DENVER, March 16 /PRNewswire-FirstCall/ -- Vista Gold
Corp. ("Vista" or the "Company") (Amex: VGZ; TSX) announced today
its financial results for the year ended December 31, 2009, as filed on March 16, 2010 with the U.S. Securities and
Exchange Commission and Canadian regulatory authorities in Vista's
Annual Report on Form 10-K. Our 2009 consolidated net loss was
US$2.0 million or US$0.05 per share compared to the 2008
consolidated net loss of US$10.0
million or US$0.29 per share
for a decrease of US$8.0 million.
The decrease of US$8.0 million
in 2009 is largely due to an increase in the gain on disposal of
marketable securities of US$6.9
million resulting from the sale of common shares of Allied
Nevada Gold Corp. ("Allied") which we retained in connection with
the transaction that resulted in the formation of Allied and the
transfer of Vista's Nevada
properties to Allied. Also contributing to the decrease in
net loss for 2009 was a gain of US$0.5
million on the repurchase of convertible notes which
occurred on July 14, 2009, wherein we
repurchased US$1.333 million of our
senior secured convertible notes (the "Notes") for US$0.9 million. Other contributing factors
include decreases in interest income (US$0.4
million) corporate administration and investor relations
(US$0.9 million) and a decrease in
the write-down of marketable securities (US$0.5 million), which was offset by an increase
in the gain on currency translation (US$0.5
million); and increases in exploration, property evaluation
and holding costs (US$0.4 million)
and interest expense (US$0.3
million).
Net cash used in operating activities in 2009 was US$7.9 million, compared with US$7.6 million in 2008. The increase of
US$0.3 million in 2009 is mostly the
result of an increase in interest payments made on June 15, 2009, July 14,
2009 (in conjunction with the repurchase of the Notes) and
December 15, 2009 of US$0.6 million. Offsetting this increase,
were decreases in cash used in accounts payable, accrued
liabilities and other (US$0.2
million) and cash used for other current assets
(US$0.3 million).
Net cash received from investing activities in 2009 was
US$3.3 million, compared with cash
used from investing activities of US$26.9
million in 2008. This increase of US$30.2 million in cash received from investing
activities is due to the following:
- A decrease in additions to plant and equipment of US$17.5 million. As discussed below, in
April 2008 the purchase of gold
processing equipment to be used at our Paredones Amarillos gold
project was finalized. There were no similar equipment
purchases during the 2009 period;
- An increase in proceeds received from the sale of marketable
securities of US$9.0 million.
This increase was primarily due to the sale of all 1,529,848
common shares of Allied for proceeds of US$9.0 million;
- A decrease in additions to mineral properties of US$3.3 million. During 2008, we undertook a
drilling program at the Mt. Todd gold mine and were in the process
of completing a feasibility study for the Paredones Amarillos gold
project. These projects were completed during 2008;
- A decrease in the acquisition of mineral property of
US$0.5 million. 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 $0.5
million. There was no similar purchase during the
year ended December 31, 2009;
- An increase in the proceeds received upon the disposal of
mineral property. In June 2009, we sold most of the
remaining patented mining claims in Colorado for US$0.2
million. There were no similar transactions during the
2008 period; and
- An increase in cash used for short-term investments of
US$0.3 million.
Net cash provided by financing activities was US$19.8 million for the year ended December 31, 2009, compared with US$31.4 million in 2008. The decrease of
US$11.6 million is primarily the
result of the completion of a public offering on September 21, 2009 and the completion of the
over-allotment on September 25, 2009
in which we offered and sold an aggregate 10.12 million Common
Shares, for net proceeds after commissions, legal and other fees of
US$20.4 million, as compared to the
proceeds of a brokered private placement on March 4, 2008 in
which we offered and sold US$30.0
million in aggregate principal amount of the Notes.
Net proceeds to Vista upon completion of the Notes were
US$28.3 million.
At December 31, 2009, our total assets were US$92.6 million, compared to US$75.8 million as of December 31, 2008.
Long-term liabilities totaled US$25.2
million at December 31, 2009, compared to US$23.7 million at December 31, 2008.
At December 31, 2009, we had working
capital of US$29.4 million, compared
to US$21.2 million in 2008.
Our working capital of US$29.4
million as of December 31, 2009, increased from 2008 by
US$8.2 million. The principal
component of working capital for both 2009 and 2008 is cash and
cash equivalents of US$28.4 million
and US$13.3 million, respectively.
Other components include marketable securities (2009—US$1.2
million; 2008—US$8.2 million), short-term investments (2009—US$0.3
million; 2008—$–) and other current assets (2009—US$0.5 million;
2008—US$0.6 million). The increase of US$8.2
million in working capital from 2009 to 2008 relates to the
increase in cash balances from 2008 to 2009, which is partially
offset by a decrease in marketable securities due to the sale of
all of the common shares of Allied held by Vista.
