VGZ - Earnings call 3 2022 | Vista Gold Corp.

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Operator

Good day, ladies and gentlemen. Welcome to Vista Gold's Third Quarter 2022 Financial Results and Corporate Update Conference Call.

[Operator Instructions]

As a reminder, this conference call is being recorded today is Thursday, October 27, 2022. It's now my pleasure to introduce Pamela Solly, Vice President of Investor Relations. ahead. go Please

Pamela Solly

and the Sergio, everyone. you Thank Thank Gold good Corp. joining Vista for you, day,

Third Financial Relations. Pamela Solly, Quarter Call. Vice Conference XXXX President Results and of Investor Update Corporate I'm

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

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

the over turn Earnest. call Fred to I will now

Frederick H. Earnest

everyone us you Pam, the on you, today. thank and Thank who's joining to call

we shareholder maximize industry XX quarter, CIBC the in value. and In advanced one-on-one hosted our with X we more than participated meetings. conferences work to During investor September,

completion study the later these reduction the feasibility costs, to We turn and expenditures debt. ended achieved XX, in no greater results the a of continue financial will for Tobler a to have XXXX. the X.X with cash USD quarter programs review to efforts position ended September I and control quarter-over-quarter. a topics of for and in third significant ongoing the in but I'll million Doug quarter discuss call, over we detail With management's now the time of our exploration

Douglas Tobler

Vista and and that our are quarter ended at XX-Q and sedar.com. was in a Gold's Thank sec.gov XXXX. or you, the available of of results Form filed Today, operations brief our recap XX, statements included for yesterday either our financial full position is provide I'll MD&A Fred. September financial

third September our the cash in have cost Overall, during quarter. $X.X of -- market decreased is the for Vista's economic This quarter. position response a a well for $X.X Year-to-date, expenditures management million. and below implemented of to million position $X.X current to which planned ended we capital on full with net million, the decrease and by due $X.X -- Fred months mentioned, conditions. tracked million sorry, reduction cash measures X hand ended reflects quarter As the largely net has

Our come XXXX under of in significant Through these is approximately $X is controlling total in this feasibility at spending, running under highlighted budget. nearly spending, cost fixed for is done also $XXX,XXX XX% year. which the We've having about well which portion budget most our budgeted by our costs study September million spending, XX, work. were discretionary the

cash of to $X.X quarter benefited interest regard cancellation in at of the Indonesia. first remaining project proceeds during net In from the the royalty Mas for million we Awak inflows,

overall this complete, going forward. expenditures drilling our feasibility and to evaluating With opportunities additional programs quarter to and downward trend the we're study continued reduce expenditures

of year. start Vista continue reduction study from work third to compared loss from $X.X with the progress programs results the while down resulted XXXX of of quarter. for to loss million spending. operations both costs were of We last in reduce were a Todd, and million to exploration holding completed XXXX, million $X.X $XXX,XXX This This and feasibility quarter $X.X Mt largely in drilling QX lower net of for reflect management's a $X.X which million to this the quarter Gold's from year. and to expectations prior the resulted third decrease the XXXX, efforts having of reported for be last net aligned

were the million between earlier For holding drilling exploration The decrease completed $X.X because reflects work and losses this $X.X year. much costs of were active the XXXX, of X and programs net ended decrease respectively. months million XXXX study and million a during both September XXXX our and periods of $X.X these XX, $X.X and million, feasibility were

to accrued with largely the net was loss reclamation gains higher of in associated previously contingent a balance disposition decrease liability. and of The of due a non-core reversal assets

look to and our budgeted manage planning a continue forward to expect of current to basis, conditions. the below in context market to XXXX, this XX% capital we by expenditures As we preliminary year's we're economic fixed annual On reduce treasury budget. approximately

have Todd. Mt costs to expect at also We significant exploration less

to track million monetize In planned debt. summary, of continue to seek no hand position on operations and with We continue non-core our down good results in position and we believe we further spending. assets $X.X of and as overall manage cash Vista's to our financial remaining are a and opportunities

That your concludes for turn over and Fred I'll call my remarks you to now. for interest, today. the back Thank

Frederick H. Earnest

Mt to now I'll evaluating our CIBC's Markets Todd with as to our gold objective an to assist project. value transaction the third of broad process Thank to strategic a leading in Beginning mandate more maximizing quarter process. of of Capital accretive In several with in the we the achievements on move March year, a includes Doug. of you, strategic the discuss of complete value. appointed this unlock detail. CIBC range shareholder adviser alternatives

value more conditions. to During they to a rates Volatility resulted work number these in transaction recognition in equity inflationary adopting interested economy and with of business higher for CIBC the the and continued near-term of gold form advance manage markets, seek a lower parties interest impacts greater to to strategy or other -- prices, cautious including our achieve have of the pressures, Mt quarter, as a we partner greater Todd.

