VGZ - Earnings call transcript Q4 2020

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Operator

Good day, ladies and gentlemen. Welcome to Vista Gold's 2020 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, today, as of Monday, March 1, 2021. pleasure Pamela my of Vice now Relations. Investor is to Solly, introduce President It Ma'am. ahead, go Please

Pamela Solly

Thank good and Eduardo, of Vista call. you, and Pamela Investor Gold joining you I'm XXXX the Relations. for financial Vice results Solly, corporate conference day, update President everyone. Thank

and On call Officer; Fred Chief Financial and Chief Ernest, the Tobler, President Officer. is Executive today Doug

materially results, risks, or During performance from may statements involve These making Please by forward-looking the those statements. statements. that Vista of course forward-looking will other of statements. XX-K factors in for now achievements or results, most factors and of I or call over turn this refer uncertainties unknown to call, such cause differ recently different other we actual Ernest. important achievements filed will be actual materially implied Form to, and from known to our be cause Fred that expressed our and risks could performance the details to results

Fred Ernest

thank And in spite joining to by our objectives, corporate Pam. We're us XXXX achieve the many you, challenges pleased pandemic. today. call you, the of presented extremely Thank the of on for COVID-XX everyone,

XXXX to addressing impacts The live our and begin the be priority I'd summarizing to the a and pandemic. highlights, of for health company. ongoing in by COVID-XX our well-being which we Before of and employees, our communities like the work continues

relaxed. basis. limited cases in-person and Northern travel continue the activities the corporate almost conference Australia in-office a corporate with subsides, been Our measures Until of have COVID-XX In on video working the Territory participation. team or significantly control has nil and pandemic executive in-conference and replaced are conferencing remotely

is mitigation restrictive. an management and presently our healthy. in remain U.S. and operate approved Now, workforce Todd plan to the on both less continues Australia To-date, COVID-XX that

discuss project, strong our sheet, achieved maintained we executed we gold as value Mt and opportunities financial strengthen to balance I'll time topics to XX, opportunities, I later to for identified delivered license will the growth targeting commenced of in adjacent turn a the strong December our Doug call. Tobler, on bring greater and year for initiatives greater detail the these financial results Todd our in performance, ended over exploration to our our deposit. XXXX. the XXXX, social advance to But our CFO, review and Batman During now resource

Doug Tobler

our December the Thank start today. on sufficient assets and year had position We today to and non-core solid of achieved for proceeds discussing Overall, very XXXX build expenditures, we realized goal win fully strength those Fred call the at as cover you, I'll Fred, XX, and from thanks our our a by cash successfully our said. balance dilution. listening XXXX. importantly, sheet our

few XXXX. XXXX put that $X.X achieved increase and $X.X was million in free. of several ended debt we million from on deals remain cash investments. short-term of a million We come We place at additional through in also sources of XXXX, This cash during also the up end cash will and for That's means. with $X.X hand about

total year-over-year check, $X of our expenditures for XXXX. we kept of in over with each First, spending in million XXXX just

partial million just Indonesia Secondly, realized of project Indonesia, dilution effective, included gains of balance under of net a in million and during just property transactions price net over to we assets on payment during were those successfully monetized non-core XXXX, a million. sheet And And additional us $X final Also, the that this Gold ones which for to on included as transactions can several payments stability. to were shares Mexico We with cash proceeds a realizing $X Midas provided non-core I shares to these allowed when additional up in potential to should and final flows, these very mention cash shares, Vista we've received amount. $X.X our us of of the royalty the proceeds of issuances XXXX. trading sale XXXX, of were issued the $X and And a already Mexico. above I proceeds sale And with $X.X million a that that keep report cash this on a the issued. during note million way of provide as about X% cancellation minimal.

shape That another to gains Indonesia just million consistent largely from I'll million. and came from holding nutshell, XXXX. current XXXX, for our good everything to in corporate statement a of Todd we last we and of our from income else loss us expenses, the other a over on all which from Turning sales puts cash with a Mt each Gold shares. basis. and income $XXX,XXX year-over-year costs, and statement, our transactions, a review and consistent offset of favorably million the In prospect XXXX to Expenses of years. the remain financial Mexico and additional of of on expect about income cover loss outlook income reported our this brief $X.X compares inflows remain close $X.X in with $X for our assets very from to couple sheet Midas of balance report non-core

XXXX. and other to ongoing Fred doing of will that now, by accelerating the call improve program to effectively In should able for have opportunities at influence favorably these path drilling the in a review, financial evaluation which few a room minutes. turn issuance Batman will to that I’ll dewater keep the over Thank to evaluating, we're programs follow-on distinct the program signal Todd's and we to drilling Fred. be pit, prospects issuance, of our Mt Success help similar that least things discuss we're on-the-ground the generally concludes We programs. That to also back you. course, few minimum a larger to

