VGZ - Earnings call transcript Q4 2018

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Operator

Good day, ladies and gentlemen. Welcome to Vista Gold’s 2018 Financial Results and Corporate Update Conference Call. [Operator Instructions] As a reminder, this conference is being recorded, today is Wednesday, February 27, 2019. It is now my pleasure to introduce Vista’s President and CEO and your host, Mr. Fred Earnest. Mr. ahead, go Please Earnest.

Fred Earnest

on results, Good of call, course will Gold and and Corp.’s be call. and be which update Kenzie. involve our Jack to for risks, Vice unknown and other Senior different we XXXX Thank joining future conference President making joined to pleased factors, Vista XXXX statements In from achievements implied I’m call this results, achievements afternoon uncertainties you, cause may performance by gentlemen. be materially Engele, the ladies CFO. actual you performance corporate this of the known Thank financial Vista expressed forward-looking statements. or by and any These or or XXXX a such could statements. of the in a detailed Gold factors other as tremendous studies actual risks demonstrating cause Briefly, our was Project results costs for economic Please Gold for materially look and that important and and forward-looking refer the improved we announced technical and capital of to of Mt from for year we forward and recoveries XXXX to expect achievement XX-K discussion differ we significantly Project. results in operating XXXX lower similar margins those Todd the magnitude. of statements. our Mt Form improvements higher Todd to results

report. coming which result optimization recovery work work, completed environmental an the gold the months project. for project. test That last demonstrated We improvement permit technical announced additional in to also is major We the process authorization and be the updated of area our the another in for commenced expected in has significant

have now these will began improvement. allowed gold on foreign course that lower will share We has We our when of improved recovery the improve expect Jack outperform project leverage positive price mid-November I to impact our the higher discuss of noticeable gold over in very price results call, later gold the greater rates, to since that the detail price, believe a economics. these combination I and gold time the to its the updated in exchange significantly potentially turn will price Engele. topics steady peers but to

Jack Engele

afternoon for XX, with will Fred. XXXX. start everyone. December I balance sheet Good our you Thank

working $XX.X on cash and of XX, Our to which debt-free. The December capital $X.X about Company totaled million million. included be T-Bills about continues

and $X.X costs the million of about $X.X about charge main million loss share site our discretionary of income. of of a statement Turning and cash mark-to-market reported operating year $X Gold for a $X.X in million The we compensation interest the XX, components our principal to of fixed impairment of ended depreciation. stock a are Mt $XX.X of loss in million year. related management Todd, $XX.X $X.X mill million Mt $X operating expenses, on corporate $X.X this about used cash fixed programs costs, Corp., to of $X.XX and for income million a GNA of Todd, of net components Midas include million the and expenses December million non-cash The or million our equipment in non-cash, loss investment and other million about based $X.X at gain

mainly XX% an programs investor than testing, PFS ore studies, sorting attributed we corporate programs, terms XXXX. relations in Todd on baseline XXXX Discretionary higher Mt at XXXX. costs permit, increased update administration to we're Our than about costs. in monitoring of which at began XXXX fixed In EPBC fixed lower received through in as XXXX costs we comply were met several XXXX Todd, large and of course completed about in the XXXX our January, to in XXXX Mt XX% higher XXXX the than the XXXX. XXXX tended focus are with in programs

ahead with consistent the Looking we level XXXX Mt fixed Todd spending. very XXXX be expect to costs at

in discretionary fewer expect smaller XXXX. also comparatively and We programs

to expect We about to costs our XXXX G&A costs. XXXX X% than trend XX% lower

to of Reyes with mill fund credible fully our XXXX. our mill equipment. past the equipment non-dilutive of are sale sources XXXX. Shares the interest sufficient financing the market future of on Guadalupe concludes option and That of my together several some King working de million or we've Mexico Depending potential We in and fixed into us continue payments will in due and the to Fred? A.M. be of that capital for sources existing non-dilutive Industries to option sale Potential $X.X financing currently expressions had market believe costs our programs our Midas payments to planned for future discretionary the include los the year. of used conditions, Gold all comments. continues project over