that stability completing value of Mt creates on economy believe be markets. focused transaction, We the of capital sustained value completion provides present of future additional and opportunity recognition. remain We right greater one portion an ample and a recognizing that the the acceptable may by transaction and value Todd for the dependent on in improvement

Northern project feasibility demonstrated study in of the the favorable major is Our the production gold as project's achieve low-risk Territory, profile, recently reflective project. we objective costs, a operating gold is fact completed Australia's and all Todd Mt robust and for excellent that that the primary by hold life, to approvals recovery, long permits operating valuation the for location economics

reductions. cost to on Moving

the very the cost with of we during that have implemented results pleased measures We are XXXX. reduction

As year. in remainder just Doug fixed reduction are achieved expect pleased trend through and the I'm the reductions additional for this nearly of have cost spending planned we year-to-date, a to reported, continue XXXX. has spending to being that XX% note

chain the impacts political to with Moving and on and globe, and instability not currency Across mention Ukraine. conflict struggling in issues, valuations the certain of Todd. to Mt economies local are the supply in regional regions inflation, armed

relative the impacts Mt provided on Australian pressures the other inflationary project. monitor Todd's The U.S. project especially the has to distinct currencies, advantages gold Todd to dollar continue for Mt economics. some dollar, of strength We of the

per For the the estimate this Mt $XXX Aussie the XXXX. the example, million, cost compared feasibility at of noted part of the captured inflation which of of USD a million. dollar, as experienced morning rate start project the prior X.XXX estimated capital to should having study is is be to USD Todd current exchange of This XXX significant

over drop from similar a has a year, exchange in impact is project Assuming estimated had this for Todd unchanged U.S. X% dollar XX% on enjoy project capital feasibility benefits current from indicates rate, the costs for which the the some inflation little year basis, study. predictable Mt gold Operating that for but materially a costs are on the the the economics. foreign down price,

to Based a inflation today, to current and the NPV a belief This confirms gold exchange a Mt with our XX.X% on If be be we feasibility rate to to the X% turn sheet adjusted the and environment. economic moment. today's continues project for estimate model, I'd balance that a foreign of economic like for robust could, at Todd the rate project study in billion IRR. gold just I discount price, $X.X

will we we quarter million the toward of the be debt. shareholder continue our position of strong with a value. believe maximize As that to ended balance have mentioned, third very important as Doug transaction will goal cash We and advance completing we no a $X.X sheet

comments I the opportunity. to with investor with some will regards conclude

sector. risk investor represents investment an in find low to Vista with and rising for higher weaker gold uncertainty values are greater creating The value, prices hostile lower in We across exceptional growth rate the markets. the recession opportunity. price, inflation, the Gold a potential, and of strong Ukraine, looking ongoing the For and gold interest leverage fears in geopolitical market equity exposure ourselves activities

price significant globe. gold producers these negative the impact that Presently, we price will of on the but cost have year. gold, gold had operational have the in Furthermore, these the coming factors of impact on across the believe a rebound factors a

of proven projects work have Australia. the of in feasibility as advanced completed study probable undeveloped with Vista third-largest the the nearly reserves, years project in positioned Todd reserve The along With we over Mt one most the gold last ounces gold has million recently X Australia. the and several controls largest and completed package

and impoundment Todd construction advantages. The jurisdiction. the infrastructure storage a roads, composed ideally risk freshwater of of Northern and provide distinct and mining-friendly existing to in paved lines, stable the Territory pipeline the facility, the Todd, basic natural is site power at including Mt located gas with combined mitigation operational Mt time infrastructure an Australia, extremely very reservoir tailings line

on earned improved low of the in the leverage for project. worked the that to focus we all of trust the gold efficient social shareholder of Our have and to as firmly authorization We've confident local permits well operating have technical created that value. hand. with Of the equal are capital are secure as for of that development we is license programs the enjoy designs the foundation and price our hard stakeholders importance, major costs the

the With asset is a our just where projects, We price and gold but superior share investment one with -- in Todd Australia, most a gold world. the of in believe there's Mt today, tremendous attractive is it development-stage our opportunity. not

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

this We'll This participants from call. concludes our any prepared respond remarks. to questions on now

