Heiko Ihle, an analyst from H.C. Wainwright, reiterated the Buy rating on Vista Gold. The associated price target remains the same with $3.00.
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Heiko Ihle’s rating is based on the updated feasibility study for Vista Gold’s Mt Todd project, which highlights significant improvements in economic viability and capital efficiency. The study projects an after-tax net present value of $1.1 billion and a 27.8% internal rate of return at a gold price of $2,500 per ounce, indicating strong potential returns. Additionally, the project is expected to produce an average of 153,000 ounces of gold annually over the first 15 years, with favorable cash costs and a short payback period of 2.7 years.
These factors, combined with management’s successful reduction of initial capital costs and achievement of high production goals, position Mt Todd for long-term success. The updated feasibility study also suggests that the project is now more attractive to potential investors and producers, which could lead to better funding opportunities. Furthermore, ongoing efforts to optimize operations and secure necessary permits are expected to enhance the project’s prospects, reinforcing the Buy rating.