Q2 2024 Vista Gold Corp Earnings Call

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Yes.

Operator: Good morning, ladies and gentlemen. Welcome to Vista Gold's second quarter 2024 financial results and corporate update conference call. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question and answer session. At that time, participants are asked to press star 1 to register for a question. For assistance during the call, please press star zero on your touchtone button. As a reminder, this conference call is being recorded. Today is Tuesday, July 30, 2024. It is now my pleasure to introduce Pamela Solly, Vice President of Investor Relations. Please go ahead.

Speaker Change: Good day, ladies and gentlemen, welcome to Vista golds second quarter, 2020 core financial results and corporate update conference call.

At this time.

Speaker Change: Participants are in a listen only mode.

Speaker Change: Following the presentation, we will conduct a question and answer session at that time participants were asked to press Star One to register for a question for assistance during the call. Please press star Zero and you touched them.

As a reminder, this conference call is being recorded today is Tuesday July 32012.

Speaker Change: It is now my pleasure to introduce Pamela Solly, Vice President of Investor Relations. Please go ahead.

Pamela Solly: Thank you, Jenny. And good afternoon, everyone.

Pamela Solly: Thank you Jenny and good afternoon, everyone. Thank you for joining the Vista Gold Corp, second quarter 2024 financial results and corporate update conference call I'm, Pamela Solly, Vice President of Investor Relations on the call today is Fred earnest, President and Chief Executive Officer, and Doug Tobler.

Pamela Solly: Thank you for joining the Vista Gold Corp second quarter 2024 financial results and corporate update conference call. I'm Pamela Solly, Vice President of Investor Relations. On the call today is Fred Earnest, President and Chief Executive Officer, and Doug Tobler, Chief Financial Officer. At the close of business yesterday, Vista reported its second quarter 2024 operating and financial results. Copies of the news release and quarterly report on Form 10-Q are available on our website at www.vistagold.com.

Douglas L. Tobler: <unk> financial officer.

Speaker Change: At the close of business yesterday Vista reported its second quarter 2020 for operating and financial results copies of the news release and quarterly report on Form 10-Q are available on our website at Www Vista Gold Dot com.

Pamela Solly: During the course of this call and the question and answer session, 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 refer to our most recently filed Form 10-Q for details of risks and other important factors that could cause actual results to differ materially from those in our forward-looking statements and the cautionary note regarding estimates of mineral resources and mineral reserves. I will now turn the call over to Fred Earnest. Thank you, Pam.

Speaker Change: During the course of this call and the question and answer session. 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.

Speaker Change: Implied by such statements.

Please refer to our most recently filed Form 10-Q for details of risks and other important factors that could cause actual results to differ materially from those in our forward looking statements and the cautionary note regarding estimates of mineral resources and mineral reserves I will now turn the call over to Fred earnest.

Frederick H. Earnest: Thank you, Pam, and thank you everyone for joining us on the call today. Vista controls one of the most attractive gold, one of the most attractive large gold deposits in one of the most attractive mining jurisdictions in the world. Vista is committed to seeing its development and keeping with the highest mining and ESG standards when the time is right, and it will work diligently toward that goal. Our success is important to the Northern Territory, the people and families of the project area, and ultimately to Vista shareholders.

Fred: Thank you Pam.

Speaker Change: And thank you everyone for joining us on the call today.

Frederick H. Earnest: Vista controls one of the most attractive goal one of the most attractive large gold deposits and one of the most attractive mining jurisdictions in the world.

Speaker Change: This is committed to seeing its development in keeping with the highest mining and ESG standards. When the time is right and.

Speaker Change: And we will work diligently toward that goal.

Speaker Change: Our success is important to the northern territory.

Speaker Change: The people and families of the project area and ultimately to Vista shareholders on the call. Today. We will help you understand current activities that are designed to help us create greater value in the rising in the current rising gold price environment.

Frederick H. Earnest: On the call today, we will help you understand current activities that are designed to help us create greater value in the rising gold price environment. But first, let me share with you a few of our achievements during the second quarter of this year. We received the final installment payment under the royalty transaction with Wheaton Precious Metals, finished phase one of our 2024 drilling program and commenced phase two, and enhanced our management team with the addition of Maria Vallejo Garcia as our new Director of Projects and Technical Services.

