Vista Gold (VGZ) 30 Jul 212021 Q2 Earnings call transcript

Good day, ladies and gentlemen. Welcome to Vista Gold's Second Quarter 2021 and Financial Results and Corporate Update Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. Today is Friday, July 30, 2021. It's now my pleasure to introduce Pamela Solly, Vice President of Investor Relations. Please go ahead.

thank joining and Corp. Vista everyone, day, you the for Gold Good

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

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

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

for on you, you, us the Pam, joining today. everyone, call thank and Thank

for of quarter, second the During milestones we our a number shareholders. significant Vista achieved and

Our approved. Todd the most was Management, Certificate the received MMP. of the also of approval Protection the after Areas licenses also approval achievement Extraction Todd MMP Mt was the the Vista Mt for for Water of the Management to as the License Mining Plan, approvals referred the the by Authority exploration and Aboriginal Mining significant far Surface project shortly

XX planned our advance to exploration program of and holes. continued the drilled We now have XX

the sale Mining Reyes received Prime final Guadalupe project los the los of also We de completes million Corp. payment, Guadalupe de Reyes $X the which to

definitive drilling general, is regards the commenced public completed we extended our outlook a our work pandemic exploration second deal program. In the Following the and end COVID to a complete study of offering with improving. to feasibility quarter, bought

August. office and North in in Our time is expect the corporate resume within working full we America Denver, travel to now corporate in executive team

continues originally been territory measures Australia, We several in COVID September. In COVID-XX also discuss and northern beginning have approved other in in-person time turn remains relaxed, an by XX, Tobler plan very mitigation in but into achievements operate restrictive the I key over international our and attend conferences visitors but of Mt the required. I'll second now will for under call, less later of June detail to our Australia the plan quarter presently the to than Todd to review greater a ended is management results financial Doug XXXX. that programs travel control for investor difficult. quarter

you And of Fred. thank Thanks, interest. your the today, those for call for you on

the speak additional on quarter for Our for from to Today, our refer XX-Q details. filed financial was Wednesday. highlights Form I'll this second but report to report, the please

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equivalents at XXXX. cash compared $X.X XX, totaled XXXX, and cash $X.X December million June Our XX, which million to at

Given our Fred during million net in activity level of for that project de only first half Reyes $X.X to received Mining of a cash XXXX, the company for we're seen los pleased $X.X a reduction the benefited increased mentioned. Prime from million. We from payment of have

few of ATM our $X.X for variance. accounted results our million supported are in were for expectations. loss operations These a compared just million pit of last program. a number ongoing of We the of net We also to There with $XXX,XXX drilling key a dewatering net income the reported year. that for areas quarter inflows XXXX of programs. Vista's Batman second quarter of second this other from exploration realized and over of line $X our program, cash the

and were for compared project property-related this period million of the we quarter a to $X.X in the Mas also gain First, los million project same a quarter Reyes de Indonesia. Exploration recognized gain expenses compared XXXX. for year this $X.X to last Awak higher

were for year historical trend not $X.X $XXX,XXX $XXX,XXX included so our on this recent in which million, during the million reflects for Most our second $X exploration with $X and finally, quarter to the value at investments of costs. XXXX. of we the gain Gold the expensed about more shares costs We of we the drilling time. line property-related second plus Midas compared last in gain were quarter related of just other difference was from quarter, XXXX This held this million unrealized drilling quarter, quarter. And other market that increase the per

$X.X $X.X previously XXXX, our reflects X from periods the and between XX, For Mas. the we first that other The and X.X pumped sorry, also of covered I and water ended same or Batman Reyes And los June from were discussed de -- million million. Awak $X.X X.X the first net this of half full months and of the gigaliters XXXX these the XXXX plus which costs, losses pit. million variance drilling-related included half million drilling, gains for year

Looking are now, several forward programs. important we progressing

the feasibility in design plant, cost which with additional and include consistent definitive approved recently design study, be As engineering mentioned, MMP. started estimates Fred will a process to project the updated we've and

our provide add during proceeds other forma of to completion these million pro programs $X.X the inclusive is will pleased million, indicate had recently for that million. be requirements, respectively, I'm considered cash $XX.X of offering. recent as for XXXX. To public completed also of will announced And and cash drill planned position, and drilling of to financing, estimated program. progress we we first end support our the we at a additional quarter with quarter the and $XX.X and net million both from drilling costs expected recently plans the be estimate programs to approximately the program. study Follow-up these targets X,XXX exploration We feasibility this meters also $X.X of We some

