Dallas, Texas 11/01/2013 (Financialstrend) – Vista Gold Corp. (NYSEMKT:VGZ) stock came under immense pressure at the browsers on October 31 trading, post its third quarter results announcements after close of business on October 30. The trigger for the sell off was the disclosing of the fact that the development stage gold mining firm has instituted a strategic review of its gold portfolio including mining assets at its most potential Mt.Todd property in Australia. The review will also expect to look into the profitability of its 24.9% stake in Midas Gold Corp which is engaged in gold mining activities in Idaho. In addition the $35.15 million small capped mining firm also wants to evaluate the production feasibility of its investments in the “Guadalupe de los Reyes based gold and silver mining project” in Mexico. The prelim economic feasibility was conducted for this project in earlier this year. It also has mandated its strategic review team to establish if it makes sense to continue pursuing the acquisition of the Indonesia gold mining investment opportunity in addition to its assets in California mines.
The strategic review became necessary since the company was burning through cash to sustain operations which are spread far across the three continents of Australia, Asia and the Americas. The company is hoping to monetize part of its noncore assets to generate cash flow which will enable it to develop production capacity in its major investments. It has also spelt out plans to cut down expenses to as low as $3000 for the forth coming quarters at its Mt Todd project by eliminating few management positions, cutting out cash compensation to remaining executives and stopping all exploration activities. It boasts of assets worth $72,375 as against liabilities of $21,329 from its continued operations as of September 30. The shares were trading at $0.43 down 6.5% from previous day close.