Frederick H. Earnest: We also announced that the Northern Territory Government of Australia passed legislation to enact the Mineral Royalties Act of 2024, which became effective on July 1, 2024. The new Mineral Royalties Act replaces the prior net profits royalty regime with an ad valorem royalty regime for new mines, and is expected to positively impact project economics for Vista's Mount Todd Gold Project. For the remainder of this year, we will focus on maintaining a strong balance sheet.

Speaker Change: But first let me share with you a few of our achievements during the second quarter of this year.

Speaker Change: We received the final installment payment under the royalty transaction with Wheaton precious metals.

Speaker Change: Finished phase one of our 2024 drilling program and commenced phase two.

Speaker Change: And enhanced our management team with the addition of Maria by a whole Garcia as our new director of projects and technical services, We also announced that the northern territory government of Australia.

Speaker Change: Passed legislation to enact the mineral royalties act of 'twenty 'twenty, four which became effective on July one 2024.

Speaker Change: The new mineral royalties act replaced the prior net profits royalty regime with an AD valorem royalty regime for new mines.

Speaker Change: And it is expected to positively impact project economics for Vista's Mt. Todd Gold project.

Speaker Change: For the remainder of this year, we will focus on maintaining a strong balance sheet.

Frederick H. Earnest: Advancing evaluations of an initially smaller-scale Mount Todd project. Continuing our work to maximize shareholder value and successfully execute our health, safety, and environmental initiatives. I'm pleased to report that we have had no lost time accidents here to date, and the Mount Todd site has now reached 991 consecutive accident-free days. I will discuss some of these topics in greater detail later in the call, but I will now turn the time over to Doug Tobler, our CFO, for a review of our financial results for the quarter ended June 30, 2024. Thank you.

Speaker Change: Advancing at Valley evaluations of an initially smaller scale Mt Todd project.

Continuing our work to maximize shareholder value and successfully execute our health safety and environmental initiatives.

Speaker Change: I'm pleased to report that we have had no lost time accidents year to date.

Speaker Change: And the Mount Todd site has now reached 991 consecutive accident free days.

Speaker Change: I will discuss some of these topics in greater detail later in the call but.

Douglas L. Tobler: But I will now turn the time over to Doug Tobler, our CFO for a review of our financial results for the quarter ended June 30th 'twenty 'twenty four.

Douglas L. Tobler: Thank you Fred.

Douglas L. Tobler: I'd like to start today's financial presentation with a recap of our balance sheet. In June, we received the final $10 million installment under the Wheaton Royalty Agreement.

Douglas L. Tobler: I'd like to start todays financial presentation with a recap of our balance sheet in June we received the final $10 million installment under the Wheaton royalty agreement with this final installment. We've now received the full $20 million and are using these funds on our ongoing drilling program and upcoming evaluations.

Douglas L. Tobler: With this final installment, we've now received the full $20 million and are using these funds for our ongoing drilling program and upcoming evaluations of an initially smaller-scale project at Mount Hod. We ended the second quarter with cash totaling $20.2 million, and we continued to have no debt. I'll now provide a review of our results of operations for the three and six month periods ending June 30, 2024, compared to these same periods in 2023.

Douglas L. Tobler: Of an initially smaller scale project at Mt. Todd.

Douglas L. Tobler: We ended the second quarter with cash totaling $22 million and we continue to have no debt.

Douglas L. Tobler: I'll now provide a review of our results of operations for the three and six months periods ended June 32024, compared to the same periods in 2023.

Douglas L. Tobler: First, I'll address the three months period ended June 30, 24, and 23. Vista reported consolidated net income of $15.6 million during the most recent quarter of 2024, compared to a consolidated net loss of $1.5 million for 2023. Net income for the 24-month period resulted mostly from a gain of $16.9 million on the grant of a royalty interest in mineral titles to each. This gain included the previously deferred gain on installment payments totaling $10 million plus the $10 million received in June 2024 for the final installment.

Douglas L. Tobler: First I'll address the three months periods ended June 30, 'twenty, four and 'twenty three.

Douglas L. Tobler: All of this being net of the associated intellectual property carrying costs of $3.1 million as of the date the final installment was received. Partially offsetting this gain were Mount Todd site costs and corporate administrative expenses of $645,000 and $763,000 for the 24 and 23 periods, respectively. Each of these expense categories was slightly lower than those of 2023. The net loss of $1.5 million for the 2023 three-month period was largely comprised, again, of Mount Hood site and corporate administrative expenses of $682,000 and $878,000, respectively. Of note, costs associated with our ongoing development drilling program totaled $524,000 during a three-month period into June 30, 2024.

