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Trading Symbol: VGZ
Toronto and American Stock Exchanges
__________________________________________NEWS _______________________________
VISTA GOLD CORP. ANNOUNCES THIRD QUARTER 1999 RESULTS
DENVER, COLORADO, NOVEMBER 12, 1999 - Vista Gold Corp. announced a net loss
of $1.8 million or $0.02 per share for the three months ended September 30,
1999 as compared to a net loss of $1.0 million or $0.01 per share for the
same period in 1998. The primary reasons for the net loss were low gold
production and low gold prices. The Corporation's cash position as of
September 30, 1999 was $4.9 million including refined gold bullion that was
available for sale, and the Corporation's net working capital at September
30, 1999 was $4.8 million.
During the third quarter of 1999, the Corporation produced 16,567 ounces of
gold as compared to 24,579 ounces in 1998. The average gross price realized
for the three months ended September 30, 1999 was $286 per ounce, which was
$32 per ounce less than the gross realized price for the same period in 1998.
The average gross realized price during the nine months ended September 30,
1999 was $297 per ounce and the average direct cash cost was $247 per ounce
on a consolidated basis.
SUMMARY RESULTS
(U.S. DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)
Three Months Ended Nine Months Ended
September 30 September 30
------------ ------------
1999 1998 1999 1998
---- ---- ---- ----
Gold revenues $ 4,742 $7,816 $16,014 $29,987
Net earnings (loss) (1,788) (969) (9,324) 1,711
Earnings (loss) per share (0.02) (0.01) (0.10) 0.02
Weighted average shares outstanding 90,715,040 89,152,540 90,715,040 89,152,540
CONSOLIDATED PRODUCTION
(OUNCES)
Hycroft mine 8,065 24,579 33,939 94,767
Mineral Ridge mine 8,502 - 19,900 -
-------------------- --------------------
Total consolidated gold production 16,567 24,579 53,839 94,767
At the Hycroft mine, mining activities were suspended in 1998. However, gold
is continuing to be produced at above-plan rates from previously inventoried
ore. As a result, the 1999 gold production estimate has been increased to
approximately 40,000 ounces. The Corporation is reviewing a potential upgrade
to Hycroft's Brimstone ore reserve model. The review is anticipated to be
complete before the end of the year and a positive conclusion could add
significantly to the Corporation's mineable reserves and allow mining to be
restarted at the Hycroft mine.
Performance at the Mineral Ridge mine improved during the third quarter of
1999, however, gold production for the quarter was still below plan as a
result of crushing problems encountered during the previous quarter.
Approximately 300,000 tons of ore were crushed and placed on the heaps in the
third quarter as compared to 220,000 tons in the second quarter. Gold
production, which lags behind ore placement, is expected to improve in the
fourth quarter. Vista has recently reviewed and revised its forecast for
Mineral Ridge, and as a result, is lowering its 1999 gold production estimate
to 30-32,000 ounces.
In Bolivia, following the recent recovery of gold prices, the Corporation has
resumed its efforts to arrange financing for the Amayapampa project. The
project will require a capital investment of $26 million, and will produce an
average of 43,000 ounces of gold per year, at an estimated cash cost of $157
per ounce. The Corporation has substantial infrastructure in place and once
financing is complete construction will take approximately 12 months.
Although the recent gold price improvement is encouraging, the current gold
market remains challenging. Accordingly, the Corporation will continue to
conserve its cash, but at the same time advance its development projects in
anticipation of higher gold prices. The financing of the Amayapampa project
and the completion of the Hycroft restart feasibility study are priorities
and are being expedited. Meanwhile, Vista is also actively pursuing potential
business combinations and acquisitions that could represent a source of
financing and offer growth opportunities for the Corporation.
Vista Gold Corp. is an international gold mining, development and exploration
company based in Denver, Colorado. Its holdings include the Hycroft and
Mineral Ridge mines in Nevada, a development project in Bolivia, and
exploration projects in North and South America.
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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 the targeted results. Such risks and
uncertainties include those described in the Company's Form 10-K.
For further information, please contact Investor Relations at (303) 629-2450.