VIsta Gold (VGZ) is advancing Australia’s largest undeveloped gold project. The current resource stands at 7.8 million ounces, of which 5.8 million proven/probable reserves. Vista is implementing a high-tech grinding and sorting process that will improve gold recovery and production.
Vista released an updated Preliminary Feasibility Study which shows an after-tax NPV of $679 million, assuming an initial capital cost of $839 million and $1300 gold. Vista’s current market cap is $49 million.
Vista Gold is one of the most undervalued junior mining stocks given the degree to which the project has been de-risked. At this point, the biggest hurdle to eventual production is raising the money to fund mine construction. As recently as February Vista was trading at 85 cents vs its current price of 49 cents. In my opinion, Vista’s stock is an easy double from here when gold embarks on its next big move higher.
The Mining Stock Daily’s Trevor Hall interviewed Vista’s CEO, Fred Earnest, and Sr Vice President, John Rozelle, at the Beaver Creek Precious Metals Conference this week (click on the image to listen):
