conservative.

Victoria Gold corp is a very good stock.  It appears to be a more reliable stock pick because it appears to be more certain to bring rather quick stock price gains.

Victoria Gold corp stock is also very liquid, and thus far easier to buy, and sell. Trading an average of 1.5 million shares daily, which is trading volume of $451,000 USD.

Victoria Gold corp is also a very good real world example of what happens as a stock moves towards becoming a producer.  As financing takes place, and more stock is issued, and/or as the share price increases, the market cap increases, which reduces the leverage to the gold price.

For more excellent stock picks like Victoria Gold Corp, I highly recommend Jason Hamlin’s paid newsletter.
https://goldstockbull.com/members/signup.php
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Details and source of information for the calculations above:

June corporate Presentation:  
https://www.vitgoldcorp.com/site/assets/files/6373/190617-jun_corp_pres-no_video.pdfCash Costs: 
p. 3: to produce 200,000 oz. gold at a AISC cost of < $US$750/oz.
At $1400, that’s $130 million/year.
p. 37, operating costs are $632 + $62.5, or $700.
p. 33,40, cash costs are $539/oz.  (cash costs are notoriously unreliable and “low ball”, and don’t include a large list of other operating costs)Reserves:
p. 33-34, 2.66 million oz. goldGrades: 
p. 33: 0.67g/tShare Structure:
p. 23, 858 million shares x $.40.5 CDN x .76 Cdn to USD 
= $264 million MC

For more great stock picks like Victoria Gold Corp, subscribe to Jason Hamlin’s newsletter!
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Sincerely, Jason Hommel
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Neither Jason Hommel nor Jason Hamlin/Gold Stock Bull are an investment advisory service, nor a registered investment advisor or broker-dealer. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk.