IKN

idle and fond bondage

Keeping tabs on the Victoria Gold (VIT.v) capex blowout

We’re up to C$486m as at end May 2019:
Commissioning of the mine is due September, so add four months of straight capital spend, then don’t forget the working cap VIT will need on order to get free cash flow positive (will that happen over the Yukon winter? Longs praying for a smooth ramp-up). Up to its gills in debt, 858.3m shares out, a 5% NSR that will weigh it down for years and a mine that was supposed to cost C$369m, according to the feasibility study that’s now worth fark all as a valuation document, it was only ever an exercise in sequin throwing to separate the bankers from their cash. No wonder the others have left Orion holding the bag, VIT’s track record as a miner is abysmal even before it starts mining.

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