Fred Earnest

gold up then you, and XXXX first set Thank wind I’ll address the Northern with our start Jack. received In Agency. an the of achievements in was permitting project will Protection statement Territory year. the half the the first an Environmental Mt briefly are of the update provide EIS of for reviewed approval project. Todd of impact approved and to XXXX, environmental optimization I activities. for we programs that by the the outlook

us be and Commonwealth project approval the under XXXX. additional to the the that would Environment receiving of reviewing Environmental EIS, Conservation of required Department after Biodiversity concluded upon an seek and approved advised Act Soon that this it the Todd Mt approval, Energy Protection

information. us officials and received required achieve Environmental for And January by worked of December authorization helped support, review for of months NT demonstrated was in innovation who and to And spent local act the Subsequently, XXXX, the agency our closely XXXX. academics to by and this request much made required Act. following we goals. Biodiversity by the common we commitment Conservation XX agency, in the we authorization of succeeding with the requests stakeholders, Protection initial additional Our responding

authorization plans. Environmental Protection cases some implementation Mt already environmental required plans the for these Todd in this required authorization, project. Conservation and Act begun the detailed the the prepared Biodiversity and major two have by of monitoring As by development and and required constitute of the EIS we have permits mitigation The

design review is mine of after November or the and Secondly, Mines satisfied the operating in XX% Plan XX.X%. design. to permit the in the we North producing With were being with than results Territory in they ball the capacity document, grinding smaller updated PFS completely the circuit equipment Department from pressure allowed America. notification price received roll to formal from mills three we crushing with replace that ball in the in XXXX. Finer our the resulted the notification, product Northern rigor final largest the submitted Todd for complimentary and and last Mine to This dollar. of and for a possible. using we added most single-stage MMP mill of review the to the that gold operate with mills. a detailed exchange ball to to of $X.XX this reviewed additional project thought preliminary the Management document to circuit. October flow permits equivalent changes prepared was authorization Australian estimated in as Mt grinding of And the document now recovery Todd of production MMP, the We second sorting of to months allowed was also the of offset third the Mt that manner year. projects each now quarter microns then the process of savings part in be I In of essence, the discuss the two published of crusher allowed of a incorporate class The high of the of XXXX, It that major us US$X.XX material the efficient redesign in This Once optimize the be the latter plant $X,XXX approved, we technical we a add that important change believe authorization and an us XX allow circuit. the this project. This ball from project. to advancements will all the testing we subsequently an finer, sometime of ore XX.X% the cost grinding will stage, the previously of in grinding circuit to MMP attainable all fine for mills fine foreign major completed component or circuit. were us per will sheet. rate improving note make just In capable received extensive is to hold gold the able a

conservative the natural the of grind concentration recovery is grinding wide detailed For and curves this followed work on very in to sets available in work we Instrument there. increase testing tests. HPGR January demonstrate sorting that to years not a support gold various approximately low-grade power in the in announced the is to Subsequently, we ore in operating in fine initial This feed our more lower we had tail and gold completed results on samples test tests Core and of demonstrated In of we and but in our and fine addition life been fine for that of additional that the losses the bearing work spring announced for circuit. additional this that gold accusing detailed for over the fine samples to SEDAR in demonstrated production the Canadian confirming grade. in of mine, prepared sorting to FLSmidth information, estimates been generate did I more refer grade five previous website. of increase that of the This has labs Both first even using XXXX the grinding material tests grades. published of But XX-XXX only stop the of finer Metallurgy. the grinding National you both we product tests our report in believe and expect grind head could prepare to grind higher additional size, which in have now a no size expected leach announced microns, recoveries also announcement to X In the sample grind high-grade by grinding in to recovery two-thirds ore HPGR consumed. tests, XXX the a demonstrate by results constant and particles summary, be of XX XX pressuring ton sorting and resulted year test XX%. will size crusher capital or range approximately August, range to grades the results to other crushing, XX% recoveries In over was a over as in these the final August, with that of we words indications finer able the not bulk occurs that ounces gold costs. We microns we for

gold and latter incorporate prices. gold completed QX, be to the improved expected study the the the to and addition will exchange In current in foreign recovery, of economic project updated rates technical half

talk we development one Next about strategy.

smaller is Although optimization we its of a standalone will by the interest important embarking participate conclusion it Todd involves Mt project not development upon our of development. companies Vista in program mitigate plant development an the continue state is finance projects programs. the will opportunity and appropriate to not risk be of develop to that Rather, on Todd of large the in partnering to risk that on compelling to project, the that aggressive best believe shareholders. and We of the the financial dilution our Mt is seek and own

ease last have would you of that of Our like robust status the project astute of significant project, large jurisdiction costs price. project as stay a about achieve price favorable Mt as access the prices with believe We gold tuned to that project, price a demonstrated leverage gold gold. Todd invite reflective makes the Last, investment and our is Vista’s all very the to to of I months for it economics. economics. advanced existing these the in project The valuation efforts priority value a We partner. risk We relates leverage opportunity technically our is potential talk the understand the for the to share higher and a unfold. the has low three infrastructure to permitting of that of

