Q3 2023 Vista Gold Corp Earnings Call
Participants are in listen only mode.
Speaker 1: At this time, all participants are missing only mode.
Following the presentation, we will conduct a question and answer session at that time participants are up to press star One to register for a question.
Speaker 1: Following the presentation, we will conduct a question and answer session.
Speaker 1: At that time, participants are asked to press star 1 to register for a question.
Whereas assistance during the call. Please press star zero on your Touchtone phone.
Speaker 1: For assistance during the call, please press star zero on your touch tone phone. And as a reminder, this conference is being recorded. Today is Wednesday, November 8th, 2023. It is now my pleasure to introduce Ms. Pamela Sully, vice president of investor relations. Please go ahead.
And as a reminder, this conference is being recorded today is Wednesday November eight 2023 that is now my pleasure to introduce MS. Pamela Solly, Vice President of Investor Relations. Please go ahead.
Thank you Kelsey and good afternoon, everyone. Thank you for joining the Vista Gold Corp, third quarter 2023 financial results and corporate update conference call.
Speaker 2: Thank you, Kelsey, and good afternoon, everyone. Thank you for joining the VISTA Goat Corps third quarter, 2023 Financial Results and Corporate Update Conference call. I'm Pamela Sully, Vice President of VISTA Relations. On the call today is Fred Ernest, President and Chief Executive Officer, and Doug Tobler, Chief Financial Officer.
I'm Pamela Solly, Vice President of Investor Relations on the call today is Fred earnest, President and Chief Executive Officer, and October Chief Financial Officer.
During the course of this call we will be making forward looking statements. These statements involve known and unknown risks uncertainties and other factors that may cause actual results performance or achievements of vista to be materially different from results performance or achievements expressed or implied by such statements. Please.
Speaker 2: During the course of this call, we will be making forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements of VISTA to be materially different from results, performance, or achievements expressed or implied by such statements.
Refer to our most recently filed Form 10-Q for details of risks and other important factors that could cause actual result results to differ materially from those in our forward looking statements I will now turn the call over to Fred earnest.
Speaker 2: Please refer to our most recently filed form 10Q for details of risks and other important factors that could cause actual results to differ materially from those in our forward-looking statements. I will now turn the call over to Fred Earnest. Thank you, Pam.
Thank you Pam.
And thank you everyone for joining us on the call. This afternoon.
Speaker 3: And thank you everyone for joining us on the call this afternoon.
During the third quarter, we continued to work with CIBC capital markets and maintained our ongoing cost reduction programs managed our safety and environmental programs without incident.
Speaker 3: During the third quarter, we continued to work with CIBC Capital Mark.
Speaker 3: We maintained our ongoing cost reduction programs, managed our safety and environmental programs without incident and presented at the Presses Medal Summit in Beaver Creek, Colorado. As part of our work with CIBC, we continue to explore transaction opportunities and host Mt. Todd site visits with interested parties.
And presented at the precious metals summit in Beaver Creek, Colorado.
As part of our work with CIBC, we continued to explore transaction opportunities and host Mt. Todd site visits with interested parties.
We remain diligent in the execution of our strategy to seek an appropriate transaction to maximize shareholder value.
Speaker 3: We remain diligent in the execution of our strategy to seek an appropriate transaction to maximize shareholder value.
But I understand the completion of a transaction may dependent on sustained improvement and stability in the economy and capital markets.
Speaker 3: But understand the completion of a transaction may depend on sustained improvement and stability in the economy and capital.
Cost reductions are ongoing and we are on track to achieve a 7% reduction in 2023 recurring costs compared to 2022.
Speaker 3: Cost reductions are ongoing and we are on track to achieve a 7% reduction in 2023 recurring costs compared to 2022 Vista continues to have no debt
Mr continues to have no debt.
In September we attended the precious metals summit in Beaver Creek, Colorado, where we met with shareholders potential investors mining companies and others.
Speaker 3: In September , we attended the Precious Metal Summit in Beaver Creek, Colorado, where we met with shareholders, potential investors, mining companies, and others.
The completion of the internal scoping study earlier this year generated interest among shareholders investors and potential transaction parties.
Speaker 3: The completion of the internal scoping study earlier this year generated interest among shareholders, investors and potential transaction parties.
We remain committed to the health and safety of our employees and to our environmental stewardship at Mt. Todd.
Speaker 3: We remain committed to the health and safety of our employees and to our environmental stewardship at Mt. Todd.
There have been no lost time incidents this year and the site has now reached 690 consecutive accident free days.
Speaker 3: There have been no lost time incidents this year. And the site has now reached 690 consecutive accident free days.
I will discuss these topics in greater detail later in the call.
Speaker 3: I will discuss these topics in greater detail later in the call. But now I will not turn the time over to Doug Tubler for a review of our financial results for the quarter-ended September 30, 2020.
But now I will now turn the time over to Doug Tobler for a review of our financial results for the quarter ended September 32023.
Thank you Fred today I'll provide a brief recap of our results of operations for the quarter ended September 32023, and our financial position at that date.
