Vista Gold (VGZ) 2 Nov 172017 Q3 Earnings call transcript

Good day, ladies and gentlemen. Welcome to Vista Gold's Third Quarter 2017 Financial Results and Corporate Update Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. Today is Thursday, November 2, 2017. It is now my pleasure to introduce Vista's President and CEO, and your host, Mr. Earnest. Fred Mr. ahead, go Please Earnest.

I'm you, President diligently Kim. for preliminary past making me in our office third quarter, Relations, gentlemen. you expect of we've Martinez, of the Engele, early This testing conference ladies Todd update XXXX been for to this Director toward both advancing joined call with our by here in we Mt. CFO; first Good metallurgical time progress to in corporate and afternoon, Jack project, call. update taking completion feasibility the corporate Corp.'s an Senior Denver. results and of to join which be quarter our financial on Vice complete gold and of Thank study the XXXX. our and Thank pleased and Vista quarter Connie Investor Gold also,

refer cause time now important statements. XX-K financial performance results. the project implied the uncertainties to or performance We a today's from equipment actual we those the materially a forward-looking These our in should results, Jack valued. and and This statements. achievements tremendous be our achievements power savings statements major expect improved the discuss allow the discussion is results, to gold may Form risks, Vista factors, differ other known improvements to such lower materially actual or foreign which to in I'll by factors gold and return could our recovery, to a different at that a cost, cause this risks in rate future the rate unknown over Please Engele any significant results for for making and of us way current process Todd that viewed around other detailed turn In of and course of of or project will from change be be the the call, price. area, forward-looking turn Mt. exchange marks compelling to demonstrate to involve expressed statements. and

Fred. completed a Guadalupe afternoon, noncore de you, comprised deal $X.X Cimarron, had transaction. de announced we an Good totaling in Thank los I'll of Reyes us start our payments Last million auction auction The summary four $X week, los that Guadalupe Mexico. for payments. deal million project the everyone. we of Reyes to with includes

and three or includes months, $X months, The months, first payment last on payments royalty made a XX XX was an Alternatively, depending royalty rates NSR can on price. week, non-carried remaining a to accept an mine. will X% production, due any uncapped NSR XX% and in to capped underground underground open-pit at also deal the production. The XX in closing we at on gold right the from royalty are respectively. X% The interest vary future million

balance Turning and our liquidity. sheet to

Our continues to shape. sheet balance good be in

$X.X about pro reported, approximately This capital a after As of getting we're cash XXXX. XX, at September million. and million working received working increase would On first short-term through transaction, $XX.X the increase Reyes payment capital to los de in our million. we and investments million million $XX.X basis, $XX.X of short-term investments forma our auction Guadalupe cash our effect totaled $XX.X to and includes would the

company comprised short-term and The notes. are has T-Bills Our debt. no investments U.S. of

loss and at Looking our XXXX. for income statement XX, September of

permitting. unrealized expenses and loss net of share. loss an metallurgical shares. Todd quarter, at For programs, testing, a a Todd of components $X.X of million mark-to-market $X.X fixed at million mainly of main and operating million project, $X.XX comprised net Mt. site net management reported of discretionary or The our on $X.X Mt. Midas components main PFS operating cash $XXX,XXX loss loss cash the gold we of $X.X $XXX,XXX our cost are the the million about The updating $X.X million our are

same constant. total unchanged to QX G&A costs about Compared $XXX,XXX. corporate last quarter were terms were year, fairly Similarly, remained fixed Mt. from costs G&A in XXXX. Todd Our substantially corporate the Australian fixed dollar cost

continue well-controlled. be Our to costs

working for ahead, los our depending of Looking believe of coupled some mill market cost future sufficient capital, future project financing be our of comments. concludes equipment, Fred? financing, conditions, That used discretionary Potential on permitting the and shares of the we all and Reyes years. the of including non-diluted auction with de sources to that feasibility our existing Midas or will of sale cover and for non-diluted future sources payments potential fixed Corp. activities, remaining studies Gold include my common Guadalupe sale project, several our

Jack. you, Thank

with to Todd. update start feasibility our July, Let project study. Todd of Mt. we intention Mt. the announced an undertake In gold preliminary me