Douglas L. Tobler: This to reported consolidated net income of $15 $6 million during the most recent quarter of 2024 compared to a consolidated net loss of $1.5 million.

Douglas L. Tobler: For 2023.

Douglas L. Tobler: Net income for the 2004 period resulted mostly from a gain of $16 $9 million on the grant of a royalty interest in mineral titles to weaker.

Douglas L. Tobler: This gain included the previously deferred gain on installment payments totaling $10 million.

Speaker Change: The $10 million received in June 2024 for the final installment all of this being net of this of the associated mineral property carrying costs of $3 $1 million as of the date. The final installment was received.

Speaker Change: Partially offsetting this gain were Mount Todd site costs, and corporate administrative expenses of $645000 and $763000 for the 'twenty four and 'twenty three periods respectively.

Speaker Change: Each of these expense categories were slightly lower than those of 2023.

Speaker Change: The net loss of $1 $5 million for 2024.

Speaker Change: For the 2023 three months period was largely comprised again of Mt, Todd site, and corporate administrative expenses of $682000 and $878000 respectively.

Douglas L. Tobler: And these costs were capitalized. The majority of these costs were for were part of the mineral property carrying value that was then offset against the $20 million from the proceeds received from weighting. And by comparison, there was no drilling that occurred during the same period in 2023.

Speaker Change: Of note the costs associated with our ongoing development drilling program totaled $524000. During the three months period ended June 32024, and these are costs were capitalized.

Speaker Change: Majority of these costs were for were part of the mineral property carrying value that was then offset against the $20 million from the proceeds received from Wheaton.

Speaker Change: And by comparison, there was no drilling that occurred during the same period in 2023.

Douglas L. Tobler: Now we'll talk briefly about the six-month periods into June 30 and June 24. Vista reported a consolidated net income of $14.6 million during the six months ended June 30-24 compared to a consolidated net loss of $3.5 million for the comparable period in 2023. As with the most recent 2024 quarter, the six-month period in 2024 included a $16.9 million gain. Vista also recognized a gain of $802,000 during the 2024 six-month period from the sale of a portion of its used mill equipment.

Speaker Change: Now I'll talk briefly about the six month periods ended June 30, 'twenty four and 'twenty three.

Douglas L. Tobler: Partially offsetting these gains were Mt. Todd's site and corporate administrative expenses of $1.4 million and $2 million, respectively. And again, each of these expense categories was slightly lower than those for the 2023 period. The net loss of $3.5 million for the 2023 six-month period was largely comprised of Mt. Todd site and corporate administrative expenses of $1.5 million and $2 million, respectively. As with the three-month period in 2024, we capitalized development costs. This included $1 million for the six-month period into June 30, 2024, with all but $83,000 being part of the mineral property carrying value that was then offset against the $20 million of proceeds received from weight.

Speaker Change: Mr reported consolidated net income of $14 6 million during the six months ended June 30, 24 compared to a consolidated net loss of $3 5 million for the comparable period in 2023.

Speaker Change: As with the most recent 2024 quarter the six month period, and 24 included the $16 $9 million gain.

Speaker Change: Just to also recognized a gain of 802000 during the 2020 for six month period from the sale of a portion of its used mill equipment.

Speaker Change: Partially offsetting these gains were Mt, Todd site, and corporate administrative expenses of $1 $4 million and $2 million, respectively and.

Speaker Change: And again each of these expense categories were slightly lower than those for the 2023 period.

Speaker Change: The net loss of $3 $5 million for 2023 six months period was largely comprised of Mt. Todd site and corporate administrative expenses of one and a half million dollars and $2 million respectively.

Speaker Change: With the three months period in 2024, we capitalized development costs. This.

Speaker Change: This included $1 million for the six months period ended June 32024, with all but 83000 being part of the mineral property carrying value there was been offset against the $20 million of proceeds received from Wheaton.

Douglas L. Tobler: In summary, we're very pleased with the improvements made to our balance sheet during the first six months of 2024 and the results of our ongoing focus on controlling our expenditures. That concludes my remarks, so I'll turn it back over to you.

Speaker Change: In summary, we're very pleased with the improvements made to our balance sheet. During the first six months of 2024 and the results of our ongoing focus on controlling our expenditures.

Speaker Change: That concludes my remarks, so first back over to you.

Speaker Change: Thank you Doug.

