In a report released today, Heiko Ihle from H.C. Wainwright reiterated a Buy rating on Vista Gold Corp (VGZ), with a price target of $2.50. The company’s shares closed yesterday at $0.88, close to its 52-week high of $0.96.
Ihle noted:
“We believe that Vista’s financials remain reasonably irrelevant given the non-producing nature of the company. We are, however, utilizing this newsflow as an excuse to reiterate our Buy recommendation on Vista shares. The firm reported a net loss of $3.0M, or ($0.03) per share, for 2Q19. This compares to a net loss of $1.9M, or ($0.02) per share, in 2Q18. The greater YoY net loss was mostly due to a loss on other investments of $1.1M compared to no loss in 2Q18. We note that this loss occurred predominantly from changes in the fair market value of Vista’s investment in Midas Gold (MAX.TO; not rated) shares. the firm had a working capital balance of $9.6M. While this is less than the balance of $16.9M at the end of 2Q18, it should be enough to support the firm’s operations in the near-term as the management team continues to advance the Mt Todd asset.”
According to TipRanks.com, Ihle is a 4-star analyst with an average return of 4.1% and a 50.3% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Americas Silver Corporation, Golden Star Resources Ltd, and Northern Dynasty Minerals.
Vista Gold Corp has an analyst consensus of Moderate Buy, with a price target consensus of $2.50.
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Based on Vista Gold Corp’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $2.65 million. In comparison, last year the company had a GAAP net loss of $1.92 million.
Based on the recent corporate insider activity of 28 insiders, corporate insider sentiment is negative on the stock.
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Vista Gold Corp. is a gold project developer, which engages in the evaluation, acquisition, exploration, and advancement of gold exploration and potential development projects. Its project inlcude Mt. Todd in Northern Territory, Australlia. The company was founded on November 28, 1983 and is headquartered in Littleton, CO.
