Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the
“Company”) today announced its unaudited financial results for the
quarter ended March 31, 2022, which are highlighted by reported
cash totaling $12.8 million. All dollar amounts in this press
release are in U.S. dollars.
Frederick H. Earnest, President and Chief Executive Officer of
Vista, commented, “As announced in February, we achieved a major
milestone with the completion of the Feasibility Study (“2022 FS”)
for our 100%-owned Mt Todd gold project (“Mt Todd” or the
“Project”), which increased gold reserves by 19% to 6.98 million
ounces with estimated average annual production of 479,000 ounces
of gold during the first seven years of commercial operations and
extended the mine life to 16 years. The completion of the 2022 FS
represents a significant step in de-risking Mt Todd and readying
the Project for development. We subsequently announced the
appointment of CIBC Capital Markets (“CIBC”) as Vista’s strategic
advisor to lead a formal process to assist in evaluating a broad
range of alternatives to unlock the value of Mt Todd and arranging
an accretive transaction. During the quarter we also successfully
completed the exploration drilling program at Mt Todd, continued to
monetize non-core assets, and maintained the strength of our
balance sheet with quarter end cash of $12.8 million.
“We believe the 2022 FS demonstrates the robust economics of the
Project, which combined with the approval of all major permits for
development distinguish Mt Todd as a unique, near-term development
opportunity in a stable and mining friendly jurisdiction. I’m
excited with the progress by CIBC to date and committed to
achieving an outcome that provides appropriate opportunity for
value creation by recognizing a greater portion of the intrinsic
value of Mt Todd and minimizing the potential for future
dilution.”
First Quarter Highlights and Recent Developments
- Completed the Mt Todd Feasibility Study;
- Appointed CIBC as Strategic Advisor;
- Received the final $2.5 million Awak Mas royalty payment;
- Completed the exploration drilling program at Mt Todd; and
- Ended Q1 2022 with cash and cash equivalents of $12.8
million
Feasibility Study
Vista completed the 2022 FS for Mt Todd and announced the
results on February 9, 2022 and filed the SK-1300 Technical Report
Summary and NI 43-101 Technical Report on February 24, 2022.
A few highlights from the 2022 FS include:
- After-tax NPV5% of $999.5 million and IRR of 20.6% at a $1,600
gold price;
- After-tax NPV5% of $1.7 billion and IRR of 29.4% at a $1,900
gold price;
- After-tax cash flow at a $1,900 gold price of $2.3 billion for
years 1 – 7 of commercial operations; and
- Average annual production of 479,000 ounces of gold during
years 1 – 7 of commercial operations.
Note: All dollar amounts stated herein are in U.S. currency and
are expressed as $ unless specified otherwise. The foreign exchange
(“Fx”) rate used is 0.71 U.S. dollar per Australian dollar.
The 2022 FS addressed recommendations from the 2019
pre-feasibility study; reflects minor updates of the Project design
to be consistent with the Mining Management Plan; and advanced the
levels of engineering and detailed costing in all areas of the
Project. It evaluated several trade-off opportunities (e.g.,
contract power generation, contract mining and autonomous truck
haulage). With new mine plans at prices more reflective of current
gold prices, the 2022 FS resulted in a larger reserve and longer
mine life.
Appointment of CIBC Capital Markets as Strategic
Advisor
In March, Vista appointed CIBC as its strategic advisor to
assist in evaluating a broad range of alternatives to unlock the
value of the Mt Todd gold project. CIBC’s mandate includes leading
a formal process to complete an accretive transaction with the
primary focus on maximizing shareholder value. The formal process
has commenced. Coinciding with the work of CIBC, in February 2022,
Australia lifted restrictions on international travel to and from
the country for fully vaccinated individuals. Vista believes this
action will have a positive impact for the Company by allowing
greater in-person interaction between senior management and local
stakeholders, and enhancing the formal process to unlock the value
of Mt Todd.
Exploration Drilling Program
Vista completed its exploration drilling at Mt Todd during March
2022 and is awaiting final assay results. The drilling program
focused on identifying connecting structures and mineralization
between previously interpreted discreet deposits and the potential
for efficient resource growth with future drilling along strike
from the Batman deposit approximately 1.9 kilometers north to the
Golf-Tollis/Penguin targets. This program successfully achieved our
goal of demonstrating the regional potential along a 5.4-kilometer
portion of the 24-kilometer Batman-Driffield Trend and to outline
areas where future drilling can be undertaken to efficiently define
additional gold resources.
Vista completed 26 planned drill holes for approximately 8,898
meters. The drill holes consistently intersected mineralization
predicted by our geologic model and demonstrate both horizontal and
vertical continuity of the targeted structures.
Summary of Q1 2022 Financial Results
At March 31, 2022, cash, cash equivalents and short-term
treasury investments totaled $12.8 million. We benefited during the
quarter from receipt of $2.5 million from PT Masmindo Dwi Area to
exercise its option to cancel the remaining 50% of the Awak Mas net
smelter return royalty and continued control over our base
expenditures.