Frederick H. Earnest: I'll begin with our second quarter achievements, followed by our outlook for the remainder of the year. As many of you know, in December of 2023, we completed a $20 million royalty transaction with Wheaton Precious Metals. And as Doug has reported, in June, we received the final $10 million installment payment under that royalty agreement. All payments have now been received, which has significantly strengthened our balance sheet.

Speaker Change: I'll begin with our second quarter achievements, followed by our outlook for the remainder of the year.

Speaker Change: As many of you know in December of 2023, we completed a $20 million royalty transaction with Wheaton precious metals and as Doug has reported in June we received the final $10 million installment payment under that royalty agreement.

Speaker Change: All payments have now been received which has significantly strengthened our balance sheet.

Frederick H. Earnest: With regard to the drilling program, in June of this year, we completed phase one of our 2024 drill program, which consisted of 11 holes and totaled almost 3,000 meters. These holes are part of the six to 7,000 meters of drilling planned for this year. Detailed results from Phase 1 are expected to be announced in August.

Speaker Change: With regards to the drilling program in June of this year, we completed phase one of our of our 2024 drill program, which consisted of 11 holes and totaled almost 3000 meters. These.

Speaker Change: These holes are part of the six to 7000 meters of drilling planned for this year.

Speaker Change: Detailed results from phase one are expected to be announced in August phase.

Frederick H. Earnest: Phase 2 of the drilling program commenced in July and is expected to be completed by year end. Phase one focused on defining the limits of mineralization at the north end of the Batman deposit and confirming the grade in this area. We are evaluating the last assays at this time.

Speaker Change: Page two of the drilling program commenced in July.

Speaker Change: And is expected to be completed by year end.

Speaker Change: Phase one focused on defining the limits of mineralization at the north end of the Batman deposit and confirming the grade in this area. We are evaluating the last assays at this time.

Frederick H. Earnest: Phase two is concentrating on defining the south crossload structure. This structure trends from the center of the Batman deposit to the northeast and was intersected by a couple of holes in the 2020 and 2022 drill programs. Historic drilling on the South Crossroads suggests a narrow mineralized structure with potentially higher grades than those typically observed in the Batman deposit. The 2024 drilling program is expected to have an all-in cost of approximately $2 million with regard to the Northern Territory Minerals Royalty Act.

Speaker Change: As to is concentrating on defining the south cross slowed structure.

Speaker Change: This structure trends from the center of the Batman deposit to the northeast.

Speaker Change: And it was intersected in a couple of holes in the 'twenty to 'twenty.

Speaker Change: 2022 drill programs.

Speaker Change: Historic drilling on the South cross slowed suggests a narrow mineralized structure with.

Speaker Change: With potentially higher grades than those typically observed in the Batman deposit.

Speaker Change: The 'twenty 'twenty four drilling program is expected to have an all in cost of approximately.

Speaker Change: $2 million.

Speaker Change: Yeah.

With regards to the northern territory minerals royalty Act.

Frederick H. Earnest: In June, we announced that the Northern Territory Government had passed legislation to enact the Mineral Royalties Act of 2024, with an effective date of July 1st, 2024. This replaced the prior Net Profits Royalty Scheme with an Ad Valorem Royalty Scheme for new mines. The New Mineral Royalties Act is aimed at encouraging present and future exploration and development of mining projects by simplifying the Northern Territories Royalty System and making it more competitive with other Tier 1 jurisdictions.

Speaker Change: In June we announced that the northern territory government had passed legislation to enact the mineral royalties act of 2024.

Speaker Change: With an effective date of July 1st 2024.

Speaker Change: This replaced the prior net profits royalty regime with an AD valorem royalty regime for new mines the.

Speaker Change: The new mineral royalties act is aimed at encouraging present and future exploration and development of mining projects by simplifying the northern territory's royalty system and making it more competitive with other tier one jurisdictions.

Frederick H. Earnest: The new royalty rate applicable to Gold Doré from the Mt. Todd project will be 3.5% of the value of gold produced. This represents a meaningful opportunity for improved project economics at Mount Todd and earlier shareholder returns compared to our 2024 updated feasibility study, which included Northern Territory royalties equivalent to nearly a 7% ad valorem rate. Under the previous net profits royalty regime, our base case economic analysis, at an $1,800 gold price, estimated the payment of approximately $765 million in Northern Territory royalties over the life of the mine.

Speaker Change: The new royalty rate applicable to gold Dore from the Mt. Todd project will be three 5% of the value of gold produced.

Speaker Change: This represents a meaningful opportunity for improved project economics at Mt, Todd and earlier shareholder returns compared to our 2024 updated feasibility study, which included northern territory royalties equivalent to nearly a 7% AD valorem rate.

