DENVER, March 17, 2014
/CNW/ - 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.