Vista Gold Corp. (VGZ) stock prices were up by an incremental 1.82% as of the market closing on May 11th, 2021, bringing the price per share up to USD$1.12 at the end of the trading day.
Solid Liquidity Position
The company reported an end to the first quarter of the fiscal year 2021 that saw the company holding USD$7.2 million in cash and cash equivalents as of March 31st, 2021. VGZ also received a USD$1.1 million payment from Prime Mining Corp. in regard to the Guadelupe de Los Reyes gold/silver project in Mexico. As per the terms of the agreement, VGZ is expecting a final payment of USD$1 million no later than July of 2021. This puts VGZ in a very comfortable spot with their liquidity position.
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Funded for the Future
VGZ continued to retain control over the company’s base expenditures, allowing for them to allocate additional funds and resources towards their drilling program. The company reported Vista having extended the due date for the remaining USD$2.5 million option payment payable to Vista for the cancellation of the Awak Mas royalty until not later than January 31st, 2022.
Recent Developments
A recent milestone achieved by the company was the advancement of the Mt Todd Mining Management Plan to its final stage of review and approval. VGZ also recently expanded its current drill program to include 10 additional holes with a focus on deep drilling along the strike area that spans approximately 2 km from the Batman deposit north to the Golf-Tollis/Penguin targets. This is the most recent in a string of positive results and developments from on-going exploration activities.
Reduction in Net Loss
The company anticipated a quarter where the goal was to mitigate losses rather than ensure profits, and this is reflected by the arguably successful efforts that saw Vista reported a reduction in net loss. The three-month period ended March 31st, 2021 reported a net loss of USD$3.1 million, down from the USD$3.5 million reported for the same time period of the previous year. Both figures represent a net loss per share of USD$0.03 per share.
Plans for Growth
The approval of the Mining Management Plan is anticipated for the very near future by VGZ, who see a substantial opportunity to minimize the difference between the company’s market cap and the intrinsic value of Mt Todd over the next 12 months. The company plans to continue the ongoing drilling program to demonstrably and significantly expand gold resources as well as facilitate the advancing of their feasibility studies.
Future Outlook for VGZ
With a strong liquidity position at their disposal, VGZ is poised to leverage its resources to facilitate the success of its current drilling programs. With a strong commitment to its shareholders, the company is seeking appropriate opportunities for value creation that will minimize the potential for future dilution of existing equity. Current and potential investors are excited for significant and sustained increases in shareholder value.