Speaker Change: Under the previous net profits royalty regime, our base case economic analysis at.

Speaker Change: At an 1800 dollar gold price estimated the payment of approximately $765 million in northern territory royalties over the life of the mine.

Frederick H. Earnest: The new royalty rate represents a nearly 50% reduction in payable royalty and underscores the Northern Territory's commitment to growing a viable mining sector through new development. I'd like to comment briefly on the appointment of Maria Vallejo as our Director of Projects and Technical Services. In June of this year, Maria joined the company as our Director of Projects and Technical Services. She is a registered professional engineer and Fellow of the Australian Institute of Mining and Metallurgy. She is also a qualified person, as defined by Item 1300 of Regulation SK under the Securities Exchange Act of 1934 as amended, and Canadian National Instrument 43-101 Standards for Disclosure of Mineral Projects.

Speaker Change: The new royalty rate represents a nearly 50% reduction in payable royalty and underscores the northern territory's commitment to growing a viable mining sector through new development.

Frederick H. Earnest: She brings 15 years of experience screening, evaluating, optimizing, and developing gold and copper mining assets in the Americas and Asia-Pacific. Her technical background and expertise will be invaluable as we advance our evaluation of smaller scales and Stage Development Opportunities at Mount Todd, as well as as we consider possible potential strategic transactions and position Vista for long-term success. Now looking ahead.

I'd like to comment briefly on the appointment of Maria Lee as our director of projects and technical services and.

Maria Lee: In June of this year Maria joined the company as our as our director of projects and technical services.

Maria Lee: As a registered professional engineer and fellow of the Australian Institute of mining and metallurgy. She is also a qualified person as defined by item 1300 of regulation S. K under the Securities Exchange Act of.

Maria Lee: Of 1934 as amended.

Maria Lee: Canadian National instrument 43, 101 standards for disclosure of mineral projects. She brings 15 years of experience screening evaluating optimizing and developing golden copper mining assets in the Americas and Asia Pacific.

Technical background and expertise will be invaluable as we advance our evaluation of a smaller scale.

Maria Lee: And stage development opportunities at Mt. Todd.

Maria Lee: As also as we consider possible potential strategic transactions and positioned Vista for long term success.

Maria Lee: Now looking ahead.

Frederick H. Earnest: In addition to maintaining a strong balance sheet, we are advancing evaluations of an initially smaller-scale Mount Todd project with the option for subsequent staged expansion, and continuing our work to maximize shareholder value. As part of our work to improve the value of Mount Todd, we plan to leverage the results of previous technical studies as we evaluate a smaller-scale initial project. Previous studies demonstrated opportunities to significantly lower the initial CAPAX while maintaining high margins and delivering attractive economic returns associated with an initially smaller-scale project.

Speaker Change: In addition to maintaining a strong balance sheet, we are advancing evaluation seven initially smaller scale Mt. Todd project.

Speaker Change: With the option for subsequent staged expansion and.

Speaker Change: And continuing our work to maximize shareholder value.

Speaker Change: As part of our work to improve the value of Mt. Todd We plan to leverage the results of previous technical studies as we evaluate a smaller scale initial project.

Speaker Change: Previous studies demonstrated opportunities to significantly lower the initial capex.

Speaker Change: While maintaining high margins and deliver attractive economic returns associated with an initially smaller scale project.

Frederick H. Earnest: At the same time, this allows us to preserve the flexibility for subsequent stage development. With the gold price continuing to rise, margins are increasing. Our analysis suggests that higher margins combined with lower initial capital provide an avenue to greater value recognition.

Speaker Change: At the same time this allows us to preserve.

Speaker Change: The flexibility for subsequent stage development.

Speaker Change: With the gold price continuing to rise margins are increasing.

Speaker Change: Our analysis suggests that higher margins combined with a lower initial capital provided an avenue to greater value recognition.

Frederick H. Earnest: We believe that alternative development strategies offer valuable optionality as we focus on creating shareholder value and attracting investor interest in Mount Todd. At this time, we anticipate completing a feasibility study on a smaller-scale initial project next year. Vista controls one of the most attractive large gold deposits in one of the most attractive mining jurisdictions in the world. We are committed to seeing its development in keeping with the highest mining and ESG standards when the time is right, and we will work diligently toward achieving that goal.