Speaker 3: Thank you Fred. Today I'll provide a brief recap of our results of operations for the quarter-ended September 30, 2023, and our financial position at that date.
Vista Gold's full financial statements and MD&A are included in our Form 10-Q.
Speaker 3: VISTA Gold's full financial statements and MDNA are included in our form 10Q that was filed yesterday and is available at either SEC.gov or cedarplus.ca.
Was filed yesterday and is available at either SEC dot Gov, or SEDAR plus Scott.
Okay.
Vista Gold's reported consolidated net loss of $1 $5 million or <unk> <unk> per common share for the quarter ended September 32023, compared to a consolidated net loss of $1 7 million or <unk> <unk> per common share for the quarter ended September 32022.
Speaker 3: VISTA gold reported consolidated net loss of one and a half million dollars or one cent per common share for the quarter-ended September 30, 2023. Compared to a consolidated net loss of 1.7 million or two cents per common share for the quarter-ended September 30, 2022.
Our loss for the current quarter was in line with our expectations and it reflects an 11% reduction in operating expenses compared to the same period same period last year.
Speaker 3: The loss for the current quarter was in line with our expectations and it reflects an 11% reduction in operating expenses compared to the same period, same period last year.
For the nine months ended September 32023, and 2022, our net losses were $4 9 million and $3 4 million respectively. The loss in 2023 was greater than last years, because the 2022 period included a $2 $9 million gain on our <unk>.
Speaker 3: For the nine months ended September 30, 2023 and 2022, our net losses were 4.9 million and 3.4 million, respectively.
Speaker 3: The loss in 2023 was greater than last year's because the 2022 period included a $2.9 million gain on our disposal of the O'Watmos property and other income items totaling $413,000. $2.8 million.
<unk> of the outwork modest property and other income items totaling $413000.
Excluding the effects of these two items this to reported operating expenses of $5 1 million for the nine months ended September 32023.
Speaker 3: Excluding the effects of these two items, this to report operating expenses of 5.1 million for the nine months ended September 30, 2023, compared to 6.8 million for the same period last year.
Compared to $6 8 million for the same period last year.
This represents a 25% decrease in operating expenses period over period.
Speaker 3: This represents a 25% decrease in operating expenses period over period.
We are on track to achieve our objective of a 7% reduction in recurring costs and other cost reductions at Mt. Todd for exploration and site management programs.
Speaker 3: We are on track to achieve our objective of a 7% reduction in recurring costs and other cost reductions at Mt. Todd for exploration and site management program.
Turning to our financial position our balance sheet remained in good condition at September 30.
Speaker 4: Turning to our financial position, our balance sheet remained in good condition of September 30th. We ended the cash of $4.8 million, which compared to $6 million at June 30th of 2023. We also maintained our position.
We ended with cash of $4 $8 million, which compared to $6 million at June 30 of 2023.
We also maintained our position of having no debt.
That concludes my remarks for today, So I'll turn the call back over to Fred Thank you.
Speaker 4: That concludes my remarks for today, so I'll turn the call back over to Fred. Thank you.
Thank you Doug.
I will begin with a review of our ESG initiatives and performance and then review our third quarter achievements.
Speaker 3: I will begin with the review of our ESG initiatives and performance and then review our third quarter achievement.
We are committed to conducting our business in a responsible and sustainable manner, we continually seek to align our business practices with ESG principles to ensure the long term success and positive impact of our operations and we are proud to be recognized for our record and environmental leadership.
Speaker 3: We are committed to conducting our business in a responsible and sustainable manner. We continually seek to align our business practices with ESG principles to ensure the long-term success and positive impact of our operations. We are proud to be recognized for our record in environmental leadership in the Northern Territory.
Ship in the northern territory.
We remain in compliance with our site environmental responsibilities and obligations and as previously noted our team in Australia has now completed more than 690 consecutive days with no lost time incidents.
Speaker 3: We remain in compliance with our site environmental responsibilities and obligations. And as previously noted, our team in Australia has now completed more than 690 consecutive days with no last time in.
We're very pleased with our safety oriented culture and the accomplishments of the team.
Speaker 3: We are very pleased with our safety oriented culture and the accomplishments of the team.
We continue to maintain strong working relationships with the <unk> people and the leaders of the John One Association Aboriginal Corporation.
Speaker 3: We continue to maintain strong working relationships with the Jaouen people and the leaders of the Jaouen Association Aboriginal Corporation.
We continue to work with the leaders and stakeholders in the Katherine area and more broadly in the northern territory as well as the northern territory government.
Speaker 3: We continue to work with leaders and stakeholders in the Catherine area and more broadly in the Northern Territory, as well as the Northern Territory.
I am pleased that our social license is firmly in place and strongly supported.
Speaker 3: I'm pleased that our social licenses firmly in place and strongly support
We remain committed to responsible environmental management.
Speaker 3: We remain committed to responsible environmental management, protecting heritage sites, and developing Mount Todd in a way, and at the time, that maximizes the benefit for our shareholders and stakeholders in the Northern Territory.
