Victoria Gold pulls mine guidance after conveyor belt failure

Oct. 05, 2022 3:33 PM ETVictoria Gold Corp. (VITFF), VGCX:CABy: Carl Surran, SA News Editor

Yukon River, Yukon,Canada

brytta/E+ via Getty Images

Victoria Gold (OTCPK:VITFF) -10.1% in Wednesday's trading after the miner retracted previous guidance for full-year production and cost due to a conveyor belt failure at its Eagle gold mine in Yukon that will require a replacement.

Victoria (OTCPK:VITFF) said on September 29 the 1.5-km overland conveyor that links and delivers ore from the crushing plant to the HLF experienced a splice failure of the main belt; the company decided the best course of action was to replace rather than repair the belting.

Due to the length of the belt and number of sections to be spliced, Victoria (OTCPK:VITFF) expects crushing, conveying and stacking operations will be down 2-3 weeks.

The company previously had expected full-year production of ~165K oz, and said it was on track to meet guidance if not for the conveyor belt failure.

The incident caused BMO Capital to cut its price target on the share to C$15 from C$18 previously.

Victoria Gold (OTCPK:VITFF) previously reported Q2 adjusted earnings of C$0.25/share on revenues of C$69M.

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