DENVER, March 13 /PRNewswire-FirstCall/ -- Vista Gold Corp.
("Vista") (TSX & NYSE-AMEX: VGZ) announced today its financial
results for the year ended December 31, 2008, as filed on March 13,
2009 with the U.S. Securities and Exchange Commission and Canadian
securities commissions in Vista's Annual Report on Form 10-K. Our
2008 consolidated net loss was US$10.0 million or US$0.29 per
share, basic and diluted, compared to the 2007 consolidated net
loss of US$13.2 million or US$0.41 per share, basic and diluted,
for a net decrease of US$3.2 million. The decrease of US$3.2
million in 2008 is primarily the result of the impairment of the
Amayapampa project of US$5.5 million and costs related to the
completion of the arrangement transaction involving Allied Nevada
Gold Corp. of US$2.9 million, both of which occurred during the
2007 period. These amounts are offset by decreased interest income
of US$0.7 million, an increase in interest expense of US$2.0
million, an increase in income tax expense of US$1.4 million, an
increase in impairment loss of US$0.6 million with respect to
certain marketable securities, costs to dispose of the Amayapampa
project of US$132,000 and an increase in loss on currency
translation of US$343,000. Net cash used in operating activities in
2008 was US$7.6 million compared to US$4.3 million in 2007 and
US$1.5 million in 2006. The increase of US$3.3 million in 2008 as
compared to 2007 is mostly the result of aggregate interest
payments of US$2.3 million made on June 15, 2008 and December 15,
2008 for the senior secured convertible notes (the "Notes") issued
in March 2008, and an increase in the loss from continuing
operations of US$2.8 million, which has been partially offset by an
increase in non-cash items of US$2.1 million. Net cash used in
investing activities in 2008 was US$26.9 million compared to
US$31.3 million in 2007. The decrease of US$4.4 million is
principally related to a decrease of US$24.5 million as a result of
the cash transferred to Allied Nevada Gold Corp. in conjunction
with the completion of the arrangement transaction in May 2007,
which has been offset by the following: -- An increase in additions
to plant and equipment of US$17.5 million. On March 4, 2008, with
the completion of a brokered private placement of US$30.0 million
principal amount of the Notes. We used US$16.0 million of the
proceeds towards the purchase of gold processing equipment to be
used at our Paredones Amarillos project. The aggregate purchase
price was approximately US$16.0 million, which included the costs
of relocating the equipment to Edmonton, Alberta, Canada. The
purchase was finalized in April 2008 with the completion of the
relocation of the major equipment components to Edmonton. There
were no similar purchases during the 2007 period. -- An increase in
the acquisition of mineral properties of US$452,000. On January 24,
2008, we completed the acquisition of interests in various mineral
properties adjacent to our Guadalupe de los Reyes project in
Mexico. The consideration paid by Vista for the acquisition of
these interests included cash payments totaling US$452,000 and the
issuance of a total of 213,503 Common Shares of Vista (with an
aggregate fair value of US$1.0 million) to various parties. -- An
increase in the additions to mineral properties of US$2.2 million.
This increase primarily reflects the costs associated with the
feasibility study for the Paredones Amarillos project and a
drilling program at the Mt. Todd project. Net cash provided by
financing activities was US$31.4 million for the twelve-month
period ended December 31, 2008, as compared to US$4.3 million for
the same period in 2007. This increase is primarily the result of
the completion of a brokered private placement of the Notes.