Protecting heritage sites and developing Mt. Todd in a way and at the time that maximizes the benefit for our shareholders and stakeholders in the northern territory.
I am pleased to report.
We are working on our first ESG report.
Speaker 3: we are working on our first ESG report and expect to publish the report in the first quarter of 2024. Now, switching to the precious.
And expect to publish the report in the first quarter of 2024.
So switching to.
The precious metals summit.
As I indicated in September we attended.
The precious metals summit in Beaver Creek.
Speaker 3: the Precious Metals Summit in Beaver Creek. This conference always provides an excellent forum for our team to meet with shareholders.
This conference always provides an excellent forum for our team to meet with shareholders.
Potential investors mining companies bankers and others.
Speaker 3: potential investors, mining companies, bankers, and others.
Our message about the opportunity for a smaller initial project at Mount Todd was well received and.
Speaker 3: Our message about the opportunity for a smaller initial project at Mount Todd was well received.
In particular.
Demonstrated initial capital less than $350 million to achieve annual production of 150 to 200000 ounces of gold per year combined with the opportunity to increase production through stage development over time.
Speaker 3: Demonstrated initial capital less than 350 million to achieve annual production of 150 to 200,000 ounces of gold per year, combined with the opportunity to increase production through stage development over time resonated with many of those with whom we met.
Resonated with many of those with whom we met.
Interest in what is happening in there in the northern territory also caught the attention of investors and.
Speaker 3: interest in what is happening in the Northern Territory also caught the attention of investors.
In April the NT government announced plans to attract greater mining investment in the territory. The top government <unk> priority is to reform the current royalty structure.
Speaker 3: In April , the NT government announced plans to attract greater mining investment in the territory. The top government priority is to reform the current royalty structure.
All indications suggest that the government will adopt an AD valorem royalty and adjust the rate to be more competitive with other tier one jurisdictions, where rates typically range from two 5% to 5%.
Speaker 3: All indications suggest that the government will adopt an ad valorem royalty and adjust the rate to be more competitive with other Tier 1 jurisdictions where rates typically range from 2.5% to 5%.
This represents a very meaningful opportunity for improved project economics and earlier shareholder returns at Mt. Todd.
Speaker 3: This represents a very meaningful opportunity for improved project economics and earlier shareholder returns at Mount Todd, where our 2022 feasibility study included NT royalties equivalent to a 7 to 9% ad valorem rate, depending on gold price and other assumptions.
For our 2022 feasibility study included.
<unk> royalties equivalent to a 7% to 9% AD valorem rate, depending on gold price and other assumptions.
We expect the northern territory government to complete the royalty reform by the end of the second quarter 2024.
Speaker 3: We expect the Northern Territory government to complete the royalty reform by the end of the second quarter of 2024.
Yes.
Now switching over to the ongoing work with CIBC.
Speaker 3: Now, switching over to the ongoing work with CIBC.
CIBC continues to generate interest in Mt. Todd.
Speaker 3: CIBC continues to generate interest in Mt. Pod.
The results of the Scoping study announced earlier this year have generated greater interest in the Optionality Mt. Todd offers under different development strategies management continues to host site visits and respond to inquiries from engaged parties.
Speaker 3: The results of the scoping study announced earlier this year have generated greater interest in the optionality Mt. Todd offers under different development strategies.
Speaker 3: Management continues to host site visits and respond to inquiries from engaged parties.
We remain focused on recognizing value for shareholders through the completion of the REIT transaction.
Speaker 3: We remain focused on recognizing value for shareholders through the completion of the right transaction.
One that realizes a greater portion of the intrinsic value of Mt. Todd and provides ample opportunity for future additional value recognition.
Speaker 3: one that realizes a greater portion of the intrinsic value of Mount Todd and provides ample opportunity for future additional value recognition.
Our efforts to.
And reducing costs and maximizing cost effectiveness are high priorities for 2023.
Speaker 3: And reducing costs and maximizing cost effectiveness are high priorities for 2023.
We have taken actions to further reduce recurring costs by approximately 7%.
Speaker 3: We have taken actions to further reduce recurring costs by approximately 7% and continue to evaluate and implement opportunities for additional cost reductions.
And continue to evaluate and implement opportunities for additional cost reductions.
And now in conclusion.
The Mount Todd Gold project is one of the largest and most advanced undeveloped gold projects in Australia.
Speaker 3: The Mt. Todd Gold Project is one of the largest and most advanced undeveloped gold projects in Australia.
With 7 million ounces of proven and probable reserves.
Speaker 3: With 7 million ounces of proven and probable reserve.
And following the completion of the Newmont Newcrest merger Vista controls the second largest reserve package in Australia.
Speaker 3: And following the completion of the Newmont Newcrest merger, Vista controls the second largest reserve package in Australia.
In addition to its size Mount Todd provides a number of other advantages for those interested in a potential transaction.
Speaker 3: In addition to its size, Mount Todd provides a number of other advantages for those interested in a potential transaction.
