Vista Gold Corp. (NYSE American and TSX: VGZ) ("Vista" or the "Company") today announced its unaudited financial results for the quarter ended June 30, 2024, with net income of $15.6 million and cash totaling $20.2 million. All dollar amounts in this press release are in U.S. dollars.
Frederick H. Earnest, President and CEO of Vista, said, "During the second quarter, we received the final $10 million instalment payment under the recent royalty agreement. All payments under the royalty agreement totaling $20 million have now been received, which significantly strengthens our balance sheet. We completed Phase 1 of the Mt Todd drilling program and commenced Phase 2. We expect to announce results from Phase 1 in August."
Mr. Earnest concluded, "We have commenced trade-off studies and preliminary evaluations related to an initially smaller scale project at Mt Todd. We will continue to prioritize the efficient use of our cash while we seek opportunities to create long-term value for our shareholders in the current climate of a strong and rising gold price, and execute our health, safety, and environmental initiatives."
In June, the Company also announced that the Northern Territory, Australia (the "NT") passed legislation to enact the Mineral Royalties Act 2024 effective July 1, 2024. The 3.5% royalty to be applied to production from Mt Todd represents a nearly 50% reduction in payable royalties. This results in improved project economics and earlier shareholder returns compared to our 2024 updated feasibility study, which included NT royalties equivalent to nearly a 7% ad valorum rate. Under the previous net profits royalty regime, our base case economic analysis at an $1,800 gold price estimated the payment of $765 million in NT royalties over the life of the mine.
Summary of Financial Results
Vista reported consolidated net income of $15.6 million, or $0.13 per basic common share, for the quarter ended June 30, 2024, compared to a consolidated net loss of $1.5 million, or $0.01 per basic common share for the quarter ended June 30, 2023. Net income for the current quarter includes a recognized gain of $16.9 million upon receipt of the final instalment under the royalty agreement.
Cash and cash equivalents totaled $20.2 million at June 30, 2024, compared to $6.1 million at December 31, 2023. The Company continued to have no debt.
Management Conference Call
Management's conference call to review financial results for the quarter ended June 30, 2024, and to discuss corporate and project activities is scheduled for July 30, 2024, at 2:00 p.m. MDT (4:00 p.m. EDT).
Participant Toll Free: +1 (800) 717-1738 Participant International: +1 (289) 514-5100 Conference ID: 85480
This call will be archived and available at www.vistagold.com after July 30, 2024. An audio replay will also be available through August 15, 2024, by calling toll-free in North America +1 (888) 660-6264 or +1 (289) 819-1325 using passcode 85480#.
