VGZ - Earnings call transcript Q2 2024

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Operator

Good day, ladies and gentlemen. Welcome to Vista Gold's Second Quarter 2024 Financial Results and Corporate Update Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. Today is Tuesday, July 30, 2024. It is now my pleasure to introduce Pamela Solly, Vice President of Investor Relations. ahead. go Please

Pamela Solly

and the Jenny, everyone. you Thank Thank Gold good Corp. joining Vista for you, afternoon,

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

President our quarterly On today the results. on Doug Chief are quarter at Vista Officer. At the Financial Copies XXXX report news XX-Q yesterday, Executive close available business its is Earnest, of Tobler, of call the on reported www.vistagold.com. Officer; Form and website Fred operating and and Chief release second financial and

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

Earnest. the will to I now call over turn Fred

Frederick H. Earnest

deposits Pam, seeing committed diligently and attractive work is gold call in thank development us jurisdictions most goal. and ESG time one -- mining the to keeping that its when attractive right, you, the with one for of toward most large on the everyone, is This highest standards world. in of today. the joining Thank mining and you, the in we'll the controls the Vista one attractive most of

to the and Northern to people Territory, important and ultimately, families is project of shareholders. the success the area, Vista Our

gold Precious help achievements of today, we rising second value create during greater in environment. quarter to of me share a the us will management year. Phase current commenced few addition team under of But of our the our our XXXX this On you as Director payment designed with Technical our Wheaton finished Metals, Garcia the final let with and transaction the rising Services. help and We current -- X Vallejo received program and price first, new that installment with in understand the are Projects Phase X activities you call Maria of enhanced the royalty the drilling

effective Northern also economics for Territory passed Government Mineral The Australia Act to for announced X, new XXXX. positively royalty profits Todd the Royalties legislation and with net Act Mineral valorem the Royalties expected became an that mines royalty ad enact impact prior on gold of We of Mt regime XXXX, to regime project the July which replaced is project. Vista's new

of of smaller this balance our Mt had accident-free environmental reached our maintaining project, and initially the execute year, we continuing initiatives. to to work will a time Todd now Todd I'm safety pleased days. that health, XXX and year-to-date, no successfully lost Mt has we consecutive advancing accidents site an remainder the strong report focus For evaluations shareholder sheet, on maximize scale and value have

for detail the for CFO, discuss Tobler, will review will in the in our call, I a XXXX. turn these of I Doug our over some June greater financial now of to quarter time topics later results ended XX, but the

Douglas Tobler

upcoming for of review $XX the at XXXX. the same to project a royalty and recap and to and of of program ongoing cash we've final Wheaton have no the now X-month an full start in million installment received June, compared we like drilling now to Fred. $XX you, today's on With Mt initially presentation this XX, we our In balance ended XXXX, I'd using second operations the the these million Todd. funds sheet. are with ended debt. I'll June received financial of continue million, provide periods final X- We quarter our totaling Thank periods with the our a evaluations agreement. scale and installment, results smaller $XX.X under

This months income ended address mostly 'XX resulted gain Net those and of on -- I'll gain June million costs the costs of of Each offsetting net categories XXXX million $XXX,XXX, administrative installment the Vista and a of for site 'XX. $XX being XXXX largely the of associated XXXX, was X the carrying installment, for royalty the final plus XXXX. Todd million 'XX again previously administrative The 'XX June received. loss grant than slightly were mineral $XXX,XXX for corporate a installment XXXX. of deferred the was million date for loss as to expense were XX, $XXX,XXX and titles quarter million of from of Partially gain final for the mineral of property $XX.X $X.X gain of period and the consolidated -- of reported of of compared recent in net on $XXX,XXX respectively. of respectively. payments included this of corporate received periods, $XX $XX.X the period million Mt and consolidated period XXXX totaling these First, a the lower interest 'XX for comprised Mt of and site most all this X-month Todd income in net the expenses $X.X to expenses the million during net the $X.X Wheaton.