Fred Ernest

an then Doug. outlook I'll for and the review you, a of year. provide the achievements Thank remainder our begin of with XXXX

strengthening diligently assets, part objectives, non-core the As managing successful focus on sheet our capital spending. through balance of and approach monetization a disciplined costs of our to XXXX and our we

and a generate to year additional was $X.X million million has which positioned million with stated, received $X.X up cash to of of As we $X.X January. in during of cash XXXX, company the ended the Doug

zero are to very pleased debt. have We

in bring and project to advanced Todd greater to opportunities on seeing advance we we at a or With share our Mt price reflected market Looking commenced Todd, this and Mt several and project of in have the value are greater focused portion cap. initiatives. end mind, advancing value

on the mine update an First, plan. management

test Tourism understanding which Mines the Department Division and the the we a the program. of and We mineralization, deposit, of approval to is are advance effectively the Department Trade, Territory Northern of the formed of of far results the coming and one and Today, part pleased of results of program, is in near It exploration, the its north With the Todd the Industry, Mt to with regards through drill next adding holes and to the Mine the newly excited be referred weeks. the Batman the holes worked mineralization. very Plan, across is results includes reporting last as be Mines Northern have finalizing we'll future. of to XXX-metres reported the in review Territory holes are to and that the for as government from continuity second accelerate the and three four, about NT the of also drilling very we We're review extend will we approved north which initiated modeled to have believe Management mineralized assay MMP. our the MMP extending program structure, as that

Todd updated in Our gold the its as the Batman milestone water price, million. the by significant to value an XXXX. every the the level by the program level development based higher Through $XXX important XX-metres tax pit updated to in water Also, analysis, the And was sensitivity leverage and lowered management at for future in discount project and $XXX significant gold expect Mt XXXX, Batman increases dewatering, gold after on approximately in pit net mid-XXXX, decisions. the X% sustained rate achieved in the company we XXXX, price. in project effectively for dewatered representing demonstrated present shown project results be increase a analysis sensitivity prices. continued

higher internal prices. evaluations initiated to gold also We related

$X,XXX. commissioning in today's to that used Association in mine study capital feasibility royalty to prices, an components update Mt modestly and strong Our economic Maintaining costs $X,XXX dollars, XXXX scale gold Todd. heritage begun decisions Aboriginal for another top a we impact to conservative. is price agreement, and based of license, to market higher Aboriginal experienced rate preliminary the and $X.X very an reserve the on of continues of of are for those after-tax Association's considering venture an gold greater $XXX million which commitments. formalizes in are social In of with a sustainable With existing to cooperation company. replaces XX.X%. with have reached the with our At be joint exchange mutual of ramp-up changing preliminary open is the $X.XX billion price, gold projects. flexibility opportunities and its group price be partner using IRR participating and commitment Todd. $X,XXX gold in rate develop estimated reserves become greater Australian at evaluating confirmed the $X,XXX of Corporation and Mt and sites, independent, of XXXX, XX.X%. planning, was had development our social and XXXX The of our internal has in for X% design study Early exchange $X,XXX feasibility approximately and project. Mt identify, our Vista at provide from Association to and in with after-tax cultural sliding peer the slightly by and The priority XXXX, a to and rate price include the agreement estimated to announced grade, modernized we as for tons rate benchmarking pit same U.S. operate This with Jawoyn work study an the a XXXX provides positive closely create announced the to economic potential an after-tax per XX% an support Of a of and only at to and Batmen of the of the royalty protecting with the cultural an study sliding Jawoyn integral study. people, November schedules our be to industry-leader estimated awareness the Jawoyn construction, $X.XX, the we more overall of the benchmarking This completed previous also scale rate to preliminary after-tax discount agreement note, i.e. results license extend Todd, feasibility that estimates operating in NPV line the NPVX at lower return life increase time we an

price, XX, Moving at share to performance our our share price December XXXX.

Our shares shares XX% of XX.X% is increased price XXXX Vista which GDXJ, the December closed from outperformed significantly at our which up this $X.XX, during period. same XX, share $X.XX.

ahead, value of realize the are more Looking that excited programs Mt ongoing Todd. we significant about in shareholder value, opportunities with to line present

As program. success part on drill are extend of these drill efforts, program, and the current to of our a second early exploration and we accelerate based adding the ongoing

this forward future. upcoming few very approval in are look into expected to we completion the near later continuing believe quarter. of dewatering catalysts Plan, including, I we year. of of well the addition, In And weeks second and Management as Mine Batman final to made results is Mt our of forthcoming which the Todd a the reference the pit Drill coming over the

We and identify Mt partners strategic engage opportunities to with of the advance potential development to continue Todd.

