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Vista Gold Corp (2)
Symbol VGZ
Shares Issued 82,390,217
Close 2015-03-03 C$ 0.43
Market Cap C$ 35,427,793
Recent Sedar Documents

Vista Gold loses $18.9-million (U.S.) in 2014

2015-03-03 18:59 ET - News Release

Mr. Frederick Earnest reports

VISTA GOLD CORP. ANNOUNCES 2014 RESULTS AND PROVIDES UPDATE ON RECENT ACTIVITIES

Vista Gold Corp. has released its audited financial results and highlights for the fiscal year ended Dec. 31, 2014. All dollar amounts in the press release are U.S. dollars. Management's quarterly conference call to discuss these results is scheduled for 9 a.m. MT on March 6, 2015. The company's full audited financial statements, management's discussion and analysis, and other important disclosures can be found in its annual report on Form 10-K, filed with the U.S. Securities and Exchange Commission (SEC) and the Canadian securities regulatory authorities.

Recent highlights:

  • Received $3-million to complete the sale of the Los Cardones gold project;
  • Completed an agreement to sell up to eight million of its shares in Midas Gold Corp. for total net proceeds of approximately $2.8-million;
  • Received $500,000 option payment from Cangold Ltd.;
  • Continued to bring costs down while meeting environmental, safety and regulatory requirements.

Frederick H. Earnest, president and chief executive officer, commented: "Two thousand fourteen was a pivotal year in the financial stability of the company. Consistent with our stated strategy, we continued to fund the company without dilution and paid off our debt well ahead of schedule. As a result of our cash on hand and the successful cost-cutting measures which we implemented in 2013, which continue in effect, we believe we are now funded through most of 2016. We remain focused on our Mt. Todd gold project in Australia, where continued weakness in many macroeconomic factors provides positive offsets to the lower gold price. We are analyzing these factors and anticipate that they will have a net positive effect on the economics of the project. We are well positioned to continue to weather the present gold markets and expect to be able to continue to fund the company through most of 2016 without the need to raise capital in the equity markets in the current market conditions. I believe our Mt. Todd gold project is uniquely positioned to move forward quickly in an environment of sustained gold market improvement."

Summary of 2014 financial results

The company reported a net loss of $18.9-million or 23 cents per share for the year ended Dec. 31, 2014. This includes an unrealized $4.3-million mark-to-market loss on its investment in Midas, and a non-cash $4.8-million writedown of interest in the Amayapampa project in Bolivia. During the year ended Dec. 31, 2013, the company reported a net loss of $59.5-million or 73 cents per share.

Expenditures for exploration and property holding costs, principally at the Mt. Todd gold project, were down approximately 74 per cent from 2013. In 2014, the company eliminated all material discretionary programs and continued the cost-cutting initiatives introduced in 2013. In early 2013, it completed several cash-intensive programs such as water treatment and the prefeasibility study for the Mt. Todd gold project, and introduced several significant cost-cutting measures, including staff reductions and compensation reductions at the Mt. Todd gold project. Similarly, at the corporate level, the company continued the cost-cutting initiatives introduced in 2013, resulting in a 31-per-cent reduction in 2014 corporate costs from 2013 levels.

Working capital at Dec. 31, 2014, totalled approximately $8.6-million, including cash of approximately $3.7-million. After giving effect to the cash received in January as a result of the finalization of the Los Cardones sale and the option payment received from Cangold in February, together with the cash to be received from the Midas sale, pro forma working capital increases to approximately $15-million, including approximately $10-million of cash.

To review the company's annual report on Form 10-K for the year ended Dec. 31, 2014, including the related management's discussion and analysis, visit SEDAR, the SEC website or the company's website.

Management conference call

A conference call with management to review the financial results for the fiscal year ended Dec. 31, 2014, and to discuss corporate and project activities is scheduled for Friday, March 6, 2015, at 9 a.m. MT.

Toll-free in North America:  1-866-233-5249

International:  416-642-3300

This call will also be webcast.

This call will be archived and available on the company's website after March 6, 2015. Audio replay will be available for 21 days by calling 1-866-245-6755 (toll-free in North America) and using passcode 339376.

If you are unable to access the audio or to phone in on the day of the conference call, please e-mail questions to Connie Martinez, manager of investor relations, and the company will try to address these questions prior to or during the conference call.

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