VGZ - Earnings call transcript Q1 2019

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Operator

Good day, ladies and gentlemen. Welcome to Vista Gold's First Quarter Financial Results and Corporate Update Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this call is being recorded, today is Wednesday, May 8, 2019. It is now my pleasure to introduce Vista's Vice President of Investor Relations, Ms. Solly. Pamela Ms. ahead, go Please

Solly.

Pamela Solly

Solly, you, Shelly. you XXXX gentlemen, thank I'm ladies results Investor Good joining the morning, Pamela call. for conference quarter corporate and President Vista of and Relations. and update Thank Vice Gold financial first

different call of Earnest, President uncertainties today statements. will making this Engele, call, and Vista and Officer. Financial refer These now Earnest. Fred detailed risks from which and may results, and actual to achievements from factors, statements. known other or Please forward-looking risks, to President expressed be our we could and Vice achievements Chief is other important and most I statements forward-looking In discussion the materially will CEO; Jack the of factors On Senior Form the call unknown or results, involve to actual course materially any be the cause a differ performance performance that results of recently to or for those statements. implied Fred by cause our over such filed turn in future XX-Q

Frederick Earnest

nearing Thank you, last conference are testing programs call our have made Pam. progress and February, our good in Since metallurgical completion.

Board. a added to new have Director We the

the Jack working turn the test time for the incorporate I'll in Engele. to in but Mt. I'll with of to preliminary Todd forward coming look are project economic mine able detail these new results greater Territory management call, We study months Mines Northern gold we the in as are now review the over Department topics discuss current later We closely the in plan. our the of to feasibility in updating parameters.

John Engele

million of for in The expenses March start Todd $X.X other Good and $X.X million operating afternoon, holding slightly quarter. million statement This Gold are; and a quarter of and for million $X.X of $X.XX loss million reported offset loss the everyone. discretionary loss $X.X Principal XX, about Todd; on costs million. components cash ended Midas $X.X Thank mark-to-market our the site main our share of the the of a about fixed income expenses with a net components Mt. million are We you, or Corp. Mt. Fred. G&A I'll of XXXX. corporate at $X.X by $X.X investment about cash million operating of was costs; of $X.X income costs. of of loss

administration QX Other XX% XXXX water Australian relatively XX% Our with as factors costs in reduction. the a lower XXXX holding QX Batman of lower about weaker this included than were about Pit for accounting Mt. XXXX for from planned Todd than dollar discharge season about a corporate lower precipitation reduced also the XXXX wet the reduced monitoring of relatively discretionary from QX Certain also XX% XXXX. result certain and QX programs lower than in scope during baseline was XXXX of XXXX trended XXXX. activities. costs

XXXX in relations, do costs. which costs the our costs not of to Mt. update, include quarter some regulatory additional first affected of completion XXXX, As related XXXX PFS investor compensation the and Todd the experienced

$X total was working capital our XX, to about the free. debt continues second received total project included the March T-Bills of we starting XXXX this option $X.X a additional cash about balance de this Turning forma XX, for totaled about pro T-Bills On million. Guadalupe basis On Reyes and and company cash. XXXX, April The payment los with interest XX, to and $XX,XXX. $X.X On million March be for sheet of our million. $XX.X XX, million March on cash

October I Guadalupe Potential XX option de note would future the the and in planned will continues this the the to that mill of non-dilutive and be market some of equipment. all our A.M. fixed mill fund the of Over you sufficient million to and future continue currently of sale ahead, is The we that non-dilutive in to we or on concludes monetization Looking equipment sale for King together programs of continue of payments due Mexico. fully used $X.X our my include Midas for months. our finance receive payment existing or Fred. market year. for sources conditions royalty next discretionary of costs project working potential believe some course, us, interests. of sources That of shares capital possible than depending the enquires, with to credible los all our our to more comments. financing, Reyes Industries

