I just got a copy of Sandfire Securities research report on VIT which was published in August 2009. Listed below is my summary of their report:
1. Speculative BUY with initial target price of C$.70; however, based on existing mineralization, potential resource estimates at Cove (1,500,0000 Oz) - Mill Canyon (500,000 Oz), book value of other property/working capital/and Tassawinw, Guyana (for sale) Victoria Gold has a Potential Market Value of $C1.67 per share - this is also based on an enterprise value of gold at US$50 per/oz.
2. Their research report confirms what all of the other analyst that cover this company have stated: VIT stock is expected to be re-rated as it gets closer to actual production. The first two vital steps in this direction are for VIT to complete its pre-feasibility study on its Eagle property before year-end, and to complete a PEA (Preliminary Economic Assessment) on its Cove property that is expected to occur sometime in early November 2009)
3. All research analyst agree that VIT is significantly undervalued relative to its peer group of junior exploration companies. VIT is currently selling at $15 per ounce of gold in the ground while its peer group is selling at $66 per ounce of gold in the ground
