DENVER, March 15, 2012 /PRNewswire/ -- Vista Gold Corp.
("Vista" or the "Company") (NYSE Amex and TSX: VGZ) today provided
an overview of the Company's recent operating highlights and
selected financial results and highlights for the year ended
December 31, 2011. The
Company's full financial results, Management's Discussion and
Analysis together with other important disclosures can be found in
the Company's Annual Report on Form 10-K, filed with the U.S.
Securities and Exchange Commission (the "SEC") and the Canadian
securities regulatory authorities on March
14, 2012.
Recent Highlights Include:
- On March 12, 2012, the Company
announced initial results from its resource conversion drilling
program, which is in progress at its Mt. Todd gold project, and its
decision to build a project development team and to evaluate the
potential for a larger project as its definitive feasibility study
nears completion;
- Vista announced on February 27,
2012 the initial results of a drilling program, in progress
at its Guadalupe de los Reyes
gold/silver project. The program is designed to provide
information for a Preliminary Economic Assessment study of the
shallow gold and silver resources and to test exciting deeper high
grade gold and silver extensions to the vein system;
- On February 7, 2012, Vista and
Invecture Group S.A. de C.V. ("Invecture") entered into an earn-in
right agreement (the "Earn-in Right Agreement") with respect to
Vista's Concordia gold project in
Baja California Sur, Mexico.
Under the terms of the Earn-in Right Agreement, Invecture
made a non-refundable payment of $2
million in exchange for the right to earn a 60% interest
(subject to adjustment) in Desarrollos Zapal S.A. de C.V. See
our press release dated February 7,
2012 for additional information on the Earn-in Right
Agreement;
- Vista remains debt free after repaying its $23-million convertible notes in March 2011 and has $17.9
million in cash at December 31,
2011;
- The fair value of the Company's investment in Midas Gold Corp.
("Midas") was estimated at $119.9
million at December 31, 2011,
an increase of $9.6 million for the
three months then ended; and
- Vista appointed Fred Earnest as
Chief Executive Officer of the Company effective January 1, 2012.
Highlights for 2011 Include:
- Increased estimated gold resources at Mt. Todd announced on
September 6, 2011;
- Public offering of 9,000,000 common shares on April 20, 2011;
- Completion of the combination with Midas Gold Inc. on
April 6, 2011 and its subsequent
initial public offering on July 14,
2011;
- Repayment of Vista's convertible notes on March 4, 2011; and
- Results of a new Preliminary Feasibility Study at Mt. Todd
announced on January 4, 2011.
Summary of 2011 Financial Results
For the year ended December 31,
2011, Vista reported net income of $51.5 million, or $0.75 per share ($0.74 per share on a fully diluted basis),
compared to a net loss of $20
million, or $0.42 per share
($0.42 per share on a fully diluted
basis), for the year ended December 31,
2010. Results for the year ended December 31, 2011 benefited from the unrealized
gain of approximately $77.8 million
that was 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 its investment in Midas of $37.3
million. The value of the 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. These
increases in Vista's net income were partially offset by the
$35.5 million increase in deferred
tax expense and the increase in exploration, property evaluation
and holding costs of $8.3 million,
which were incurred for the feasibility study being undertaken at
the Mt. Todd gold project.
The Company's balance sheet at December
31, 2011 benefited from its investment in Midas, which was
recorded at a fair value estimated at $119.9
million on that date. This increase was offset by the
net deferred tax liability of about $35.5
million associated with unrealized gains that were
recognized upon the completion of the Combination and for the
increase in the estimated fair value of the investment in Midas.
Vista's cash and cash equivalents were primarily impacted by
the repayment of $23 million in
convertible notes on March 4, 2011,
the approximate $29 million that was
raised on April 20, 2011 in the
Company's public offering of 9,000,000 shares of its common stock,
the $3.6 million cash that was
invested in Midas and the approximate $25
million of cash that was used in operating activities, of
which about $21.8 was incurred on
exploration, property evaluation and holding costs on Vista's core
projects.
The following table summarizes Vista's selected financial data.