Operator

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

Heiko Ihle

about a talk Let's little inflationary the impact. bit

and our some in But mean this earlier to now other a we're rampant view, right and So work you cope it inflation able alluded Mt some is mines having an we runs to with environment it cost note call. in XX it's the is here at with hit bit headwinds Todd that especially the where thing, to of their ago, on like hurts build I getting quite I of but that at was the these stuff thing Aussie with and today. the get out ops. to X.XX really X.XX same with hit assume important are your a the -- year dollar

something You getting Can mentioned you that? expenses the would similar quantify that big requoted in hit get to you are items the see line you on just and earlier some given Australian maybe dollars they expect call. of by this that that that the

Frederick H. Earnest

thanks Heiko, the In and of cost exchange the of labor, estimates dollar rate. all been the Well, Certainly, steel, are directly foreign XX% question. the approximately major for capital the are equipment of dollars. prepared in outside cost of Australian have other for many affected of part the certainly, of concrete, this -- that by items components project, the Australian our capital project the

items the look major inflation like crushers and project, When impacts inflationary on equipment -- have and the we're the items are impacts and seeing cost affect that equipment for of at we certainly, some mills equipment. major the pressures mining they

but over rose adjustments costs and to captured big but seeing inflationary a early these seen over to steel where of the on, a and Australia. an very are increase ago or in we've have study, last in feasibility continue and in seemed so, those. area X we Wages were the in quickly months then another Australia little a concrete Additionally, a off wages tapered bit, part year monitor we're

things manufacturers more do a to basis. regular dollar a not very the general out market items, touch items, closely in factors tend monitor in. with major of some approach we We other inflation adopt but equipment to and on requoting base monitor on actively equipment the We're those the we but big these

as we major And the are you nor immune, are noted, producers. not

these much very subject inflationary all to pressures. are We

are the as of foreign the of changes inflation -- in that, start of exchange our and our is this rate million of cost predicted prepared at Australian distinct I with dollars. I XX% we costs As is as the of about $X capital adjusted one advantages feasibility noted mentioned, comments, the study in in estimate year. capital our our denominated what within And

to strength for with from is we the to So of the us inflation, benefit while distinct that's dollar rate, Australian dollar advantage been very the a receive exchange tremendous us, for relative and of and the U.S. which factor we're our project. subject the offsetting impacts obviously

Heiko Ihle

So good detailed answer. a I and very that. appreciate

bit Next one guys operations. Can the on spending mean thought little a that easier. is pretty think I you lean I some a ran reduction? provide you always I color

So you done else in just that And is it? X to X, whatever, anything a bit of get call sustainable color, the expect next, it months? how

Frederick H. Earnest

I'm to question. our Doug, Tobler, Doug ahead. to this that turn going over to go answer CFO,

Douglas Tobler

$XXX,XXX. costs we talking Heiko, through Fred. let me well, about context. the stage puts pushing spending total up budget in yes, September towards about reductions, just a under set it fixed it on we're When Thanks, so XX, our talk the

as meaningful without up do pain. reduction. things and some it's a and incurring real as for you And us giving can't So far a number that

the it's had compensation our for of biggest we've costs. the area, adjustments biggest in will what the in had some of staff area areas, the expected And year. is others terms in budget, One fact, personnel big and be some we've for total because reduction of

On of XX%, undue and not second just corporate reduction services our tax include, reducing XX% there, is So is outside We're dialing taking largest mostly, personnel-related in down at fees. reducing would we're to The but example that's to in for right our about legal, risks, includes our that that activities. their best budget our staff. able can we we've our us. some where some to scale charges We're past, as that been can. for to service outside the control contracted site asking and things services, back providers we they internal move

in becomes of office in looked And costs. go be to taking couple people then of the going. you business or hotels are if would sit travel that people our reduction. back every restaurants. areas, the out costs fancy don't And little a back bit has bunch of a we the know, stay fancy in extra We're need -- you as and eat line a and Basically, there's and little else don't item everything a We no at But at travel we admin bus in it in class. pieces.

of with we've So course, offset piece, seen. At And that's least to we've FX line contributed has almost for every balance the the had to change. deal Australian largely item by of the that inflation. then the benefits been

a So in carry it, And that's basis. yes, really we think do Heiko. we can it going sustained forward on

reductions. fact, some In additional see we think minor we'll

As preliminary looks lower budget. I budget a said, about next year's we'll basis be than this like year's on XX%

Operator

next Your [indiscernible]. comes from Instructions] from Bruce question [Operator [indiscernible]

Frederick H. Earnest

hear Bruce, if on I you. mute, know we can't don't you're

Unknown Analyst

planning having the Mt I company, there, you difficulties? worldwide. climate we're my have are is if kind Are for any Yes, wanted to facilities impacting is -- know possible the Todd. How water we situation of difficulties you or too? any