Mount Todd is ideally located in the northern territory.
Speaker 3: Mount Todd is ideally located in the Northern Territory.
Australia, an extremely stable and mining friendly jurisdiction.
Speaker 3: of Australia, an extremely stable and mining-friendly jurisdiction.
The existing project infrastructure at Mt. Todd provides very distinct construction timeline and risk mitigation advantages.
Speaker 3: The existing project infrastructure at Mount Todd provides very distinct construction timeline and risk mitigation advantages.
All the major permits for the development of Mt. Todd has been approved.
Speaker 3: All the major permits for the development of Mt. Pod have been approved.
Of equal importance, we have earned the trust of the local stakeholders and we are confident that our social license is firmly in hand.
Speaker 3: of equal importance. We have earned the trust of the local stakeholders and we are confident that our social license is firmly in hand.
Our technical programs focus on Derisking, the project and incorporating design center capital efficient with low operating costs.
Speaker 3: Our technical programs focus on de-risking the project and incorporating designs that are capital efficient with low operating costs.
We believe the proposed changes to the empty royalty regime will help improve project economics enhance the projects leverage to gold price and provide a stronger foundation for improved shareholder value.
Speaker 3: We believe the proposed changes to the NT royalty regime will help improve project economics, enhance the project's leverage to gold price, and provide a stronger foundation for improved shareholder value.
We believe Mt. Todd is a superior asset and one of the most attractive development stage projects.
Speaker 3: We believe Mount Todd is a superior asset and one of the most attractive development state projects, not just in Australia, but in all of the world.
In Australia.
And all of the World.
Our primary objective is to achieve a valuation for Mt. Todd that is reflective of the gold production profile.
Speaker 3: Our primary objective is to achieve a valuation for Mount Todd that is reflective of the gold production profile.
Long operating life excellent gold recovery favorable operating cost robust project economics as demonstrated by the completed feasibility study and the fact that we hold all approvals for all major permits.
Speaker 3: long operating life, excellent gold recovery, favorable operating costs, robust project economics, as demonstrated by the completed feasibility study and the fact that we hold all approvals for all major permits.
For a more comprehensive review of the work completed by Vista on the Mt. Todd project.
Speaker 3: For a more comprehensive review of the work completed by VISTA on the Mt. Podd project.
We refer you to our corporate presentation, which can be found on our website at www Dot Vista gold Dot com.
Speaker 3: I refer you to our corporate presentation, which can be found on our website at www.vistagold.com.
We believe that Vista gold represents an exceptional investment opportunity in that current prices represent a tremendous opportunity to establish a position or increase one's holdings in Vista gold.
Speaker 3: We believe that Vista Gold represents an exceptional investment opportunity and that current prices
Speaker 3: represent a tremendous opportunity to establish a position or increase one's holdings in VISTA goals.
This concludes our prepared remarks, we will now respond to any questions from participants on the call.
Speaker 3: This concludes our prepared remarks. We will now respond to any questions from participants on the call.
Okay.
Yes, good question.
Okay.
Question.
Okay.
Okay.
No.
Thank you Jonathan.
Great.
Speaker 1: hear a three-time prompt acknowledging your request and your questions will be pulled in the order that
Alright.
Yes.
Great.
Got that.
Please go ahead.
Speaker 1: With the decline phone pulling process, please press the star followed by the two. If you are using a speakerphone, please hold the handset before pressing any keys. One moment, please, for your first question. Your first question comes from
Thank you.
You are using a speakerphone please.
Thank you.
Please be brief question.
Great question.
Nicole.
Okay.
Please go ahead.
Can you hear me, okay, because it was just a little muffled there.
Speaker 5: I tried to keep it. Can you hear me okay? Because it was just a little muffle.
Yes, we were having difficulty hearing kelsey as well, but we hear you loud and loud and clear Heiko.
Speaker 3: Yeah, we were having difficulty hearing Kelsey as well, but we heard you loud and loud and clear, Hico.
Fair enough okay cost.
Cost savings going into 2024, I mean, youre looking at a 7% reduction in recurring costs.
Speaker 5: Fair enough. Okay, cost savings going into 2024. I mean, you're looking at a 7% reduction in recurring costs. I'm frankly amazed at how you plan on being able to do this, given how lean the ship's been run for the last
We are amazed at how you plan on being able to do this given the whole leadership has been lost.
Many years I've been following the firm can you just give a little bit of color and detail on what exactly you plan on doing and maybe even quantify the effects.
Speaker 5: many years that I've been following the farm. Can you just give a little bit of color and detail on what exactly you plan on doing and maybe even quantify the effects?
Yes, im going to turn that I'm going to turn this question over to Doug to answer HEICO Heiko How're you doing.
Speaker 4: Yeah, I'm going to turn the I'm going to turn this question over to Doug to answer. Heiko. Hey, Heiko, how are you doing? Yeah. Hey, the seven percent is what we're tracking is our objective for this year. And, you know, I think we talked about this last quarter that that's seven percent after considering the effect of inflation, which, you know, is kind of running, you know, high single digits in some some markets, it's even low teens.