Proceeds to Vista after payment of legal and other fees were
US$28.3 million. There were no similar transactions during the 2007
period. At December 31, 2008, our total assets were US$75.8 million
as compared to US$51.3 million and US$92.7 million as of December
31, 2007 and 2006, respectively. Long-term liabilities totaled
US$23.7 million at December 31, 2008; there were no long-term
liabilities at December 31, 2007 and there were long-term
liabilities of US$4.9 million at December 31, 2006. At the same
date in 2008, we had working capital of US$21.2 million compared to
US$27.2 million in 2007 and US$49.7 million in 2006. Our working
capital of US$21.2 million as of December 31, 2008, decreased from
2007 by US$6.0 million which was decreased from 2006 by US$22.5
million. The principal component of working capital for both 2008
and 2007 is cash and cash equivalents of US$13.3 million and
US$16.7 million, respectively. Other components include marketable
securities (2008--US$8.2 million; 2007--US$10.9 million), accounts
receivable (2008--US$127,000; 2007--US$91,000) and other liquid
assets (2008--US$466,000; 2007--US$289,000). The decrease of US$6.0
million in working capital from 2008 to 2007 relates to the
decrease in cash balances from 2007 to 2008 and a decline in market
values of our marketable securities. Selected Financial Data Years
ended December 31, US $000's, except loss per share 2008 2007
Results of operations Net loss $(9,973) $(13,150) Basic and diluted
loss per share $(0.29) $(0.41) Net cash used in operations $(7,638)
$(4,285) Net cash used in investing activities (26,913) (31,349)
Net cash provided by financing activities 31,425 4,324 Financial
position Current assets $22,012 $27,948 Total assets 75,765 51,346
Current liabilities 803 694 Total liabilities 24,527 694
Shareholders' equity 51,238 50,652 Working capital $21,209 $27,254
Mike Richings, Executive Chairman and CEO, commented on the 2008
financials: "This year's financial results largely reflect Vista's
significant advances on its two major projects. The decision to
increase expenditures and investments in the Paredones Amarillos
project was made at the end of 2007. At the time we were completing
the bankable feasibility study on the project, major equipment was
in short supply. We decided to purchase the major items of
processing equipment from a mill that was being dismantled. To
finance this purchase, we undertook a private placement of
convertible debt. Shortly after this, a Mexican government agency
opined that a crucial permit was no longer valid, and rather than
enter into a long and expensive legal challenge, we commenced a
process to replace the permit. This process continues, and after a
frustrating period last year, we are now seeing signs of progress.
Although there is always uncertainty about permitting, we hope to
have the key permits in place so that we can commence project
financing and development activities by mid-2009. The investments
and programs that were made in 2008, including the bankable
feasibility study on the Paredones Amarillos project, which showed
favorable results, should help to ensure an efficient period of
financing and initial development of the project. At Mt. Todd, we
also made significant investments in a drilling program, completed
an updated mineral resource estimate and completed additional
metallurgical test-work in 2008. We view the results of the
drilling program as successful, as the subsequent resource estimate
resulted in a substantial increase in estimated gold resources at
the project. The initial results of the metallurgical studies,
which are still underway, are encouraging to us and will be
released in the second quarter together with an updated preliminary
economic assessment. I believe the work we have completed this year
has put us well on our way to establishing Mt. Todd as a major
development project for Vista and reaching a production decision on
the project." Further, Richings stated, "Upon obtaining the
necessary permits for the Paredones Amarillos project and upon
further positive developments at both our Paredones Amarillos and
Mt. Todd projects, together with continued higher gold prices, we
anticipate a better valuation and higher share price for Vista
during the remainder of 2009." The annual general meeting of
Vista's shareholders has been scheduled for Monday, May 4, 2009, at
10:00 a.m., Vancouver time, at the offices of Borden Ladner Gervais
LLP, located at Suite 1200, 200 Burrard Street, Vancouver, British
Columbia, Canada. Management Discussion & Analysis and
Conference Call To review Vista's Form 10-K for the fiscal year
ending December 31, 2008, including our Management Discussion &
Analysis, visit either http://www.sedar.com/, http://www.sec.gov/
or http://www.vistagold.com/. A conference call with management to
review our year-end financial results for 2008 and corporate and
project activities is scheduled on Wednesday, March 18, 2009 at
10:00 a.m. EDT. Toll-free in North America: 1-866-782-8903
International: 1-647-426-1845 This call will also be web-cast and
can be accessed at the following web location:
http://www.snwebcastcenter.com/event/?event_id=344 This call will
be archived and available at http://www.vistagold.com/ after March
18, 2009. Audio replay will be available for three weeks by calling
in North America: 1-866-245-6755, passcode 571610. If you are
unable to access the audio or phone-in on the day of the conference
call, please feel free to email questions, prior to the conference
call, addressed to Connie Martinez, Manager - Investor Relations,
(email: ) and we will try to address these questions prior to or
during the conference call. About Vista Gold Corp. Since 2001,
Vista has acquired a number of gold projects with the expectation
that higher gold prices would increase their value. For more
information about our projects, including technical studies and
resource estimates, please visit our website at
http://www.vistagold.com/. Vista is undertaking programs to advance
the Paredones Amarillos project and has completed a bankable
feasibility study and purchased certain long delivery equipment
items for use at the project. If the remaining permits are received
by mid-year and financing arrangements for the Paredones Amarillos
project are completed during the second half of the year, Vista has
completed a development schedule which anticipates that the project
would be in production during 2011. A preliminary assessment for
the Mt. Todd project in Australia was completed in 2007 and
additional technical studies are underway, with the preparation of
a preliminary feasibility study targeted for 2009. Vista's other
holdings include the Guadalupe de los Reyes project in Mexico,
Yellow Pine project in Idaho, the Awak Mas project in Indonesia,
and the Long Valley project in California. Reported financial
results in this press release are approximate. For exact amounts
please see Vista's Annual Report on Form 10-K as filed with the
Securities and Exchange Commission on March 13, 2009.
