Earnings call transcript Q1 2023

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Operator

Good day, ladies and gentlemen. Welcome to Vista Gold's First Quarter 2023 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].

conference recorded. this reminder, a is being As Today May X, XXXX. is Monday,

my It's Relations. Pamela Solly, Please to Vice introduce ahead. now pleasure President go of Investor

Pamela Solly

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

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

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

call to Earnest. I will over Fred now the turn

Frederick Earnest

you Thank call you, Pam, and everyone for today. us the on joining thank

and expansion first economic During and feasibility the attractive. off study stage study viable work a evaluate The the in completed gives of scoping to completed while alternatives study for internal Mount an the us technical preserving opportunity subsequent we scale development. and Todd, of to economically the leverages from the build is of smaller merits project quarter, XXXX easier and smaller that confidence development initial or the phase

continues regarding mineral reductions, continue the positive impact force have the and no from of of Vista is Markets and two financial recently implement actions Capital quarter debt. task Mount a positive on CIBC with recommendations had structure. Territories surface have royalty to ongoing retirement position. the Territories Northern our announced Todd to and we The to which take Northern our We process strategic results cost exploration of program, the directors development

discuss environmental has achieved stewardship and a in at safety will loss topics for the free this quarter site will have accident We been no consecutive our for of incidents Mount time now Tobler, health time now to CFO, our review There XXX and the these remain XXXX. Todd. to employees I days. ended committed and greater call, March detail results over of the to turn our the financial XX, but in Doug the later year

Douglas Tobler

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

reduction that with recurring report and results for an to X% results. $XXX,XXX, management's objective and of costs ended were From for million of the compared our achieving to our pleased the a are reported XXXX three expectations our 'XX 'XX quarter, respectively. and perspective, $X overall in losses we toward net March tracking XX, I'm line consolidated months

few from for components. current loss higher The resulted a the quarter main

quarter of in similar during no first which expenses we of items a sale out Indonesia. saw of XXXX, closed QX project Offsetting the the Mas in the $X.X this There this had gain, lower interest of million realized we First, was year. gain were Awak during substantially we change in one-time as our realized XXXX.

recurring million and drilling costs Mount and down This having exploration program related Australia. 'XX, QX in from million $X.X for feasibility overall study to decreased in of Todd the holding reported Notably, by completed largely last the $XXX,XXX 'XX. QX for of Mount reductions Todd to year, $X costs plus our

quarter million XXXX. for million down QX for were compared expenses also to of to administrative $X.X the Our current $X.X

our to financial position. Turning

and million XXXX. Fred now. remained We condition That to turn of sheet maintained our back no concludes call good my having balance XX, I'll for March at remarks the with of today. in position Our $X.X ended debt. cash

Frederick Earnest

I'll conclude remainder with this of quarter outlook initiatives review first Doug. an for with review and Thank you, of our begin a year. ESG and the achievements, then XXXX performance, our

established Northern of record environmental We leadership a Territory. have the in

We maintain of the this plans. our site continue management to through leadership position execution

wet unplanned pleased compliance the the season With had normal in significantly complete and water I'm we report recently that from with with environmental rainfall, concluded, obligations. even site, to of than we're total no higher our discharges

consecutive Australia with has lost in no noted accidents. previously, As now XXX time days our team completed

pleased and We with accomplishments team. our safety-oriented culture are very the of the

Mount working at Todd. relationship traditional with We the strong continue maintain owners to a

many and Mount know, with are them, Todd. of Jawoyn place we Aboriginal program contractors the Presently, collaborating Corporation. Jawoyn with and leaders the employees closely of and agreements board finalize have cross Association in As with people the the at the to we a Association training for cultural will work very Jawoyn

Territory. very also with We in is place and that license firmly supported. social Northern in Katherine closely work area, I broadly pleased am stakeholders strongly leaders the the and our more in and

on continue We practices the we the best our of of quarter, announced retirement of directors, the atmosphere is pleased in I and long are that during moment. inclusive pursue resizing our with serving across two the aggressively part Board. culture. that and to governance our organization, note a More that

the development. scoping we accomplishments results initial costs, The we while of at project internal on were very and subsequent this the study, Moving initial opportunity contemplated which the of of our lower preserving some an quarter. announced scale. during Mount capital March, promising evaluated development a significantly or in for In Todd the smaller completion stage to expansion

that with nominal a capital per be expenditure could than tonnes per per year. XXX,XXX of Work constructed scenarios day to gold mining, date contract less an achieve production of XX,XXX tonne $XXX XXX,XXX ounces million include of and would range for designed that in initial year or X to the million and project indicates annual

costs Mount would suggests environment. still competitive mining, contract those of a But the Todd, sustaining sustaining on operating the company's adjustments all-in of study costs Operating resulting scale and result the that as certain remain analysis from largely higher feasibility loss very would inflation. for than of the costs in costs economies today's be higher in unit all-in estimated XXXX