Frederick H. Earnest

question. Thanks the for

in known located at the Territory. of dry. Todd Mt may project, very and Australians year by wet is you the the project seasons as enjoy the X Northern distinct the We aware, per affectionately the As be the part northern

the During season, the all of which of the of no dry we way almost May, December, to middle roughly middle to the to of runs precipitation. April receive middle December, first from -- first

climate form meters balance will by believe that wet we project any X major is events. And is of of in don't receive real on the affected in way. the average coming X.X X that the then season, during of change of most about We the being year, which or rainfall, really the

seen we to to the and continue seasonal precipitation is in average years. period, a have, experience from our XXX the pretty see involvement to XX-year variety weather of over that over but last course project the the over totals, the We -- present, close patterns of XXXX our average

Territory from we goes, and the in Department big permits And management so as and the responsibilities Northern Mines. and EPA part of It's far manage our water a accordance water. approvals site as with of we manage water

the be for harvester. to an project Mt project, contemplating we've will the situation Looking water and we the a what permits be forward at have water Todd designed and secured operating

In of meters. during The and be use present the X during with precipitation requirements season, will -- other the during for will words, year. raised be project. the of storage freshwater we dam capture water And the wet store rest that, about will it for storage reservoir events we approximately large worth years' the will water for have X capacity

strategies. water any implemented and site have that proactive will and standard of we're drinking-water and treatment design approach. the recycling construction with in and from reuse plant water design of the the a be that's water will included We lot pleased and project include discharged The water very a

overall, and strategy of who changed concerned the water, community the actions have gained as we've that management. has gain about the in great and in water very us high very on one the Mt proactive and at at place concerns result instrumental which of of as management is a the The social license, management the strong we the of We to to importance the been we the regards local community and respect before I Territory water a a us. our helping we been the trust transparent suits share stewardship a of for environmental regard been approach think site has by Northern managed water of local the our its management with project had it being were and conducted project, acquired Todd site. with degree deal government When company on water and for the some community's the there

So answers Bruce. that I hope your question,

Unknown Analyst

flow, a put in a the I of you've has of effort follow group certainly, put lot worry, does. water, your lot there But and just because it the Yes, I in. the website in effort, we Rhine China, -- and Flow, the places here places Po in in Italy we water some the States. have issues there in and have have in Mississippi I

So in were there. if stock I Australia. having a and strained I some an you the a day. seasonal impact I are as job great over But thank you. you, didn't great Thank doing know it's guys you very recommend highly investment. know Have

Operator

for There are Please Fred to questions call go at turn over this ahead. I'll statements. Earnest the time. no further closing

Frederick H. Earnest

-- reemphasize from Thank today. you, discussion just Sergio. of like our points to I'd a We couple

will and project Mt First to of all, a seek focus. optimize continue been to This means cost-effective we it Todd there. operations has the --

I some important in results. optimization we've achieving very, been successful think very very

We to very very We I maybe ample a first. remain on completing future Todd for Todd. manner, opportunity greater I'd mean in right for continue the Mt -- We recognition. creates portion evaluate, value cost-effective this present recognizing provides and transaction of of Mt opportunities. additional additional And the just that, believe focused one that by value say by value the a

corporate And measures said: planned, on have implemented both We cost-cutting the that our improvement reiterate an being We're in in and an operation sustained in watching operate austere the we has closely during here transaction such believe XXXX. economy to in reductions continue results Doug and Tobler office of with a decision-makers of are in other I may stability that completion pleased Australia ways markets. cost-conscious of manner. to very very Denver. and the dependent what we spending some Additional at And And regards we, the like very actions and the be capital with acceptable many are economy. in the people,

maintaining do very manner. cost aim asset Todd of that to very, efficient to have at we Mt in tremendous a sensitive very the We're so the and

valuation happy we're not deserving an a development, stage exceptional being the valuation and We a an focus factors that Mt with other we've the is of creating Mt We management Todd feel realizing today. team, of to are accorded shareholders. We is asset that discussed. much and on our and value believe our as higher team, that as is that for approved of continue location, executive permits its all given Todd

initiate existing today's represents We the holding Gold position a consider whether to Vista time that prices, you believe is new in shareholders. at opportunity increase and or in value Mt your position to we an that exceptional Todd. invite this And for

if and of additional make to reach connect As person call management of sure speak out the Pamela team, to will our your and of on Solly, she the like Vice answered. that in you any have Investor today President a to always, please appropriate be Relations, the our questions questions would and you happy are team to with member

conclude that, today With I of a for taking time pleasant and you you call remarks. my remainder all wish we to very of each thank day. the your of I join

Operator

We and you that Thank you gentlemen, for participating please call this your you. for conference concludes your thank and lines. today. ask Ladies disconnect

Vista Gold (VGZ) 27 Oct 222022 Q3 Earnings call transcript