Selected Financial Data Years ended December 31,
----------------------- -----------------
US $000's, except loss per share 2009 2008
-------------------------------- ---- ----
Results of operations
Net loss $(1,942) $(9,973)
Basic and diluted loss per share $(0.05) $(0.29)
Net cash used in operations $(7,883) $(7,638)
Net cash provided by (used in) investing activities 3,268 (26,913)
Net cash provided by financing activities 19,757 31,425
Financial position
Current assets $30,317 $22,012
Total assets 92,573 75,765
Current liabilities 926 803
Total liabilities 26,093 24,527
Shareholders' equity 66,480 51,238
Working capital $29,391 $21,209
Mike Richings, Executive Chairman
and CEO, commented on the 2009 financials: "Our financial results
continue to reflect high levels of activities at our Paredones
Amarillos gold project in Baja Sur California, Mexico, and the Mt. Todd gold project in
Northern Territory, Australia.
Funding for these programs in 2009 came mainly from working
capital and the sale of common shares of Allied. In
anticipation of continued significant levels of activity at these
projects, the Company successfully raised a total of US$20.4 million net of expenses through a common
share offering completed in September
2009. In 2009 at Mt. Todd, we increased gold resources
and completed a preliminary economic assessment. During the
second half of the year we commenced work on a preliminary
feasibility study for the Mt. Todd project which we hope to
complete by the end of the second quarter of 2010.
At the Paredones Amarillos project, we updated the bankable
feasibility study in 2009 to reflect 2009 economic conditions and
we continue to advance the project in a number of key areas
including ongoing discussions with potential sources of project
financing and commencement of the selection process for engineering
procurement and construction management services. In February
of this year, we announced our application for the Change of Forest
Land Use ("CUSF") Permit had been dismissed by Mexican Secretariat
of Environment and Natural Resources ("SEMARNAT") processing the
application. This delay is unfortunate, but we continue to
work with our Mexican representatives and officials from the
Mexican federal government to resolve this issue and obtain the
CUSF permit required for the project. At the same time we are
undertaking other activities that will allow us to rapidly advance
the project to construction and production, once the permitting is
complete."
The annual general and special meeting of Vista's shareholders
has been scheduled for Monday, May 3,
2010, 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, 2009, including our
Management Discussion & Analysis, visit either www.sedar.com,
www.sec.gov or www.vistagold.com. A conference call with
management to review our year-end financial results for 2009 and
corporate and project activities is scheduled on Monday March 22, 2010 at 11:00 a.m. EDT.
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=828
This call will be archived and available at www.vistagold.com
after March 22, 2010. Audio
replay will be available for three weeks by calling in North America: 1-866-245-6755, passcode
675886.
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:
connie@vistagold.com) 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
www.vistagold.com. Vista has undertaken programs to advance
the Paredones Amarillos gold project, located in Baja California Sur, Mexico, including a
definitive feasibility study, the purchase of long delivery
equipment items, and the purchase of land for the processing
facilities, related infrastructure and the desalination plant. The
results of a preliminary economic assessment completed in 2009 on
the Mt. Todd gold project in Australia are encouraging and Vista is
undertaking a pre-feasibility study and additional resource
drilling to advance the project. Vista's other holdings
include the Guadalupe de los Reyes gold project in Mexico, Yellow
Pine gold project in Idaho,
Awak Mas gold project in
Indonesia, and the Long Valley
gold 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 and Canadian securities regulatory authorities on
March 16, 2010.
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, the resolution of permitting matters at the Paredones Amarillos
gold project, the Company's strategy for advancement of the
permitting process for the Paredones Amarillos gold project, the
continuation of advancement of the Paredones Amarillos gold
project, the timing for commencement of construction, development
and production for the Paredones Amarillos gold project, the
potential to enhance the project economics of the Mt. Todd gold
project through additional resource drilling, the timing for
completion and expected results of the preliminary feasibility
study on the Mt. Todd gold project, favorable effects of Mt. Todd
project economics, the results of the preliminary economic
assessment on the Mt. Todd gold project, and other such 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 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, uncertainty regarding the amendment and re-filing of the
CUSF, uncertainty regarding SEMARNAT's review of the amended CUSF
application, risks related to the Company's failure to obtain
approval of the CUSF and begin construction of its Paredones
Project, including unanticipated delays in beginning construction
of the project due to a lack of obtaining the CUSF and the possible
reduction of mineral reserves to mineral resources, uncertainty
regarding potential court action against SEMARNAT in relation to
the dismissal of the CUSF application and risks related to the
outcome of such court action, including failure to receive approval
of the CUSF application, uncertainty regarding the Company's legal
challenges to SEMARNAT's issues with the CUSF and SEMARNAT's
authority in reviewing the CUSF application, uncertainty and risks
regarding any political factors influencing the approval of the
CUSF, possible impairment or write down of the carrying value of
the Paredones Amarillos gold project if the CUSF is not granted,
uncertainty of resource and reserve estimates, estimates of
results based on such resource and reserve estimates, risks
relating to cost increases for capital and operating costs, risks
relating to delays in the completion of the drilling program, risks
related to the adequacy of the design of the drilling program, risk
regarding the preliminary feasibility study for the Mt. Todd
gold project, risks relating to the delays at the Mt. Todd gold
project, 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 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 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
16, 2010, and other documents filed with the U.S. Securities
and Exchange Commission 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, or visit the
Vista Gold Corp. website at www.vistagold.com.
SOURCE Vista Gold Corp.