To review the Company's Annual Report on Form 10-K for the
year ended December 31, 2011 that
includes the annual financial statements of the Company for the
year ended December 31, 2011 and the
related Management's Discussion and Analysis, visit any of the
following websites: www.sedar.com, www.sec.gov or
www.vistagold.com.
All dollar amounts in this press release are in
United States dollars, except
dollar amounts (other than per share data) in the following table,
which are in thousands of United
States dollars.
|
Year Ended
December 31,
|
|
Selected Financial
Data
|
2011
|
|
2010
|
|
|
|
|
|
|
Results of
operations:
|
|
|
|
|
Net income/(loss)
|
$
51,546
|
|
$
(20,020)
|
|
Basic earnings/(loss) per
share
|
0.75
|
|
(0.42)
|
|
Diluted earnings/(loss) per
share
|
0.74
|
|
(0.42)
|
|
|
|
|
|
|
Cash flows:
|
|
|
|
|
Net cash used in operating
activities
|
(24,990)
|
|
(17,093)
|
|
Net cash used in investing
activities
|
(4,044)
|
|
(2,364)
|
|
Net cash provided by financing
activities
|
7,069
|
|
30,887
|
|
|
|
|
|
|
|
December
31,
|
|
Financial
Position
|
2011
|
|
2010
|
|
|
|
|
|
|
Current assets
|
$
20,170
|
|
$
42,625
|
|
Total assets
|
180,603
|
|
82,972
|
|
Current liabilities
|
3,223
|
|
24,630
|
|
Total liabilities
|
39,380
|
(a)
|
24,630
|
|
Shareholders' equity
|
141,223
|
|
58,342
|
|
|
|
|
|
|
Working capital
|
16,947
|
|
17,995
|
|
|
|
|
|
|
(a) Consists primarily of the
net deferred tax liability of 35,522
|
|
|
|
|
|
Management Conference Call
A conference call with management to review our financial
results for the year ended December 31,
2011 and to discuss corporate and project activities is
scheduled for Monday, March 19, 2012
at 10:00 a.m. MDT.
Toll-free in North America:
1-866-443-4188
International: 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=2647
This call will be archived and available at www.vistagold.com
after March 19, 2012. Audio
replay will be available for 21 days by calling toll-free in
North America:
1-866-245-6755, passcode 420604.
If you are unable to access the audio or phone-in on the day of
the conference call, please 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,
to achieve its goal of becoming a gold producer. Vista is advancing
exploration on its Guadalupe de
los Reyes gold-silver project in Mexico and has recently granted Invecture
Group, S.A. de C.V. a right to earn a 60% interest in the
Concordia gold project in
Mexico. Vista's other holdings
include 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 building a project development team for Mt. Todd, evaluating the
potential for a larger project at Mt. Todd, timing and completion
of a definitive feasibility study at Mt. Todd, positive results of
the drilling program at Guadalupe
de los Reyes that support the Company's hypothesis that there is
potential for high grade gold and silver mineralization in the
district, the value of the investment in Midas, the development of
the Mt. Todd and Concordia gold
projects, Vista's 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, 2012 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.
Without limiting the foregoing, this press release uses terms
that comply with reporting standards in Canada and certain estimates are made in
accordance with Canadian National Instrument NI 43-101 ("NI
43-101"). NI 43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for all public
disclosures an issuer makes of scientific and technical information
concerning mineral projects. This press release uses the term
"resource". We advise U.S. investors that while this term is
recognized by Canadian regulations, this term is not a defined term
under the United States Securities and Exchange Commission's (the
"SEC") Industry Guide 7 and is normally not permitted to be used in
reports and registration statements filed with the SEC. These
mineral resources have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of these
mineral resources will ever be upgraded to a higher category.
The SEC normally only permits issuers to report
mineralization that does not constitute SEC Industry Guide 7
compliant "reserves" as in-place tonnage and grade without
reference to unit measures. 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 all necessary permits or government authorizations
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 these categories will ever be
converted into SEC Industry Guide 7 reserves.
For further information, please contact Connie Martinez at (720) 981-1185.
SOURCE Vista Gold Corp.