DENVER, March 17, 2014 /PRNewswire/ -- Vista Gold
Corp. (the "Company," "we" or "our") (NYSE MKT and TSX: VGZ) today
announced its audited financial results and highlights for the
fiscal year ended December 31, 2013.
Management's quarterly conference call to discuss these results is
scheduled for 2:30 p.m. MDT on
March 19, 2014. The Company's full
audited financial statements, 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 and the Canadian securities
regulatory authorities.
Recent Highlights:
- Completed the sale of approximately 50% of our shares in Midas
Gold Corp. ("Midas"), raising approximately $10.8 million net proceeds from which we have
paid down our debt to a balance of approximately $1.3 million;
- Implemented aggressive cost cutting measures at our Mt. Todd
gold project and in the corporate office;
- Advanced the Mt. Todd gold project Environmental Impact
Statement ("EIS") toward final approval and continued to review
project development alternatives;
- Signed a non-binding Letter of Intent with Cangold Limited to
option our interest in the Guadalupe de los Reyes gold/silver
project;
- Sold the Los Cardones gold project, $7.0
million in cash received and an optional payment of
$6.25 million due in July 2014 (project is returned to Vista if the
optional payment is not made); and
- Converted our position in the Awak Mas gold project to a NSR
royalty.
Frederick H. Earnest, President
and Chief Executive Officer, commented, "I am pleased with the way
we responded to the challenges we faced in 2013. We have financed
the Company without dilution, and have successfully downsized and
simplified our business which has dramatically reduced our cash
burn rate. At this time, we believe we have sufficient cash
to operate through 2014, and to repay our debt in full. We
continue to seek non-dilutive sources of financing, such as the
sale of non-core assets, to finance the Company well into 2015. Our
financing plans do not include any additional sales of the 15.8
million shares in Midas that we continue to hold. We remain
focused on our flagship Mt. Todd gold project where we are
targeting approval of the final EIS in the third quarter of this
year. This will position the project for rapid development in an
improving gold market."
Summary of 2013 Financial Results
We reported a net loss of $59.5
million or $0.73 per share for
the year ended December 31,
2013. This includes an unrealized $48.5 million mark-to-market loss on our
investment in Midas, partly offset by a $15.4 million deferred tax benefit substantially
related to this loss, and a $3.5
million impairment of the Colomac mill equipment which is
held for sale. During the year ended December 31, 2012, we reported net loss of
$70.7 million, or $0.95 per share. The 2012 results included a
$50.4 million unrealized loss on our
investment in Midas.
Expenditures for exploration and property holding costs,
principally at our Mt. Todd gold project, were down approximately
43% from 2012. In early 2013, we completed several cash intensive
programs such as water treatment and the prefeasibility study for
the Mt. Todd gold project. In addition, several significant
cost cutting measures, including staff reductions and voluntary
compensation reductions were introduced at the Mt. Todd gold
project.
Corporate cost reduction measures have also successfully been
implemented. Corporate G&A costs are down approximately
32% from 2012 levels, principally because of staff reductions, and
voluntary compensation reductions in 2013.
Our working capital at December 31,
2013 totaled approximately $8.6
million, including cash of approximately $5.5 million. After giving effect to the
February 2014 sale of 16 million
shares of Midas, and the related repayment of approximately
$5.0 million of our loan, our pro
forma working capital increases to approximately $14.5 million, including approximately
$11.2 million of cash.
To review the Company's Annual Report on Form 10-K for the year
ended December 31, 2013, 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 fiscal year ended December
31, 2013 and to discuss corporate and project activities is
scheduled for Wednesday, March 19,
2014 at 2:30p.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/webcast/vistagold/yearend/site/
This call will be archived and available at www.vistagold.com
after March 19, 2014. Audio
replay will be available for 21 days by calling toll-free in
North America:
1-866-245-6755, passcode 592832.
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.
All dollar amounts in the press release are U.S. dollars.
About Vista Gold Corp.
Vista's principal assets include its flagship Mt. Todd gold
project in Northern Territory, Australia, and an 11.2% holding in Midas. In
addition to non-core projects in Mexico and California, Vista holds royalty interests in
projects in Bolivia and
Indonesia. For more information about our projects, including
technical studies and resource estimates, please visit our website
at www.vistagold.com.
For further information, please contact Connie Martinez at (720) 981-1185.
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 we expect or
anticipate will or may occur in the future, including such things
as, the timing for anticipated EIS approval, the position of the
Mt. Todd gold project for rapid development in an improving gold
market, receipt of the optional payment for the sale of the Los
Cardones gold project, sufficiency of current cash for Vista
operations through 2014 and to repay our debt in full, 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:
our approved business plans, exploration and assay results, mineral
resource and reserve estimates and results of preliminary economic
assessments, pre-feasibility studies and feasibility studies on our
projects, if any. 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 the Company 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, uncertainty as to the Company's future operating costs
and ability to raise capital; risks relating to cost increases for
capital and operating costs; 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 our 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 the Company's
latest Annual Report on Form 10-K as filed on March 14, 2014 and other documents filed with the
U.S. Securities and Exchange Commission and Canadian securities
regulatory authorities. Although we have 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, we assume no obligation
to publicly update any forward-looking statements or
forward-looking information; whether as a result of new
information, future events or otherwise.
SOURCE Vista Gold Corp.