Vista Gold reports positive results from Mt Todd feasibility study

DENVER - Vista Gold Corp. (NYSE American and TSX:VGZ), currently valued at $117 million and maintaining an InvestingPro Financial Health score of "GOOD," announced positive results from a 15,000 tonnes per day feasibility study for its Mt Todd gold project in Australia’s Northern Territory, showing strong economic potential at current gold prices.

The study demonstrates an after-tax net present value (NPV) of $1.1 billion at a 5% discount rate with an internal rate of return (IRR) of 27.8% using a gold price of $2,500 per ounce. At the current spot price of $3,300 per ounce, these figures increase to $2.2 billion and 44.7% respectively. The company’s strong market performance, with a 75% return over the past year, has caught the attention of analysts. Discover more detailed financial insights and 8 additional key ProTips with an InvestingPro subscription.

The new feasibility study represents a strategic shift from Vista’s previous 50,000 tonnes per day plan completed in 2024, prioritizing higher-grade ore and significantly reducing initial capital requirements to $425 million, a 59% reduction from the earlier study.

"This study marks a significant shift in strategy for Mt Todd, demonstrating the potential for near-term development of a smaller initial project," said Frederick H. Earnest, President and CEO of Vista Gold. The company maintains exceptional liquidity with a current ratio of 11.01, providing strong financial flexibility for project development. Access comprehensive analysis and the full Pro Research Report for Vista Gold through InvestingPro.

The project is expected to produce an average of 153,000 ounces of gold annually during the first 15 years of operation, with a 30-year mine life. The all-in sustaining cost is estimated at $1,449 per ounce for the first 15 years.

The study incorporates contract mining and third-party power generation to reduce capital costs and operational risks. It also prioritizes grade over volume, raising the cut-off grade from 0.35 g Au/t to 0.50 g Au/t, resulting in higher average plant feed grades.

Vista Gold indicated that necessary permits for the project are in place and are being amended to conform with the new feasibility study parameters. The company stated that these permit modifications could be completed and approved within 12-18 months.

Based on a press release statement, the company believes the smaller-scale project may be attractive to existing producers and gold investors in the current market environment. Trading at a P/E ratio of 11.91, Vista Gold has demonstrated strong operational efficiency while maintaining a solid balance sheet with more cash than debt.

In other recent news, Vista Gold Corporation reported a net loss of $2.71 million for the first quarter of 2025. This loss is a significant increase from the $1.07 million loss reported in the same period last year. The financial results come amid ongoing progress in the company’s feasibility study for the Mt Todd project. H.C. Wainwright recently raised its price target for Vista Gold to $3.00 from $2.75, while maintaining a Buy rating. The firm highlighted the near-term completion of the Mt Todd feasibility study as a key factor in its decision. These developments reflect the company’s strategic focus on advancing the Mt Todd project. Investors are closely monitoring these updates as Vista Gold continues its efforts in the feasibility study.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.