Frederick Earnest

Jack. you, Thank good. Very

Vice some welcoming of begin public Pam all, by executing coordinating new with enhancing like in look topics Investor has and Investor spend and than X time about company some Pam we of expertise and brings to I with communications forward about start I of with of the at Relations. a detail programs us more on -- more years detailed Vista's call. Solly, Pam I'll of of developing, experience. the April and in metallurgical as First testing. more the extensive President the XX our Relations working corporate Investor would to in talking introduced Relations little bit the I'll that her joined programs. now She start

a basis XX achieve recoveries have announced to the of stirred required to results The project tests results XX economics. size XXXX media this to vertical higher microns at tests provide The Mt. of and tests study. leach test both The in broad in testing in demonstrated grinding that the feed testing preliminary year. In final laboratories last the mills. in undertake support which results in for update of confirm April from of the sorting power During recovery fine grinding both and of a Todd favorable ore we grinding has microns our effectively higher were grind range of continued adjustment the of previous to tests expect the the project target materials horizontal we metallurgical for tests, tests we efficiency quarter, kilograms grades generated was feasibility announced achieve the ability samples gold size of anticipated preliminary to over to grade to complete. labs a confirmed additional August on grinding the we grind and the This Metallurgy additional and of year, XX Core of preliminary the XX that evaluation. requirements confirmed less of FLSmidth fine the estimated than indicated our and XXX lower power confirm

the tests improvement and to the samples Mt. recovery curves gold indicate We grind the between add gold grades. covering well Todd With established. ore coming a assumed is exceeding approximately to these Mt. potential each recovery in we The in weeks, results project Todd's $XX in range maybe leach recovery could wide relationship IRR on that after generate and expect X.X% discount. achieved and the XX% the tests that tax feed after recovery the X% compared recoveries January of size of NPV XXXX believe completion our at to tax gold the to indicates anticipated leach Todd gold grinding Mt. XX.X% X% for as grind PFS. of size a million the Analysis approximately leaching

the gold recovery, U.S. grind the has since to which of result addition final January project to in from changed rate these In size, exchange dollar dollar favorable foreign last improvements to Australian the year.

also and on capital Australian study. dollars, be the to operating XX% updated the a of preliminary denominated feasibility included economics costs project has in and are this positive approximately As significant impact in will XX%

from believe Gold Next, the Directors company ventures Corp. let the the of intrinsic of that Graham and to project. Friedman Todd Ms. international as & realize briefly line partner experience domestic Deborah Directors exploration of appointed major, be from expanded a of operation Vista executive talk March, -- me of and experience changes junior Mt. ventures, a Friedman's development value we a corporate Directors. shareholder will the finance, project Ms. mine in project the with with We Denver. In development a about business and matters company. benefit the is its Stubbs Deborah X X XX Board. as and years combination, in and efforts Board the and and joint of Board value is size to Friedman companies and the mining mine company of law past to with firm the welcome LLP retired continues project with over Davis of Director joint domestic and successful international We also industry mid-tier to gold

of February, in a the submitted of November me mine let Mt. prepared In equivalent latter authorization permit Next, provide Mine Todd you an receiving anticipated on we update QX in year. permitting. had operating reported we to part MMP Plan, XXXX, Management the project of and of the the during America, North final this of with that and

in complete we expect we approved, Mines, of adequate the conversations department line project. major recent Mt. previous year. Territory not to to the the will this permits for Department of now Todd communications receive with review the we does during with resources and us, hold have Once Northern the second sometime their half authorization that Following all understand to the

two to coming mid-May with talk we released expected parts, me in next? these final in updated first will about and expected let are The Next, the in months. work June, which metallurgical into incorporate results feasibility the results additional the issued preliminary be -- an second early what's is to the study, in the -- final of test then that be

programs, optimization is will gold to project upcoming market. embarking important an the it With project program I in aggressive to and not planned on state will -- Vista of conclusion repeat, develop not the be that this our finance

enhancing the value several past creating, Todd. the over actions have Our preserving demonstrated commitment of and our to Mt. years

these in jurisdiction project costs value of technically Our an valuation is the factors, whose and the economies. that priority not large the low-risk exceptional project believe with that is very We of existing coupled status our project infrastructure Todd robust of has advanced of project project, ease to with and favorable a access, achieve Mt. make reflective permitting appreciated. a the a

a the economics. to for like moment project me specifically value performance. to gold to price leverage higher all prices it Vista's understand about the about talk We as Let price. I talk gold of share would relates

However, demonstrated way. our that months have has an interesting the share to leverage price price the gold in last the X

