Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the
“Company”) today announced its audited financial results for the
year ended December 31, 2020, which are highlighted by reported net
income of $0.4 million for the year and cash totaling $8.2 million
at year-end.
Frederick H. Earnest, President and Chief
Executive Officer of Vista, stated, “During 2020, we achieved
strong financial performance as we executed and delivered on our
initiatives to strengthen our balance sheet, identified
opportunities to advance and bring greater value to our Mt Todd
gold project (“Mt Todd” or the “Project”), maintained our strong
social license, and commenced exploration opportunities targeting
resource growth adjacent to the Batman deposit. CEO Video
“In 2020, we funded working capital through
successful monetization of non-core assets, ended the year with
$8.2 million of cash, and positioned the Company to generate
additional cash of up to US$4.6 million during 2021, of which $1.1
million has already been received. We initiated a drilling program
to test the continuity of mineralization extending north from the
Batman deposit, which included holes across the mineralized
structure as far as 500 meters north of the last modelled
mineralization. We continued to engage with the NT government to
support its review of our Mining Management Plan (“MMP”), further
dewatered the Batman pit, and strengthened our relationship with
the Jawoyn Association through an updated and modernized
agreement.
“Looking ahead, we are excited about ongoing
programs that present significant opportunities to realize
shareholder value more in line with the value of Mt Todd. We
continue to engage with potential partners and identify strategic
opportunities to advance the development of Mt Todd in a way that
preserves maximum Project ownership for our shareholders, while
minimizing future dilution. Based on early success, we are adding a
second drill to extend the ongoing drilling program.”
The Company’s upcoming catalysts include:
- Final approval of the Mt Todd MMP, which management believes is
forthcoming in the near future;
- Drill results which are expected over the coming weeks and
continuing well into the second quarter; and
- Completion of dewatering the Batman pit later this year.
Summary of Financial
Results
At December 31, 2020, cash plus short-term
investments (comprised of government securities) totaled $8.2
million and working capital was $8.3 million. Our cash position was
further strengthened by $1.1 million received from Prime Mining
Corp. (“Prime Mining”) in January 2021 and we expect to receive up
to $3.5 million from upcoming cash payments of $1.0 million from
Prime Mining and an option payment of $2.5 million for the
cancelation of the Company’s royalty on the Awak Mas project.
Working capital at December 31, 2019 was $7.8 million, including
cash and short-term investments (comprised of government
securities) of $4.7 million. The Company has no debt.
For the fiscal year ended December 31, 2020,
Vista reported net income of $0.4 million, or $0.00 per common
share on both a basic and diluted basis, compared to a consolidated
net loss of $9.4 million, or $0.09 per common share on both a basic
and diluted basis for the fiscal year ended December 31, 2019. Net
income for the year ended December 31, 2020 is comprised of $6.1
million in gains on the sale of the Los Reyes project and
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 loss for
the 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 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, 2020, 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, 2020 and
to discuss corporate and project activities is scheduled for
Monday, March 1, 2021 at 10:00 am MST (12:00 pm EST).
Participant Toll Free: 888-378-4413 Participant
International: 647-792-1280 Conference ID: 6120882
This call will also be archived and available at
www.vistagold.com after March 1, 2021. Audio replay will be
available for 21 days by calling toll-free in North America
888-203-1112 or 647-436-0148 with passcode 6120882.
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.
The Company is a gold project developer. The
Company’s flagship asset is the Mt Todd gold project in the Tier-1
mining jurisdiction of Northern Territory, Australia. Mt Todd is
the largest undeveloped gold project in Australia and if developed
as presently designed, would potentially be Australia’s 6th largest
gold producer on an annual basis.
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 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 expectation to receive upcoming cash payments from
Prime Mining and from the cancelation of the Company’s royalties on
the Awak Mas project; our belief that final approval of our MMP is
forthcoming; our plan to add a second drill to extend our
exploration program, with results expected over the coming weeks
and continuing well into the second quarter; our expectation to
test the continuity of mineralization extending north from the
Batman deposit; our plan to complete the dewatering of the Batman
pit later this year; our plan to continue to engage with potential
partners and to identify strategic opportunities to advance the
development of Mt Todd in a way that preserves maximum Project
ownership for our shareholders, while minimizing future dilution;
and our belief that Mt Todd would potentially be Australia’s 6th
largest gold project on an annual basis 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 2021 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.
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