Vista Gold ((TSE:VGZ)) has held its Q3 earnings call. Read on for the main highlights of the call.
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During the recent earnings call, Vista Gold presented an optimistic outlook despite reporting a quarterly loss and a decline in cash reserves. The company highlighted significant achievements in project development and financial management, which contributed to a positive sentiment. Notably, the strong increase in share price and the completion of a new feasibility study for the Mt Todd gold project were key factors in fostering this optimism.
Completion of New Feasibility Study
Vista Gold announced the completion of a new feasibility study for the Mt Todd gold project, which introduces a 15,000 tonne per day operation. This development significantly reduces the initial capital costs from over $1 billion to $425 million, marking a major milestone for the company.
Strong Financial Position
Despite the challenges faced, Vista Gold maintained a strong financial position with $13.7 million in cash and no debt at the end of the quarter. This financial stability is a testament to the company’s effective financial management strategies.
Safety Achievement
The company celebrated a remarkable safety achievement, having completed four years without a lost-time accident at the Mt Todd site. This accomplishment underscores Vista Gold’s commitment to maintaining a safe working environment.
Significant Share Price Increase
Vista Gold’s shares have seen a substantial increase of approximately 210% year-to-date. This surge is attributed to rising gold prices and strong market support for the newly completed feasibility study.
Quarterly Loss
For the nine-month period ending September 30, 2025, Vista Gold reported a net loss of $5,787,000, a stark contrast to the net income of $12,922,000 reported for the same period in 2024. This loss highlights some of the financial challenges the company is navigating.
Decline in Cash Position
The company’s cash position declined from $16.9 million at the end of 2024 to $13.7 million by September 2025. However, this decline was partially offset by tax recoveries and the use of the ATM program.
Forward-Looking Guidance
Vista Gold provided forward-looking guidance based on the new feasibility study for the Mt Todd project. The study projects a net present value of USD 1.1 billion at a gold price of $2,500 per ounce, with an internal rate of return of 27.8% and a payback period of 2.7 years. At a gold price of $3,300 per ounce, the NPV increases to $2.2 billion, with an IRR of 44.7% and a payback period of 1.7 years. The company anticipates net recurring costs of approximately $7.4 million, plus an additional $2 million for ongoing work at Mt Todd over the next year.
In summary, Vista Gold’s earnings call reflected a positive sentiment, driven by strategic project developments and financial management achievements. Despite reporting a quarterly loss and a decline in cash reserves, the company remains optimistic about its future prospects, supported by a strong financial position and significant share price growth.