https://www.engineeringnews.co.za

Vista Gold fully funded through 2018

4th August 2015

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

TORONTO (miningweekly.com) – Project developer Vista Gold is fully funded through to 2018 and focused on preserving funds while biding its time to make a decision to proceed with a feasibility study on its fully owned Mt Todd gold project, in Australia’s Northern Territory.

President and CEO Frederick Earnest told analysts on a conference call on Tuesday that the current market was defined by weak gold prices, volatility, general investment apathy and the need to raise capital to ensure corporate viability among many of its peers.

However, with its coffers boosted by nearly $10-million received through two recent refunds under the Australian government's research and development (R&D) Tax Incentive Programme, a plan designed to encourage industry to engage in R&D activities to the benefit of the country, the company believed it was now funded into 2018, based on the current plan of operations and, unlike many of its peers, would not be required to make use of dilutive sources of capital.

Vista had introduced ongoing cost-cutting measures during 2013 and 2014, which had resulted in the TSX- and NYSE MKT-listed company expecting its fixed costs – those expenditures necessary to ensure that the company preserved its property rights and met all of its safety, regulatory and environmental responsibilities – to average $1.5-million to $1.7-million a quarter for the foreseeable future.

However, Vista  had once more taken up selected discretionary programmes, mainly consisting of drilling and additional technical studies that could better position the Mt Todd project, considered Australia’s largest undeveloped gold resource, for fast-track development when economic conditions allowed.

Earnest noted that potential future sources of financing included the $1.5-million option payment that the company expected to receive in the first quarter of 2016 under the Guadalupe de los Reyes option agreement with Great Panther Silver. Vista would also continue to seek supplementary financing, giving priority to nondilutive sources, such as the sale of the company’s used mill equipment, other noncore assets and, possibly, its remaining 4.9% position in Midas Gold, after the current six-month lock-up period had expired next month.

Vista on Monday reported net income of $3.6-million, or $0.04 a share, for the three months ended June 30, compared with a net loss of $2.9-million, or $0.04 a share, in the comparable period a year earlier.

Working capital at quarter-end was about $14.9-million, including cash and short-term investments (comprised of US treasury bills) of about $12.6-million. After accounting for the latest R&D refund subsequent to the quarter, 2015 pro forma cash and short-term investments would increase to $16.9-million.

Despite Vista not currently generating cash flows from mining operations, it had no debt.

“We believe we have addressed our liquidity needs and positioned the company to continue to evaluate and execute programmes that could better position the Mt Todd gold project for fast-track development when economic conditions permit. With our improved treasury position and strong management team we believe we are in a position to judiciously evaluate and pursue other near-term value-creating opportunities," Earnest advised.

Vista said completing the feasibility study or development of the Mt Todd project was not justified at this time owing to the current low gold price.

However, with the environmental-impact study completed in 2014, the permitting risk was substantially reduced and the development timeline at Mt Todd was well defined. The company was positioned to move forward quickly with starting the Mt Todd project feasibility study, subject to a sustained improvement in gold prices. The $2.5-million study could be completed within six months.

Mt Todd currently held about 7.9-million ounces of gold in the compliant measured and indicated categories.

Edited by Tracy Hancock
Creamer Media Contributing Editor

Comments

Showroom

Alco-Safe
Alco-Safe

An unmanned breathalyser that is made to be tough and simple to use. Can be used in any environment for operator-free breathalyser testing.

VISIT SHOWROOM 
WearCheck
WearCheck

Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.085 0.146s - 156pq - 2rq
Subscribe Now