- Vista Gold is up more than 40% year-to-date, and is one of the better-performing names in the gold developer space.
- This is despite the thesis for some gold developers weakening, with cost overruns on current projects that suggest the capex estimates for many gold development projects are stale.
- This outlook is worsened by the fact that many producers are choosing to focus organically vs. the focus in the last cycle which was large takeovers to boost production.
- Given that Vista does not control its destiny at Mt. Todd with the inability to fund an ~$900 million capex bill on its own while other juniors are financed, I see Vista as an inferior way to buy the dip.
For further details see:
Vista Gold: An Inferior Way To Buy The Dip