Speaker Change: We believe that alternative development strategies offer valuable optionality as we focus on creating shareholder value and attracting investor interest in Mt. Todd.

Speaker Change: At this time, we anticipate completing a feasibility study on a smaller scale initial project next year.

Speaker Change: In conclusion.

Speaker Change: Vista controls one of the most attractive large gold deposits and one of the most attractive mining jurisdictions in the world.

Speaker Change: We are committed to seeing its development in keeping with the highest mining and ESG standards. When the time is right and.

Speaker Change: And we will work diligently toward achieving that goal our.

Frederick H. Earnest: Our success is important to the Northern Territory, the people and families of the project area, and ultimately to Vista shareholders. In the current rising gold price environment, we believe that thoughtful evaluations and a focus on minimizing shareholder risk will help us create and realize greater value for all shareholders. 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. In addition to its size, Mt. Todd offers a number of other strategic advantages. Mt.

Speaker Change: Our success is important to the northern territory, the people and families of the project area and ultimately to Vista shareholders in the current rising gold price environment, we believe that thoughtful evaluations and a focus on minimizing shareholder risk will help us create and realize greater value for all shareholders.

The Mount 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. In addition to its size Mount Todd offers a number of other strategic advantages Mt. Todd is ideally located in the northern territory and extremely stable and mining friend.

Frederick H. Earnest: Todd is ideally located in the Northern Territory, an extremely stable and mining-friendly jurisdiction. The existing project infrastructure at Mt. Todd provides construction timeline and risk mitigation advantages. All of the major permits to initiate the development of Mt. Todd has been approved, and of Equal Importance, we have earned the trust of the local stakeholders and are confident that our social license is firmly in hand. Our current technical programs aim to de-risk the project by incorporating design that significantly reduces the initial capital costs while maintaining competitive operating costs and Preserving the Option for Future Project Expansion.

Speaker Change: Lee jurisdiction the.

Speaker Change: The existing project infrastructure at Mt. Todd provides construction timeline and risk mitigation advantages.

Speaker Change: All of the major permits to initiate development of Mt. Todd have been approved.

Speaker Change: Of equal importance, we have earned the trust of the local stakeholders and are confident that our social license is firmly in hand.

Speaker Change: Our current technical programs aimed to derisk the project by incorporating designs that significantly reduce the initial capital cost, while maintaining competitive operating costs and.

Speaker Change: And preserving the option for future project expansion.

Frederick H. Earnest: We believe Mount Todd is a superior asset and one of the most attractive development stage projects, not just in Australia but in the world. Our primary objective is to achieve a valuation for Mount Todd that is reflective of the favorable operating costs and robust project economics as demonstrated by the updated feasibility study. Added to the fact that we hold all of the approvals for all major permits needed to initiate development. For a more comprehensive review of the work completed by Vista on the Mount Todd project, I refer you to our corporate presentation, which can be found on our website at www.vistagold.com.

Speaker Change: We believe Mt. Todd is a superior asset and one of the most attractive development stage projects not just in Australia, but in the world.

Speaker Change: Our primary objective.

Speaker Change: Just to achieve a valuation for Mt. Todd that is reflective of the favorable operating costs and robust project economics as demonstrated by the updated feasibility study.

Speaker Change: Coupled with the fact that we hold all of the approvals for all major permits needed to initiate development.

Speaker Change: For a more comprehensive review of the work completed by vis them on the Mt. Todd project I refer you to our corporate presentation, which can be found on our website at www Dot Vista gold Dot com.

Frederick H. Earnest: We believe that Vista Gold represents an exceptional investment opportunity and that current gold prices represent a tremendous opportunity to establish a position or increase one's holding in Vista Gold. This concludes my formal remarks. We will now respond to any questions from participants on this call.

Speaker Change: We believe that Vista gold represents an exceptional investment opportunity in that current gold prices.

Speaker Change: Representing a tremendous opportunity to establish a position or increase ones holding in Vista gold.

Speaker Change: This concludes my formal remarks, we will now respond to any questions from participants on this call.

Speaker Change: Okay.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the number on your touchtone phone. You will hear a prompt if your hand has been raised. Questions will be taken in the order received. Should you wish to cancel your request, please press the star followed by the. If you are using a speakerphone, please lift the handset before pressing any key.

Speaker Change: Well, thank you ladies and gentlemen, we will now begin the question answer session should you have a question. Please press the star followed.

Speaker Change: And the final one any touched on.

Speaker Change: Youre welcome.

Speaker Change: Questions.

