DENVER, Nov. 10, 2011 /PRNewswire/ -- Vista Gold
Corp. (TSX & NYSE Amex: VGZ) ("Vista" or the "Corporation")
announced today its financial results for the third quarter and
nine months ended September 30, 2011,
as filed yesterday with the United States Securities and Exchange
Commission (the "SEC") and the relevant securities regulatory
authorities in Canada, in the
Corporation's Quarterly Report on Form 10-Q, and announced that a
management quarterly conference call is scheduled for Monday, November 14, 2011 at 10:00 a.m. MST.
Recent Highlights
- The fair value of the Corporation's investment in Midas
Gold Corp. ("Midas") was estimated at $110.3
million at September 30, 2011,
an increase of $27.8 million for the
three months then ended; and
- Vista remains debt free and has $27 million in cash at September 30, 2011.
We reported net income of $10.7
million, or $0.15 per share
($0.15 per share on a fully diluted
basis), for the three months ended September
30, 2011. This is compared to a net loss of
$4.1 million, or $0.09 per share ($0.09 per share on a fully diluted basis), for
the same period in 2010. These improved results for the three
months ended September 30, 2011 are
primarily attributable to the unrealized gain of approximately
$27.8 million that we recognized for
the increase in the estimated fair value of our investment in
Midas. The value of our investment in Midas is estimated
based on quoted market prices of Midas shares, discounted to the
extent considered necessary to account for the regulatory holding
period applicable to those shares. This increase in fair
value was partially offset by approximately $10.0 million in deferred tax expense and
increases in exploration, property evaluation and holding costs of
$2.5 million and corporate
administration and investor relations expenses of $0.5 million. The increase in exploration,
property evaluation and holding costs was primarily due to
increases in expenses of $3.0 million
associated with the feasibility study that we are currently
undertaking at our Mt. Todd gold project, which was partially
offset by a decrease in expenses of $0.7
million at our Concordia
gold project.
Year-to-date, we reported net income of $54.6 million, or $0.81 per share ($0.80 per share on a fully diluted basis),
compared to a net loss of $14.8
million, or $0.32 per share
($0.32 per share on a fully diluted
basis), for the nine months ended September
30, 2010. Results for the nine months ended
September 30, 2011 benefited from the
unrealized gain of approximately $77.8
million that we recognized upon the completion of the
combination (the "Combination") of Vista's and Midas Gold, Inc.'s
assets in the Yellow Pine-Stibnite District in Idaho and the increase in the estimated fair
value of our investment in Midas of $27.8
million. These increases in our net income were
partially offset by the $33.5 million
increase in deferred tax expense and increases in exploration,
property evaluation and holding costs of $3.7 million, which were incurred for the
feasibility study being undertaken at our Mt. Todd gold
project.
Our balance sheet at September 30,
2011 benefited from our investment in Midas, which was
recorded at a fair value estimated at $110.2
million on that date. This increase was offset by the
net deferred tax liability of about $33.5
million associated with unrealized gains that we recognized
upon the Combination and for the increase in the estimated fair
value of our investment in Midas. Our cash and cash
equivalents were primarily impacted by the repayment of
$23.0 million in convertible notes on
March 4, 2011, the approximate
$29 million we raised on April 20, 2011 in our public offering of
9,000,000 shares of our common stock, the cash we invested in Midas
of $3.6 million and the cash we used
in operating activities of $16.0
million.
The following table summarizes selected financial data of Vista.
To review the Corporation's Quarterly Report on Form 10-Q for
the fiscal quarter ended September 30,
2011, including the related Management's Discussion &
Analysis, visit any of the following websites: www.sedar.com,
www.sec.gov or www.vistagold.com.
