Vista Gold Corp. (NYSE American: VGZ) (TSX: VGZ) (“Vista” or the
“Company”) today announced its audited financial results for the
year ended December 31, 2021 and filed the feasibility study (“FS”)
reports for its 100% owned Mt Todd Gold Project (“Mt Todd” or the
“Project”) in the Northern Territory, Australia. The Company’s 2021
financial results are highlighted by reported cash totaling $13.1
million at year-end 2021.
Frederick H. Earnest, President and Chief Executive Officer of
Vista, stated, “The size, location, permitting status, and recently
completed FS position Mt Todd as one of the most attractive,
development-ready gold projects in the world. With total cash of
$13.1 million at year-end 2021, our balance sheet is strong and our
prospects for unlocking shareholder value have never been
greater.
“Two of the most significant achievements during 2021 were the
approval of the Mining Management Plan (“MMP”) and the initiation
of the FS. The MMP was approved in June 2021 and marked a
significant de-risking milestone. With the MMP in hand, Vista now
has all major operating and environmental permits required to
proceed with development of Mt Todd.”
Mr. Earnest continued, “As previously announced, the FS was
completed in early February 2022, delivering a 7 million ounce gold
reserve with high operating margins over a 16-year mine life. The
FS affirms the strength of Mt Todd’s gold production capacity and
ability to deliver robust economics with significant cashflows and
resilience to inflation. Our ongoing exploration program continues
to identify targets for efficient future mineral resource
expansion. A few highlights from the FS include:
- After-tax NPV5% of $999.5 million and IRR of 20.6% at a $1,600
gold price and a $0.71 Fx rate;
- After-tax NPV5% of $1.5 billion and IRR of 26.7% at a $1,800
gold price and $0.71 Fx rate;
- After-tax cash flow at a $1,800 gold price of $2.1 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. All foreign exchange
(“Fx”) rates are in U.S. dollars per Australian dollar.
“Mt Todd is a unique and compelling near-term development
opportunity. We believe the results of the FS will appeal to many
potential partners, investors and lenders and allow us to evaluate
a broad range of development alternatives as we seek to unlock
maximum shareholder value in 2022.” (See Vista Gold FS News Release
and Mt Todd FS Webcast).
Mt Todd Technical Report Filings
The Company also announced it has filed a Technical Report
Summary (“TRS”) 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 today’s filing of
Vista’s Annual Report on Form 10-K. 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. This 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.
Summary of Financial Results
Cash and short-term investments (comprised of government
securities) totaled $13.1 million at December 31, 2021 compared to
$8.2 million at December 31, 2020. This net increase of $5.0
million during 2021 reflects net proceeds of $12.3 million from the
Company’s July 2021 public offering, $2.1 million received from
Prime Mining Corp. for cancellation of Vista’s royalty interests
and back-in right in the Guadalupe de los Reyes gold and silver
project (“Los Reyes”), $1.1 million under the Company’s ATM
Program, and $0.7 million received from other dispositions of
non-core assets. These cash inflows were offset by expenditures of
$11.2 million, which included normal recurring costs as well as
expenditures for work towards completing the FS and Vista’s ongoing
exploration drilling program. The Company continued to have no
debt.
For the year ended December 31, 2021, Vista reported a net loss
of $15.2 million, or $0.14 per common share on both a basic and
diluted basis, compared to consolidated net income of $0.4 million,
or $0.00 per common share on both a basic and diluted basis for the
fiscal year ended December 31, 2020. The net loss for the year
ended December 31, 2021 included income of $2.1 million from the
Los Reyes transaction. Offsetting expenses included: $7.9 million
for exploration, property evaluation, and holding costs, which
included expenses associated with the FS and continuation of
exploration drilling throughout 2021; $3.9 million for corporate
administration, which remained relatively consistent with the prior
year; and a $5.5 million non-cash accounting write-down of the
Company’s used mill equipment, which remains for sale.
Net income for the year ended December 31, 2020 was comprised of
$6.1 million in gains on the sale of the Los Reyes project and
partial cancellation of the Awak Mas royalty, $2.4 million of gains
related to the sale of our Midas Gold Corp. shares, and other
income of $0.3 million, offset by $8.4 million of operating
expenses.
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 for the year ended December 31, 2021, filed with the U.S.
Securities and Exchange Commission and the Canadian securities
regulatory authorities.
Management Conference Call
Management’s quarterly conference call to review financial
results for the fiscal year ended December 31, 2021 and to discuss
corporate and project activities is scheduled for Monday, February
28, 2022 at 2:00 pm MT (4:00 pm ET).
Participant Toll Free: (844) 898-8648 Participant International:
(647) 689-4225 Conference ID: 8829349
This call will also be archived and available at
www.vistagold.com after February 28, 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.
All dollar amounts in this press release are in U.S.
dollars.
For further information, please contact Pamela Solly, Vice
President of Investor Relations, at (720) 981-1185.
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. All major environmental
permits have now been approved.
For further information about Vista or the Mt Todd Gold Project,
please contact Pamela Solly, Vice President of Investor Relations,
at (720) 981-1185 or visit the Company’s website at
www.vistagold.com to access important information, including the
current TRS and Technical Report.
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 our achievements during 2021, together
with the Project’s size, location and permitting status position Mt
Todd as one of the most attractive, development-ready projects in
the world; our believe that our balance sheet is strong; our
believe that our prospects for unlocking shareholder value have
never been greater; our belief that the approval of the MMP marked
a significant de-risking milestone for the Project; our belief that
Vista has all major operating and environmental permits required to
proceed with development of Mt Todd; our belief that the FS affirms
the strength of Mt Todd’s gold production capacity and ability to
deliver robust economics with significant cashflows and resilience
to inflation; our belief that the FS will appeal to many potential
partners, investors and lenders and allow us to evaluate a broad
range of development alternatives as we continue to focus on
maximizing shareholder value 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/20220224005993/en/
Pamela Solly Vice President of Investor Relations (720)
981-1185
Vista Gold (TSX:VGZ)
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