Vista Gold Corp (VGZ) 2009 Q4 法說會逐字稿

Good day, ladies and gentlemen. Welcome to the Vista Gold Corp. financial year-end results conference call. At this time, all participants are in a listen only mode. Following the presentation, we will conduct a question and answer session. (Operator Instructions) As a reminder, this conference is being recorded. Today is Monday, March 22, 2010.

It is now my pleasure to introduce your host, Mr. Mike Richings, CEO and Executive Chairman. Please go ahead, Mr. Richings.

Thank you, Marcus. Good morning, everyone. Thank you for joining us today. I have with me on the line Fred Earnest, President and Chief Operating Officer and Greg Marlier, our CFO. I'd like to begin this conference by asking Greg to give us a brief financial presentation and overview, and it will be followed by an update on operations and developments by Fred Earnest. Greg, would you like to go ahead?

Thanks, Mike, and good morning to everyone. Prior to reviewing the Vista Gold 2009 year-end financials, I'd like to discuss some of the company statistics for the year and at year-end.

Vista's outstanding shares at year-end were 44.7 million, fully diluted without the convertible note conversion is 47.7 million shares and if the convertible notes are exercised would be fully diluted of 53.6 million shares. Our average volume on the New York Stock Exchange at AMEX is around 500,000 shares a day. Our low price for 2009 was $1.16 and our high was $3.38. The gold price average through 2009 had a high of $1,213 an ounce, a low of $810 an ounce for an average of $972 an ounce.

In our latest press release on March 16, we discussed the financial results for the fiscal year ending 2009 as reported on our Form 10-K to the SEC. I would now like to briefly summarize these financial results.

Our 2009 consolidated net loss was $2 million, or $0.05 per share compared to the 2008 consolidated net loss of $10 million, or $0.29 per share for a net decrease of $8 million. This decrease of $8 million was made up primarily of our disposal of the Allied Nevada marketable securities which brought us a $6.9 million gain, and also contributing was the repurchase of convertible notes of around 537,000.

Concerning our exploration property evaluation and holding costs, these costs increased to $1.4 million during the year-ended December 31 compared to $1 million for the same period in 2008. The increase of $400,000 is primarily due to increased holding costs at Paredones Amarillos Gold project which reflects increasing administrative and legal costs for activities relating to permitting and community relations.

Regarding our corporate administration and investor relations, these costs decreased to $4.6 million during the year-ended compared to $5.5 million in 2008. This decrease of $800,000 was a result in reduction in our audit tax and Sarbanes-Oxley fees of approximately $170,000 and a decrease in the non-cash stock based compensation of approximately $800,000.

Regarding our operating activities, the net cash used in the activities was $7.9 million compared to $7.6 million in 2008. This increase of $245,000 was primarily an interest on the notes since we had a full year of interest payments in 2009.

Regarding our investing activities, net cash received from the investing activities in 2009 was $3.3 million compared with $26.9 million in 2008. This was primarily due to the decrease in additions to plant and equipment of $17.5 million which we did in Paredones Amarillos in 2008, an increase in the proceeds, as I mentioned earlier, on the marketable securities of $8.9 million and a decrease in additions to mineral properties of $3.3 million. During the 2008 period, we undertook a drilling program at Mount Todd, and we're in the process of completing a feasibility study for Paredones Amarillos.

Regarding financing activities, net cash provided by this activity was $19.8 million for the year ending December 31, 2009. This was primarily made up of a public offering on September 21 and an overallotment on September 25 where we sold an aggregate of 10.12 million common shares from net proceeds after commissions, legal, and other fees of $20.4 million.

At December 31, 2009, our total assets were $92.6 million compared to $75.7 million in 2008. The makeup of the assets are $28.4 million of cash and cash equivalents, $1.2 million of marketable securities, $700,000 in other current assets, capitalized mineral properties of $38.7 million, a valuation on Amayapampa of $4.8 million and plant and equipment of $18.7 million.

Our total liabilities are $26 million, which is made up primarily of the convertible note of $24.9 million.

That is the end of my brief summary of the financials. I will now turn it over to Fred Earnest, President and Chief Operating Officer.

Good morning, everyone.

Since our last conference call, we completed a transaction with a private Canadian development company called Pan Asia Resources for the joint venture of our Awak Mas project in Indonesia. This agreement was finalized in December of last year. Under the terms of the agreement, Pan Asia will have the opportunity to earn in a 60% interest in the Awak Mas project by completing the environmental impact study, which is known as an AMDAL and also by completing a 43-101 compliant feasibility study.

At the Mount Todd project, the feasibility study that was started last fall is still in progress, and we presently have four drill rigs on site conducting the exploration program that was proposed late last year.

At the Paredones Amarillos project, on February 17 of this year, we received notification from the environmental agency in Mexico that our change of land use permit application had been dismissed on the basis of their failure to recognize the validity of the change of the temporary occupation permits that were granted by the General Direction of Mines, the inadequacy of certain statements that they required from other agencies and also minor deficiencies, which have been or are being corrected.

I would note that we have selected ICA Fluor to perform future EPCM work for the project, and we are currently working with their permitting group in Mexico City as we go forward and review our options and our strategy for the resubmittal of the change of land use permit application.

We are working with officials in Mexico City to resolve the issues regarding the validity of the temporary occupation permits, specifically with CONANP, SEMARNAT and also the General Direction of Mines.

As indicated, we do intend to refile the Change of Land Use permit application. The timing of that submission is not yet defined, and we are working to resolve the other issues to have a application which we believe will be something that the agencies can approve.

I think that, on a very high level, is a summary of where we're at with operations. At this point in time, I'll turn it over to Mike, if he has any closing comments, and then I believe we'll open up the floor for questions open up the floor for questions and answers.

Hello?

Sorry, I had the phone on mute. Obviously, this is Mike Richings, and just to sum up what my colleagues have said, obviously, it was a disappointment to us, the news on Paredones, but we're working through it and we've received some pretty high level assurances that the permitting can move forward on the project. And Mount Todd, while we are delayed, we are anticipating that we'll be delivering the preliminary feasibility sometime in the second quarter. With that, I'd like to open the conference up to questions.

Thank you. (Operator Instructions) We'll stand by a moment for the first question.

There currently are no questions at this time. Please continue.

Marcus, unless Fred or Greg have anything to add, if there aren't any specific questions, then we could probably declare the conference closed.

Thank you, Mr. Richings. Ladies and gentlemen, this does conclude the conference call for today, and we thank you for your participation. You may now have your lines disconnected and enjoy the rest of your day.