Vista Gold Corp. Announces Second Quarter Financial Results and Drilling Results at Paredones Amarillos Project
13 August 2005 - 3:04AM
PR Newswire (US)
DENVER, Aug. 12 /PRNewswire-FirstCall/ -- Vista Gold Corp. (Amex:
VGZ; TSX) announced today its financial results for the quarter and
six months ended June 30, 2005, as filed on August 12, 2005, with
the US Securities and Exchange Commission in the Corporation's
Quarterly Report on Form 10-Q. Vista reported a consolidated net
loss for the three-month period ended June 30, 2005, of US$1.5
million or US$0.08 per share compared to a consolidated net loss of
US$1.4 million or US$0.09 per share for the same period in 2004.
The Corporation's consolidated net loss for the six-month period
ended June 30, 2005, was US$2.4 million or US$0.13 per share
compared to a consolidated net loss of US$2.5 million or US$0.17
per share for the same period in 2004. The net losses for the
three-month and six-month periods were minimally different from
those for the prior-year periods, primarily reflecting slightly
decreased exploration, property evaluation and holding costs, and
increased corporate administration and investor relations costs of
US$0.1 million for the three-month period due to a mass mailing
marketing campaign, with slightly decreased costs for the six-month
period. Net cash used for operations was US$1,127,000 for the
three-month period ended June 30, 2005, compared to US$1,207,000
for the same period in 2004. Cash used in operations was
US$1,819,000 for the six-month period ended June 30, 2005, compared
to US$1,655,000 for the same period in 2004. The decrease of
US$80,000 for the three-month period can be attributed to reduction
in prepaid expenses and accounts payable and accruals of US$99,000
for the same period in 2004. The increase of US$164,000 for the
six-month period was attributable to a reduction in accounts
receivable for the same period in 2004. Net cash used for investing
activities increased to US$1,964,000 for the three-month period
ended June 30, 2005, compared to US$70,000 for the same period in
2004. The increase of US$1,894,000 in 2005 was due to the purchase
of the Awak Mas project in May 2005 for US$1.5 million and
exploration activities at the Paredones Amarillos project of US$0.4
million. For the six- month period ended June 30, 2005, net cash
used for investing activities decreased by US$279,000 to
US$2,228,000 compared to US$2,507,000 for the same period in 2004.
Overall expenditures were higher during the 2004 period, primarily
reflecting the restricted cash payment of US$2.3 million made by
the Corporation in the first quarter of 2004, in connection with
bonding requirements for the Hycroft Mine. The Corporation did not
receive any cash from financing activities for the
three-month-period ended June 30, 2005, compared to US$853,000 for
the same period in 2004, all of which was attributable to the
exercise of warrants. Net cash provided by financing activities was
US$398,000 for the six-month period ended June 30, 2005, compared
to US$3,056,000 for the same period in 2004. The amounts raised in
the 2005 six-month period were from the exercise of warrants in the
amount of US$373,000 and stock options in the amount of US$25,000,
all during the first quarter. The aggregate US$3,056,000 proceeds
in the 2004 six-month period were from the exercise of warrants in
the amount of US$3,039,000 and stock options in the amount of
US$17,000. The financial position of the Corporation included
current assets at June 30, 2005, of US$3.0 million compared to
US$6.8 million at December 31, 2004, and total assets at June 30,
2005, of US$31.0 million compared to US$32.8 million at December
31, 2004. Current liabilities were US$0.3 million at June 30, 2005,
approximately the same as at December 31, 2004. Total liabilities
at June 30, 2005, were US$4.5 million, compared to US4.4 million at
December 31, 2004. Shareholders' equity at June 30, 2005, was
US$26.5 million compared to US$28.3 million at December 31, 2004.
The Corporation's working capital as of June 30, 2005, was US$2.7
million compared to US$6.6 million at December 31, 2004. The June
30, 2005 unaudited consolidated financial statements have been
prepared on a going concern basis, which assumes that the
Corporation will continue in operation for the foreseeable future
and will be able to realize its assets and discharge its
liabilities and commitments in the normal course of business. The
Corporation's current working capital is not sufficient to satisfy
current general and administrative activities, holding costs and
property obligations which will be approximately US$3.2 million
over the next twelve months. The Corporation may raise funds
through warrant exercises or private placements, or may joint
venture one or more of its properties. The Corporation has
successfully raised money to support its activities in the past;
however, there are no assurances that the Corporation will be able
to raise sufficient funds from these sources in the future. The
selected financial data including the results of operations for the
three-month and six-month periods ended June 30, 2005 compared to
2004, and the financial positions as at June 30, 2005 compared to
December 31, 2004, is summarized in the following table: Selected
Financial Data Three Months Six Months Ended June 30, Ended June
30, 2005 2004 2005 2004 U.S. $000's, except loss per share Results
of operations Net loss $(1,450) $(1,391) $(2,408) $(2,537) Basic
and diluted loss per share (0.08) (0.09) (0.13) (0.17) Net cash
used in operations (1,127) (1,207) (1,819) (1,655) Net cash used in
investing activities (1,964) (70) (2,228) (2,507) Net cash provided
by financing activities -- 853 398 3,056 Financial position June
30, December 31, 2005 2004 Current assets $2,993 $6,826 Total
assets 31,040 32,788 Current liabilities 302 256 Total liabilities
4,534 4,444 Shareholders' equity 26,506 28,344 Working capital
2,691 6,570 The Corporation recently received assay results of a
drill program to explore the Tocopilla area north of the Paredones
Amarillos gold deposit in Baja California Sur, Mexico. The drilling
confirmed the presence of mineralization and a structure similar to
that which hosts the Paredones Amarillos deposit. No drill
intercepts of ore grade quality were found, however the sampling
helped to identify and locate favorable targets for follow up
programs. The drill program was conducted under the supervision of
Warren Bates, previously Vista's Chief Geologist (P. Geo.), and
assaying was done by ALS Chemex of Hermosillo, Sonora, Mexico.
Additional targets remain to be drill tested. The statements that
are not historical facts are forward-looking statements involving
known and unknown risks and uncertainties that could cause actual
results to vary materially from targeted results. Such risks and
uncertainties include those described from time to time in the
Corporation's periodic reports, including its latest annual report
on Form 10-K filed with the U.S. Securities and Exchange
Commission. The Corporation assumes no obligation to publicly
update any forward-looking statements, whether as a result of new
information, future events or otherwise. For further information,
please contact Greg Marlier at (720) 981-1185, or visit the Vista
Gold Corp. website at http://www.vistagold.com/ DATASOURCE: Vista
Gold Corp. CONTACT: Greg Marlier of Vista Gold Corp.,
+1-720-981-1185 Web site: http://www.vistagold.com/
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