Gary Bourgeault
Long only, research analyst, portfolio strategy, media

Virginia Mines: First Royalties Coming Soon

As measured in mining time, Virginia Mines Inc. (OTCPK:VGMNF) is close to receiving its first revenue from royalties, as the Éléonore project in Quebec, with which it has a royalty agreement in place with Goldcorp (NYSE:GG), is poised to begin production sometime in the latter part of 2014.

There is no doubt as production approaches the share price of the company will jump because the discounted value of future cash flow tends to rise as a company gets closer to generating revenue for the first time.

Based on current production goals from Goldcorp of 600,000 ounces a year, Éléonore will provide Virginia Mines with 13,200 ounces of gold annually.

With production at Éléonore approaching and the...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details