All dollar amounts in the following table are in thousands
of United States dollars, except
per share data.
|
Three Months
Ended September 30,
|
|
Nine Months
Ended September 30,
|
|
Selected Financial
Data
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Results of
operations:
|
|
|
|
|
|
|
|
|
Net income/(loss)
|
$
10,733
|
|
$
(4,145)
|
|
$
54,620
|
|
$
(14,844)
|
|
Basic earnings/(loss) per
share
|
0.15
|
|
(0.09)
|
|
0.81
|
|
(0.32)
|
|
Diluted earnings/(loss) per
share
|
0.15
|
|
(0.09)
|
|
0.80
|
|
(0.32)
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating
activities
|
(6,624)
|
|
(3,529)
|
|
(16,625)
|
|
(13,460)
|
|
Net cash provided by/(used
in)
|
|
|
|
|
|
|
|
|
investing
activities
|
165
|
|
(217)
|
|
(3,159)
|
|
274
|
|
Net cash provided by/(used
in)
|
|
|
|
|
|
|
|
|
financing
activities
|
414
|
|
8
|
|
6,892
|
|
(2,234)
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
Financial
Position
|
2011
|
|
2010
|
|
|
|
|
|
Current assets
|
$
29,003
|
|
$
42,625
|
|
|
|
|
|
Total assets
|
179,301
|
|
82,972
|
|
|
|
|
|
Current liabilities
|
2,429
|
|
24,630
|
|
|
|
|
|
Total liabilities
|
35,975
|
(a)
|
24,630
|
|
|
|
|
|
Shareholders' equity
|
143,326
|
|
58,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Working capital
|
26,574
|
|
17,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Consists primarily of our
net deferred tax liability of $33,546.
|
|
|
|
|
|
|
|
|
|
Management Conference Call
A conference call with management to review our financial
results for the quarter ended September 30,
2011 and to discuss corporate and project activities is
scheduled for Monday, November 14,
2011 at 10:00 a.m. MST.
Toll-free in North America:
1-866-443-4188
International: 1-416-849-6196
This call will also be web-cast and can be accessed at the
following web location:
http://www.snwebcastcenter.com/event/?event_id=2051
This call will be archived and available at www.vistagold.com
after November 14, 2011. Audio
replay will be available for three weeks by calling in North America: 1-866-245-6755, passcode
198473.
If you are unable to access the audio or phone-in on the day of
the conference call, please feel free to email questions to
Connie Martinez, Manager - Investor
Relations, (email: connie@vistagold.com), and we will try to
address these questions prior to or during the conference call.
About Vista Gold Corp.
Vista is focused on the development of its Mt. Todd gold project
in Northern Territory, Australia,
and its Concordia gold project in
Baja California Sur, Mexico, to
achieve its goal of becoming a gold producer. After the
initial public offering of the common shares of Midas, Vista holds
approximately 30% of Midas' common shares, which has a large
exploration property in Idaho,
including the Yellow Pine property
previously held by Vista. Vista's other holdings include the
Guadalupe de los Reyes gold-silver project in Mexico, the Awak Mas gold project in
Indonesia and the Long Valley gold
project in California. For
more information about our projects, including technical studies
and resource estimates, please visit our website at
www.vistagold.com.
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 Vista expects or
anticipates will or may occur in the future, including such things
as estimates of mineral reserves, the value of our investment in
Midas, our development of our Mt. Todd gold project and
Concordia gold project, our goal
of becoming a gold producer and other matters are forward-looking
statements and forward-looking information. When used in this
press release, the words "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
that may cause the actual results, performance or achievements of
Vista 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, risks relating to cost increases
for capital and operating costs, risks related to the ability to
obtain the necessary permits, 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 Vista's 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,
risks related to the future value of Vista's Midas shares
(including Vista's lack of involvement in the business of Midas and
all risks associated with Midas' business) and uncertainty of being
able to raise capital on favorable terms or at all, as well as
those factors discussed under the headings "Uncertainty of
Forward-Looking Statements" and "Risk Factors" in Vista's latest
Annual Report on Form 10-K as filed on March
14, 2011, as well as in its quarterly report filed on Form
10-Q for the quarterly period ended September 30, 2011 as filed on November 9, 2011, and other documents filed with
the SEC and Canadian securities regulatory authorities.
Although Vista has 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, Vista assumes no obligation to publicly update any
forward-looking statements or forward-looking information, whether
as a result of new information, future events or otherwise.
For further information, please contact Connie Martinez at (720) 981-1185.
SOURCE Vista Gold Corp.