On Friday, Victoria Gold Corp. faced a setback as the company withdrew its 2024 production and cost guidance. This decision follows the suspension of production due to a heap leach incident at its Eagle River Mine.
The company emphasized the environmental measures it has implemented post-incident and confirmed that no cyanide presence was found in the downstream water sampling tests. Furthermore, Victoria Gold disclosed receiving Notices of Default from its lenders.
The mining operation has been under scrutiny since the incident at the Eagle River Mine, which prompted the company to halt production. In response to the event, Victoria Gold has been proactive in addressing environmental concerns, ensuring that mitigation steps are in place to prevent any potential harm to the surrounding ecosystem.
The financial implications of the incident have also come to light as Victoria Gold reported receiving Notices of Default from its lenders. This development indicates possible concerns from the financial institutions regarding the company's ability to meet its obligations following the production halt.
BMO Capital maintains its Market Perform Speculative rating on Victoria Gold, signaling a neutral stance on the stock's outlook. The firm has chosen to hold its position pending further information, which the management of Victoria Gold anticipates providing next week.
Investors and stakeholders of Victoria Gold are advised to stay tuned for the upcoming updates from the company's management, which will likely shed more light on the future direction and operational status of the Eagle River Mine.
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