Forward-Looking Statements This press release contains
forward-looking statements within the meaning of the U.S.
Securities Act of 1933 and U.S. Securities Exchange Act of 1934 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 financial and operating results and estimates; potential funding
requirements and sources of capital; plans for budgeting financial
recoveries; the timing, performance and results of feasibility
studies including the timing and receipt of required land use,
environmental and other permits for the Paredones Amarillos project
and timing for starting and completion of drilling and testing
programs at the Paredones Amarillos project; plans to confirm the
validity of the Change of Land Use Permit and to obtain the
Temporary Occupation Permit for the Paredones Amarillos project and
timing for confirmation of the status of such permits; anticipated
timing of commencement of construction and commencement of
production at the Paredones Amarillos project; plans for evaluation
of the Mt. Todd project including estimates of silver, copper and
gold resources; preliminary assessment results; results of drilling
programs and prospects for exploration and conversion of resources
at the Mt. Todd project and plans for a feasibility study at the
Mt. Todd project; potential for gold production at the Amayapampa
gold project and timing for commencement of production and timing
and receipt of future payments in connection with the disposal of
the Amayapampa gold project; Vista's future business strategy;
competitive strengths; goals; operations; reserve and resource
estimates; plans; potential project development; future share price
and valuation; future gold prices; Vista's potential status as a
producer including plans, timing and targeted initial production
levels; and other such matters are forward-looking statements and
forward-looking information. When used in this press release, the
words "estimate", "plan", "anticipate", "expect", "intend",
"believe" 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 Vista to be materially different from any future
results, performance or achievements expressed or implied by such
statements. Such factors include, among others, risks relating to
general economic conditions, delays and incurrence of additional
costs in connection with our Paredones Amarillos project, including
uncertainty relating to timing and receipt for required
governmental permits; uncertainty relating to timing and receipt
for confirmation of the validity of the Change of Land Use Permit
for the Paredones Amarillos project, uncertainty of feasibility
study results and preliminary assessments and of estimates on which
such results are based; risks relating to delays in commencement
and completion of construction at the Paredones Amarillos project
and Mt. Todd project; risks of significant cost increases; risks of
shortages of equipment or supplies; risks that Vista's acquisition,
exploration and property advancement efforts will not be
successful; risks relating to fluctuations in the price of gold;
the inherently hazardous nature of mining-related activities;
uncertainties concerning reserve and resource estimates; 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 repayment of debt;
risks related to increased leverage; and uncertainty of being able
to raise capital on favorable terms or at all; as well as those
factors discussed in Vista's latest Annual Report on Form 10-K and
Quarterly Report on Form 10-Q and other documents filed with the
U.S. Securities and Exchange Commission and Canadian securities
commissions. 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. There can be no assurance
that such statements will prove to be accurate as actual results
and future events could differ materially from those anticipated in
such statements. 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, or visit the
Vista Gold Corp. website at http://www.vistagold.com/. DATASOURCE:
Vista Gold Corp. CONTACT: Connie Martinez of Vista Gold Corp.,
+1-720-981-1185 Web Site: http://www.vistagold.com/
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