A Comprehensive Buy Rating Amidst Seasonal Challenges and Market Opportunities – TipRanks Financial Blog

H.C. Wainwright analyst Heiko Ihle reiterated a Buy rating on Victoria Gold (VITFF – Research Report) today and set a price target of C$18.00.

Heiko Ihle has given his Buy rating due to a combination of factors pertaining to Victoria Gold’s operational and financial performance, as well as broader market conditions. Despite a year-over-year decrease in gold production in the first quarter of 2024 due to lower ore grades and stacking rates, Ihle emphasizes that historical data suggest stronger performance in the upcoming summer and fall seasons. Moreover, he anticipates that the company will meet its 2024 production guidance, with costs remaining within the projected range. The alignment of gold grade and metallurgical recovery with expectations further reinforces his positive outlook on the firm’s operational capabilities.

Additionally, Ihle’s bullish stance is supported by his revision of the precious metal price deck, reflecting a robust increase in gold and silver prices over the past year due to macroeconomic factors, including inflation and demand for safe-haven assets amidst recessionary concerns. By employing a conservative yet upgraded price deck for gold and silver that remains below current spot prices, Ihle suggests that there is a favorable margin for profit. Near-term catalysts such as debt reduction, an updated Mineral Resource Estimate, the potential for reduced seasonal production variability, and anticipated operational improvements also contribute to Ihle’s Buy rating for Victoria Gold.

According to TipRanks, Ihle is an analyst with an average return of -1.4% and a 43.43% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Avino Silver & Gold, Hecla Mining Company, and Victoria Gold.

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Victoria Gold (VITFF) Company Description:

Victoria Gold Corp. engages in the acquisition, evaluation, and development of mineral properties. It project portfolio includes the Eagle Gold, Dublin Gulch, Eagle Extension, and Canalask. The company was founded on September 21, 1981 and is headquartered in Toronto, Canada.