DENVER, May 11, 2011 /CNW/ -- All dollar amounts in the following
press release are in thousands of United States dollars, except
share data or as noted otherwise. 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: Canadian U.S. GAAP U.S. GAAP GAAP
March December December 31, 31, 31, 2011 2010 2010 ---- ---- ----
Assets Cash and cash equivalents $12,686 $39,838 $39,838 (1)
Mineral properties 17,051 16,622 54,195 (2) Other assets 26,141
26,512 26,409 Total assets $55,878 $82,972 $120,442 ======= =======
======== Liabilities $1,300 $24,630 $24,135 (1) Shareholders'
equity 54,578 58,342 96,307 (2) Total liabilities and shareholders'
equity $55,878 $82,972 $120,442 ======= ======= ======== 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. Selected
Three Months Financial Ended March Data 31, 2011 2010 Results of
operations Net earnings/ (loss) $(3,877) (3,488) Basic and diluted
earnings/ (loss) per share (0.06) (0.08) Net cash used in operating
activities (4,468) (3,614) Net cash provided/ (used in) investing
activities 243 358 Net cash provided/ (used in)by financing
activities (22,927) - Financial March December position 31, 31,
2011 2010 Current assets $15,255 $42,625 Total assets 55,878 82,972
Current liabilities 1,300 24,630 Total liabilities 1,300 24,630
Shareholders' equity 54,578 58,342 Working capital 13,955 17,995
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: 1-866-443-4188International: 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) 981-1185FAX (720) 981-1186
Web Site: http://www.vistagold.com
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