The results have who potential the available signed agreements. parties have partners to of confidentiality made study been other and scoping strategic

We program areas returned surface gold anomalous most to grams sampling, on two also the licenses recent the excellent targets of the target. announced Irwins the from exploration soil Mount surface specific X tonne Both gold results exploration at within including up of at Todd. per assays

licenses and at largely exploration square X,XXX Mount explored. encompass are The under Todd kilometers

than we on and As our of and program Structural more part XXX collected soil Corridor. Cullen-Australis chips for the Batman-Driffield exploration from licenses, targets rock annual the exploration samples

package gold X.X demonstrate the in four to our we mining program. Obviously, targets land similarities highly area the The to geologic licenses strong to through Mount up XXXX-'XX exploration results where million Todd an very belief of these additional tremendous our prospective the we representing X.X discovery encouraged which previously million potentially are reinforce tenor potential. that ounces by drilling the results, has of delineated

on completion Vista's and indicated, a and XX shareholders, five management and members. special Ogryzlo, of the terms to the the April years non-Executive week Directors reduction meeting I was more the upon behalf Board Mike of Tom XXXX Director the The company from Board size Gold Vista On of Richings, of Directors than the now XX. team, its serving non-Executive annual in that of As their retired after and held shareholders general at Director of of Board last of Chair and approved seven

of the gold projects and heart. Tom I'd Mount like of execution and Todd into have a develop-ready acted have in and the contributions one at thank and Australia. role interests largest advancing with leadership best in the Mike to significant highest with their professionalism shareholders' the to of served transformational commitment and the and of Mike Tom a degree played for transactions Their company. number

them, a We each have work great all them and and to been well. it's a deal we them, wish learned privilege of with from

one that outlined and us the very of the report task mining the of reported Territory was Government the which as the the end is of mineral to Now actions released force, investment enhance of Northern final a a and we news competitiveness series recommendations subsequent of that to exciting increase Territory development quarter, Northern the destination. bit to

them implemented, ways. expect these the benefit recommendations Project in Gold Todd several are to Mount As we

price the mining very X% to X%. more Northern structure industry. the and the competitive regime the the study royalty current make means highlighted at X.X% it rate, our from represents the economics a Territory valorem a to on to other potentially gold depending opportunity skills project and emphasizes to report range This shareholder rate X% and returns more typically Tier and to updating support notably, valorem local for This the rates included to XXXX feasibility importance a royalty of closely earlier ad where with X Mount royalty improved importance meaningful Most ad moving Todd, of other equivalent where assumptions. developing simpler aligning royalties jurisdictions, mining

will also an over elsewhere in development that workforce of support we the benefit traditional the Skills be a are fly-in, given common more Todd approaches Mount local Australia. at use that fly-out important

proposed engage next recommendations step, specific best Territory obtain the stakeholders industry a report. Government approach As and key the implement actions Northern with in mining to to feedback and to plans the the the on

there continues a Todd Since renewed The of in and the has completion to large approach maintain and under offers of different generate announcing on strategic development optionality Todd. interest parties interest new Mount new to both CIBC But the process feedback strategies. Capital continue study, Mount cautious scoping merits technical to Markets projects. interested scale the with positive been development the

focused effectiveness a of of priorities future value portion on and provides cost realizes through shareholders one the Reducing are and of costs recognition. remain greater right maximizing value recognizing for completion opportunity the ample high We XXXX. Todd transaction, for Mount additional value that for the present

We evaluate have approximately for by implement and taken to opportunities and costs further reduce X% additional continue cost recurring reductions. actions to

believe our the annualized project respectable preserving less for and probable costs of this ounce proven current per of levels, are than We expenditure very a At Todd holding reserves. $X.XX Mount cost. is value

is Looking maximizing value. our priority ahead, shareholder

plans cost our efficiency. execute effectiveness improved and for to continue We

continue include grinding area improvements value-creating to study and at lead additional Our that Todd internal evaluations options Mount planned assessment of and operational in the a would efficiencies. development