Speaker Change: Questions will be taken up your order receipt.

Speaker Change: Should you wish to cancel your request. Please press the star followed by the tail.

You're using a speaker phone please lift the handset before question Andy.

Operator: Once again, that is Star 1 Sugar Rush to ask a question. Your first question is from Heiko Ihle from H.C. Wainwright. Please ask your question.

Speaker Change: Once again star one should you wish to ask a question.

Speaker Change: Your first question is from Heiko.

Speaker Change: From H C. Wainwright. Please ask your question.

Heiko Felix Ihle: Hello Fred and team, how are you? Thanks for taking the time to answer my questions.

Heiko: Hello threat and team how are you thanks for taking my questions.

Frederick H. Earnest: Good afternoon. Thank you for being on the call.

Speaker Change: Hi, good afternoon, Thank you for being on the call.

Unknown Attendee: Unknown Attendee Okay, so you just got the final 10 million from Wheaton, which gets you $20 million in the bank. Can you maybe just walk people through what you plan to do with some of this extra cash now that the royalty deal is done? I mean, are there any specific things that you plan on doing? Any spends that are going to happen at a higher rate now that more money is in the bank?

Speaker Change: There are always some gladly. So you just got the final 10 million from Wheaton gets you $20 million in the bank.

Can you maybe just walk people through what you plan to do with some of this extra cash and all of that the royalty deal is done I mean is there any specific things that you are planning on doing any.

Speaker Change: <unk> spends that are going to happen at a higher rate than others.

Speaker Change: Thanks.

Douglas L. Tobler: Yeah, Heiko, it's Doug here. I'll try to answer that. So split it into a couple of different buckets. The first is our recurring costs, which is basically the core of our holding costs for Mount Todd and our corporate G&A. And those costs have been running at on the order of $6 million a year for about two and a half years now, including not going up with all the inflation. So we don't see a big change in what's happening with the core of the organization.

Speaker Change: Yes, Heiko, it's Doug here I'll try to answer that so.

Doug: Split it into a couple of different buckets. The first is our recurring cost which is basically the core of our holding costs for Mt, Todd and our corporate G&A.

Doug: And those costs have been running yet on the order of $6 million a year for about two and a half years now, including not going up through all the inflation. So we don't see a big change in what's happening with the core of the organization.

Douglas L. Tobler: As to other spending, of course, we'll have the spending on drilling, which Fred said will be ballpark $2 million this year. And I don't have anything today that would tell me it would go over, because we seem to be tracking right on plan. And secondly, of course, later in the year, as we come close to the end of the drilling program, we'll pick up on doing some, the start of the studies.

As to other spending of course will have the spending on the drilling which Fred said will be ballpark $2 million this year.

Speaker Change: And I don't have anything today that would tell me. It would go over that we seem to be tracking right on plan.

Speaker Change: And secondly of course later in the year as we come close to the end of the drilling program will pick up on doing some the started the studies first there'll be some tradeoff studies then we'll move into the technical report itself. So the balance of this calendar year. In addition to the $2 5 million of.

Douglas L. Tobler: First, there will be some trade-off studies, then we'll move into the technical report itself. So the balance of this calendar year, in addition to the two and a half million of drilling, will probably be another somewhere between 500,000 and a million dollars this year. Then we'll wrap up the feasibility study in the first half of next year, so that's probably another million to a million and a half total. So outside of our normal burn rate and what we're doing to put this smaller-scale initial plan together, there's really no significant spending changes expected.

Speaker Change: Rick sorry, $2 million of drilling will probably be another somewhere between 500000 and $1 million this year.

Speaker Change: Then we'll wrap up the feasibility study in the first half of next year. So that's probably another $1 million to a million and half total so outside of our normal burn rate and what we're doing.

Speaker Change: Put this smaller scale initial plan together, there's really no significant spending changes expected.

Frederick H. Earnest: I would just add that just because we've got money in the door doesn't mean that we feel a great need to spend it. We'll continue our capital preservation practices and seek to maximize the value of the money that we spend.

Speaker Change: Yes, I would just I would just add to that just because we've got money in the door. It doesn't mean that means that we feel a.

Speaker Change: A great need to spend it.

Speaker Change: We'll continue our our capital preservation practices seek to maximize the value from the money that we spend.