for these during of $XX the from with development XX, our part ongoing costs offset was that drilling received were by And the capitalized. Of the no were and costs million XXXX, that period note, Wheaton. the same against occurred $XXX,XXX then comparison, drilling proceeds value X-month were the majority these XXXX. in costs June ended totaled during there -- was mineral from period program associated The property carrying of

months I'll ended the for XXXX. reported loss a X June $X.X the June 'XX period XX, comparable consolidated X-month to ended net net 'XX. of million 'XX in about briefly the $XX.X of compared XX, talk million Now during and income periods consolidated Vista

As of net $X.X and And Todd of and million, respectively. million administrative XXXX was $X of the XXXX $X.X million gain administrative for corporate $XXX,XXX also and with slightly gains period offsetting of million in sale most Partially period period these these corporate comprised again, the of of and were quarter, of X-month of XXXX from were Mt those site The expenses the the recent $X respectively. gain. $XX.X its largely portion a recognized each for site $X.X than Todd 'XX expenses lower Mt during the equipment. million, a categories XXXX period. million X-month included mill used Vista X-month expense the loss

balance part the development X-month the million carrying This XX, in period we're capitalized months we period but That X-month million was included with XXXX, to and pleased all summary, controlling June ongoing improvements that our focus As my value $X then property our of $XX,XXX remarks. first of proceeds against X In the being ended costs. Wheaton. with mineral with during of concludes XXXX expenditures. on very the offset from made sheet the for of received XXXX, $XX the results the our

you. to over back Fred, So

Frederick H. Earnest

followed our Thank remainder you, begin the of with for outlook the Doug. second by quarter achievements, our year. I'll

and meters of holes and X announced drilling Wheaton totaled received, year. part sheet. With X,XXX been Metals. almost X,XXX Detailed planned expected of this million to to of installment X this July of final we drilling expected confirming royalty our now -- have for this payments in June focused December drilling is the of regards completed X has program, These and by year, which defining results to significantly program, of Phase commenced balance north on our holes are XXXX XX consisted strengthened completed limits Phase from drill Batman Phase XXXX, of to are the of our with reported, you be the in of we June, under grade All in the meters. agreement. end Doug of has transaction we X mineralization received as completed payment be that area. August. million program And $XX the As many know, Phase at in the of Precious a royalty X,XXX $XX year-end. in the in deposit the which

XXXX mineralized structure are narrow, new program center trends drilling the couple Northern This on Northeast Minerals that We the deposit expected a prior the an to the assays the with concentrating Historic XXXX programs. June, last cost $X those structure. of defining is the million ad enact holes regime grades the with Territory with This XXXX is Batman cross-load all-in intersected cross valorem a structure Act. this evaluating of in deposit. the Northern Territory and time. drilling Royalties was X Phase date regards to Batman typically XXXX of the of we the drill replaced and announced from regime net XXXX. Mineral potentially the of passed July than legislation mines. at in In on profits have in with to to suggests higher the loads South royalty observed for had an Royalty government an The X, effective royalty approximately south Act

with payable to aimed Mineral making royalty life net to represents royalty which Todd more for and economic price, Northern simplifying million Northern Territory's ad XX% our Todd of a case of gold system at valorem Mt a payment produced. other previous Territories through to the of present improved and The the rate $XXX encouraging in new and and to our Northern the viable The royalty gold competitive be of is approximately growing Royalties over the included new opportunity This X rate profits mining at project Northern nearly X.X% royalty The feasibility represents at meaningful rate. an exploration the and development it X% a Territory XXXX Under commitment sector royalty updated mine. regime, shareholder $X,XXX equivalent study, mining value gold underscores Act economics applicable returns the by base future nearly earlier new reduction Tier estimated analysis, the doré jurisdictions. Territory will new Mt compared development. of in from royalties royalties a the projects project

