Earnings call transcript Q2 2023

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Operator

Good day, ladies and gentlemen. Welcome to Vista Gold’s Second Quarter 2023 Financial Results and Corporate Update Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. Today’s Thursday, August 3, 2023. It’s now my pleasure to introduce Pamela Solly, Vice President of Investor Relations. ahead. go Please

Pamela Solly

of and the Laura and everyone. you Vice Thank update Thank Gold good second joining President Solly, Pamela Vista call. results Relations. quarter for conference you, I’m morning, Investor XXXX corporate financial

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

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

Earnest. I to over will Fred turn the now call

Fred Earnest

thank today. taken with territory investment. us Territory and Thank Northern Vista’s competitive joining agreement Australia you, the for I’m and make to Territory mining the the of attractive more highlight actions and morning, you to of This for Pam extension everyone call by Northern the the on pleased

Mineral NT the local stakeholders. and Recent achievement to the was de-risk Taskforce the territory. government investment and in and The demonstrates the with Development NT increase Territory’s our reflect to agreement enhance Mt. our continue recommendations our extension of the with a important Todd we territory’s very government mining as activities strong commitment Northern relationship from

both several call. later gold implemented, ways. Vista in greater the project in detail benefit Mt. of are the topics believe Todd As recommendations we these these I will discuss in will and

Vista’s late named of Stevenson Board as new and have company’s Annual is a shareholders financial Markets resized and X strategic a positive from the Capital CIBC April, Vista’s our Following chair. Tracy members take to quarter. on X which reductions, Meeting ongoing, impact had to second implement consecutive we General Directors we The cost to with of in position continue process actions for

no the time continues XXX Mt. the to to committed this have have no now site lost environmental year, and to of Vista employees has debt. and consecutive accident-free safety remain and stewardship been at accidents Todd. our We There health days. achieved

now time review for to quarter ended results our XX, the the I’ll turn XXXX. over Doug a Tobler for of June financial

Doug Tobler

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

nonrecurring Vista for quarter to for XX, quarter June operating consolidated compared ended net variances were and share the programs. for The discussion. The is quarter for which a similar, This in reported exploration that June and This quarter XXXX on $X.X year. line other site a of of in and income. consolidated Mt. XX, XXXX. loss reductions losses there net our XXXX million to common the per share in the expenses expectations lower management’s was for in reflects reduction compared with XX% X% reduction loss were ended but current common maintenance a the per or same period Todd and loss net million offset recurring $X.XX comparative of $X.X offsetting second XXXX, or $X.XX track the achieving by of prior was costs, objective reflects reduction a other were

mentioned. the is lower we $XXX,XXX reported XX% First, operating previously which expenses, reduction

amount quarter amounts previously accrual. QX for reflected the a of the lower current other tax quarter interest income reclamation other $XX,XXX were received more because year’s and a income income of $XXX,XXX in offset reversal for also a during value-added XXXX. recorded prior We These a refund by $XXX,XXX

and loss ended net disposal greater XX, a gain the loss XXXX million For months income our than June X The and of XXXX XXXX discussed as was XXXX XXXX, period Mas $X.X I $X.X the previously. because in included was our property, other million, on of $X.X $XXX,XXX million respectively. the Awak and

XXXX, Offsetting Consistent reported X-month for the XX, this the items, lower overall and year-to-date with period reflects the effects reports QX the other other technical our Vista of the for June completion exploration, reduction million expenses of Mt. maintenance Todd site of the results XXXX ended reductions costs XXXX. for income gain and period for $X.X operating of recurring and decrease programs.

Turning to our position. financial

in remained of our XXXX. debt. condition maintained June $X no position million sheet ended balance at cash and having of We XX, Our good with

remarks now back today. my call to Thank over you. I’ll Fred. concludes turn That for the

Fred Earnest

Thank will you, our a review and then XXXX review second of and Doug. performance ESG I begin with our initiatives achievements. quarter

have We record environmental a in the leadership established northern territory. of

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

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

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

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

at people Jawoyn relationship the and many the them work strong in agreements Jawoyn owners as a of know, Aboriginal maintain and the Association to have with Todd, closely will continue Corporation. working Mt. with we leaders with place We traditional the

closely habitat with at Todd and quarter, the a project. the in Rangers Goldin preservation we Mt. Jawoyn land allowed burns execution design management of the that has us very Finch assets the to and of achieve joint in way worked protection have prescribed objectives, of This

finalize the and collaborating a employees the and implement program Board training with for Presently, also cross-cultural Jawoyn at we Todd. Association of Mt. are contractors to

