We produce gold at the cheapest cost and sell at the highest market price. This is Virgin Gold's one and only operational philosophy, which is understood by each of Virgin Gold's employees. No corporation can go wrong by producing at the lowest cost and selling at the highest price.
Although the whole world is generally bullish about gold price hitting USD2,000 an ounce in the medium term; correction in-between rallies can be as much as 30-50% and last for a few years. Corporations that are not ready and do not foresee such possibilities will end up losing a lot of shareholders' monies.
With odds of only one in 3,000 discoveries leading to mine development, and only 10 percent of the world's gold deposits containing enough gold to mine, exploration can be tedious and expensive. For every one successful gold mining venture; there are at least 8 that failed. Greedy company owners led innocent investors to lose hundreds of millions every year believing in the gold rush.
At Virgin Gold, we are very prudent about production costs. We have been in operation since 1999 and have always been able to generate good profit regardless of gold price because of how we operate. We have never over-committed our resources and never over-estimated gold price rises.
Whenever possible, our employees are involved in field operations. At times when we are limited by human capacity and capital resources, we achieve our targets through cooperation, joint ventures, stock swaps, stake holdings and other financial arrangements with local and senior mine operators.
For our future operations, we are working our way into gold manufacturing and trading.