We also announced bulk sorting the automated successful conclusion tests. of

at and and at establish is designs these of at gold two-stage our been be XX that's recovery of to progressing. proven tests material identified, volume have Metallurgical feasibility results these are latter that leaching X% run-of-mine feed circuit. and accepted new provide We the we pleased grind for that definitive grinding depending estimate to for the grinding, recoveries tailings a because expect to with type from X% and ore grinding the preliminary us suggest two-stage same Single-stage we to by to Analysis these are we size the circuit on costs handling technology a have that driven of prior tests pressure will will updated tons our tests study. XX% leaching grinding leaching grind can of of the the help leach eliminate finer to now to cost on processed processed. circuit, XX%, grinding a completed, be basis microns by size gold the the are drop grind testing finalizing

two to testing results three We expect announce weeks. next able to to be metallurgical program in the comprehensive

improvement was when on size the to XX today in total continue our in is grind at that used the XX% microns. talk where moments results study gold for grind previous to This from We to we project, this will I work. Everyone XX-micron XX.X% significant we the be other as study feasibility few in are advance would of areas call flow cash in like improvements the observing in the of a preliminary the recovery improvement XX%. a was the of recovery. size that to appreciate expect the magnitude economics fundamental range gold to compared the about

better required are to reduce therefore, the will to of the This First build. to all, significant generate, results are power addition and metallurgical the need power of savings. to to result recovery, grind testing amount power that expected size that in gold the is in we be the we process a in design plant driving and producing expected that of finer plant changes

the mining four ratio. mining implementing years. stability the quotes On by recent project's measures, we in to expect for Also, our occurred pit over site, reduction indicate stripping reductions have slope cost achieve modest significant last a equipment

preliminary course, complete the updated feasibility would of rate. a current discussion study the without Of mention of no exchange be foreign

was Our will time rate per an original foreign results dollar. we sensitivity of was report updated basis equal exchange preliminary per rate be rate project to will dollar completed study Australian announcing exchange exchange $X.XX that the Australian our U.S. study, parity $X.XX of the In rates, preliminary to feasibility exchange U.S. anticipate but the dollar. have being the closer U.S. at dollar. foreign the a to or when Today, Australian foreign feasibility we the

gold using economic per $XX.XX to Finally, we our plan analysis of complete a price ounce.

of It facility. enjoys project site, Australia. Todd well the in components, a having with with reserve The ounces fresh million in the permitting is largest proven is in largest pipeline, existing power advanced approved September and Northern the package reserves, such Territory as single-deposit is benefits and Australia impoundment Australia, EIS undeveloped controls critical water paved roads natural Mt. and and to project infrastructure lines, been located in the tailings gas the of Our third reservoir X.X of gold and XXXX. probable storage of Vista the ideally

We price and favorably of that the factors in and license have exceptional firmly and the believe us our to believe that the of space leverage gold. provide to local is We our position earned of shareholders to compared the all to combined developer hand. social with these our peers trust stakeholders, we

project, Guadalupe exposure Reyes to underground to the high-grade, of the potential. preserving With los auction the the upside completion transaction de while

in project objectives and and gold to in fund made position firmly the activities its of Mt. years. financial distinguishing of many for achieve between corporate the strength these Vista stronger to factor are the activities Todd all of fund peers. several financial a establish is a that We to the having believe value I

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For be one able we top sustaining Australia could will we to of lowest that in all-in believe Todd the quartile producing the cost greater among with X mines clarity, that in producers. Australian gold be Mt. demonstrate

we the This any exchange regards with This strategic equipment to expect We the on respond seeking gold major be a today's allow the value. savings tremendous to will results prepared our to to in of for those opportunity enthusiastic of current which us lower are is demonstrate area, would - and happy improved now We'll participants and turnaround costs, return gold with a indicate we to power our temper call. carefully of be and future project. process recovery, afford at evaluating options the study rate concludes our the from feasibility preliminary improvements shareholder project create development to that compelling the the price. foreign greatest questions remarks. the to us strategic options, the And rate regards anticipation

conclude Ladies join Kim. with I We're we next announce able program that comprehensive testing would your for right. that All time you've metallurgical expect simple you, weeks. us to this we afternoon. call delighted like taken to two the to to the three in Thank gentlemen, to reminder be appreciate this the results and time call.

be you work eye valued. announcement viewed up the preliminary should my about in the quarter it's of our time to Thank in very we Mt. a thank on project with significant this that the year. that feasibility the this that would keep flow in study We're you view approach As and of excited close first winding project and change results conclusion We now. belief demonstrate I attention you. these just and tremendous the invite the mark the of early that's we results end afternoon. your progress a the is news in for next right turnaround the year, this way reiterate a and at Todd and your will will the of

call. conference today's concludes This

now disconnect. may You