February improving through the the price Vista X.Xx in the is XX.X% further XX, share work on XX.X% in XX.X%. Over percentage GDXJ gold the to of This while price compares This price the relative improved price We enhance optimization enjoy the value believe that gold. a basis. improved period price of ongoing the XX improvement from the X.Xx November gold. Vista’s to the leverage gold the of will or shareholders of improvement

is in As located the if have reservoir paved price recently the one project ideally the existing and we probable value over with believe proven gold such the our the and three that ounces impoundment is It another freshwater reserve, gold storage largest territory northern you of as developer facility. project will Australia. seen gold in discussed Mt infrastructure and conclusion, the improve, to million controls be reserve that Vista lines that In in power space. performing the Australia package commented, investments gold our tailings have gold pipeline, with shareholder to the of have in site, leverage Australia natural single roads The Todd third foundation of project the last created improvement best shareholders you one largest to improve the deposit believe of of Vista months. undeveloped will price and have for we today, X.XX gas

the local and believe the social is that hand. firmly license our stakeholders have in We of earned trust

all group. can environmental small project. very a hold of state for gold permits part major a be they to pleased major are elite that We They

excited forward to QX. and optimization announcement updated are results the and the about of of economic look results programs the technical We ongoing in

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

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

Operator

[Operator question from H.C. Instructions] your Heiko Wainwright. first Ihle And comes from

open. Your line is

Heiko Ihle

taking Hey guys, thanks question. my for

Fred Earnest

Good afternoon. Heiko. Thank you.

Heiko Ihle

the about can there test that should the grades. gold in sentence think Company’s the was complete to mean, there be over above leach spoke extirpation and January? you a Is grinding broad remaining Did range going confirm earnings of to tests that or a something? Because has us the quarter. ore you a head early see in of XX% expecting out in we recoveries fine was used timeline release you you any Hey. the to I that updates give first it I said come that been

Fred Earnest

will by January in would be end we We're don't the announce part sometime first have work the still that in for We're at year, and the tests. that the quarter. test have both Metallurgy hopeful fine now sorting of shift we completed QX, discussed by that grinding that multiple and labs. and be by the and the that the results followed received waiting those role the grinding of that test be be Yes. be assays results ore able completed. of will they end and leaching the that of announced FLSmidth those subsequently were around prepared Heiko, end results will projected quarter, start late first been We the quarter, will the pressure have grinding tests test high in to but back Core will October know I the we've which and in of is asset case. work this the we for January. completed samples The work the

Heiko Ihle

really only this only weeks then away. weeks, X And X.X Okay.

of whole on that was in at timeline you also comes just along when sort So really updated a it's to time, And pretty guys always not that stuff. that pretty which efficient still And is question, good. lot last January, it the of schedule announced is to you PFS, that track? up, follow

Fred Earnest

that still those the will of publish schedule in we FLSmidth now, end May. of Provided ground timely and somewhere PFS the but targeting toward latter by on a uncertainty then be samples those that that's Core update samples the the right results, processed to get are and manner, part Metallurgy provided the QX

Heiko Ihle

Okay.

there the six So about week that probably fair of say to the PFS? is gap a to eight is it results week between

Fred Earnest

From time the that of announced grinding tests we leaching the announcing the results. results the time PFS to

I think that six a weeks is to eight reasonable time. weeks

Heiko Ihle

Excellent. you Keep guys. on. it Thank

Fred Earnest

Heiko. Thanks,

Operator

call time. turn no to this are There Instructions] the our [Operator at presenters. I’ll further questions back

Fred Earnest

time Very Thank Kenzie. call gentlemen the good. this be taking you on you and thank Again, ladies for afternoon. to

the year similar very the work project. to gold indicated, progress that's exciting think result we and Todd right we've potential has Mt a improvements was significant, for the us As XXXX in in now to

As encourage to programs time able those testing indicated and afternoon. very everybody's results tuned very response in to the working appreciate when you And announced. questions, all We results attentive the we're and finalize stay this those wish good with a afternoon. that and on to to Heiko’s announce call be be to pleasant they're we to we that, and to you

Operator

This conference call. concludes today's

You may now disconnect.

Vista Gold (VGZ) 27 Feb 192018 Q4 Earnings call transcript