Yes, Hey, the 7% is what we're tracking is our objective for this year.
And I think we've talked about this last quarter that that 7% after considering the effect of inflation, which is kind of running high single digits in some markets. It's even low teens. So we think we've done exceptionally well this year.
Speaker 4: So, you know, we think we've done exceptionally well this year. We're not through our 2024 budget cycle yet, but, you know, we're seeing areas where we can continue to ratchet down our costs and our whole thing stable. I mean, we've been, you know, very fortunate to keep our personnel costs in line and, you know, still keep a very motivated workforce. We've just got some older than exceptionally hard workers and they keep working well for us. You
We're not through our 2020 for budget cycle, yet, but we're seeing areas, where we can continue to ratchet down our cost and our whole things stable and we've been very fortunate to keep our personnel costs in line and still keep a very motivated workforce. We've just got some over there.
<unk> been exceptionally hard workers and they keep keep working well for us.
As we move into next year, we will continue to look at all of the really exciting areas like insurance.
Speaker 4: As we move into next year, we'll continue to look at all the really exciting areas like insurance.
Markets have improved a bit there, but also we've taken a very aggressive approach to shopping our rates on all of these all of the products that we have.
Speaker 4: Markets have improved a bit there, but also we've taken a very aggressive approach to shopping our rates on all of the products that we have. Consultants and advisors or another bucket, the easiest thing to do is don't use them, but the reality is you have to.
Consultants and advisers or another bucket the easiest thing to do is don't use them, but the reality is you have to.
And we've had some consultants that have been supported by being able to hold the rate steady they can't do that forever. So we may see some bumps there but in other cases, we've we've been able to successfully shopper shift our services to a less expensive, but still productive service provider and then of course, we work to wrap.
Speaker 4: and we've had some consultants that have been supported by being able to hold the rate steady. They can't do that forever, so we may see some bumps there. But in other cases, we've been able to successfully shop or shift our services to a less expensive but still productive service provider.
Is it down our office in admin costs keep our our ramp low.
Speaker 4: And then of course we work to ratchet down our office and admin cost you know keep our rent low. Keep all of our other support costs as low as we possibly can. So it's it's not big dollars in any one bucket but we look at every bucket and try to try to scrape out a few dollars. So I'm hopeful that we can at least hold the line as we move in just one 2024 and offset most if not all of the cost of inflation.
Keep all of our other support costs as low as we possibly can so it's it's not big dollars in any one bucket, but we look at every bucket and tried to trying to scrape out a few dollars. So.
Im hopeful that we can at least hold the line as we move into 2024 and offset most if not all of the cost of inflation.
That's fair that's a fair answer.
Just looking at just where the shares are currently sitting meters clearly value. There I mean Gold's list when I woke. This question was at $19 50.
Speaker 5: I'm just looking at just what a shears are currently sitting me there is clearly value there. I mean, gold's less when I wrote this question up was in 1950. If you want to run the sensitivity analysis and again I'm happy to use pretty conservative observer this.
One runs a sensitivity analysis and again I'm happy to use pretty conservative.
The numbers here there is obviously a meaningful value disconnect between the value of the company.
Speaker 5: Numbers here there is obviously a meaningful value disconnect between you know the value of the company and the share value for a for lack of a better word What is the market missing and and and how it does one? Explain to them that they're missing it or is it just all drew your mind or is there beaten down and nobody cares?
Share of value.
That award.
What is the market missing and how does one explain it to them that they are missing it or is this just all junior miners are beaten down and nobody cares.
Heiko.
Very interesting question and Im sure its a question that.
Speaker 3: You know, Haco, that's a very interesting question and I'm sure it's a question that
Many.
Ceos and shareholders alike are asking themselves.
Speaker 3: Many CEOs and shareholders like are asking themselves across the board in our sector. There is a big disconnect.
Across the board in our sector.
There is a big disconnect between.
Gold price and intrinsic value of projects compared to.
Speaker 3: Gold price and intrinsic value of projects compared to market caps and and recognize value in companies. Certainly we find ourselves presently under a greater than normal amount of selling pressure. We're not sure if that's tax-loss selling that has commenced the middle of last month.
Market caps and recognize value and companies.
Certainly we find ourselves presently under a greater than normal amount of selling pressure, we're not sure if thats tax loss selling.
It has commenced the middle of last month.
Or if it's just part of a broader.
Speaker 3: or if it's just part of a broader market phenomena that gold stocks are a little bit out of favor.
Market phenomena that.
<unk> stocks are.
A little bit out of favor.
We know that in Australia, specifically that.
Speaker 3: We know that in Australia specifically, that Lithium seems to be the flavor of the day and gold companies are falling a little bit out of favor.
Lithium.
It seems to be the flavor of the day and gold gold companies are.
Falling a little bit out of favor.
I think and I think in the background of everybody's mind our questions about.
Speaker 3: I think in the background of everybody's mind are questions about...