With season meet we soil field annual at program expenditure Todd, sampling. This for will will additional licenses consist the to behind exploration our and exploration small mapping us Mount a wet planned the have program of commitments. field

with And NT on embark work process consultation to industry Capital finally, the path found recommendations of the Project. in Markets the development participating full taskforce Government we be Todd the the the the mineral they as of with Gold in Mount realize CIBC will implementing continue value to We report.

of have have level scoping internal last study, years -- we including we conclusion, completed over ounces proven completed years, controls positioned Mount Todd probable as gold and undeveloped last in most has the one package work several over reserves. of the the study in the Vista and the reserve and million largest Australia. advanced with In the several largest third Australia, projects feasibility the X

natural infrastructure its a number Todd the comprised of and existing basic the at tailings size, a a Mount permits freshwater of ideally Mount site extremely approved. the in Mount a construction pipeline mining distinct impoundment for Todd operational In jurisdiction. located with gas development paved lines, major advantages to been the an and advantages. Territory, and interested addition All very have the The other risk combined of those Todd mitigation provides roads, to the facility power friendly and in reservoir potential timeline provide for including storage stable is Todd transaction. infrastructure Mount Northern

are trust the hand. confident firmly earned have local of we and that our importance, is in social stakeholders equal license Of

are Our help and provide shareholder to on improve project a proposed NT efficient leverage operating with capital designs the project's improved that technical economics, gold stronger for regime the royalty foundation We enhance low in believe price programs will costs. focus changes value. the

world. superior believe but the development projects asset, Australia, Todd not gold Mount one most the just is We a stage and in attractive of in

all excellent approvals the economics Our is of feasibility Todd costs, that demonstrated completed and achieve that fact the for study, that to are a major is recovery, robust valuation for profile, permits. the by long we Mount primary operating project gold production gold reflective objective the life, hold operating favorable

prices site by Mount establish a a Vista the on opportunity We I a at an Gold or the increase review For investment to current holdings www.vistagold.com. you exceptional in work project, Vista corporate presentation more which Web that represents completed to refer that be position our can Vista our tremendous Gold. opportunity one's believe found comprehensive of represent Todd on

prepared questions our remarks be happy concludes from any now to Jenny, on this and to participants call. the we'll respond

Operator

Thank now you. gentlemen, Ladies session. will begin question-and-answer and [Operator we the Instructions].

question. from ask your question Your first H.C. from is Wainwright. Heiko Please Ihle

Heiko Ihle

are How Fred. you? Hi,

Frederick Earnest

Heiko. are We Thank well. you, very

Heiko Ihle

walk put you point grams some at ago, the Can one the mentioned release And with at you additional tonne other per the out just Excellent. Todd. sort few this you targets in of for Irwins. participants the at call rest I for for about gold plans guess gold and X of A weeks surface or me general there exploration? particularly your in exploration Mount year,

Frederick Earnest

Heiko. exploration with Absolutely, the on licenses The that has work geology broad we've ranging a done very mapping. surface started

results grid. surveys with anomalies where those and soils which of soil sampling work work have where of we the heat areas We these a to gold associated on reach some results, per level were the the interesting. other as out as follow we see that have in the then soil parts on the engine be areas per done see grade samples million encouraging. We And sample grid are while in to with more that followed to broad four XXX And some pattern. when aware, to last the we on often up in or you're we range we'll results the soil year. identify And a district. achieved grams And very is work to up magnetic very very meters billion geophysical of centers that's undertake for magnetic as in spacing anomalous spacing had is XXX grids And well and interesting samples, some of Typically, bottom we in some higher past. interesting as are then began hence line particularly results see with the X intrusive, doing surface tonne the these collected and surface in that is the that initial completed And of we per the by close continuing And deposits sometimes. have results in that typically close range. parts high samples in we've the closing the spacing very spacing. those we soil in work XX that is

interested to Our team undertaking will will indicated and we well. Again, target I collecting year, of maintain areas amount more of mapping work the in exploration commitments last to rock as year to also be some the be and those money outcrops required Again, meet exploration and as [ph] to chips did to there's this spend this continues our our attraction that who that at work we upside. others to Mount the believe will exploration. that's We standing. good be in licenses tremendous work exploration Todd demonstrate be about potential And grassroots going partners be would level this in on. continue very bullish

rig. not any a the have to in progressed of of these point yet We drill targets bringing

Heiko Ihle

Helpful.

