VGZ - Earnings call transcript Q2 2018

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Operator

Good day, ladies and gentlemen. Welcome to Vista Gold’s Second Quarter Financial Results and Corporate Update Conference Call. At this time, all participants are in a listen-only mode.

Following the presentation, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded. XX, July Friday, is XXXX. Today my It and introduce President to and is your now CEO host, Vista’s pleasure Mr. Fred Earnest. Please go ahead, Mr. Earnest.

Frederick Earnest

Thank course other gentlemen. and or detailed Thank by Jack Corp’s morning, to be cause and are future a Vista corporate ladies from joining our by known uncertainties I’m our now that to this our also results Jack conference materially of Good results Gold Investor These call on update the financial whom Connie XXXX statements. time office. forward-looking XX-K of our you, different in in Martinez, Vista turn statements. of performance achievements results, Director such be to results Engele materially Form this I’ll and the QX in could quarter. Senior factors, the will results, for pleased of corporate call. here Engele, and joined over and actual discussion we you me CFO; from Virgil. statements. both with may other forward-looking to or for financial any which discuss for call, achievements cause our to be or expressed those the refer of In and Relations, risks and important Vice President unknown making to implied risks, involve Please factors performance actual the differ statements

John Engele

XX, Thank start our XXXX. you, with June sheet balance Good Fred. for I’ll morning, everyone.

debt-free. T-Bills of company million. capital This XX, $XX.X cash Our continues and XXXX. The totaled on June $XX.X approximately working to be million about included

comprised XX. $X.X the investment loss XXXX. loss reported We a the million and exploration March There to costs, QX of quarter fixed-site in G&A Mt. compared no costs fixed Todd June gain $XXX,XXX was to Todd, a in costs Consequently, for the several almost and about testing QX about Discretionary quarter. of to were of marginally ended of ore at statement June value fixed XXXX. $X.XX include in stock-based or corporate the entirely relations in XXXX at by Mt. mark-to-market of and in of expenses Turning of programs, expenses. compensation The about up for Todd the Mt. the were in was the change than of or Midas XXXX, loss costs. through non-cash Todd for value operating update This PFS and of in no investor the about share $X.X and programs discretionary larger quarter. XXXX fixed ramping higher course programs trended our completed increased than mainly as net activity as Denver. sorting your XX, operating income corporate XXXX of our Mt. cost million, XX, our Todd, studies, higher components in including of lower $XXX,XXX QX we both Mt. programs administration Gold management Corp. $XXX,XXX $XXX,XXX and at XXXX are met had depreciation. main driven The

modest target. Looking additional particularly as ore licenses, on crushing, exploration ahead will ELs, explain through XXXX, in our and grinding Wandi we tests, geophysics a as as expect to sorting some minute, Fred and the our complete IOCG programs well on drilling

believe Quigleys, be supplemental could planning of future also a source mill feed. drilling which program we a We’re in higher-grade

XX% expect this to in the management our to than costs ongoing terms and our XXXX Todd XX% Offsetting authorization this, mine of January We we year than trend XXXX costs to EPBC XXXX XX% secure Australian through year. XX% administrative discretionary in with the our higher discretionary expect on trend monitoring investor to fixed XX% programs XXXX fixed Mt. continue to due corporate Similarly, to expect we programs. additional than work our XX% fixed our the at higher to plan. remainder XXXX programs our the expect work relations costs received at about of fixed – increased of XXXX dollar authorization emphasis Todd trend costs, associated lower administration Mt. we our to as

and We fully working non-dilutive into of sufficient discretionary corporate our with year fund XXXX. the discretionary fixed XXXX. We existing our be together future have no current programs will to sources believe in planned financing, planned capital, potential costs programs

Awak our continue including the los to of Mexico. option Gold opportunities, our mill project possible on for Reyes project pursue the Mas and the sale future de in We royalty of non-dilutive used payments the monetization financing equipment, Guadalupe

That In addition, you, Gold. concludes we to my hold Midas Fred. at million comments. Over X.X shares continue to