of as a by S-K on Maria for Exchange Instrument Institute She of Technical background years optimizing the Vallejo Her developing Maria briefly and and and Australian Projects In Mining the Americas of Canadian evaluating, XXXX the Maria gold Regulation Vista be Mt we Services. projects. comment Act to as XX-XXX, like Pacific. a development position stage also company as for technical Director joined consider will of copper Projects under and registered as also Securities a Technical I'd of Asia smaller the scale and June person strategic mineral qualified screening, is as appointment National defined and of and success. at Item year, Director disclosure Metallurgy. Services. professional fellow expertise of of in She engineer of our this our of is our long-term amended; the as mining opportunities XXXX, assets evaluation experience as invaluable transactions and and potential we advance Todd of standards brings and XX and

looking Now ahead.

sheet, scale Mt smaller In expansion addition our to evaluations of Todd project subsequent continuing option a maintaining advancing maximize for and initially value. balance stage we shareholder strong work the an to are with

for Mt our returns CapEx while project. same part As flexibility demonstrated improve maintaining to smaller technical the initially us results allows as smaller initial a time, subsequent Previous project. attractive of plan stage scale Todd, this economic we associated deliver initial to studies significantly the of preserve to margins an to previous of scale At development. the we the work and evaluate lower with high leverage studies the opportunities value

price continuing increasing. are gold margins the to rise, With

feasibility suggests a as lower strategies Mt At capital, value attracting that greater offer development this project to avenue shareholder initial We analysis investor scale initial provide in optionality interest value with on Todd. we completing combined we a smaller anticipate Our recognition. higher believe focus creating margins, year. on that time, next valuable alternative an and study

one In deposits attractive controls conclusion, of jurisdictions most in most gold world. Vista of the mining large one the the in attractive

diligently work goal. to the highest seeing when its ESG achieving are development with and is standards keeping right, time and committed the toward mining we'll that in We

proven thoughtful success project the and that of current the important Our a rising on people to Todd The help and million ultimately, is gold evaluations, families shareholder the advanced most greater will In Territory, reserves. value create all and believe of Australia for is and realize project focus to projects shareholders. and in with price the gold the of gold Northern environment, Vista undeveloped Mt minimizing area, shareholders. us risk, largest probable X ounces we one and

approved. extremely ideally to its a infrastructure addition and Territory, Todd Todd Mt In stable the Todd hand. existing our major are importance, advantages, strategic stakeholders in the had project at other local an construction is timeline all Northern firmly Mt initiate size, provides earned offers Mt we mining-friendly confident of development the of and Mt equal license mitigation and been advantages located have the The permits number to Todd in of trust of risk that jurisdiction. is social Of

to competitive the most future programs initial designs Australia preserving believe operating just Our aim significantly asset not current superior but a one in maintaining reduce incorporating world. derisk is by We the for of the technical the Todd while option Mt capital projects project cost and in that expansion. costs the project attractive development-stage and

hold study, all with we valuation development. of that and to for a operating robust permits Todd for Mt to all by economics updated coupled reflective demonstrated feasibility Our costs needed is project major as fact approvals primary the objective favorable achieve that the is the of the initiate

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

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

Operator

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

Heiko Ihle

spends now to $XX So just a got is Can this gets I deal you of Wheaton, you done? at you bank. million there final in mean, are doing? is to things do happen in any from maybe bank? money with more now Any that extra the people just plan cash the specific on rate that through the that what $XX some you royalty plan going the higher walk you million that is

Douglas Tobler

Doug Heiko, I'll answer here. to that. Yes, it's try

of couple a buckets. into it split So different

at holding of costs up order Todd the million have The which our X.X the a now, core of $X about is recurring corporate all going including first -- not for costs, costs been our our is basically Mt and the running those inflation. And G&A. for year on years through

of in don't happening change see we the So the big -- organization. with the what's a core

it we will in spending we'll the on As of to anything And the We which ballpark drilling be be up close the later seem go would million we'll I spending, the that to that. on me this end secondly, on course, $X drilling, tracking the course, tell other have right over And to don't said, have plan. pick program, the year. today Fred of of on the as some studies. year, come doing start of would

