- Vista Gold is one of the worst-performing gold stocks since June, sliding more than 40% from its June highs, and continuing to hang out near 52-week lows.
- The recent underperformance is partially attributed to recent share dilution, but could also stem from recent inflationary pressures.
- This is because the company's updated study for its Mt. Todd Project could show a material increase in upfront capex based on recent trends we've seen in material inflation.
- At a share price of $0.75, Vista remains very cheap at less than 0.2x P/NAV, but with majors appearing more disciplined and this being a very high-cost project, I think there are better ways to play the gold developer space.
For further details see:
Vista Gold: Inflationary Pressures Could Lead To A Bump In Capex Estimates