Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the
“Company”) today announced its audited financial results and
highlights for the fiscal year ended December 31, 2019.
Management’s quarterly conference call to discuss these results is
scheduled for 2:30 p.m. MST on March 5, 2020. The Company’s
consolidated audited financial statements and Management’s
Discussion and Analysis together with other important disclosures
can be found in the Company’s Annual Report on Form 10-K, filed
with the U.S. Securities and Exchange Commission and the Canadian
securities regulatory authorities.
Highlights for 2019
- Reported positive results for the
updated October 2019 preliminary feasibility study (the “2019 PFS”)
for the Mt Todd gold project (“Mt Todd” or the “Project”) with
improved after-tax net present value at a 5% discount rate
(“NPV5%”) of $823 million and internal rate of return (“IRR”) of
23.4% at a gold price of $1,350 per ounce and a $0.70=A$1.00
exchange rate and after-tax NPV5% of $1.5 billion and IRR of 38.3%
at a gold price of $1,650 per ounce and a $0.65=A$1.00 exchange
rate;
- Completed a comprehensive
metallurgical optimization program that demonstrated improved
life-of-mine gold recovery of 91.9% and total recovered gold of 5.3
million ounces(1);
- Completed an independent
benchmarking study to assess the appropriateness of capital and
operating cost estimates, construction and ramp-up schedules,
owner’s costs and key components of the Project;
- Received $3.2 million cash in
option payments and related fees from Prime Mining Corp. under the
option agreement for the Company’s Los Reyes gold / silver project
in Sinaloa, Mexico;
- Amended the Company’s royalty
agreement for the Awak Mas gold project in Indonesia, pursuant to
which PT Masmindo DWI Area has the option to cancel the 2% net
smelter return (the “NSR”) royalty payable to Vista by making an
initial payment of $100,000 and issuing 666,667 shares of Nusantara
Resources Limited (received by Vista in November 2019), and making
future payments to Vista in the amounts of $2.4 million payable
April 30, 2020 and $2.5 million payable April 30, 2021, with each
payment canceling 1% of the NSR royalty; and
- Strengthened Vista’s board of
directors and senior management team with the appointments of
Deborah Friedman as a Director, Doug Tobler as Chief Financial
Officer, and Pamela Solly as Vice President of Investor
Relations.
(1) The life of mine plan includes
both proven and probable mineral reserves. See “Project Mineral
Resources and Reserves” below for further information.
Frederick H. Earnest, President and Chief
Executive Officer of Vista, stated, “During 2019 we achieved
several significant milestones as we continued to advance and
de-risk the Mt Todd gold project. We completed several major
project initiatives highlighted by the 2019 PFS, generated cash of
$3.3 million from non-dilutive financing opportunities, and
strengthened our senior management team and board of directors with
the appointments of several accomplished and experienced mining
executives.
As part of our 2019 initiatives, we completed a
comprehensive metallurgical optimization program, the 2019 PFS, and
an independent benchmarking study. These initiatives, combined with
other de-risking activities, demonstrate the robust economics and
advanced stage of Mt Todd.
In 2020, our primary focus will be to secure a
strategic partner for the development of Mt Todd. With the
continued improvement in gold price, we are evaluating the positive
impact of higher gold prices on mine plans and project economics.
The following figures illustrate the Project’s after-tax economics
at various gold price and exchange rate assumptions. We continue to
de-risk Mt Todd in a cost-effective manner and work with NT
Department of Primary Industries and Resources to receive
authorization of the Mt Todd Mine Management Plan.”
A graph accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/1c089604-2dec-46c3-b8a4-dbcf1e14e6e2
Summary of Financial
Results
For the fiscal year ended December 31, 2019,
Vista reported a net loss of $9.4 million, or $0.09 per share,
compared to $8.7 million, or $0.09 per share for the fiscal year
ended December 31, 2018. The loss for the fiscal year ended
December 31, 2019 is comprised of $8.1 million of operating
expenses and a $1.6 million mark-to-market loss on our investment
in Midas Gold Corp., offset by other income of $0.3 million. The
loss for the fiscal year ended December 31, 2018 is including $10.8
million of operating expenses and a $1.7 million mark-to-market
gain on our investment in Midas Gold Corp., and other income of
$0.4 million.
