DENVER, May 11, 2011 /PRNewswire/ -- Vista Gold
Corp. (TSX & NYSE Amex: VGZ) ("Vista" or the
"Corporation") announced today its financial results for the first
quarter and three months ended March 31,
2011, as filed on May 10,
2011, 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 Thursday May 12, 2011, (9:00 A.M. MDT).
Recent Highlights
- New Preliminary Feasibility Study at the Mt. Todd Gold
Project, Northern Territory, Australia; Doubles Estimated Proven and
Probable Reserves (1). Please refer to our press release dated
January 4, 2011;
- Closed Combination Agreement with Midas Gold Corp.
("Midas") and now owns approximately 34.2% of Midas which has an
estimated value of CDN$80
million;
- Bought Deal Financing completed for Gross Proceeds
of Cdn$29.7 million;
- Sun Valley Gold LLC announces ownership of over 11.61% of
Vista's shares;
- Effective January 1, 2011,
adopted U.S. GAAP for all U.S. and Canadian filings;
and
- Corporation is Debt Free and Currently has Approximately
$36.4 million in cash.
We have, since we began reporting our financial results, filed
with securities regulators in both Canada and the U.S. using Canadian Generally
Accepted Accounting Principles ("GAAP") financial statements with
reconciliations to U.S. GAAP. However, a change in the SEC's
position in late 2009 required Canadian companies, such as Vista,
that do not qualify as "foreign private issuers" as defined under
SEC regulations, to file their financial statements in the U.S.
using U.S. GAAP for financial periods after December 31, 2010. Therefore, we have
adopted U.S. GAAP effective January 1,
2011 for all U.S. and Canadian filings. Canadian
securities regulators announced that they will accept U.S. GAAP
financial statements. The principal difference reflected in our
financial statements between the two forms of GAAP is that under
U.S. GAAP mineral property exploration costs are expensed as
incurred and under Canadian GAAP both acquisition costs and
exploration expenditures are capitalized.
A comparison of our balance sheets as at March 31, 2011 and December 31, 2010 in U.S. GAAP to our balance
sheet as at December 31, 2010 as
reported in Canadian GAAP is as follows:
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Canadian
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U.S.
GAAP
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U.S.
GAAP
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GAAP
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March
31,
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December
31,
|
December
31,
|
|
|
|
2011
|
2010
|
2010
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|
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Assets
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Cash and cash
equivalents
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$ 12,686
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$
39,838
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$
39,838
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(1)
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|
Mineral properties
|
17,051
|
16,622
|
54,195
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(2)
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|
Other assets
|
26,141
|
26,512
|
26,409
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|
Total assets
|
$ 55,878
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$
82,972
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$
120,442
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|
|
|
|
|
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Liabilities
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$
1,300
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$
24,630
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$
24,135
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(1)
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Shareholders' equity
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54,578
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58,342
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96,307
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(2)
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Total liabilities and
shareholders' equity
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$ 55,878
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$
82,972
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$
120,442
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Canadian
U.S. GAAP U.S. GAAP
GAAP
-------------Three Months Ended March
31,----------
2011
2010
2010 _
Net Loss
$ (3,877) $
(3,488) $
(1,699) (3)
Notes:
(1) The decreases in cash and cash equivalents and liabilities
are primarily attributable to the repayment of our 10% senior
secured convertible notes on March 4,
2011.
(2) The decreases in mineral properties and shareholders' equity
are primarily due to the conversion to U.S. GAAP from Canadian
GAAP. In accordance with U.S. GAAP, our property acquisition
costs, including directly related acquisition costs, are now
capitalized when incurred, and mineral property exploration costs
are expensed as incurred. Under Canadian GAAP, however, both
acquisition costs and exploration expenditures had been capitalized
when incurred.
(3) The increase in the net loss for the three-month period
ending March 31, 2011 in U.S. GAAP is
higher than the same period for the previous year in Canadian GAAP
due to the expensing of exploration costs under U.S. GAAP and
capitalizing the exploration costs under Canadian GAAP.
Results from Operations
Our consolidated net loss for the three-month period ended
March 31, 2011 was $3,877 or $0.06 per
share compared to $3,488 or
$0.08 per share for the same period
in 2010. For the three-month period ended March 31, 2011, the increase in the consolidated
net loss of $389 from the respective
prior period is primarily the result of an increase in exploration,
property evaluation and holding costs of $531, an increase in corporate administration and
investor relations of $107, an
increase in the loss on currency translation of $57 and a decrease in interest income of
$42; these amounts have been
partially offset by a decrease in interest expense of $221 and an increase in the gain on disposal of
marketable securities of $153.
Exploration, property evaluation and holding
costs
Exploration, property evaluation and holding costs increased to
$2,949 during the three-month period
ended March 31, 2011, compared with
$2,418 for the same period in 2010.
The increase of $531 from the
respective prior period is primarily due to an increase in the
following:
- An increase in expenses at our Concordia gold project of $311 from the respective prior period. This
increase is mostly the result of increased legal costs and
community relations costs as we work towards obtaining the
necessary permits.