When Vista is going to successfully complete a.
Speaker 3: when VISTA is going to successfully complete a transaction. And that is in very great detail, out of our control and in many respects. As I reported, we continue to work with CIBC and CIBC. Much to their credit continues to generate. And that is in very great detail.
A transaction.
That is in a very great.
Detail.
Out of our control and in many respects.
As I reported.
We continue to work with CIBC in CIBC much to their credit continues to generate.
Leaves and attract new interest to Mt. Todd.
Speaker 3: leads and attract new interest to Mt. Pod. That's reflected in our mentioned to site business that are being held and the due diligence work that's being undertaken. I'm hopeful that as we head into the new year that we'll see a shift.
That's reflected in our mentioned two site business that are being held in the due diligence work that's.
Being undertaken.
<unk>.
I'm hopeful that as we head into the new year that we will see.
Shift.
In our sector that will begin to see some transactions that involve developers such as Vista.
Speaker 3: in our sector that will begin to see some transactions that involve developers such as Vista, whereas this year the majority of transactions that have been producers transacting with other producers, that's...
Whereas this year the majority of transactions that have occurred have been producers.
<unk> with other producers.
That's been something that we haven't been able to seem to break as a sector of the industry, but I'm hopeful that that that that will happen and when it when it begins when the pendulum begins to swing back the other other way.
Speaker 3: That's been something that we haven't been able to seem to break as a sector of the industry. But I'm hopeful that that will happen and when the pendulum begins to swing back the other way. I think that the size of the project, where it's located, the fact that it's fully permitted.
Thank that.
I think that the size of the project, where it's located the fact that it's fully permitted.
The fact that we.
<unk>.
Speaker 3: the fact that, you know, we, the Mount Pott is essentially so already will bowed well for us, but in the meantime, I think the key factors are, you know, as Doug has pointed out, that we're being very efficient with the use of the financial resources that we have.
The Mount Todd is essentially shovel ready will bode well for us but in the meantime.
The key factors are as Doug pointed out that.
We're being very efficient with the use of financial resources that we have I.
I'd like to think that we're amongst the top of our of our peers.
Speaker 3: I'd like to think that we're amongst the top of our peers in what we're able to achieve with the money that we spend. So it's something that weighs on our minds as it does, I'm sure, on many investors.
And what we're able to achieve with the money that we spend so it's something that weighs on our minds as it does I'm sure on many investors' mind.
Thank you feel any better ways in my mind as well.
Speaker 5: Thank you for your only better ways of my mind as well. I'm sure enough good answer and I'll get back in cute.
Fair enough good answer and I'll get back in queue.
Thank you Heiko.
Okay.
And your next question comes from Joe <unk>.
Speaker 6: Thank you. And your next question comes from Mike Sol. Please go ahead. Um.
Please go ahead.
Okay. Thank you here can you hear me.
We hear you loud and clear Mike.
Right, yes, so I am a private investor I have two questions.
Speaker 7: Great. Yeah, so I'm a private investor and so I have two quick
I'm going to ask them one at a time, yes, I can be clear on what I'm gonna asset.
Speaker 7: I'm going to ask them one at a time just so that I can be clear on what I'm going to ask. So the first question is, does VISTA have the ability to...
The first question is.
Does this.
Have the ability to borrow.
The $350 million and mine the gold themselves.
Speaker 7: $350 million and mine the gold themselves.
Our borrowing based on the type of project type of company out of the question and I say that because I'm just kind of donlin.
Speaker 7: Or is borrowing based on the type of project, the type of company out of the question. And I say that because I've just kind of done the numbers with even astronomical interest rates and what your projection for gold production, net of production expenses. money. Let's say left we are about isn't yet the greatest out of friendship.
Yes, the number with even astronomical.
Interest rates and what you're projecting for gold production net of.
Production expenses.
We provide a pretty.
Significant multiple over with.
Speaker 7: would provide a pretty significant multiple over with the current stock crisis. So just knowing that you guys, if worse comes the worst, could borrow what means something to me and borrowing and mining could be an option of glass or zord.
Next question.
Knowing that you guys.
<unk>.
Good borrow would mean something EMEA and borrowing in mining.
Be an option.
<unk> the Oregon.
And third quarter.
Not a way to.
Speaker 7: If in three quarters, there's not a way to, you know, raise additional money for stock offering or whatever. So just answer that one at first if you don't mind.
Yes.
For stock offering or whatever.
Yes, I'll answer that one first if you don't mind.
Yes, Hi, this is Doug Tobler I'll take that one on so.
Speaker 4: Yeah, hi, this is Doug Tobler. I'll take that one on. So, sounds like your analysis would tell you the same thing that our analysis would.
It sounds like Youre analysis would tell you the same thing that our analysis would.
In terms of borrowing just to be clear, we wouldnt seek to ever borrow 100% of the $350 million that we outlined in our scoping study.
