thomast2

Vista Gold: Ready for the Middle Tier

Thank you all for the comments.
LarryH, my analysis includes production cost per oz as indicated in the article. Jimmy46, I don’t think it is the case here for Vista.
Clavis, I don’t know much about Aurelian but since you mentioned it, I looked it up quickly at the web. It seems that Aurelian has 13.7m gold inferred resources at Ecuador. This is actually comparable to Vista which has 10.3m M&I, and another 3.9m inferred gold resources in 6 separate projects but in more geopolitical safer countries.
So if KGC feels comfortable to pay $1 billion for Aurelian, Vista should be worth the same too, if not more. Another way to look at it is that KGC pays roughly $60-70/oz (?) of gold in the ground for Aurelian, but based on my analysis above, Vista is now only traded at < $15/oz.
Bill sanders, I agree with your point on proxies. Bobjou, most of the companies I follow have production or near production, including Vista which is also at the verge of production.
Utiwiq and others raised the cost issue which is always my concern too, and probably the reason why the whole sector is currently depressed. But if energy cost stays at this level, and gold bull market returns to life and goes over $1,000 again, higher production cost will be offset by higher gold price.