- An increase in expenses at our Yellow
Pine gold project of $160 from
the respective prior period. This increase is mostly the
result of costs incurred in relation to the combination with Midas
completed on April 6, 2011, as
well as costs shared with Midas as part of a cost-sharing
agreement; and
- An increase in expenses at our Mt. Todd gold project of
$67 from the respective prior period.
Corporate administration and investor
relations
Corporate administration and investor relations costs increased
to $1,098 during the three-month
period ended March 31, 2011, compared
with $991 for the same period in
2010.
Financial Position, Liquidity and Capital Resources
Cash used in operations
Net cash used in operating activities was $4,468 for the three-month period ended
March 31, 2011, as compared to
$3,614 for the same period in
2010. The increase of $854
is mostly the result of an increase in interest paid of
$504 on the then outstanding Notes
for the three-month period ended March 31,
2011 compared to no interest paid during the same period
ended March 31, 2010. The Notes
matured on March 4, 2011, and
accordingly, we paid the outstanding principal and interest owing
to that date. Also, contributing to the increase in cash used
for the 2011 period was an increase in the net loss of $389 and an increase in cash used for accounts
payable, accrued liabilities and other of $55.
Investing activities
Net cash used in investing activities was $243 for the three-month period ended
March 31, 2011, as compared to
$358 for the same period in
2010.
Financing activities
Net cash used in financing activities was $22,927 for the three-month period ended
March 31, 2011. There was no
cash used in or provided by financing activities for the same
period in 2010. On March 4,
2011 we repaid the outstanding Notes of principal amount of
$23,000.
Liquidity and Capital Resources
At March 31, 2011, our total
assets were $55,878 compared to
$82,972 at December 31, 2010,
representing a decrease of $27,094. The decrease in total assets
is primarily due to the decrease in our cash balances. At
March 31, 2011, we had working
capital of $13,955, as compared with
working capital of $17,995 at
December 31, 2010, representing a decrease of $4,040. This decrease in working
capital, which is current assets less current liabilities relates
primarily to a decrease in cash balances of $27,152, a current asset, and the repayment of
our outstanding $23,000 principal
amount of the Notes on March 4, 2011,
a current liability.
The principal components of working capital at March 31, 2011, are: current assets made up of
cash and cash equivalents of $12,686,
marketable securities of $1,657 and
other current assets of $912 and the
current liabilities of $1,300. The principal components of
working capital at December 31, 2010
were cash and cash equivalents of $39,838, marketable securities of $1,703 and other current assets of $1,084 and less current liabilities which are
made up of $23,000 of Notes and other
current liabilities of $1,630
The following table summarizes financial data for the
Corporation. To review Vista's Quarterly Report on Form 10-Q
for the fiscal quarter ending March 31,
2011, including our Management Discussion & Analysis,
visit any of the following websites: www.sedar.com,
www.sec.gov or www.vistagold.com.
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Selected Financial
Data
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Three Months
Ended March 31,
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2011
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2010
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Results of
operations
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Net earnings/(loss)
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$
(3,877)
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(3,488)
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Basic and diluted
earnings/(loss) per share
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(0.06)
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(0.08)
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Net cash used in operating
activities
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(4,468)
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(3,614)
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Net cash provided/(used in)
investing activities
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243
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358
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Net cash provided/(used in)by
financing activities
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(22,927)
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-
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Financial
position
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March
31,
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December
31,
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2011
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2010
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Current assets
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$
15,255
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$
42,625
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Total assets
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55,878
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82,972
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Current liabilities
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1,300
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24,630
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Total liabilities
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1,300
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24,630
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Shareholders' equity
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54,578
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58,342
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Working capital
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13,955
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17,995
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Management Conference Call
A conference call with management to review our financial
results for the quarter ended March 31,
2011 and to discuss corporate and project activities is
scheduled on Thursday May 12, 2011,
at 9:00 a.m. MDT.
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=1820
This call will be archived and available at www.vistagold.com
after May 16, 2011. Audio
replay will be available for three weeks by calling in North America: 1-866-245-6755, passcode
574348.
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 the Mt. Todd gold project
in Northern Territory, Australia,
and the Concordia gold project in
Baja California Sur, Mexico, to
achieve its goal of becoming a gold producer. Vista holds
approximately 34% of Midas Gold Corp., a private exploration
company, which has a large exploration property in Idaho which includes 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.
(1) Cautionary note to U.S. investors concerning estimates of
reserves: This press release and the Preliminary Feasibility Study
referred to in this press release use the term "proven and probable
reserves" and "mineral reserves". We advise U.S. investors that
while these terms are defined in and required by Canadian
regulations, such definitions differ from the definitions in U.S.
Securities and Exchange Commission ("SEC") Industry Guide 7.
Under SEC Industry Guide 7 standards, a "final" or
"bankable" feasibility study is required to report reserves, the
three-year historical average price is used in any reserve or cash
flow analysis to designate reserves and the primary environmental
analysis or report must be filed with the appropriate governmental
authority. U.S. investors are cautioned not to assume that
any part or all of mineral deposits in this category will ever be
converted into SEC Industry Guide 7 reserves.
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, and value of our investment in
Midas, and our development of our Mt. Todd 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 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 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 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, 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.
Contact:
TELEPHONE (720) 981-1185
FAX (720) 981-1186
SOURCE Vista Gold Corp.