Fred. us company pleased will to concludes to over over sheet remarks I'll to Our my expected you. the call so for strong that also value are debt. That Thank shareholder enable that advance has key balance to time. no the still turn report back today, I'm programs increase

Doug. Thank you,

approved. announce of of several a pleased and quarter advance As we to cost-effective the during to the significant XX, a and Management I start mentioned June environmental development value This is shareholder now Plan milestone for Todd. was increase very at significant Mining on our permits of a and programs Mt the Vista operating to the milestones required manner. that major holds number the key continued achieved call, company, all for We're approval in

water year Vista to Mt all of to also gigaliters processing with Certificate activities use number efforts. sacred is support the associated mining License protect by the complements Following the discuss term which will a required surface area with Mining now runoff facilitate of and of a previously presently Protection to Aboriginal means in This at licenses. The the covered programs is value as Management the X.X approved, right our add requirements project's of project exploration sites provides the legal And the approval our each identify and near for Areas Todd. which Water we adequately Vista the designed. I'll Todd. that approval Plan, as received to this Authority is Extraction Authority was the for of area Areas of Mt mining expect partnering licenses, store and Certificate expected the Protection supply and approved Mt Surface our Aboriginal to Todd

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completed holes model both approximately in in targeted vertical previously structures. of and planned consistent or the with X,XXX the planned demonstrate XX mineralization holes our of X,XXX horizontal programs. date intersected XX approved completed the continuity to of geologic have the of and Each We meters has

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participants call. on now will to the from respond any questions we Ashley,

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

Marcus is for Giannini This calling Heiko. in

announced But us in just a on comfortable your continued Mt still on publication token, here, walk results you sharing? we're feasibility of same out you're study derisking Just some can I Todd. can ways QX as through away thinking efforts week, bit commencing last direct date? that from the to benefit on a study you know loud a that anticipated you XXXX. of elaborate or as indirect feel the this anticipated much And you seen from

not back reserves shape conservative. may pit per study, or when ounce, existing like. were able recognize today's feasibility into I gold be the detail we go some price absolutely. of all But that at as would a price. pit estimated at on design Yes, the With we more certainly, to as preliminary people call $X,XXX much gold look is $X,XXX using

will happen that of expect one so study an with -- And the we of increase the feasibility things and that an reserves, is in will that, extension life. the mine

feasibility partners. time environment, accurate to pricing we the a with will which completing of all as very at and equipment factors, structural current this in be us giving consumables today's the the cost as estimate the as for operating engage obtain concrete, us most well beneficial items, Additionally, allow will steel, possible

We the certainty are provide This completing of the piping, engineering greater and instrumentation obviously will in electrical and doubts. design process eliminate plant.

that there everything and this a requirements will think I take the the minor Plan, Management there changes putting design Mining With tied who Mining those Plan, the some case, belief that intrinsic the will advancing the to that's that have prevented maintained beliefs. may a some harbor argument feasibility have us is this the lay study, those not has always that we certainly project completing that be together. Also, incorporate at of the Management feasibility will recent study of and the approval flaw that away will stage conditions from

all the in benefit an great of believe add study, view. that's -- believe we that in the agreement discussions compliant Completing we risk a the having potential we'll have efforts We to XX-XXX. We the of and comfort point coming U.S. regulation, a and S-K Canadian the will considerations regulation as from outcomes and new this with at existing to reach X of our to we as this months. hope time, with a with well a study of deal partner's partner study point completion XXXX, XX these to eliminate certainty the directly feasibility that the feasibility be

right. updates last some to impact well. provide my at All as can second travel getting sort this then Australia? the your What But of maybe on quarterly the you question guys the really continued to hinted impact And exceptions. interaction of but helpful. call stop you of was, on lack this this of we a assume how you more stories community is stakeholders? are does progressively with difficult immigration handle, you seeing? I hearing face-to-face given And That's keep