$XXX XXX,XXX million, to XXX,XXX released you for is some in Okay. look Walk for given I it two At just The can potential scale Gold potential the normal. a for right I production. ago at becomes development new the ounces implications point, that is smaller maybe you wise a way and about now. under through us the at see what trend X,XXX site? months the build

you missing misunderstanding credit color what Somebody something. can for? is or go you market missing is And think giving through enough maybe you the or not some

Frederick Earnest

on the and per project the Absolutely, number designs Heiko. the project $XXX over a the The very the the capital basis the associated per undertaken year all were almost tons a the building was senior a producer. expense million of a Mount lowest completed gold that day. that of engineering us for feasibility while to feasibility be quartile for idea Todd would a of number, Mount XX,XXX very we that attractive tonne study project rate, of study large produced actually and XX.X And Todd ounce per actually million evaluated project designing with targeted life capital at a our in of efficient compared gold initial to The at peers. with

fact remained large number. the very However, it a was that

brought the evaluate and from scale I best we smaller Capital by we at a to Australian level of that feedback the criteria. would redesign design some built the in area then level new plant tier that's in term smaller smaller typical ago, a last use to, design project the with we for has capital plant what And internal more less so formulated quickly a year, company year the look firm and that scoping mid a undertook the engineering an that could a We we efficiently. think to process might extensively feasibility design $XXX to And of the the I using was initiated received not us be Markets design Australian or to concepts who process CIBC a the an smaller like. been study several at and allowed operations year the scale purpose had fit involved built visited like this estimated operations. would standards the gleaned ideas scale, This some operation be middle smaller look and might is members million. about be from that of cost team and visiting other indicated, what more what more study as as than

Now use we not careful is looked then economics what ongoing tonne simple building We've and by XX,XXX not and that train, to the the close specifically, existing project at initial expense. at, a to get tonnes mine and the life per contract for a a a like, would stated third capital the of we development in at and had tonne that We've the good the looking But XX,XXX of are condemn possibly day principle train as tried excess ultimately in to been adding we've optionality out way mining far very at we of the another per have XX,XXX were. tonnes to and day any present enough time We've life life very first a reduce And to this that's a reserve. we of proposed. day. further something plant idea per doing carried at work, the evaluating a also XX% the of would mine the incorporated staged look day looking the expansion of XX some that XX,XXX estimate to Simply what as designed. of so reach a originally years. project the have economics part maintained work

Mount of these smaller we've Mount concept study. scale feasibility companies. project project. of confidentiality we've not optionality the to partners amount time agreements of not smaller of completion in design of developed put study number level are while been of that to per that off leverage All smaller of in extensive developing day. with the we does XX,XXX period have additional a And there This news Todd be work at the demonstrate of And things Todd. a interested there to to as have announcement had done necessarily who at been signed those done following have the tonnes of work scale, from the been we've a has interest in also able project. an out -- the resonated It has this and evaluation

and opportunities once that Mount genuine a serious so And potential interest draw development been way Todd it's and there. again to exists to the to

Heiko Ihle

all I ad grateful. Thank Well you. it. hoc extensive That back I'm getting helpful. and very I'll That's here. this in appreciate was done answer, get queue.

Frederick Earnest

you, Thank Heiko.

Operator

[Operator Instructions]. you. Thank

ask Asset Your next your question. Please Management. Day Adrian Adrian Day question from is from

Adrian Day

I've Good Yes. on questions to two actually from got follow afternoon. Heiko's.

quantify year? to is, one the you that exploration you can of cost the do intend this first The

Douglas Tobler

$XXX,XXX will our part of here. the Tobler about Yes. range Hi, Doug it's be It of as spend. planned in

Adrian Day

lot. a not That's Okay.

Douglas Tobler

size it's and no Well, work. drill rig, surface There's similar Yes. scale. so

Frederick Earnest

done $XXX,XXX, you of sampling for get Yes, lot surface soil Adrian. a can

Adrian Day

Okay, good.

the reaction that. things I'm your the And know whatever? Are about and to number say, so there been have should the that words have since Let you? me type of put you've And scoping things reactions companies, definitive a wondering can I the are reflect feasibility the I it's if both in mouth, want there then little study? second you variety year you've disappointed just also had, us And DFS from had but you? the the or pleased over a that don't let to the to in companies question, or or companies, the reaction of frustrated reaction or study.