First, there itself. technical the trade-off move report into some we'll studies, will then be

So $X study will -- next addition wrap $X.X probably between $X of the half another of balance in be then million year, year drilling this sorry, and year. the calendar of $XXX,XXX first the to million million of feasibility the somewhere this up we'll in

So $X that's total. million to probably $X.X another million

put plan together, smaller really spending significant we're normal changes this no So expected. and scale burn our there's to doing what outside of rate initial

Frederick H. Earnest

would spend just that great just Heiko, the that need we've spend. door and in I seek maximize it. our add because feel practice got that capital mean we we that to -- to preservation just -- mean money value a We'll the money from I doesn't would continue to

Heiko Ihle

quite Fred, you spend money way know the respect bit. I a you

Okay.

you I Todd. have payable mean, walk as to production? in maybe thing gets call Is to back royalty on timing Can some just you is then expect Can when So and maybe nearly overall. it more what of the it XX% loaded, listeners reduction color once actually a us money front give this your see? one you revised on sent Mt through of to X.X% this the the you the got the more numbers in royalties loaded? government

Douglas Tobler

simple Yes, X.X% Heiko, ad I'll In take valorem. terms, it's that again.

That So flatlined will take flat entire across of your gross revenue X.X%. mine. life number times -- be the

something completely that's you million basically, $XXX in that's replaced range. $XXX So the the the to by see just can gets That study. $XXX current down million in million

in cut -- there's given over a and mine. of this or million made, period But nice just life the So roughly keep given flat. all reduction no they at it's involved $XXX it payback they the that holiday --

Frederick H. Earnest

was previous paying -- that's on the provide NT did paying royalty not it across all is involved an on -- that nor of that even a in royalty compared new based thing removes mines other some transparency structure most it be of profits to net the other NT that were the that's jurisdictions. regime The value -- this was And of is puts -- reproduction that complexities you'll calculation it does competitive that footing something sectors. royalty where the and

So we some this simplification development -- And believe that forward the and and a and that for -- we mining of we we some towards competitiveness. Territory. Northern be -- step rewards accrue is certainly, will this believe from for projects that tremendous -- there incentives subsequently the

Operator

I are the There this for further Instructions] to [Operator closing at no will questions remarks. hand back Earnest the Fred call now time.

Frederick H. Earnest

in to all part I you, reiterate of just you like is that Thank today. away. and most to take thank controls -- and like have a the the world. most stable Vista attractive you of mining-friendly And the jurisdictions would would gold of Gold you who call of one to in Jenny, joined the one I that core message the would we large deposits that

standards. with will goal so are interim. that and to do committed diligently seeing development when we'll and mining toward right, the the We ESG highest we its the is in in But keeping time work

value believe ultimately we greater help shareholder and Northern a the shareholders. people minimizing all risk on Our of price rising and create but for focus the will realize and environment, and Vista stakeholders. us to success is important not ultimately that families In the thoughtful only evaluations project the area, to gold Territory current

robust part for project reflective robust achieve valuation objective is study. and like coming Doug we'll the first Our demonstrated is invite the Todd value call. about We you those Vista by Mt recognizes you undertaking Gold cost more year. to to of operating which intrinsic concluding, a learn And Todd the that joining economics to as Mt of project. next We primary indicated, would and studies, all in the the favorable project the be the the is months and that of of feasibility thank updated -- the for

free might Solly, increasing serious Gold in feel to give to to value you information, Pamela are an future. all Investor Gold I further Relations. investment And need opportunity with of consideration greater and wish you you all please reach a thank Vice all your Vista in holding in be you invite to out President If how creation very our pleasant afternoon. an of for that, the I Vista

Operator

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

You all lines. disconnect may your

Vista Gold (VGZ) 30 Jul 242024 Q2 Earnings call transcript