Working capital at December 31, 2019 was $7.8
million, including cash and short-term investments (comprised of
government securities) of $4.7 million. Working capital at December
31, 2018 was $13.2 million, including cash and short-term
investments (comprised of government securities) of $8.1 million.
The Company has no debt.
Project Mineral Resources and
Reserves
The table below presents the estimated mineral
resources and reserves for the Project. The effective date of
the Batman and Quigleys deposits mineral resource estimates is
January 24, 2018. The effective date of the heap leach
mineral resource estimate is July 9, 2014.
Mt. Todd Gold Project Mineral Reserves – 50,000 tpd, 0.40 g
Au/t cut-off and $1,250 per ounce gold |
|
Batman Deposit |
Heap Leach Pad |
Quigleys Deposit |
Total |
|
Tonnes(000s) |
Grade(g/t) |
ContainedOunces(000s) |
Tonnes(000s) |
Grade(g/t) |
ContainedOunces(000s) |
Tonnes(000s) |
Grade(g/t) |
ContainedOunces(000s) |
Tonnes(000s) |
Grade(g/t) |
ContainedOunces(000s) |
Proven |
72,672 |
0.88 |
2,057 |
- |
- |
- |
- |
- |
- |
72,672 |
0.88 |
2,057 |
Probable |
135,015 |
0.82 |
3,559 |
13,354 |
0.54 |
232 |
- |
- |
- |
148,369 |
0.79 |
3,791 |
Proven & Probable |
207,687 |
0.84 |
5,616 |
13,354 |
0.54 |
232 |
- |
- |
- |
221,041 |
0.82 |
5,848 |
Note: Mineral reserves have been
calculated using a US$1,350 gold price, average recovery of 91.9%,
1% gross proceeds royalty, life of mine mining costs of US$6.02 per
tonne ore, life of mine processing costs of US$7.88 per tonne ore,
life of mine general and administrative costs of US$1.11 per tonne
ore, US$0.16 per tonne ore for project services and US$0.077 per
tonne ore for refining. Mineral reserves are quoted using a
0.40g Au/t cutoff grade. Mineral reserves are estimated pursuant to
Canadian disclosure standards and do not constitute mineral
reserves under SEC Industry Guide 7 standards. See “Cautionary Note
to United States Investors” below.
Mt. Todd Gold Project Mineral Resources |
|
Batman Deposit |
Heap Leach Pad |
Quigleys Deposit |
Total |
|
Tonnes(000s) |
Grade(g/t) |
ContainedOunces(000s) |
Tonnes(000s) |
Grade(g/t) |
ContainedOunces(000s) |
Tonnes(000s) |
Grade(g/t) |
ContainedOunces(000s) |
Tonnes(000s) |
Grade(g/t) |
ContainedOunces(000s) |
Measured |
77,725 |
0.88 |
2,191 |
- |
- |
- |
457 |
1.27 |
19 |
78,182 |
0.88 |
2,210 |
Indicated |
200,112 |
0.80 |
5,169 |
13,354 |
0.54 |
232 |
5,743 |
1.12 |
207 |
219,209 |
0.80 |
5,608 |
Measured & Indicated |
277,837 |
0.82 |
7,360 |
13,354 |
0.54 |
232 |
6,200 |
1.13 |
225 |
297,391 |
0.82 |
7,818 |
Inferred |
61,323 |
0.72 |
1,421 |
- |
- |
- |
1,600 |
0.84 |
43 |
62,923 |
0.72 |
1,464 |
Note: Measured & indicated mineral resources
include proven and probable mineral reserves. Batman and
Quigleys mineral resources are quoted at a 0.40g Au/t cut-off
grade. Heap Leach mineral resources are the average grade of
the heap, no cut-off grade applied. Economic analysis
conducted only on proven and probable mineral reserves. Rex
Bryan of Tetra Tech is the Qualified Person responsible for the
geologic mineral resource estimates. Thomas Dyer of Mine
Development Associates is the Qualified Person responsible for
developing mineral reserves for the Batman deposit. Dr.
