Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the
“Company”) today announced its unaudited financial results for the
quarter ended June 30, 2024, with net income of $15.6 million and
cash totaling $20.2 million. All dollar amounts in this press
release are in U.S. dollars.
Frederick H. Earnest, President and CEO of Vista, said, “During
the second quarter, we received the final $10 million instalment
payment under the recent royalty agreement. All payments under the
royalty agreement totaling $20 million have now been received,
which significantly strengthens our balance sheet. We completed
Phase 1 of the Mt Todd drilling program and commenced Phase 2. We
expect to announce results from Phase 1 in August.”
Mr. Earnest concluded, “We have commenced trade-off studies and
preliminary evaluations related to an initially smaller scale
project at Mt Todd. We will continue to prioritize the efficient
use of our cash while we seek opportunities to create long-term
value for our shareholders in the current climate of a strong and
rising gold price, and execute our health, safety, and
environmental initiatives.”
In June, the Company also announced that the Northern Territory,
Australia (the “NT”) passed legislation to enact the Mineral
Royalties Act 2024 effective July 1, 2024. The 3.5% royalty to be
applied to production from Mt Todd represents a nearly 50%
reduction in payable royalties. This results in improved project
economics and earlier shareholder returns compared to our 2024
updated feasibility study, which included NT royalties equivalent
to nearly a 7% ad valorum rate. Under the previous net profits
royalty regime, our base case economic analysis at an $1,800 gold
price estimated the payment of $765 million in NT royalties over
the life of the mine.
Summary of Financial Results
Vista reported consolidated net income of $15.6 million, or
$0.13 per basic common share, for the quarter ended June 30, 2024,
compared to a consolidated net loss of $1.5 million, or $0.01 per
basic common share for the quarter ended June 30, 2023. Net income
for the current quarter includes a recognized gain of $16.9 million
upon receipt of the final instalment under the royalty
agreement.
Cash and cash equivalents totaled $20.2 million at June 30,
2024, compared to $6.1 million at December 31, 2023. The Company
continued to have no debt.
Management Conference Call
Management’s conference call to review financial results for the
quarter ended June 30, 2024, and to discuss corporate and project
activities is scheduled for July 30, 2024, at 2:00 p.m. MDT (4:00
p.m. EDT).
Participant Toll Free: +1 (800) 717-1738 Participant
International: +1 (289) 514-5100 Conference ID: 85480
This call will be archived and available at www.vistagold.com
after July 30, 2024. An audio replay will also be available through
August 15, 2024, by calling toll-free in North America +1 (888)
660-6264 or +1 (289) 819-1325 using passcode 85480#.
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.
About Vista Gold Corp.
Vista is a gold project developer. The Company’s flagship asset
is Mt Todd, located in the mining friendly jurisdiction of Northern
Territory, Australia. Situated approximately 250 km southeast of
Darwin, Mt Todd is one of the largest development stage
opportunities in Australia and demonstrates compelling economics.
All major environmental and operating permits necessary to initiate
development of Mt Todd are in place.
Mt Todd benefits from its location in a leading mining
jurisdiction and offers opportunities to add value through growth
of mineral reserves, alternative development strategies, and other
de-risking activities.
For further information about Vista or Mt Todd, please contact
Pamela Solly, Vice President of Investor Relations, at (720)
981-1185 or visit the Company’s website at www.vistagold.com.
Forward Looking Statements
This news 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 news release that address activities, events or developments
that we expect or anticipate will or may occur in the future,
including such things as our belief that the final $10 million
instalment payment under the recent royalty agreement significantly
strengthens our balance sheet; our belief that results from Phase 1
of the drilling program are expected to be announced in August; our
belief that we will continue to prioritize the efficient use of our
cash while we seek opportunities to create long-term value for
shareholders in the current climate of a strong and rising gold
price, and execute our health, safety, and environmental
initiatives; our belief that the new 3.5% royalty to be applied to
production from Mt Todd represents a nearly 50% reduction in
payable royalties and results in improved project economics and
earlier shareholder returns compared to our 2024 updated
feasibility study, which included NT royalties equivalent to nearly
a 7% ad valorum rate; our belief that under the previous net
profits royalty regime, our base case economic analysis at an
$1,800 gold price estimated the payment of $765 million in NT
royalties over the life of the mine; statements regarding Mt Todd
being one of the largest development stage opportunities in
Australia and demonstrating compelling economics; our belief that
Mt Todd benefits from its location in a leading mining
jurisdiction; and our belief that Mt Todd offers opportunities to
add value through growth of mineral reserves, alternative
development strategies, and other de-risking activities 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 news 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; political and social support
of the mining industry in Australia; our experience and knowledge
of the Australian mining industry and our expectations of economic
conditions and the price of gold. When used in this news 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; 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 in March
2024, 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/20240729761534/en/
Pamela Solly Vice President of Investor Relations (720) 981-1185
www.vistagold.com
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