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

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

relationship to us Australia, the and talk expire the which extends Let shared This a over clear we our Northern December the was the the this the commitment significant has May a me to year, reflects continue the extension. not Territory together Jawoyn the of and XX, Northern stakeholders. and additional we demonstrates the an amended the agreement this an government, that with turn desire of working X-year option only other of NT developed Territory Territory’s of as also years to with Territory. now end is Northern project set bit to agreement gives by for but achieve more amendment achievement term On with agreement also agreement at people Northern year. XXXX, strong about It signed This to and objectives. XXth little We Mt. of the the goals to Todd. de-risk our the government, believe

the which then to time agreement, assets rehabilitation continue pre-existing for fulfill by environmental, Todd to XXXX. for prior committed government-owned to site proceed company. Mt. of the the the commitments. the involvement project NP all the site liability cultural responsible Northern at liabilities continues Todd in no We Mt. the will to at a a to developing the government, the the management Mt. and of to and from will NT that manage maximizes in shareholders in giving Vista’s result the and Todd its our stakeholders remain the for Territory. Todd NT and the Mt. the sacred to the historical with may have transfer of site, government environmental elect and of Pursuant Vista option environmental way in sole stewardship to and development protecting culturally notice and condition its sites The social the benefit company significant for

Development Northern Taskforce. the recommendations now the I’ll of discuss Mineral Territory

a by Mineral the and we positive of the territory. the announced report Territory of During the mining mining that the enhance Northern recommendations increased in industry outlined investment importance prepared the release Taskforce to Development quarter,

recommendations Mt. are several Vista As we these ways. benefit implemented, to Todd and expect in

and developing updating current to it importance competitive simpler growing emphasizes mining royalty the to rate typically report X.X% and moving a structure meaningful mining industry. returns the opportunity regime other improved for with a potentially economics jurisdictions from skills support notably, with where shareholder X%. at of closely jurisdictions local the royalty This range rates Most other more project a earlier very more ad-valorem and aligning leading represents means mining the make royalty to to Todd. Mt. This

consultation traditional local staffing and practices NT best mining fly-in, equivalent Skills The that benefit key X% Vista implement specific part undertaking NT of included actions members approach common use be of to recommendations the depending a submitted we on Todd this of report. process the is Royalties to stakeholders workforce will has feasibility other XXXX on process. Mt. assumptions. the price gold in the elsewhere presently to given X% recommendations the and over with industry government the in more important a to an and Australia. also proposed obtain study the as at ad-valorem fly-out support feedback development strongly Our rate a

Annual as General directors, the company’s of Chair retired, the on shareholders, members Vista’s of XXXX long-standing of board retirement briefly the Meeting at the indicated of Board. Touching two including two

the successes, many Corporate the of and in has X Tracy from Committee. into Compensation we X Australia. advanced Stevenson Mt. the the size greatly contributed gold the member appointed reduced Committee the chair. company including Tracy of Board of company’s has a Tracy largest of the as of Todd is X, and November advancing one on chair served Vista’s since XXXX, projects a most result, Governance the Nominating Audit Board new As Directors the to of to members and and and Committee the

to page, his success continued turn Board we look we As leadership. under new forward a to

merits new strategies. been the generate and next Mt. Since CIBC of announcing Capital completion The optionality in work with the CIBC the the and continues continues process do. talk renewed different earlier feedback on to the there’s briefly Todd. strategic positive I’ll about to under offers Mt. scoping this study of both interest technical Markets year, that Todd interest development

completion continued industry, approach and our realizes optionality focused said, interested large-scale ongoing activities of to maintain pleased one the or right for a That the provides be evaluation shareholders opportunity continues the ongoing the of additional greater new represented the transaction, through for that recognizing ample Mt. that Mt. producers an parties with recognition. a cautious confirm portion Todd factor. are of present remain development value We future Todd to development by Across of we projects. and to important value on activity

to for regards reducing priorities costs reductions, cost cost XXXX. effectiveness are high and With maximizing

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

cost very of probable will activities. the location cost savings which part you our of our Some we less the proven levels, Mt. have project offices moved have preserving corporate annualized reserves, respectable ounce of are is $X.XX that for a value noticed than At cost. current and holding of of Todd as per expenditure

In probable of proven gold ounces largest Australia the conclusion, the one and largest of project the Todd Mt. Vista package with projects in most in reserve advanced million undeveloped X third is and reserves. controls Australia.

