Mining Stock Daily Vista Gold Highlights a Refined Feasibility Study for Mt Todd
Jul 31, 2025
Fred Earnest, CEO of Vista Gold, explains the newly refined feasibility study for the Mt Todd Gold Project in Australia. This study reveals a move to a smaller operation at 15,000 tonnes per day, with impressive economics showing a US$1.1 billion after-tax NPV at a $2,500 gold price. The discussion touches on rising operating costs and the strategic addition of the Bateman deposit, enhancing resource classification and viability. Earnest also highlights the influence of exchange rates on financial forecasts, emphasizing their cautious approach in this volatile market.
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Right-Sizing Mount Todd Project
- Vista Gold resized Mount Todd project from 50,000 tons to 15,000 tons per day to match market conditions.
- They raised the cutoff grade to prioritize ore quality over quantity, improving project economics.
Updated Economics and Cost Factors
- Using $2,500 gold price, the project shows an NPV of $1.1B and IRR of 27.8%, doubling with $3,300 gold.
- Inflation and cost rises are moderate; smaller scale increases per ounce costs but reduces initial capital.
Exchange Rate Impact on Economics
- Vista Gold uses a conservative long-term exchange rate of 67 cents USD/AUD for feasibility.
- Operating costs are mostly Australian dollar-based; capital equipment partially sourced internationally.