©Reuters.
DENVER – Gold project developer Vista Gold (NYSE:) Corp. (NYSE American: VGZ) has received a $7 million payment from Wheaton Precious Metals (NYSE:) (Cayman) Co., an affiliate of Wheaton Precious Metals. I have confirmed that I have received it. This second installment is part of his $20 million royalty agreement related to the Mt Todd gold project in Australia's Northern Territory.
The funds received by Vista Gold's subsidiary, Vista Gold Australia Pty. Ltd., will be allocated to further development of Mt Todd and general corporate purposes. Receipt of this payment is subject to a number of conditions being met, including approval from the Australian Government's Foreign Investment Review Board and the registration of a lien on the mineral lands that make up Mt Todd.
The final royalty installment, amounting to $10 million, is expected to be received six months after the first installment, subject to the commencement of a designated drilling program at Mt. Todd and the satisfaction of other conditions.
Mt Todd, located approximately 250km south-east of Darwin, is recognized as one of Australia's largest undeveloped gold assets, with all key environmental and operating permits in place to begin development. . The project is located in a jurisdiction known for its mining-friendly policies and offers several opportunities for resource accretion, gradual development and risk mitigation.
This report is based on the following press release. Vista Gold Corporation .
Investment Pro Insights
As Vista Gold Corp. (NYSE American: VGZ) continues to develop its Mt Todd gold project, it is important for investors to consider the company's financial health and market performance. According to the latest data from InvestingPro, VGZ has more cash than debt on its balance sheet, which could provide a cushion for operating and project development costs. This is an encouraging sign for the company's financial stability as it moves forward with the Mt Todd project.
However, potential investors must be aware of the company's challenges. According to InvestingPro Tips, Vista Gold has low gross margins and has not made a profit in the past 12 months as of Q1 2023. Furthermore, the stock price has been quite volatile, experiencing a significant decline of -33.76% over the past 6 months. This volatility and performance can affect investor confidence and may be a consideration for those considering the long-term potential of an investment.
As of the trailing 12 months to Q3 2023, VGZ is trading at a high price-to-book multiple of 6.78, according to InvestingPro data. This could suggest that the stock is currently valued at a premium relative to book value, which could be the point. Analysis for value-oriented investors. Additionally, the company's return on assets is -65.46%, highlighting the challenges the company faces in generating returns from its assets.
For investors seeking more detailed analysis, additional InvestingPro Tips on Vista Gold Corp. are available at https://www.investing.com/pro/VGZ.Enhance your investment research with a coupon code pro news 24 Get an additional 10% discount on annual or biennial Pro and Pro+ subscriptions. This includes a comprehensive list of 7 additional InvestingPro tips about VGZ.
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