Frederick Earnest

Thank results two in the I for some would of XX.X%, ball which mills. estimated in update of ground corporate technical reported of Core the announced for recovery stages grinding the the announcing ISAMill. metallurgical using action from we advancements the an the recovery we Metallurgy work replicate result a our estimated a updated Mt. increase increase like to results, testing recovery Mt. study at have feasibility project. significant material able simulations machines you, Jack. Vertimill with The to of both been that test The on was Todd that you single-stage send call, the samples XX.X%. advanced FLSmidth circuit. to in further of have work update to grinding January gold prepared and significant Since project. optimize laboratory and last previously conference was the a Todd This two-stage in – Since was preliminary test scale

for recall we Todd. at ISAMills second that, stage Mt. the have will of selected You grinding

both static mechanics describe important. the the mills discs rotating of the this energy attached differences of different size impact, distributions of principal rotate why picks breaking mill to difference basis I in and and unfamiliar energy. stirred allows increase the on they shear the to of is particle work the Due ISAMill us it than different the a to of in particles, will equipment, in and up produce by for material the Experts rods with ball consume the grinding mills. charge fall the is as would and rather you are to advised impact. occur. shaft distribution. mill shell referred – and amounts to The an see we provide Vertimill the size grinding those center particles to recovery that The due to of of shell different these particle Ball or both had it to They grind. why work the the For it mills is on be on

the completed and stirred have stimulating different of two leach tests We tests. types mills grinding have completed

time that expected. final we While that costs for in would to and work we operating An to be for the of gold data this time, waiting the of to After the a a evaluate on with correlate will please field further Todd plan general test are targets. previously test size and our geophysical regards results commence and terms, subsequent now produced results, are product we Wandi and test work – you the our with program undertake regrind initial less encourage power on taking stay this size can the also than less results at licenses Eye previous amount indicate programs these work extensive exploration recoveries. both the Golden a work of finer strong available Mt. tuned ready and test this compile the on finer program consumption. exploration and We suggests licenses. to drilling commitments on drilling assay Initially, drilling small recovery. a higher circuit indicates for of to announcement to We between correlation grind an fulfillment

take on deposit. we tests Quigley may converting drilling as six complete to eight some this at over place next weeks. deposit the move the also to depending resources We some results, planning And are we Drilling infill reserves. in toward the satellite metallurgical should

Additionally, to operating management in resources plan, called of mine Territory work Northern the the North review it would our America. in industries work as we here for permit mine Department and continue primary with be

projects advance our to Todd time. believe position and and this the development at favorably risky, large is Our Mt. the small is to that objective of by for not is We development plan. standalone continue right companies

on storage power the focused reservoir project proven for in to realize the that paved of probable existing of the project best Todd magnitude infrastructure, facility. fair and controls Australia. the Vista gas Mt. in and largest for lines and Northern conclusion, executing shareholders. impoundment project reserves, ideally of Australia. is future undeveloped natural located fresh outcome It dilution would shareholders, in value reserve reduce single Vista on roads the Todd million other pipeline, water with and largest including Australia is Territory for package third and including With gold arrangements In of and Mt. and the tailings evaluating deposit, We’re site gold potential the our ounces the X.XX

achieved have milestones, significant creating the value. in and now place foundation have shareholder for improved We

the in the updated are to are We testing. improvements firmly hand. study They outcome license on trust feasibility based The and technical earned we technical expensive our of local social is believe the that have the results stakeholders, preliminary of project.

the information, you is SEDAR available on For refer filed download. XX-XXX National March to detailed that in Canadian was I for Instrument and more report

the at largest the are mining-friendly of investor which de-risked permits is This to in peers. gold for investment and are refer the an the and cost. existing a NAV. access with by value our call. All has few attained Vista quartile jurisdiction – peers’ well This our to looking I for potential to project, approximately X.X that It excellent at with significant comprehensive It For Mt. in price. project, corporate accorded the major this our represents environmental all is We to our website in for NAV all will trade exceptional potential value. gold be good producer range Todd major assessment the hand easy our gold of accomplishment of an the to fourth lowest a favored can of and permits very that shareholder Australia compared trading opportunity believe up times and www.vistagold.com. X.X the concludes reminded value, in the Northern There, gold adds an found infrastructure, be you Territory. project. increase leverage times X.X of advanced the technically growth we in presentation, to on and be Todd more Mt. to you presently

now to will on participants call. from any respond the We questions

Operator

first Wainwright. the Please go Heiko H.C. of [Operator Ihle line question ahead. Instructions] from from Your comes

Heiko Ihle

for thanks taking questions. guys, Hey, my

Frederick Earnest

Good morning, Heiko.