and addition provide to reservoir infrastructure transaction. storage size, existing that the All very lines been to potential a at infrastructure our trust is and a Mt. we paved Mt. have mitigation operational natural and earned other freshwater permits Todd in basic for firmly the development gas is number importance, the power located equal provides and In site, distinct of roads, advantages The in Todd for the of facility the construction are major combined includes stable of Northern jurisdiction. risk the tailings Australia, advantages. approved. timeline have Todd an of with Of ideally the in pump pipeline Mt. confident stakeholders Territory and its license extremely social of local Todd comprised hand. the Mt. interested mining-friendly those

improve Our on NT operating project with will the project’s technical designs changes enhance efficient the programs are Royalty and that help leverage economics, project costs. proposed focus low regime to de-risking the Todd of We shareholder attractive improved value. one Australia, the and capital incorporating the with is to believe but the stronger in not just asset in most Mt. gold provide gold We projects, a for a price development-stage world. superior believe foundation

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

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

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

Operator

you, Thank sir.

first Heiko begin now session. go comes the Please question will Ihle the We ahead. Instructions] H.C. from Your from question-and-answer [Operator Wainwright. line of

Heiko Ihle

and Fred me, team. Hello hear okay? Can you

Fred Earnest

We morning Good can. Heiko.

Heiko Ihle

there, Good morning your then to in out on Excellent. if expect maybe ideas guys sort to want provide see on of to and you looking timelines, some bit well, areas, of some like really my clarification. this and really call, helpful in interest subsidies investment it to release like, you maybe a some mean people maybe NT whole kind towards morning. but it to recommendations stuff myself. piqued some more I call undertakings? or you be just earlier peers. this be color and the But think their A Would the able is sweeteners go goals other with the to at good sentence you yes, of at west. Can would more that hinted might sort the some moving regime you for investing little listeners implementing get, competitive when that I see royalty on for Government this very their you make on

Fred Earnest

That’s report some the areas territory of Taskforce competitive. Heiko. great identified number question, Mineral a where needs Development make significant being to in strides a The

this analysis for tomorrow. been public the regulations one. royalty comment. to government. that thought very a a craft the year. will they public process. royalty steps As Mines, then of May, we project That process this indicated, consultation be, the complete this they end the expressed that know next Deputy Minister formally as revise obviously, the the the by of They, the priority I of territory. project closes embarked And start consultation in regime item has on a to could the by legislation legislative Chief is Originally, high Minister legislative of for And

think positive. very a other the it’s towards is quarter the charge. legislation rates for almost the Territory is it into possibly severance and like in more tax what will be approval. is view Nonetheless, first of even now, of there very, leading we I realistically, the Northern Right easily of the that sometime quarter second royalty as jurisdictions many – the double is mining year, end next set this before

taskforce, This very and is so And the pleased to years. for been that’s between Treasury conversation of a and am and territory this. this has I the a ongoing see number through Vista Department of Mines

incentivize adding recommendations development new level important of The based only taskforce. products mines, the has to of the a value of of $XX for objective, territory things, And territory view, also the want to have new other to issue they important am by that within It that they a subsidies to is the mining attract the in they their investment. overall, We upgrade of recommendations that to territory issue. included I the and an billion to raising as the of been – the issue this really mining to that mining on are a not the are and significant very if mining going an investment recognize for seeking but pleased effort. taking it’s appears well. of finally greater address are goal be part and industry, economy not Northern growing now will With they the projects in the regards they what But XXXX. mineral steps taskforce Territory the

Fund the at that with mining infrastructure. the the created increasing everyone key across originally, that Australian second is was people Australia. is of its fair has the aimed Northern government on of it’s fund, investments at of development the in In called been Australia say has has now and meetings including as think amply – part Northern the fund I something more inform second that part to and Infrastructure activities However, fund

there that will to appropriate you if for that it financing, be question. Heiko’s that Todd believe in don’t rates competitive else response add money the Mt. be qualify at and there at And will Doug, compared anything I is to time. available we know will that so conventional very might

Doug Tobler

just straightforward price. don’t $X,XXX you obviously, Heiko, will Royalty, Yes. frame and very our terms NT XXXX look where opportunity around to if have feasibility saying the go of at the and they land. more we discussions back Todd, at become they we at gold which the to been study, know Mt. a They Vista want in But ran competitive. for

that today. be that would was out that The coming million. conservative modeled other for $XXX royalty NT considered studies we into almost So, very

start in if there by the competitive in any they So, the factor for into available range. get Vista a government, royalty is very reductions you to impact meaningful type if that of substantial rate

those be through a that compared So, available some the the But intact those with recommendations pool framework of that’s the taskforce. also employment, stay NT those the of a dollars some royalty. minor things. create would had assume would and other just of respect with the types to jobs relatively I opportunity to are that are for for or you enhanced possibly of There we that of number it. smaller have funds