COVID-XX As may a of this longer anticipated. than result pandemic, process take the

that we meets on three remain criteria. focused transaction, completing one the However, right

of Todd appropriately intrinsic First, value Mt value the with shareholders recognizes creation. reward and

third basis dilution. standalone maximum on best dilution preserves Second, Todd in our is shareholders, that and for project debt needed minimizes to the our not We believe interest build of ownership Mt and future shareholders. a

factors economics reflective in location and evaluation permits Our the is for low favorable approvals gold environmental have its major infrastructure attractive Mt that development coupled management Northern fact projects plan Mt to in robust world. operating the on in costs, hold that and a objective Together of gold the most very stage the is low the the all expect we risk shortlist to in near the permit future. technically project the excellent the the advanced stage of We operating achieve size Todd deposit. with for project Territory, Todd that and these Australia place or with of mine the is of believe

economics Our of conditions basis exhausted provide technical prospective robust solid for And with the studies development a engagement the project. current demonstrate partners. market

the we the tailings Northern is Territory proven gas price have work and shareholder over reserves freshwater is in environment we X.XX but we completed of governments exchange the an exceptional strong cusp and leverage potential, this foreign world represents Todd, of and price. believe stimulus consider coming believe strong an rate prospective who in present recognize return power that the with The including reserves, Australia, ounces risk Mt to project and price net the well-positioned with exceptional greater last estimated facilities. probable partners, and and around have in with de-risk to Australia, rate other bodes $X.X of as gold mining has greater although prices Vista the opportunity to of largest after-tax improve the gold the and Todd and rate, The package the profile, a to for Todd We approximately we mineral an have lines, after-tax well after-tax pipeline, improving Mt have Todd and reserves Vista of the somewhat gold and with XXXX, Todd current geopolitical an roads Mt project the impoundment Australia. undeveloped discount gold ideally the positioned appropriately paved project of natural that shareholders. and for market with price, IRR economics, gold the gold NPV infrastructure has continues approving to investment largest and of X will third site than looking growth internal find reward In to we jurisdiction and project reservoir, improvements project in conclusion, achieved for especially billion, after-tax the of Vista created ourselves gold economics in value along than continue for in an the packages. XX%. Mt our development years, million value sustained that X% demonstrate exchange reiterate XX XX%. value, At XX-months. and several I of to to billion, production rate, the controls And We Tier the on Mt Gold today's and $X.X current volatile approximately foundation gold exposure prices, the our gold the in existing modestly additional a investor located experienced. value foreign low storage advance believe leverage

same commitment in at the gold most for politically is as believe just earned the our advance a of project, one firmly that a mind that authorization Todd located to shareholders. and time, reiterate of stage believe trust permits. jurisdiction, the a We Australia, receiving to the finding Mt stable major in and in management the iterated, that license we the have stakeholders of superior mining-friendly worked our to social very realize of hand. and is attractive to and We local development have our hard we And close projects, asset We've believe authorization secure not partner I world. the but I plan. the value in environmental are the

leverage growth Mt potential, For investors in a to assessment I represents our more exceptional corporate found for price. can you Gold project, value, looking exposure, website low investment strong of accorded Vista comprehensive which We Vista to for at that risk Todd gold to www.vistagold.com. opportunity value believe the an and our geopolitical be refer presentation, the on the

call. take from on We participants any will now questions the

Operator

our Partners. ahead. Alliance Thank now Global question you. Please Sekelsky go We'll [Operator from Jake first Instructions] take at

Jake Sekelsky

questions. Hey, my for guys. Thanks taking

Fred Ernest

morning, Jake. Good

Jake Sekelsky

Thanks.

set receive? timing Doug's sheet, around up are in expectations on Following that million balance remaining of to payments the the $X.X-ish you're what comments the on your

Doug Tobler

Sure.

So option during million, the million about is to QX. $X.X agreement, be would to $X I'm it And another an and that would would speak potentially come one QX. in then come

$X.X be $X.X received that'd we So already million. and million

Jake Sekelsky

Got it.

Okay.

So QX QX. and

Doug Tobler

Yes.

Jake Sekelsky

program? accelerate Or And exploration mentioned the second initially then, expansion you more the drill to planned existing Is view you of added exploration. activities? to Fred, this shifting as that we that a should an rig.