Speaker 4: In terms of borrowing, just to be clear, we wouldn't seek to ever borrow 100% of the $350 million that we outlined in our scoping study. A typical mining project would finance 60% with some form of leverage, debt streams, where else is those types of things.
Typical mining project would finance, 60% with some form of leverage that streams royalties those types of things and typically the balance would come from an equity infusion and that can come from.
Speaker 4: and typically the balance would come from an equity infusion and that can come from, you know, partners or it can come from, you know, the broader market itself. So, um...
Partners or it can come from.
The broader market itself so.
From what from what we see Mt. Todd's economics are robust there.
Speaker 4: From what we see, you know, mount odds economics are robust. You know, they're very robust at the current goal prices when you look at the valuation of on a discounted cash low basis. So we see that that typical 6040 dead equity ratio is something that would be very achievable. Should we ever move towards that direction?
They are very robust at the current gold prices when you when you look at the valuation.
Of.
On a discounted cash flow basis. So we see that that typical 60 40 debt equity ratio is something that will be very achievable.
Should we ever moved towards that direction, we still see that there is.
Great value opportunity in some other form of transaction that provides a.
Speaker 4: We still see that there's great value opportunity in some of the form of transaction to provide a more immediate and then longer term uplift as well. So, you know, we're not boxed out. We've got optionality and I think your analysis makes sense.
Longer more immediate and then longer term uplift as well. So we're not boxed out we've got Optionality and I think your analysis makes sense.
Okay and then the second question, which you may or may not answer, but I'm going to ask it anyway.
Speaker 7: Okay, thanks. And then the second question, which you may or may not answer, but I'm gonna ask it anyway, is you've commented a lot on wanting to find the right transaction that kind of represents the value of the project. So as an investor, not seeing much of what's going on, there's the appearance that even though we hear about a lot of that activity, we don't know whether there's been...
As you you commented a lot on wanting to find the right transaction.
Rapid rack the value of the project so.
As an investor not seeing what's going on there and the appearance that even though we hear about a lot of activity.
Don't know whether there has been actually any <unk>.
Possible offer or even mention of offer.
Speaker 7: possible offers or even mention of offers that were not considered by VISTA because it was nowhere near considered, you know, the right value. So if there's a way you could shed light that there have been people that have been bona fidely interested but not at the right value, or if you can't comment on it, I understand. But we're just trying to size up what's actually going on among folks that are looking.
Were not considered by this there because it was nowhere near.
Considered.
The right value.
If theres a way you could shed light there.
People that have been bound of highly interested in but not at the right value.
If you can't comment on I understand but I'm, just trying to size up what's actually going on among folks that are looking at it.
Yeah.
Yes, I'm not going to be able to answer the question to your satisfaction, Mike but.
Speaker 3: Yeah, I'm not going to be able to answer the question to your satisfaction, Mike, but they're over over the last year. There have been, there have been discussions about
They're over over the last year there have been there.
There have been discussions about value.
And.
Those those discussions have not reached to a point where for a number of reasons.
Speaker 3: And those discussions have not reached a point where for a number of reasons, on either side of the table, where they get to the point where there's anything that would be disclosed.
On either side of the table, where they get to the point, where there is anything that would be disclosed.
But there.
Hi, there.
There is genuine interest and there is.
Speaker 3: But there are, there is genuine interest. And there's been significant expenditures made to date on the parts of several companies in various levels of due diligence. And I mean, I don't know where this is gonna end, but we'll see what plays out in the next quarter or two quarter.
There has been significant expenditures made to date on the parts of several companies in various levels of due diligence.
And.
Yeah.
I don't know, where this is going to head, but we'll see what plays out in the next.
Next quarter or two quarters.
Great.
Correct answers were.
Tremendously helpful. I appreciate it thank you.
Speaker 7: Great. Well, both answers were tremendously helpful. I appreciate it. Thank you.
Keith.
Alright.
Yes.
Next question comes from Adrian Day asset.
Speaker 1: Thank you. And the next question comes from Adrian Day, from Adrian Day as a management. Please go ahead.
Asset management. Please go ahead.
Yes, hi, good afternoon.
I'm wondering how you would carry two questions. Two part question. How you would characterize the recent discussions you've had compared with say the discussions last year.
Speaker 8: Yeah, hi, good afternoon. I'm wondering how you would carry two questions, two power questions. How you would characterize the recent discussions you've had compared with, say, the discussions last year. And then how would you, could you give us some idea of what seemed to be the biggest stumbling block?
Then.
How would you could you give us some idea of what seemed to be.
The biggest stumbling blocks to people, making a making a positive decision to go ahead.
Speaker 8: to people making a positive decision to go ahead.
Yes.
Adrian I think that the.
Speaker 3: Yeah, Adrian, I think that the biggest, the easiest way to characterize the difference between discussions a year ago and discussions in the last nine months is the impact of inflation.
The biggest the easiest way to characterize the difference between the discussions a year ago and discussions in the last nine months is the impact of inflation.
And the uncertainties surrounding inflation.
Speaker 3: and the uncertainty surrounding inflation.
Our feasibility study is David <unk>.
