At the Vancouver Resource Investment Conference last week, CEO.ca was pleased to catch up with Andre Gaumond, CEO of Virginia Mines (VGQ.T).
Virginia is in the process of merging with Osisko Gold Royalties (OR.T) to create the next mining royalty powerhouse. The new company will have two of the best gold royalties in the mining space on large, long life assets in Canada. Osisko Gold Royalties also took advantage of the recent gold mining financing window opening by raising $200 million via bought deal a week ago.
Mr. Gaumond discusses the business combination of Virginia Mines and Osisiko Royalties and why he thinks 2015 will be a good year. The following is a transcript of the above video.
Andre Gaumond, CEO, Virginia Mines, Cambridge House transcript:
The beauty about a royalty company like we created is that the downside risk is very limited. Of course if the price of gold goes down we would be affected by that.
The challenges are probably related to what would be the next acquisition. To find the next good acquisition that will continue to create value and be very accretive for the company.
That really is only the downside risk or challenges that we have.
First we have combined the two best gold royalties in the world that are not in the hands of the royalty companies. We have combined two mining teams that have been extremely successful in the past 20 years. With exploration and developmental expertise.
Which will serve us help to us to identify and acquire new assets. The expertise that we have internally differentiates us from other companies.
I am not expecting/forecasting that the price of gold reach $2000 and we don’t need that. I am very optimistic that gold will perform well.
You see the merger/ takeover of Probe by Goldcorp. The momentum is back in the mining industry and very welcome. That tells you that 2015 will be a very good year.
This is not a solicitation to purchase or sell securities. Always do your own due diligence. Additionally, this video and article may contain forward looking statements.