So we with to basis via Zoom. interact continue on a regular stakeholders

affairs many Australia -- on these personal have is we that outstanding an basis. in a face-to-face of these team Fortunately, managing

As you place Australia. to to restrictions regards indicated, international be continue in travel travel with to

team for begun restrictions, Denver, recently to to which visas have but us a the business will apply of guarantees. here for no applying allow granted, of number exemptions the special there's members in once for We process travel

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even to though measure be advancing to that maintaining we've tangible relationships fostering through and in we not I area and And achieved of the objectives aboriginal land of very our with relationships that that negotiations the project agreement. the completed Association, travel. surface that able pandemic, success been we've the Jawoyn a the aware group You're our the consider midst owns the and our modernize to

looks to partners. to our year, Right going will we're all it's travel. discussions being restrictions our manage that visits restrictions So sometime able advance to the we of that impact we that just get it Certainly, people continue to to be site to travel doing now, to with of hope biggest of the the site like all without with. but one able that's we're for lifted. being be travel And not living business affairs next can is

question with Research Herriage Kip Vertical next Your comes Advisory. from

quarter equity the on raise Congratulations on completion and MMP. of on the the the successful

to as study, lot a ability does this had asked with quarter, my -- the impact miner, in at a cap small leverage doing You feasibility yourself what about point, add this gold negotiating this partners? going Marcus question on congratulations. I'll is but question your this that and how potential

I'm sorry, to question, feasibility Kip. how make affect sure completing just the does study the I that? ourselves understand I want

How your use leverage potential that Exactly. ability partners? with Yes. little to negotiating more might affect a in

and thanks on morning. the Kip, Certainly Yes. -- this for call being

for followed You've long us a time.

able reasons of one feasibility team a be part that the because we know these You of to and a be us what the is with ourselves studies in to it organizations the comprise studies. of that consider select disciplines we studies different technical ourselves manage gives or work each

a we're many conversations, get all due that that completely want as a for completion a individuals discussions us we and But and of just product And very having the us answers months, of the directly feasibility so time, very recognize that these companies all that changes point approved. get able should operating that or manner, that all with want the engineering with have and with at of partner diligence the we in believe position in list aware a because completing Todd any of Mt performed we're it's other able are that senior with the possibility. into distinct advantage in make in the the to our X recognize its we will we to there to gone we not of us it. And a we study, a engineering, to of is undertake And interest these of our feasibility feasibility that them are potential additional projects -- size project of evaluations additional to a current that contact understand as -- technical timely that, costs to are permits capital think estimate costs companies asking places as consultants at of a within relationship we've point certainly study, next Certainly, potential that's work being to of generate that partners. We're study. We the to, that, a of reached we gold where regards put have high-quality completed and X the advancing we undertaking may by to be the long-standing we doing able the believe, this now places of assumptions, with work, say the that thorough. of able that's producers. top top-notch to detailed and this with questions we're the

assuming own, that I'm get looking mean And at be waiting on Todd. XX% the to the were partner complete of I'm previous But ballpark previous a strike a I end completing -- at this, the think I I to had know been larger Mt to the which Mt that again, able of still keeping XX% stake give in the might that percentage from assuming you the study. would feasibility this day. talks, I you would that now a to deal Todd you're to your you

our And we're And whether recognition XX%, value longer term. whether that's created the is And for of always value. the all that's along with increasing about certainly, minds, on that's Vista shareholders. for it's At is of it's value things is important the that what the end value one XX% focused Kip. immediately thing shareholder that is the Well, or the Vista on. that day, that at the the and

-- reserve be last investments what to expect based new new on we your holes, will drilling? to at begin you to your continue question point the drill the And as on modified see

to arms opportunity of to of resources to for this more them while objective be program an trying is obviously, is currently confined have of we life future behind and that not kind Rather, for required growth. question one to not the areas reasonably geology for program resource would drilling is focuses wave identify get the of program, on it's future partners a we the demonstrate to this add those estimation. We're that we've to more longer great time, the potential that we're the to district-scale can project exploration The in potential actually out and string that's of the where spacing Mt a can That's be our this #XX be this looking about That and resource the because program. prepared greatest that data a be. when of growth together. And remarks, what things hole be this and talk a going north demonstrate we structures the in like Todd what results true these thickening drilling for. area at hole structures purpose of point will to the and and understand resource geology estimated and we the is been Batman put of them, in exactly things expected some than we've these we're following much XX to the bands the And of and structures encountered resource to are represents the that demonstrate point from I structures mentioned zone and very deposit thickening. potential to objective conversion. But

that? that? if using when can And I gold be to ounce so, Last you're see expect you Understood. we $X,XXX question. reserve for an totals. raising believe still your Will

Yes.

used estimate of So disclose first the reserves we study. The will we next the in will year. of price increase. of to gold part feasibility quarter all absolutely. the that when results And announce That's

Congrats on the quarter.