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

reserve fresh gold million probable is package in in Australia. and and proven project other improved and site, existing Todd have gold deposit, leverage pipeline, and Mt. our as The X.XX have price facility. to such we Northern to reserves, is conclusion, months. of have largest for lines value in and we impoundment natural the project Vista the infrastructure the With controls today Territory in undeveloped of over to largest reservoir the foundation tailings discussed gold seen water It storage Australia. project that last single located -- the Australia. Finally roads power With shareholder third ideally the the improvements ounces created paved gas X

of look We've the Mine We updated the on and results environmental of the the and are announcement the believe land focused and and gaining permits, of social hand. authorization Management secure ongoing in about major stakeholders the authorization results hard and of coming trust We're to worked licenses optimization to have of programs earned months. technical the excited the that economic local now weeks from our forward the Plan. the

looking opportunity call. potential investment exceptional value, participants value to be investor That to the you growth Todd We'll We an believe Mt. gold on any to and the which now For respond leverage a price. of and found Vista represents our on the for the website more prepared accorded project, at Gold to refer for that can gold assessment remarks. concludes our Vista our from presentation, the I comprehensive www.vistagold.com. corporate questions

Operator

line from Wainwright. of [Operator Ihle from Instructions] H.C. Our Heiko comes question first

Heiko Ihle

for my Thanks taking questions.

Frederick Earnest

Good afternoon Heiko. your morning, time. Good

Heiko Ihle

few some that you going what's notably, and next Can the recovery expect the on provide and testing costs anticipated for to through? months you color required leach p.m. the program expenditures the complete for PFS you're the X that Yeah, still over

Frederick Earnest

sorry, broke I'm Australia. Heiko, repeat up a questions? bit in I'm -- you the Can just little you can

Heiko Ihle

program? that of and Of for some what on the course. expect the complete required provide Can you notably, still color expenditures the to testing that you costs months, the the and recovery anticipated is for next throughout leach PFS couple

Frederick Earnest

Yes.

Germany then that and hard and ore year that we're returning last right has leach -- test that's the test grinding drilling we're thousand bit that recovery has the material. Todd little that shipping now of the undertaking hundred believe then meters The started So it for completed work included And we X,XXX been gold to XX.X% dollars. couple to being completing more The it demonstrate the gold and a and program work, improvements the value than or -- test right with with at of work value that tests, we've Heiko, crushing has a sorting of a the of it. work now, all with industry, from we Mt. at able to increase million. to, recovery be Getting over work will able is a and $X total very is expenditure, XX%. we'll in challenge

has the this, that that's of been X gain spent. made X.X percentage recovery think well to order in has the I been gold money to Vista point on expenditure something very that increase

Heiko Ihle

the answer no, los as any Reyes assume pretty the is the is any Okay. And received for but fund work option stands. again, it is inflows? on money can there de sheet given mean more just dependent strong I actually was especially I answer assume PFS the is that's receiving and Guadalupe confirm no, to you I the us, related balance

Frederick Earnest

completing the answer absolutely complete just analysis. appropriate right, to matter not benchmarking and designs Heiko, Heiko. of to the rather exercise, test any kind work. the question this It's be We that completing able you're undertaking checks is And no. a require No, funding financial accordingly work, additional the then updating part do to and exercises of an are and the of then

Heiko Ihle

Got it. And then well, more. just one

can in compare and -- were and is also million valuation if again, I than you quite average. holding the $X.X XX% it's property trend you it bit you quarter per quite more $X.X when a down to which, year-over-year And line million costs XXXX, And spend mean exploration down Your out on just bold, it's we $XXX,XXX. it they're on just you But the use monitoring, maybe discharge, for expect guidance some stuff. that based you the to if all the please? figure this feel water remainder And give cash of see even year? some baseline outflows for where of on just we should quarter-by-quarter that of good guidance sort

Frederick Earnest

you respond to like to would that Yeah. Jack, question?

John Engele

these In give some for of Todd, in total spend low costs words, little to a XXXX. than on the that relatively QX -- not that of -- about at we're burn through the XX% let of to costs, course XXXX. regard for with costs and holdings. for about and color Heiko, Sure. the We're stake QX money going Mt. holding QX. total corporate, lower we was me about characterize timing. as looking you at other That's in just spend spent Well, our That's stood X% XXXX XX% corporate costs. million burn $XX.X our

U.S. dollars talking I'm So, here.

Bear on as well quarter. come going are maybe the to could color about with down a XX% give I you discretionary little programs me, Our from XXXX.

at As timing little Mt. inordinately spending. similar I QX is low differences, sorry. it's to some was Normally going -- expect because up -- suggested, QX to to we Todd, very going and be our a QX QX come given

Heiko Ihle

said, I okay.