Heiko Ihle

another per that per one inflationary quarter. an quarter in average $XXX,XXX I Last period, went managed $XXX,XXX. last Fair math XXXX, again a and and just actually couple an quarter of did in inflationary you bit decrease your yet enough. environment I to then that corporate you administration, down financials. to today to of XXXX, more, of went And annual through $XXX,XXX spent

fairly to the by gives XX% a close probably real real year, much meat how you Walk are still inflation me through year more assumes, what so Now, exactly in doing on if it every you, how you terms. the is than are cutting one to and that government call is more XX% speak? it, essentially per which number bone,

Doug Tobler

it’s are harder, a lot team Well, costs. been some able costs biggest trim the pot their had bit in but within smarter at of there. was across up the to And of organization. Todd. Labor down schedule to able Guys we every the board through turnover Mt. the And rotation pick And aspect. were frankly, little and Heiko, bit a we shuffle the rest working obviously are load. the little retirements a

of it. that part a So, big was

We have costs, XX-plus Denver here office been and like office. working moved for just costs. office reduced the in We some had out basic of Vista our fine and just overhead that downscaled things it’s We year a downsized us.

So, there have that but is that, there you to are starting of where basically a through wise pockets continue pockets, entire we kind of few come is our structure foolish. a to other always down. $XX,XXX G&A think we pound become and point Can $XX,XXX is penny there

think I in would So, a the expect trend to be we more but though inflation, we now kind XX structure is described XX you few still to X% like cost to that some will to see X% even the that we over level our able of opportunities, do see What months range next off. least months. would have maintain at to

exceptionally us been So, helpful very positive. managing our It’s it’s treasury. been in

Heiko Ihle

you. Thank

Doug Tobler

help? that Did

Heiko Ihle

appreciate Very answer. much, so now I the

queue. I me. for get all back That’s Okay. will in

Fred Earnest

Thank you, Heiko.

Heiko Ihle

Fred. Thank you,

Operator

you. Thank

Your question Michael the go comes line Bashera. next Please from of ahead.

Michael Bashera

me? you can Hi, hear

Fred Earnest

Yes, Good morning we Michael. can.

Michael Bashera

the and and a price company considering have in comments I I hand. I the is question value just to your especially in huge disconnect the gold permits the this, the with price. safe be if two, considering There get question simple. to a projects is regarding on My what you. can Thank jurisdiction and wanted between quite see a seems share Alright.

Fred Earnest

ourselves ask a Michael. That’s regular basis, we on a question that

It’s where do developers. are not severe money the experiencing and this will of that are factors amongst market’s market. this with financing ones the to disconnect think We perception We particularly in from. one come the big that prevalent only has around that

large a Specifically, for feasibility project. a study very we completed in our case, have

real capital study the centers can cap develop definitively partner to issue of value the much an will it the a we self, answer significant between And announced and the on a more and and presently, source we dilution. of ultimately the to whether stock. that the scoping of a which But our we find there efficient. project, until ourselves belief will have develop try it than this disconnect biggest our in markets that the and think through company transaction, build a market We a project this is bet complete for rather And will result question, the transaction on smaller announcing I I it that is plans of believe put overhang ourselves.

Michael Bashera

you Thank so much.

Operator

to call seems for There time. further at to Mr. no Earnest back Instructions] like closing now [Operator be the remarks. to turn this question would over I any

Fred Earnest

taken and all to time Thank you, to who call. update morning this corporate for Laura. And thanks you of join conference this have us

results We cutting, other the of and quarter, of invite to tuned our that’s the to forward pleased we past underway, the stay with are both with extension of ongoing. the to Northern Australia work Territory work that look you cost we regards involved. achievements of is very activity, the currently to stay the the with and agreement Alright,

I As there with conclude for do, you.. an always invitation I

an Pamela I handsomely. that And free of jurisdiction And another to need get think on investment call. those We that will Gold. shareholders Mt. in of team to consider ultimately large reach If you Todd opportunity all require ticks will advanced, for very to boxes. a in invite happy here reward you deposit the investment Solly. if tremendous a for to looking safe an feel out And opportunity there please that’s Vista questions to have you well the be gold exposure are is information, their member further to

thank for we all wish participation and of day. pleasant very you a and call, your conference update this all conclude we that, with So, you

Operator

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

Vista Gold (VGZ) 3 Aug 232023 Q2 Earnings call transcript