Vista Gold Corp. Reports Third Quarter 2020 Cash plus Short-Term Investments of $10.2 Million and Provides an Update on Mt T...
October 28 2020 - 7:21PM
Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the
“Company”) today reported its unaudited financial results for the
quarter ended September 30, 2020 and provided an update on the
Company’s 100% owned Mt Todd gold project (“Mt Todd” or the
“Project”) located in the Tier 1 mining jurisdiction of Northern
Territory, Australia. Vista’s third quarter net income was $4.2
million or $0.05 per share, and cash plus short-term investments
totaled $10.2 million.
Frederick H. Earnest, President and Chief
Executive Officer of Vista, stated, “We are extremely pleased with
our third quarter financial results. We believe our strong balance
sheet provides a solid foundation as we continue to methodically
advance and de-risk the world-class Mt Todd gold project and seek a
strategic partner.”
With respect to exploration activities at Mt
Todd, Mr. Earnest continued, “We believe that the higher-grade core
zone of the Batman deposit could extend to the north. We have
commenced a proof of concept drilling program to test targets known
as the Batman north extension and hanging wall lodes. We are
excited about the potential represented by these targets. Should
the drill results confirm an extension of the structures and
mineralization that form the Batman deposit, ongoing work could
ultimately lead to future changes to the mine design, with the
combined benefits of better grade and lower stripping.” Vista CEO
Video.
Recent Developments
-
Commenced a drilling program with the goal of confirming the
existence of higher-grade, near surface mineralization immediately
adjacent to the planned Batman pit – assay results from the first
holes are expected in the next weeks with full program results
continuing as the program progresses;
-
Completed geotechnical field work for crusher and ball mill
foundation designs that is expected to shorten the time required to
complete a future feasibility study, reduce related initial capital
cost estimates, and support detailed engineering; and
-
Continued dewatering the Batman pit and lowered the water level by
17.8 meters, with approximately 2.1 gigalitres (“GL”) remaining.
The Batman pit is expected to be effectively dewatered by mid-2021,
representing an important milestone to be completed prior to a
potential start of construction.
Mr. Earnest added, “Dewatering the Batman pit
will mark the completion of a program to treat over 11 GL of acidic
mine waste rock drainage and subsequently discharge that volume as
clean water. The protocols developed at Mt Todd have been
recommended to other mining companies by the Northern Territory
Environmental Protection Agency. We are proud of the success
achieved to-date. This program exemplifies our commitment to
environmental stewardship. It has been one of the cornerstone
activities that has cemented the excellent relationship we enjoy
with the local project stakeholders and communities.”
Summary of Third Quarter 2020 Financial
Results
At September 30, 2020, cash plus short-term
investments (comprised of government securities) totaled $10.2
million and working capital was $9.9 million. We expect our current
cash position to be further strengthened by up to $4.6 million from
upcoming cash payments of $2.1 million from Prime Mining Corp.
(“Prime Mining”) and an option payment of $2.5 million from the
cancelation of the Company’s royalty on the Awak Mas project. The
Company has no debt.
Vista reported net income of $4.2 million, or
$0.05 per share for the three months ended September 30, 2020. The
Company benefited from a gain of $3.5 million associated with the
final Guadalupe de los Reyes (“Los Reyes”) purchase price payment
and transfer of Los Reyes to Prime Mining and a gain of $2.4
million from sales of other investments.
About Vista Gold Corp.
Vista is a gold project developer. The Company’s
flagship asset is the Mt Todd gold project in the Tier 1
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.
Management Conference Call
Management’s quarterly conference call to
discuss these results is scheduled for 10:00 a.m. MDT on October
29, 2020. Management’s Discussion and Analysis together with other
important disclosures are available in the Company’s Quarterly
Report on Form 10-Q, filed today with the U.S. Securities and
Exchange Commission and the Canadian securities regulatory
authorities.
Participant Toll Free: 800-367-2403Participant
International: 334-777-6978Conference ID: 7545208
This call will also be archived and available at
www.vistagold.com after October 29, 2020. Audio replay will be
available for 21 days by calling toll-free in North America
888-203-1112 with passcode 7545208.
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.
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 higher-grade core zone of the Batman
deposit could extend to the north; that ongoing work on the Batman
deposit could ultimately lead to future changes to the mine design,
with the combined benefits of better grade and lower stripping;
that assay results from the first holes drilled adjacent to the
Batman pit are expected in the next weeks; that the results of
geotechnical field work is expected to shorten the time required to
complete a future feasibility study, reduce related initial capital
cost estimates, and support detailed engineering; that the Batman
pit is expected to be effectively dewatered by mid-2021; 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 plans to continue to advance the process of seeking a
partner for the construction and development of Mt Todd; our plans
to continue to efficiently optimize and advance Mt Todd; and our
belief that Mt Todd is the largest undeveloped gold project in
Australia, and if developed, that it would be Australia’s 6th
largest gold producer 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 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.
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