John Engele

QX activities, Okay. discharge because the expect at we come come spending down little. water Mt. we and to down QX, look little. a activities QX, Todd any QX. the to to highest is QX quarter costs like of related a expect a lot Normally be And to expect we going

going ranging year, million as in total $X.X burn west. be suggested, the the $X is to to I So million the on

Heiko Ihle

appreciate the it. I color there. helpful. Thanks very for That's

John Engele

Sure. Okay.

Heiko Ihle

back queue. Thank in get you. I'll

Frederick Earnest

Thanks Heiko.

Operator

the Partners. ROTH question Sekelsky next Capital Your comes from Jake from [Operator line of Instructions]

Jacob Sekelsky

thanks Hey for questions. my guys, taking

Frederick Earnest

Hello Jake.

Jacob Sekelsky

mean with on the should changes to used. would gold recoveries along the I other I'm in Are start and update rates I of thinking lines expect the costs PFS. FX prices more we any of there see,

Just any helpful? would color on be that

John Engele

PFS will programs the the of be in that testing update gold discussed. anticipated and that by we've recovery changes supported biggest the The will be

of rate we year. $X.XX that PFS big that rate dollar and a will we last close conservative see last Australian we be At $X.XX. will just that. likely And that in But obviously, was the rate foreign update we U.S. use that's range change the rate Today of had change foreign rate to a other was rate used. impact. an exchange somewhere XX% The the per of in to at exchange the the slightly exchange the foreign January roughly will have exchange in important

of things are any in and We there capital anticipating be indicating that significant this -- are evaluations not that we -- design at costs. will like point the grinding not the changes the

are equipment. consumable all of costs components, both We're capital the for the also materials the minor recoding of and all major We equipment project. recoding

of as closer look all obviously be With updated we And gold sensitivity the -- we'll so at price the release price, the above regards gold bit used get to below range. in when to the a will $XX there analysis January of that will with results and and we of -- reported at gold $XX.XX a price $X,XXX XXXX, little in a well. that increments take price this that

we the results if gold price I of price to announcement probably have $X,XXX the report continue of is and anywhere $XX.XX that use and at past. a think we'll $XX.XX gold between in sensitivity time the as

Jacob Sekelsky

off Got field also the that's just in questions sheet. it. the of cycles That's around then the helpful, helpful. -- balance And

of marketing actively -- number. for in used mill interested and the up still are who equipment sale at Then late looking parties that? holding -- Just any you

Frederick Earnest

We marketing to A.M. our be Industries actively it, continue King are still agent.

in continue But we enquiry be interesting We've talk the expansions are to there's they continues thinking that recently some result interest that to trying there and As about developing at or the it. And use people have potential are to all one of we'll a had believe credible companies is could to who to site Jack that inspection that have equipment. there with June. I or or that that developing is materializes interest going and of -- on pleased projects enquiries, able the if the end advance projects been about indicated coming be from we're call, there.

of balance to a a that's or us cash of being So or the to obviously would for our significant all part priority be equipment mill able sell addition and high monetize sheet. very

Jacob Sekelsky

Very good. Thanks guys. That's all my for end.

Frederick Earnest

Thank a Have you, wonderful Jake. afternoon.

Operator

no turn the this Earnest are further call at to remarks. time. There over back closing questions I'll Instructions] Mr. for [Operator

Frederick Earnest

like Very Thank I'd thank afternoon. this have of who to joined We the wish you call you, Shelly. good. day. of to all all take very pleasant a this opportunity us you, on

As will attended to excited and look from call, preliminary then will indicated the the that part And specifically going in study you weeks, we and of complete in we that. completed. looking the announcement of about there work results, forward June to again invite testing announcement of middle we the results, an forward coming test be to metallurgical when May the update in results. be of there, those is leach And we feasibility the be to we're first

I to markets think and an to is alert and who opportunities been I who that we're significant we're call this things Gold attentive there it and improvements certainly And are increases that and dynamic in who that to Vista opportunities sector. those gold things progressing, look and value. that may an price Vista in our take realize Gold these for are in time the that working all those accomplishing. exciting this serious and and such that at we has listen on represents invite to the on developing think the subsequently stories is are and a quite know We people opportunity.

questions free help -- to can further assistance, and and information, to get you will reach you you have. to be she feel or you out If direct Solly that require you who please answers the to Pam person to please the the help happy

pleasant you a that thank very your that. we'll you and we day wish call with for the time with So and conclude all

Operator

That concludes today's conference call.

disconnect. now may You

Vista Gold (VGZ) 12 May 192019 Q1 Earnings call transcript