DENVER, Aug. 2, 2013 /CNW/
- Vista Gold Corp. (TSX & NYSE MKT: VGZ) ("Vista" or
the "Company") today announced its unaudited financial results
and highlights for the second quarter ended June 30, 2013.
Management's quarterly conference call to discuss these results is
scheduled for 2:30pm
MDT on August 6, 2013. The Company's full
financial results, Management's Discussion and Analysis together
with other important disclosures can be found in the Company's
Quarterly Report on Form 10-Q, filed with the U.S. Securities and
Exchange Commission and the Canadian securities regulatory
authorities.
Second Quarter 2013 Highlights:
- Published a Preliminary Feasibility Study ("PFS") on the Mt.
Todd gold project including a 44% increase in Proven and Probable
Reserves to 5.9 million ounces gold;
- Awarded Major Project Status by the Northern Territory
Government for the Mt. Todd gold project, signifying the
Territory's support for the timely and responsible development of
the project;
- Submitted the Mt. Todd gold project's Environmental Impact
Statement ("EIS") to the Northern Territory Environmental
Protection Agency; and
- Implemented significant cost reduction measures including the
deferral or elimination of various discretionary programs, the
elimination of two executive positions, and executive/senior
management and board cash compensation reductions of up to
50%.
Frederick H.
Earnest, President and Chief Executive Officer,
commented, "In the second quarter we have achieved several
important milestones. We announced the results of the Mt. Todd PFS,
most of which was completed based on feasibility-level engineering,
significantly reducing the amount of time and expense to complete a
final feasibility study. We completed the treatment of water in the
Batman Pit with better-than-expected results and are now in a
position to discharge clean water during the next wet season. We
submitted the EIS and continue to expect its approval (including
certain Federal government approvals) around year-end. With the
completion of these cash-intensive activities we expect to
significantly lower cash burn rates as we move forward, and
importantly, we have positioned the Mt. Todd gold project to move
forward quickly once the markets improve."
Mr. Earnest added, "We are very cognizant of current market
conditions and are committed to taking all measures necessary to
ensure our continued liquidity and preserve shareholder value. We
have implemented significant cost reduction measures including
exploration spending deferrals, elimination of discretionary
programs, and the elimination of two executive positions.
Additionally, our executive/senior management team and board have
accepted voluntary cash compensation reductions of up to 50%,
subject to periodic review by the compensation committee. We are
continuing to prioritize our capital raising efforts on the sale of
non-core assets including our Colomac mill equipment, the Guadalupe
de los Reyes project, and Invecture's pending earn-in on the Los
Cardones project. We remain optimistic about improvements to the
gold market and Vista's potential favorable leverage to a higher
gold price, but we acknowledge that the timing is not predictable.
Consequently, in addition to the measures described above we
believe it is prudent to evaluate all options, including
arrangements which might release some of the potential value
contained in the Mt. Todd gold project."
Summary of Second Quarter 2013 Results
We reported a net loss of $21.0 million or $0.26 per share for
the three months ended June 30, 2013. This includes an unrealized
$18.5
million mark-to-market loss on our investment in
Midas Gold Corp., partially offset by a $4.4 million
deferred tax benefit substantially related to this loss. During the
three months ended June 30, 2012, we reported a net loss of
$30.5
million or $0.42 per share.
Project expenditures at the Mt. Todd gold project were
$4.6
million, which was primarily attributable to water
treatment and discharge, the completion of the PFS, preparation of
an EIS, and site management expenses.
Our working capital at June 30, 2013 totaled approximately
$12.9
million, including cash of approximately $9.3 million.
To review the Company's Quarterly Report on Form 10-Q for the
three months ended June 30, 2013 or Annual Report on Form
10-K for the year ended December 31, 2012, including the related
Management's Discussion and Analysis, visit any of the following
websites: www.sedar.com, www.sec.gov, or www.vistagold.com.
Management Conference Call
A conference call with management to review our financial
results for the three months ended June 30, 2013 and
to discuss corporate and project activities is scheduled for
Tuesday, August 6,
2013 at 2:30pm 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/webcast/vistagold/q2-2013/site/
This call will be archived and available at www.vistagold.com
after August
6, 2013. Audio replay will be available for 21 days
by calling toll-free in North America: 1-866-245-6755, passcode
912014.
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 has completed a preliminary
economic assessment on its Guadalupe de los Reyes gold/silver
project in Mexico and has granted Invecture Group,
S.A. de C.V. a right to earn a 62.5% interest in the Los Cardones
gold project, in Mexico. Vista's other holdings include
the Awak Mas gold project in Indonesia, subject to One Asia
Resources Ltd.'s right to earn an 80% interest, 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, the prospect of the Major Project Status of the Mt. Todd gold
project leading to the timely and responsible development of the
Mt. Todd gold project, efficacy of the Company's cost reduction
initiatives in lowering the Company's cash burn rate, the receipt
of all required approvals relating to the Company's EIS at the Mt.
Todd gold project, the anticipated future improvement in the gold
market, the prospective earn-in by the Invecture group, the future
sale of the Colomac mill equipment and other such matters are
forward-looking statements and forward-looking information. The
material factors and assumptions used to develop the
forward-looking statements and forward-looking information
contained in this press release include the following: timing and
completion of the preliminary feasibility and feasibility studies,
timing and the ability to obtain the necessary permits, keeping
expenditures at a minimum while taking advantage of the estimated
mineral resources at Mt. Todd, theamount of expenditures required
to increase the plant capacity, updated mineral resource estimate
on the Mt. Todd gold project, timing and schedule of consultants'
work, likely market for the Colomac mill equipment and the
likelihood of Invecture meeting the earn-in and other such matters
are forward-looking statements and forward-looking information.
When used in this press release, the words "optimistic,"
"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 estimates, estimates of results based on
such resource estimates; risks relating to completing metallurgical
testing; risks relating to cost increases for capital and operating
costs; risks related to the timing and 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; as
well as those factors discussed under the headings "Note Regarding
Forward-Looking Statements" and "Risk Factors" in Vista's Annual
Report Form 10-K as filed on March 14, 2013 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.
Cautionary Note to U.S. Investors Concerning Estimates of
Mineral Resources
The United States Securities and Exchange Commission ("SEC")
limits disclosure for U.S. reporting purposes to mineral deposits
that a company can economically and legally extract or produce.
This press release uses the terms "Proven and Probable Reserves."
The estimates of mineral reserves shown in this press release have
been prepared in accordance with the definition standards on
mineral reserves of the Canadian Institute of Mining, Metallurgy
and Petroleum referred to in Canadian National Instrument 43-101
Mineral Disclosure Standards ("NI 43-101"). The definitions of
Proven and Probable Reserves used in NI 43-101 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. Accordingly, Vista's disclosure in this press release of
mineral reserves may not be comparable to information from U.S.
companies subject to the reporting and disclosure requirements of
the SEC 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, or visit the Company's website at
www.vistagold.com.
SOURCE Vista Gold Corp.