Heiko Ihle

$X valued hit XX%-some still X.X there few a for a Good year-to-date. no, current has this And of XXXX. over you price, if you sell, or I And be now. want answer mean, of I the in environment? to same is shares, the willing to done don’t of and Is divesting past, mean, currently at the market million. what look Midas still phenomenal morning. the cow, at in to you sort in prevalent more sort at would sell but if owned are I be was Hey, so it’s some even at Gold price I this you willing shares those? right sacred they’re the million would own some

Frederick Earnest

valid that’s certainly, very a Well, question. Heiko,

know You past teletype to try conversations from strategic don’t with we us decision. that

being the right one continue been The bit share get that softer watch. to answer also markets to, we to where like now, the we a improvement you’re of in watchful So an Midas have trying price. little

at sources to and the of not the you lot conditions are one given appropriate anxious a fulfillment point the potential we’re at in will some price as not time sale averse in the future, appreciate a about. of of that talk view very certainly that We of financing to additional that

Heiko Ihle

Fair.

bit about little I a think, the you second to talk will more. like question

As you the run that and know, I like lean. you guys fact respect so

in change we the G&A XXXX. Year-to-date, lowest some you The you’re account sore, fact. it rate? is QX million, difference was XXXX. did it’s said, whole you if in I doing. $X.X relations six one universe, run $XXX,XXX is it work $XXX,XXX million our $XXX,XXX coverage for up at QX $X Your of look That mean, in in even year-to-date. more in from mentioned XX% does that annual But Earlier really months, increase. that’s investor $X.X that a million, the a It’s

Frederick Earnest

results of more basis, the in preliminary a – of components to in Board – our And preliminary cash couple pay So year pointed this certainly January doing we that the Jack think, study – was the the was year-to-date relations. of an bonuses on update basis. decision was are the feasibility investor Obviously, of in a year. there’s in delivered year of his based G&A commentary, there this January costs exceptional that was area as drove a that out payment There up of the made on that there. the I on

more We conferences. are in participating

We get some structure required of Jack, to out toward which in traditional and become other forms things next changes information the of to looking six like activities We’ve months who reach are those some in amounts looking their in will And and future trying other – more that. involved that become to the as at recordings, from point this investor the four toward organization, video time our done to it some of and investment well. in we’ve undertaken media, involved sources. is there… apparent some did not we’re also podcast

Heiko Ihle

Very clear.

John Engele

didn’t higher we than had have regulatory Related like inordinately XXXX, high costs XXXX. Heiko, that the legal example, QX QX course in anything for through to the well, because of in of updated type PFS we as

Heiko Ihle

fair Okay, enough.

Frederick Earnest

Okay.

Heiko Ihle

guys. you, Thank

Frederick Earnest

Anything else, Heiko? No?

Heiko Ihle

Thank in all that’s No, the you. mind.

Frederick Earnest

a day. Okay. Have great

Operator

further over questions time. will I back closing for to at call no turn have remarks. presenters this the You

Frederick Earnest

Very gold We, price this to market. again, very find in morning. good. would Thank We like interesting the a ourselves everyone in time you, their for thank call participation once and Virgil. their

with Heiko as and very, very a in many out, faced in pointed manage seek address to certain are to, continue those. inevitable ways do find fashion. lean elegantly company the that We expenses We we very ourselves

make text coming the to you We our in are another in improvements watch significant We to in indicated project, working the as comments. Mt. of news round encourage for weeks. Todd of the

that, that able be think, work testing of the to those about our there’ll essays will completed the each the will project final contemplate that’s PFS, able establish of important the of I and forward. undertake results the the to think, able and that on an be through to update in we’re results – have the the choose. excited understand very you’ll I importance we further as point that been and impact plans so be that we go announcements to the of as we But we these of potential comment to be the if about we certainly, economics discussion

So your you you we this And and day. and for all thank time very pleasant a the again, interest call wish very morning. we in a your good

Operator

call, today’s now you disconnect. concludes This may and

Vista Gold (VGZ) 28 Jul 182018 Q2 Earnings call transcript