Vista Gold (TSX:VGZ) – One of the World’s Largest New Gold Projects, Fully Permitted, FS Due Mid-’25

Mar 6, 2025

Ask episode

Chapters

Transcript

Episode notes

Interview with Frederick H. Earnest, President & CEO, Vista Gold Corp

Our previous interview: https://www.cruxinvestor.com/posts/vista-gold-tsxvgz-smaller-scale-strategy-to-enhance-economics-5520

Recording date: 4th of March, 2025

Vista Gold Corp is transforming its approach to developing the Mount Todd gold project in Australia, one of the world's largest undeveloped gold resources with over 9 million ounces. The company is shifting from an ambitious large-scale operation to a more financially viable smaller project that better aligns with current market realities.

The original development plan called for a 50,000 tons per day operation with capital expenditure requirements of approximately $1 billion. The revised strategy reduces the scale to 15,000 tons per day with a targeted capital requirement of under $400 million—a 60% reduction in upfront investment costs.

"For years we talked about Mount Todd as this big project... but a billion dollars US is still a big check to write," explained Fred Earnest, President and CEO of Vista Gold, in a recent interview at the PDAC convention.

While the smaller operation would produce 150,000-200,000 ounces of gold annually compared to the original plan's 500,000 ounces, the economics remain compelling. The all-in sustaining costs are estimated at $1,300 per ounce for the smaller operation, compared to $960 per ounce for the larger version, still offering substantial margins at current gold prices.

A key advantage of Mount Todd is its advanced permitting status, with all necessary environmental licenses and operating permits already secured. "Literally, I think we could write a letter and we could be in construction in two or three months' time," Earnest noted.

The company is well-positioned financially to advance the project, ending 2024 with approximately $17 million in cash—providing a two-year runway without additional funding. This financial stability allows Vista Gold to complete the feasibility study for the smaller-scale approach, which is expected by mid-2025.

For eventual project development, Vista Gold is exploring multiple funding avenues, including Australian debt sources like the Northern Australia Infrastructure Fund and equity financing through its North American listings.

The strategic pivot comes at a time when the gold mining sector faces challenges in developing new large-scale projects in safe jurisdictions. By focusing on a more manageable development approach, Vista Gold aims to position Mount Todd as an attractive opportunity for mid-tier producers seeking growth through acquisition or partnership.

Learn more: https://www.cruxinvestor.com/companies/vista-gold-corporation