Frederick Earnest

question, their the the who in completed that And rock diligence methodically due people. of Todd headwind sheet, the work to was to The we've XXXX-XX that permits. in with had test Well, in process drilling that hard a And the companies local interesting earn that's a to remember license. price of very own a respectful the who process done for numbers From we and support -- the made Jawoyn for of sheet and process very the was and down in been for testing essentially very are with And technical garner gratifying Mount has at proposed people dealt gold widely of people we systematically a the operated work metallurgical designs, We've the to went in received work the as with is that the time done their obtained expense confirmed to. complementary We've our more fresh our environment data We the we've all project come a so it larger thing significant we Adrian. resources, the companies validated. $XXX. have that when known think work the team owned one, been have who obtain completed it hard the all we're flow day work that for the work. bankruptcy. very very and engineering. number the with that we gone the the and the should from into greater, with to from as gold and Aboriginal recoveries operation We've crush Todd we've how companies, rock price We've investment. flow address Mount that strong and on everyone range of have Vista drill shut through look and our worked company I of that social social has test is have here the and done community that sheet much at the they review They expect have Companies it grind that endorsement own achievable, quite taken are the programs. flow function proposing that reasonable license. have very been

the gone And so that process the through very happened confirmation that been has has and over has we've pleasing. been over and again over

value, was about that year a kicking And weeks we them rates off, of read partners and candidates who back announcing Now obviously, market that as you quarters. that disappointment And announce such date burner, going asked years. if not news with we've putting four patient transaction there that to stage for transaction was projects would and the we've Markets be they a a recognize this been inflation. project able Capital of that would thought been being reward for and six be to the We would some started the disappointment. Well, the the of full shareholders process done over as of done evaluations has reached headlines conclusion a work all on sudden, we the who companies within the a that all CIBC ideal interest with appropriately were long many the development so the in value of we've to and have that ago. of up

we of the the we move it has to on the been to world that have justified hurry satisfying, complete reason budget to today patience the there's the that that confirmation side completion of asset. of able companies So of than complete no Vista less and would a our amount right things in us reward be our that technical other a the of be transaction confirmation far have of us to confidence But the completed the do for to and ultimately class a disappointment. the other that project very work that's a that gives the a confirms has And genuinely failure extensive is a at is will will time that that is transaction what of spent transaction merits shareholders.

Adrian Day

Okay, you. really Thank that's helpful.

Frederick Earnest

Thank question. you for the

Operator

[Operator Thank you. Instructions].

Frederick Earnest

appears other that have questions. it no Jenny, we

Operator

questions are at time. Yes, further sir. There no this go Please ahead.

Frederick Earnest

potential Well, All results. join We're of Northern for about time Territory's mineral update the taskforce, very implications discussion everyone thank the our the this taking you and recommendations right. excited first quarter the different of impact tremendous of something impact in X% under reducing we that has saw with a to the X% the rate effective the of more study jurisdictions other regime ad from for development competitive to royalty to project. valorem feasibility for us

health and we As moving in We're We're those will programs we've we field season. newly maximizing value. And our with environmental of safety in be onset exploration on with with soon response configured of Board dry look questions, employees. forward the discussed focus with the the to record very to to shareholder of seek Todd being pleased for the off our and forward compliance, Mount kicking pleased progress track as that's the very made Directors regards. at

CIBC the with realization hold of value on the project, and the work our value, full focused that. generating maximum Mount is the we'll that that Capital line Todd reiterate we Again, Markets continue on to for

Todd for transaction. While patient our intentions value to being waiting time wish right scale, the no see smaller develop for Todd there Mount to shareholders at ways there's were we Mount through this reiterate questions that I about We at and developing own. generate that a better have to on

seeing Gold I'll increasing initiating And in forward you look thank and that, day. and Vista or having your a that, your remarks. with meeting time all shareholders. we pleasant our We We all you position to wish holding, interest. and conclude you invite consider a either With for and of as you we you you seriously to

Operator

the conference participating. you now and ended. Ladies for has all gentlemen, Thank you. Thank

disconnect. all may You

Vista Gold (VGZ) 1 May 232023 Q1 Earnings call transcript