Vista reported a net loss of $0.3 million or $0.00 per basic
share for the three months ended March 31, 2022, compared to a loss
of $3.1 million or $0.03 per basic share for the three month period
ended March 31, 2021. The loss for the current quarter was in line
with management’s expectations.
Management Conference Call
Management’s quarterly conference call to review financial
results for the quarter ended March 31, 2022 and to discuss
corporate and project activities is scheduled for Tuesday, May 3,
2022 at 2:00 p.m. MDT (4:00 p.m. EDT).
Participant Toll Free: (844) 898-8648 Participant International:
(647) 689-4225 Conference ID: 1976517
This call will also be archived and available at
www.vistagold.com after May 3, 2022. Audio replay will be available
for 21 days by calling toll-free in North America (855) 859-2056 or
(404) 537-3406.
If you are unable to access the audio or phone-in on the day of
the conference call, please email your questions to
ir@vistagold.com.
For further information, please contact Pamela Solly, Vice
President of Investor Relations, at (720) 981-1185.
Mt Todd Technical Report Filings
The Company filed a Technical Report Summary (“TRS” or
“Technical Report Summary”) prepared in accordance with subpart
1300 of Regulation S-K under the United States Securities Exchange
Act of 1934, as amended (“S-K 1300”) as an exhibit to Vista’s
Annual Report on Form 10-K, filed on February 24, 2022. The TRS is
entitled “S-K 1300 Technical Report Summary – Mt Todd Gold Project
– 50,000 tpd Feasibility Study – Northern Territory, Australia”
with an effective date of December 31, 2021 and an issue date of
February 9, 2022. This TRS is available on EDGAR at
www.sec.gov/edgar.shtml. A companion Technical Report for Canadian
purposes, pursuant to National Instrument 43-101 (“NI 43-101”), was
filed on SEDAR on February 24, 2022 and is entitled “NI 43-101
Technical Report – Mt Todd Gold Project - 50,000 tpd Feasibility
Study – Northern Territory, Australia” with an effective date of
December 31, 2021 and an issue date of February 9, 2022 (the “NI
43-101 Technical Report”). The NI 43-101 Technical Report is
available on SEDAR at www.sedar.com. Both reports may also be found
on Vista’s website at www.vistagold.com.
The technical data and economic conclusions of these reports are
identical, with minor differences between the reports resulting
only from the respective disclosure requirements of S-K 1300 and NI
43-101.
John Rozelle, Vista’s Sr. Vice President, a Qualified Person as
defined by 43-101, has approved this press release.
About Vista Gold Corp.
Vista is a gold project developer. The Company’s flagship asset
is the Mt Todd gold project located in the Tier 1, mining friendly
jurisdiction of Northern Territory, Australia. Situated
approximately 250 km southeast of Darwin, Mt Todd is the largest
undeveloped gold project in Australia and, as presently designed,
Mt Todd is expected to be one of the top five gold producers in
Australia. All major environmental and operating permits have now
been approved.
For further information, please contact Pamela Solly, Vice
President of Investor Relations, 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
expected date for our management’s call regarding our financial
results; our belief that the completion of the FS represents a
significant step in de-risking Mt Todd and readying the Project for
development; our belief that the 2022 FS demonstrates the robust
economics of the Project, which combined with the approval of all
major permits for development distinguish Mt Todd is a unique,
near-term development opportunity in a stable and mining friendly
jurisdiction; our belief that we remain committed to achieving an
outcome that provides appropriate opportunity for value creation by
recognizing a greater portion of the intrinsic value of Mt Todd and
minimizes the potential for future dilution; our belief that
Australia’s lifted travel restrictions will have a positive impact
for the Company by allowing greater in-person interaction between
senior management and local stakeholders, and enhancing the formal
process to unlock the value of Mt Todd; our belief that our goal of
demonstrating the regional potential along a 5.4-kilometer portion
of the 24-kilometer Batman-Driffield Trend and to outline areas
where future drilling can be undertaken to efficiently define
additional gold resources has been successfully achieved; our
belief that we have maintained the strength of our balance sheet;
and our belief that Mt Todd is the largest undeveloped gold project
in Australia and, as presently designed, Mt Todd is expected to be
one of the top five gold producers in Australia 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: our forecasts and expected cash flows; our projected
capital and operating costs; our expectations regarding mining and
metallurgical recoveries; mine life and production rates; that laws
or regulations impacting mine development or mining activities will
remain consistent; our approved business plans, our 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
our expectations of 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 it operates; risks due to legal proceedings; risks relating
to political and economic instability in certain countries in which
it operates; uncertainty as to the results of bulk metallurgical
test work; uncertainty as to completion of critical milestones for
Mt Todd; and uncertainty as to the impact of the ongoing global
health crisis caused by the COVID-19 pandemic; 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 in February 2022 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220502005843/en/
Pamela Solly Vice President of Investor Relations (720)
981-1185
Vista Gold (TSX:VGZ)
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