Search This Blog

September 2, 2024

$VGCX.TO: PWC details Victoria Gold’s assets & debts

Assets stood at C$824.75 Million, the majority consisting of property, plant & equipment of C$442.6 million and inventory (on the pad?!) of C$224.7 million. Cash, just C$24 Million.



Debts stand at at least C$300 million owed to 424 creditors.



89 Yukon-based companies are owed just under $42 million, representing 50.7% of the total unsecured debt.


Victoria Gold Corporation, a mining company operating in Yukon, Canada, is facing significant financial and legal challenges following a major incident at its Eagle mine[1][8]. Here's a detailed summary of the company's financial situation and debts, as per the PWC statement[8]:


Financial Overview


Victoria Gold's assets totaled $824.75 million as of June 30, 2024, according to PricewaterhouseCoopers (PwC), the court-appointed receiver[8]. However, this value may not represent the actual liquidation value of the assets.


Creditor Breakdown


The company owes at least $300 million to 424 creditors, with a clear distinction between secured and unsecured creditors[2].


Secured Creditors


Victoria Gold owes a total of $233.14 million to secured creditors, broken down as follows:


- $185.3 million to various banks, including the National Bank of Canada

- $47.84 million to Caterpillar Financial Services[1]


The amounts owed to six additional secured creditors, including Finning International Inc. and Tutchone Air Leasing — a First Nations company—, are currently unknown[1].



Unsecured Creditors


There are 416 unsecured creditors, to whom Victoria Gold owes approximately $82 million[1]. Notable details include:


- 89 Yukon-based companies are owed just under $42 million, representing 50.7% of the total unsecured debt

- Largest outstanding debts:

  - $14 million to Finning (Whitehorse-based)

  - $9 million to Pelly Construction (Whitehorse-based)

  - $8 million to Mayo Fuel Supply (Mayo-based)[1]


Creditors had up to 45 days to file a miner's lien after the heap leach failure. The liens allow companies to file a claim against the physical value of the property, similar to a builders lien.


The companies then have up to 60 days after filing the lien to file a legal petition to the Yukon Supreme Court to have the lien formally recognized. 


However, it's not guaranteed that any of the unsecured creditors will ever receive their money back. 


"It really is going to come down to how much money there is and whether this mine either gets sold or whether it starts operations again.”[1]


First Nations 

The specific amount owed to First Nations is not detailed in the available information. However, Victoria Gold has a comprehensive Cooperation and Benefits Agreement with the First Nation of Na-Cho Nyäk Dun (FNNND), which outlines commitments and financial considerations related to their operations[1][4].


The financial challenges faced by Victoria Gold, including the heap leach facility failure and subsequent legal actions, have significantly impacted its ability to meet these financial obligations.


Background:


The financial troubles stem from a heap leach facility failure on June 24, 2024, which released cyanide into the environment and halted operations[1]. This incident led to:


1. A significant drop in Victoria Gold's stock price

2. A proposed class-action lawsuit by investors

3. Multiple charges against the company for water-related violations[1]


The situation remains complex, with ongoing legal proceedings and uncertainty about the company's future operations and ability to repay its debts.


Sources:

[1] https://www.cbc.ca/news/canada/north/victoria-gold-creditor-list-1.7307462 

[2] https://www.ckrw.com/2024/08/14/victoria-gold-corp-enters-receivership-follow/ 

[3] https://vgcx.com/news/victoria-gold-makes-debt-repayment-and-provides-operations-update/ 

[4] https://vgcx.com/production/eagle-gold-mine/first-nations-considerations/ 

[5] https://www.yukon-news.com/news/victoria-gold-enters-receivership-plans-made-for-key-phase-of-cleanup-through-the-fall-7490005 

[6] https://www.aptnnews.ca/national-news/recent-spill-stirs-speculation-about-future-of-yukon-mine/ 

[7] https://yukon.ca/en/news/government-yukon-provides-latest-update-heap-leach-failure-victoria-golds-eagle-gold-mine

[8] https://www.pwc.com/ca/en/car/victoria-gold/assets/victoria-gold-017_270824.pdf 


Made with Perplexity.ai as co-pilot.

____________________________________________________

MasterMetals

@MasterMetals

No comments:

Post a Comment

Commented on MasterMetals

ShareThis

MasterMetals’ Tweets

Tags

IFTTT Twitter MasterMetals News Gold MssterMetalsNews MasterMetalsNews mining stocks Commodities Mining GLD Silver COPPER Oil China Metals Dollar Energy Precious Metals MasterEnergy GDX trading Hedge Funds EV Battery Metals Finance Platinum exploration Glencore USA GDXJ Africa ETF Canada Nickel Charts Chile Euro Technical Analysis BHP Base Metals LME Lithium Australia Futures Iron Ore Latin America central banks Cobalt IPO Palladium RIO Uranium Barrick CME DRC SIL SLV South Africa TSX middle east zinc Anglo American Asia FED India PSLV Russia Trafigura Venezuela comex AEM AngloGold Argentina Batteries Bonds Chavez Debt Ecuador Kinross NEM PPLT Renewables coal currencies Bitcoin Iran JPMorgan Chase Japan Mexico Newmont PGM Peru Switzerland TSXV VALE Agriculture BP Brazil EQX Education FCX Gas IVN London Lundin Metals Streaming NYMEX Nuclear Oreninc Roxgold Royalties Sprott Strategic Metals Turkey UK Vitol WGC infographic AU Amplats Autonomous Vehicles Azimut Banks BlockChain CFTC CODELCO COT Cerrado Gold Colombia Cote d'Ivoire Critical Metals EDV Egypt Electricity FIL FSM Filo Financings GATA GMIN Goldman Sachs Guinea HFT Indonesia Irak LSE LUG Loonie M&A MENA Mongolia NDM NGEx Orion Oro PIIGS RUP Rare Earths REE Rhodium Robert Friedland Rupert Resource S&P SBSW SQM SWF Saudi Arabia Tsingshan UAE VALT VC VW Valterra Yuan money quebec rare earths $MAU 1971 1979 AAUC ADM AGI ALB ARIS ASX ATH ATY AUY AZM Abu Dhabi Agarwal Alaska Antimony B BIS BTG Bill Clinton Bin Laden CBX CCB CITGO CMOC Cameco Cargill Cars Chuquicamata Clice Capital Cobalt27 CoronaVirus Covid19 Crypto DFC DJIA DOJ DPM Defense Demographics Djibouti E-Waste ECB EGO EM EPA ESG El Dorado Endowments Environment Europe FVI Fav Finland Food ForEx Frank Giustra Freeport McMoran GBP GDP GFI GFMS GTWO Ghana Graphite Great Be Greece Green Energy Gundlach Gunvor Guyana HPX Haftium IAG IOC Inflation Ivanhoe Mines KGC KL Kazakhstan Kurdistan LBMA Louis Dreyfus Lunahuasi MAKO MF Global Mercuria NAK Nevada Nigeria Northern Dynasty Oman Osisko PDVSA PEA PEMEX PG Pebble Pebble Project Politics Private Equity Rabbit Recycling Repsol Research Rhenium Rusal SKE SSRM Sensors Shale TGZ Tariffs Tech Teck Tesla Texas Trump Ukraine VGCX VIX Victoria Gold WPIC WPM Warren Buffett XAU XGD XStrata YPF Yen Yukon Zambia diamonds gold price spoofing stocks supply chain zinc News

Master Sites