Deepak Malhotra of Resource Development Inc. is the Qualified
Person responsible for the metallurgical data and program, and for
developing mineral reserves for the heap leach. See
“Cautionary Note to United States Investors” below.
The 2019 PFS was authored by Tetra Tech Inc.
(“Tetra Tech”) with Mine Development Associates, Resource
Development Inc., Proteus EPCM Engineers (a Tetra Tech Company,
“Tetra Tech Proteus”), JDS Energy & Mining, Inc., and POWER
Engineers, Inc.
John Rozelle, Vista’s Sr. Vice President, a
Qualified Person as defined by NI 43-101, has approved the
information in this press release. For additional information on
data verification, quality assurance and control, key assumptions
and other matters relating to the Project, see Vista’s Annual
Report Form on10-K as filed on SEDAR at www.sedar.com and on EDGAR
at www.sec.gov/edgar.shtml on February 26, 2020.
Technical Report on Mt Todd
For further information on the Mt Todd Gold
Project, see the Technical Report entitled “NI 43-101 Technical
Report Mt Todd Gold Project 50,000 tpd Preliminary Feasibility
Study Northern Territory, Australia” with an effective date of
September 10, 2019 and an issue date of October 7, 2019, which is
available on SEDAR as well as on Vista’s website under the
Technical Reports section.
Management Conference Call
A conference call with management to review our
financial results for the fiscal year ended December 31, 2019 and
to discuss corporate and project activities is scheduled for
Thursday, March 5, 2020 at 2:30 p.m. MST.
Participant Toll Free: 844-898-8648
International: 647-689-4225Conference ID: 3097238
This call will also be web-cast and can be
accessed at the following web location:
https://onlinexperiences.com/Launch/QReg/ShowUUID=3CD037F2-42AA-4A38-9B54-9C7837619AC3
This call will be archived and available at
www.vistagold.com after March 5, 2020. Audio replay will be
available for 21 days by calling toll-free in North America:
855-859-2056.
If you are unable to access the audio or
phone-in on the day of the conference call, please email questions
to Pamela Solly, Vice President of Investor Relations, at
ir@vistagold.com. We will try to address these questions prior to
or during the conference call.
All dollar amounts in this press release are in
U.S. dollars. References to “A$” refer to Australian dollar.
About Vista Gold Corp.
The Company is a well-funded gold project
developer. The Company’s principal asset is its flagship Mt Todd
gold project in Northern Territory, Australia. Mt Todd is the
largest undeveloped gold project in Australia.
For further information, please contact the
Company at (720) 981-1185.