Thank you, Kip.

Capital. from with ROTH comes question Farwell Matt next Your

are why was Most are just clarify what guess drilling in looking can that to but that we know can results do you of And be really I the really plan for drilling announcements, to to of drilling catalysts see partnership market. Obviously, the we wondering, just infill we what we're not been we're looking love my going to that and the further more that clarify going answered. see? to expect term have the that to drilling also, I questions see. to results to we see near sort with have, you're

walk year can us you half -- us just what And that second the from through next we in a the see peek at so might of what perspective. give

Yes.

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Our course was work on distinct, now of drilling, unrelated X.X this, district previously connected. as I the exploration indicated, that that program, believe individual, the between and meant as geology. doing we together program we're of this occurrences all identified such, those undertaking the were understand we're out meters XXX drill. and ago between we've understanding that X is occurrences. Based to years, years each we the tie And things these our mineralized we're in that anywhere done the in last that and is XXX help stepping better us sections And

dollars of that point believe we between spacings this would drilling that, an of that's the in advance greatest will those make drilling, And for to kind those offer ultimately and require time, and expansion. To that resource and XX looking on of potential meters. reserves the XX -- partner resources expand for expand -- increases, generate drilling that are additionally kind between future of a project. We reasonably on -- to it's areas at millions infill expense going that

want groundwork, the investment And partner we're trying we will that to lay develop prepare the and a so be make. that the to ground in targets And essence, very productive. investment for the

make in be value a our to willing to to project. our prepared without to expense would idea significant clearly life with geologic the to more that point that within a a exist we this the know the concepts at demonstrate of exploration we're significant investment the shareholders. partner create to and extend and expand investment so Batman-Driffield corridor And the strategy modest the the structures define that to resource part that's make of And

Your question [ Christophe ]. comes Rice from next

question a make the Because for fast, the think which advantage they deal have you in an the and the are they I are act Australian restriction when can partners. the Do Fred, our property? companies travel concerning kick off competitors. interested

Australia, travel are companies distinct territory country. already and interesting companies, the have in within You have advantage. deal from in that's ever And assets as the operations as that way the restrictions of country. But raised and have to -- and same in restrictions to the observation just those the changing be international Australian restricted can Australia, They that to. are an a the forward they situation time very when North which They are with period who those are able within not the subject Australian and because this to do states the move they're point. America. we not in in different companies others who therefore, respond based but to from of astute they one not advance is are have being not -- may your COVID

advantage be will an for us. this Perhaps Yes.

Absolutely. It could be.

Instructions] [Operator

no it appears are questions. that Actually, other there

the also that the is one work cost time outlined that call. will the all of for and already the completion look forward project is in That's moves the the frame forward we complete the Todd with reasons every that, remind position proposed Doug work X those able to move the now able study just complete standards. part interest results, the past previously that of everybody in first study standards, the feasibility And feasibility program that the X second being we look call. quarter. weeks announced of to in results all XXXX, done to the doing the that of drill We wrap this achievements we drill This So forward has of very and would expect forward. be feasibility the we're Mt to our up lot your we're the call. almost will of at to study. I to of the to and thank as all in quickly. modest to are engineering And we we engineering that relatively we excited -- about half in will you fact, be of of that a for We've

previous that's of results to I this of what's We that's going being about And previous the work the all of results feasibility encourage months. a being ongoing excited manner in on. study forward we're and to another completed the is watch that timely think that over the work, made. investment X course been the deliver manifestation able look to exploration and you next of the

all thank Thank support, very for your you day. So you of and pleasant we interest. your continued you wish a for

gentlemen, Ladies concludes this conference. and today's