Speaker 3: Our feasibility study is dated January of 2022. And within six months of that time, we started seeing a lot of talk and in reality, a lot of impacts of inflation and what that means to projects.
January of 2022 and <unk>.
Within six months of that time that.
We started seeing a lot of.
A lot of talk and in reality.
Sort of impacts of.
Inflation and what that means to projects.
I think in answering your second question.
Speaker 3: I think in answering your second question, you know our industry quite well, and you know that...
You know our industry quite well and you know that.
Many of the companies that should be interested in a project the size of Mt. Todd.
Speaker 3: Many of the companies that should be interested in a project the size of Mt. Todd are actually quite risk-averse. I think that the fundamental reason why we're seeing the consolidation, the transactions between producers and producers is that they're eliminating the development risk in today's market.
Are actually quite risk averse, and and I think that the fundamental reason why we're seeing.
The consolidation of the transactions between producers and producers is that is that there are eliminating the development risk in todays market.
And that weighs heavily on.
Speaker 3: And that weighs heavily on every discussion, is how do you assign a value to that risk? And what ultimately is going to be the cost of development, even though we have very solid first principles, cost estimates for the CAPEX and operating costs, as of the fourth quarter of 2021.
On on every every discussion is how do you how do you assign a value to that risk.
And what ultimately is going to be the cost of development, even though we have.
Very very solid.
First principles cost estimates for Capex and operating costs.
As of the fourth quarter of 2021.
The question in everybody's mind is what are those costs really going to be today, and so it's really a matter of.
Speaker 3: You know, the question in everybody's mind is, what are those costs really going to be today? And so it's really a matter of risk aversion. And that's the biggest issue that we see. And we think that that's driving the hesitancy across the board to engage in discussions, transactions, with developers in today's market.
Of risk aversion and that's the that's the biggest the biggest issue that we see and we think that thats driving the hesitancy across the board to engage in discussions transactions with developers.
In today's market.
Okay, great. Thank you.
And there are no further questions.
Speaker 6: Thank you. And I'm not further questions at this time. Missile.
You May proceed.
Alright, Kelsey thank you.
Speaker 3: All right Kelsey, thank you. We appreciate the questions that have been asked Mike and Haiko and Adrian appreciate your continued interest and the very thoughtful questions that were asked.
We appreciate the questions that have been asked Mike in HEICO and Adrian I. Appreciate your continued interest in <unk> and the very thoughtful questions that were asked.
As.
As has been pointed out in the Q&A section.
Speaker 3: You know, as has been pointed out in the Q&A section, you know, our share price is not where we would like it to be, but I think the flip side of that is that this represents a, for those who can see the value, the underlying value of amount taught in the asset, and the fact that those ounces are not going anywhere, I think that there's a tremendous opportunity here.
In our share price is not where we would like it to be but I think the flip side of that is that this.
This represents a for those who can see.
The value of the underlying value of Mt, Todd and the asset and the fact that those ounces are not going anywhere.
I think that there is a tremendous opportunity here.
To establish or add to our position in Vista gold.
Speaker 3: and to establish or add to a position in VISTA Gold. We certainly, for those who have further questions, and would like more information, I invite you to reach out to Pamela Sully.
Certainly for those who have further questions and would like more information I invite you to reach out to Pamela Solly.
<unk> Vice President of Investor Relations, Pamela we will be happy to spend time with you answer questions as needed to get myself for another member of the team on the phone to help you understand that.
Speaker 3: Our Vice President of Investor Relations, Pamela will be happy to spend time with you, answer questions, and as needed, get myself or another member of the team on the phone to help you understand.
The technical and financial aspects of the project.
Speaker 3: the technical and financial aspects of the project.
We.
We as a management team are disappointed with the market cap and the share price that we have today, but we continue to work to.
Speaker 3: We as a management team are disappointed with the market cap and the share price that we have today, but we continue to work.
To assess to advance opportunities in and to.
Speaker 3: to assess, to advance opportunities, and to continue work on how we can further create value for the project as we de-risk the project. And please know that the team is busy. We're certainly welcome additional inquiries. We welcome investment. We think this is a tremendous opportunity. And we're hopeful that those who are on this call and those who will listen to it as a rebroadcast.
Continue work on how we can further create value for the project as we Derisk the project and I'm pleased to know that.
The team is busy.
Certainly.
Welcome additional enquiries, we welcome investment we think this is a tremendous opportunity and we're hopeful that those who are on this call and those who will listen to it as a rebroadcast will give serious consideration to the to the investment opportunity that this represents with that I would like to thank all of you for <unk>.
Speaker 3: We'll give serious consideration to the investment opportunity that this represents.
<unk> in the call and we wish you all a very pleasant and happy afternoon. Good day.
Speaker 9: With that, I would like to thank all of you for participating in the call, and we wish you all a very pleasant and happy afternoon. Good day. Here we are taking all of our voices apart.
Okay.
Ladies and gentlemen, thank you optimize correctly can you speak.
And we're hoping.
Thank you.