Fred Ernest

of both. deposit result, to the make efficient manner. Batman been more rig. to the to faster We and so second intersection zones be a of back we've want next as drill in the a to north we've regards very where get projected actually have far, The decisions mineralized results And It's results seen able that with added the encouraging.

will together that spacing, the the decision so, more we and hence bring And results able program, second of the But drilling made expansion to want trying it be both, mineralization. also, string extension to an and to want of we the more continuity be more drilling going we're to meters, sections, generate the in we've be drill we're quickly, a going be more because to to closer to drill. to sections,

Jake Sekelsky

helpful. that at know just Okay. that's MMP any the the And and in Once are hand, point? expecting ready project shortly. or you're that are I permitting, That's then there lastly, shovel fully on permits other needed

Fred Ernest

be That There permits. last other minor number will be Alright. of for project. will the a permit major the

We individual permit. the construction getting designs is only presenting plans, will use of involves short, the permits. permits appropriate all paying and an other will the very to approvals. in and require many explosives receiving There be fees pathway But cases,

the very milestone of part been be will really XXXX, the a and So milestone that on, since it this one project. tremendous a latter working in we've advancing is significant

Jake Sekelsky

Got it.

Okay. all That's again. me. Thanks for

Fred Ernest

for Thanks Jake. the on morning, being call this

Operator

next go H.C. our from question Please ahead. take at Heiko Ihle Wainwright. We'll

Heiko Ihle

the Hey, there. index morning. to Nice year. guys Good last see outperforming you

drilling, with question Let's a Jake with earlier. talk a more bit little about

of the second is you rig, than maybe the planned And drilling? on did I outcome color more the With could secured. touch just or you provide if assume what's the availability the cost? earlier

Fred Ernest

Yes.

for outcome drilling budget The for million of year with additional right million from planned there's drilling. the last we of the to $X.X something is to familiar corporate on increasing order had So, those the are who structural deposit now from as what from southwest $X the host Quigleys located our presentation, anticipating on to the deposit Batman across the deposit mineralization the the trending the at the Batman is the southwest that's end of boundaries to a the known southern northeast, of Northeast. the end license, mining corridor, to on we're

concept confidence between is were purpose years, we the gold gold. purpose of we localized number to continuity of Based to mineralization the that greater the between on program have of drilling that is we significantly of we've completed, of to that try understand high trying two And degree the and on these that hosts very to the deposits. the many continuity drilling drilling there there's that was deposits, i.e., geology continuous. to And thought domain the mineralization had a the the to occurrences the identify and two that now we much both sulfides gold the of more veining believe For major quartz structures deposit, geologists the started in the and that of appropriate proof better the the in and fall the work at our more the mapping, host the locate done test last level hosts that Batman domain. the structural validate with the calcite that structural mineralization these a

ultimately, And doing and drilling, significantly we're ultimately the more that work so, Todd will an the project. foundation on now an in lay in Mt increase the increase believe reserves, extension the of an for resources, life we that that right with

four these results, forward able hope will the weeks announce we're we the and go that that in original enthusiasm to market the of and made So, our we coming why things, holes for all the with appreciate drill. far, results as very understand to that decision the in thus last program are the exciting Heiko, you'll another the

Heiko Ihle

right? I Are you announced unchanged? line? unchanged day, Jawoyn, question. the helpful, pretty amended Is that mean, community The the remember slightly the for you I agreement the are relations grape hearing company? if different was the What much ago, was they months your Completely, more way. are it following November Thank completely seeing three are XX, right. done through by positive to it Very you.

Fred Ernest

they and the with of that initiative Aboriginal the in The to people achieve. an modernization relationship Our we with wanted excellent. started, some they is was things jumped that Jawoyn agreement

sites. right a to visiting with these. to of parts care we to where Forum. how But being Mt we're find we are reported the which the we the the we contrast of observed that agreement these people and and Leaders to to development Todd of that that and had visited we procedures the people project, leader an Wurmbrand of she policy and One has the the Jawoyn refine very visited Mines, was of And of she to Aboriginal protection make, a a Minister Leaders we us community, any of about to first going excited with work with supportive heritage our treat identify prior unbeknownst sites. the now a of them the industry Territory Northern a on respect. We working of note, other couple the couple work our surprised weeks with them, cultural was of the the we're elders to commented she and of them, Todd Community, Mt for Of sites start very opportunity disturb from around that as and to site, them the us help mine when to are, formation people. within held the there, ago, is Jawoyn sure treat weeks know very very develop goals of that ago. community more was more to our visit And don't she our a she's a Forum Aboriginal the closely what execute us pay and fee formally, objectives regards And make on appropriate closely with consulting we them monthly meeting

done the engage of that people. she Jawoyn them, work to with And so Aboriginal the was very we've complimentary

is that Aboriginal. project. people the employment the of the proud fact at as And over continue very we opportunities Lastly Aboriginal we develop provide to Mt note, of half of for we're Todd to our expect workforce

Heiko Ihle

so comprehensive answer, Very always. And for helpful. your as safe. you stay Thank much

Fred Ernest

day. Heiko. Have great a Thanks,

Fred Ernest

Vista Gold (VGZ) 1 Mar 212020 Q4 Earnings call transcript