Forward Looking Statements
This press release contains forward-looking
statements within the meaning of the U.S. Securities Act of 1933,
as amended, and U.S. Securities Exchange Act of 1934, as amended,
and forward-looking information within the meaning of Canadian
securities laws. All statements, other than statements of
historical facts, included in this press release that address
activities, events or developments that we expect or anticipate
will or may occur in the future, including such things as the
projected economics of the Mt Todd gold project in the 2019 PFS,
including the after-tax net present value at a 5% discount rate and
the internal rate of return, the estimated life of mine gold
recovery and total recovered gold for the Mt Todd gold project,
estimated capital and operating costs, construction and ramp-up
schedules, owner’s costs and other key components of the Mt Todd
gold project, receipt of future option payments for the Awak Mas
project, the Company’s focus on securing a strategic partner for
the development of Mt Todd, continued efforts to de-risk Mt Todd,
timing and receipt of authorization of the Mt Todd Mine Management
Plan from the NT Department of Primary Industries and Resources and
reserve and resource estimates at Mt Todd are forward-looking
statements and forward-looking information. The material factors
and assumptions used to develop the forward-looking statements and
forward-looking information contained in this press release include
the following: no change to laws or regulations impacting mine
development or mining activities, our approved business plans,
mineral resource and reserve estimates and results of preliminary
economic assessments, preliminary feasibility studies and
feasibility studies on our projects, if any, our experience with
regulators, our experience and knowledge of the Australian mining
industry and positive changes to current economic conditions and
the price of gold. When used in this press release, the words
“optimistic,” “potential,” “indicate,” “expect,” “intend,” “hopes,”
“believe,” “may,” “will,” “if,” “anticipate,” and similar
expressions are intended to identify forward-looking statements and
forward-looking information. These statements involve known
and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements expressed or implied by such statements. Such
factors include, among others, uncertainty of resource and reserve
estimates, uncertainty as to the Company’s future operating costs
and ability to raise capital; risks relating to cost increases for
capital and operating costs; risks of shortages and fluctuating
costs of equipment or supplies; risks relating to fluctuations in
the price of gold; the inherently hazardous nature of
mining-related activities; potential effects on our operations of
environmental regulations in the countries in which the Company
operates; risks due to legal proceedings; risks relating to
political and economic instability in certain countries in which
the Company operates; uncertainty as to the results of bulk
metallurgical test work; and uncertainty as to completion of
critical milestones for Mt Todd; as well as those factors discussed
under the headings “Note Regarding Forward-Looking Statements” and
“Risk Factors” in the Company’s latest Annual Report on Form 10-K
as filed on February 26, 2020 and other documents filed with the
U.S. Securities and Exchange Commission and Canadian securities
regulatory authorities. Although we have attempted to
identify important factors that could cause actual results to
differ materially from those described in forward-looking
statements and forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. Except as required by law, we assume no obligation
to publicly update any forward-looking statements or
forward-looking information; whether as a result of new
information, future events or otherwise.
Cautionary Note to United States
Investors
The United States Securities and Exchange
Commission (“SEC”) limits disclosure for U.S. reporting purposes to
mineral deposits that a company can economically and legally
extract or produce. This press release uses the terms “Proven
reserves” and “Probable reserves”. Reserve estimates
contained in this press release are made pursuant to NI 43-101
standards in Canada and do not represent reserves under the
standards of the SEC’s Industry Guide 7 and may not
constitute reserves under the SEC’s newly adopted disclosure rules
to modernize mineral property disclosure requirements, which became
effective February 25, 2019 and will be applicable to the Company
in its annual report for the fiscal year ending December 31,
2021. Under the currently applicable SEC Industry Guide 7
standards, a “final” or “bankable” feasibility study is required to
report reserves, the three-year historical average price is used in
any reserve or cash flow analysis to designate reserves and all
necessary permits and government approvals must be filed with the
appropriate governmental authority. Additionally, this press
release uses the terms “Measured resources”, “Indicated resources”,
and “Measured & Indicated resources”. We advise U.S.
investors that while these terms are Canadian mining terms as
defined in accordance with NI 43-101, such terms are not recognized
under SEC Industry Guide 7 and normally are not permitted to be
used in reports and registration statements filed with the
SEC. Mineral resources described in this press release have a
great amount of uncertainty as to their economic and legal
feasibility. The SEC normally only permits issuers to report
mineralization that does not constitute SEC Industry Guide 7
compliant “reserves” as in-place tonnage and grade, without
reference to unit measures. The term “contained gold ounces” used
in this press release is not permitted under the rules of the
SEC. “Inferred resources” have a great amount of uncertainty
as to their existence, and great uncertainty as to their economic
and legal feasibility. It cannot be assumed that any or all
part of an Inferred resource will ever be upgraded to a higher
category. U.S. Investors are cautioned not to assume that
any part or all of mineral deposits in these categories will ever
be converted into SEC Industry Guide 7 reserves.
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