From March 3-5, Red Cloud hosted its annual Pre-PDAC Mining Showcase, featuring over 70 presenting companies and 80+ speakers, attracting over 1,500 registered participants. This included keynote speakers Matt Watson, Director, Precious Metals Commodity Management LLC; and Steve Hanke, Professor of Applied Economics – Johns Hopkins University. We provide a quick recap of the highlights from the conference within this report for those who were unable to attend the live event.
Tag: Vista Gold Corp.
As the result of the reallocation of resources, Red Cloud is discontinuing coverage on the following companies: Doré Copper Mining Corp. (TSXV:DCMC) – now unrated (was BUY, C$2.50/sh target, Jacob Willoughby), Tanzanian Gold Corp. (TSX:TNX) – now unrated (was BUY, C$2.00/sh target, Jacob Willoughby), Vista Gold Corp. (TSX:VGZ) – now unrated (was BUY, C$5.00/sh target, David A. Talbot). Our previous estimates should no longer be relied upon.
Vista Gold released assays for another three of eight holes from ongoing exploration at its 100%-owned Mt. Todd gold project in Northern Territory, Australia. Drilling has confirmed the extension of the Batman Core Zone to the north as anticipated, while the intercept is thicker than expected with higher grades in the center. In our view, the results confirm the exploration potential of Mt. Todd, which bodes well for Vista as it continues to de-risk Mt. Todd for potential development. These drill results are important, not because they are stellar, but because they may help improve in pit economics and demonstrate potential to expand this already massive deposit and points toward extensions along a 5.4km long trend towards other known deposits. Management is certain that this is a district with growing exploration potential.
Vista Gold released assays for the first hole from its ongoing exploration program at its 100%-owned Mt. Todd gold project in Northern Territory, Australia. The eight-hole program is designed to test for higher-grade mineralization within and immediately adjacent to the planned Batman pit, between the Batman and Quigleys deposits. In our view, the results confirm the exploration potential of Mt. Todd, which bodes well for Vista as it works to make Mt. Todd more attractive for potential development partners.
Yesterday, Red Cloud hosted the first day of its three-day 2020 Oktoberfest Fall Mining Showcase, which featured 20 presenting companies including our keynote speaker David Rosenberg and had over 500 participants registered in advance of the event. With this note, we want to provide a quick recap of the highlights from the conference for those who were unable to attend the live event. Replays will be available next week on the Red Cloud website.
Vista Gold announced that it has entered into an amendment to the option for Guadalupe de los Reyes, an open pit gold/silver project in Sinaloa, Mexico. The amendment accelerates the due date for the final option payment and monetizes Vista Gold’s royalty and back-in rights on the project. This is another example of Vista Gold’s management doing smart deals, using non-core assets to fund development work at Mt Todd in a non-dilutive way. Vista Gold is a leveraged gold developer which should outperform in a rising gold price environment as it advances a “new” Mt Todd towards production.
We are initiating coverage on Vista Gold Corp. with a BUY rating and a target price of C$4.00/sh representing 251% upside from the current share price. Vista Gold is advancing Australia’s largest undeveloped gold asset, the Mt Todd Project (100% owned) towards production. Central to our investment thesis is that we believe, Vista Gold has de-risked the technical issues at Mt Todd that derailed previous operators. Mt Todd has received most of its major environmental permits and is on the verge getting its last major permit, readying it for construction. With the technical challenges behind Mt Todd, we view Vista Gold as a leveraged gold developer which should outperform in a rising gold price environment and as the company achieves key development milestones on the path to production.