Douglas L. Tobler: Fred, you know I respect the way you spend money quite a bit. Okay, so you got the three and a half percent royalty, the revised one on Mount Todd. I mean, your numbers have it as a nearly 50% reduction in payable royalties overall. Can you maybe walk us through the timing of when the money then gets, you know, sent to the government once this thing is actually in production? Is it more front-loaded, more back-loaded? Can you maybe just give some color to the listeners on this call about what you expect to see?

Speaker Change: Fred you know high respect the way you spend money quite a bit.

Speaker Change: Okay.

Speaker Change: So you got to a three 5% royalty that the revised one on Mt. Todd I mean, your numbers habit is a nearly 50% reduction in payable royalties overall can you maybe walk us through the timing of when money then gets sent to the government. Once this thing is actually in production is it more front.

Speaker Change: The frontloaded more back loaded can you maybe just give some color to the listeners on this call and what you expect to see.

Douglas L. Tobler: Yeah, Heiko, I'll take that again. In simple terms, it's three and a half percent ad valorem, so take your gross revenue number times three and a half percent, and that'll be flat-lined across the entire life of mine. So, you know, basically, the $7 hundred and sixty-five million that's in the current study just gets completely replaced by something that's down in the three hundred and fifty million to four hundred million dollar range, so roughly a three hundred and fifty million dollar reduction over the life of mine. But there's no holiday or payback period at all involved in this, given the cut that they made. They just keep it nice and flat. The other thing that this new royalty structure does is

Speaker Change: Yes, Heiko I'll I'll take that again.

Speaker Change: In simple terms, it's three 5% AD valorem. So take your gross revenue number times, three 5% that will be flat flat lined across the entire life of mine. So.

Speaker Change: Basically you can see the 765 million that's in the current study.

Speaker Change: That just gets completely replaced by.

Speaker Change: <unk>.

Speaker Change: That's down in the $350 million to $400 million range, so roughly a $350 million reduction over the life of mine, but it's there's no.

Speaker Change: Holiday or payback period at all involved in this given given the cut that they made they just keep it nice and flat.

Speaker Change: Okay.

Douglas L. Tobler: The other thing that this new royalty structure does is that it is removed some of the complexities of that were involved in the net profits calculation and puts most minds on an even footing where you know you'll be paying a royalty that's based on the value of your production across all sectors and that's something that the previous NT royalty regime did not provide was that transparency nor was it competitive compared to other jurisdictions so we believe that this is a tremendous step forward towards simplification and competitiveness and certainly we believe that there will be some incentives that accrue from this for the development of mining projects and subsequently rewards for the Northern Territory.

Speaker Change: The other thing that this new royalty structure does is that it is.

Speaker Change: It removes some of the complexities of that were involved in the.

The net profit calculation and puts.

Speaker Change: Most mines on an even footing, where you know you'll be paying paying a royalty that's based on the value of reproduction.

Speaker Change: Across all sectors, and that's something that the N T.

Speaker Change: The previous N T royalty regime did not provide was that transparency.

Speaker Change: Nor was it competitive compared to other jurisdictions. So we believe that this is a a tremendous step forward towards simplification and competitiveness and and certainly we believe that there will be some.

Speaker Change: Incentives that accrue from this for the development of mining projects in and subsequently rewards for the northern territory.

Heiko Felix Ihle: Thanks so much; I'll get back in queue.

Speaker Change: Thanks, so much ill get back in queue.

Operator: Okay, thank you, Heiko. On cue once again, please.

Heiko: Okay. Thank you Heiko.

Operator: On cue once again, please press star 1 to resist the urge to ask a question. There are no further questions at this time. I will now hand the call back to Frederick Earnest for the closing remarks.

Speaker Change: Once again, please press star one to ask a question.

Speaker Change: Yeah.

Speaker Change: There are no further question at this time I will now hand, the call back to Pat for closing remarks.

Pat: Thank you Jenny.

Frederick H. Earnest: And thank you to all of you who have joined the call today. I would just like to reiterate a core part of the message that we would like you to take away.

Speaker Change: And thank you to all of you who have joined the call today.

Speaker Change: I would I would just like to reiterate.

Speaker Change: Core part of the message that we would like you to take away.

Frederick H. Earnest: And that is that Vista Gold controls one of the most attractive large gold deposits in one of the most stable and mining-friendly jurisdictions in the world. We are committed to seeing its development and keeping with the highest mining and ESG standards, but will do so when the time is right, and we will work diligently toward that goal in the interim. Our success is important not only to the Northern Territory and the people and families of the project area but, ultimately, to Vista shareholders.

Speaker Change: And that is the Vista gold controls one of the most attractive large gold deposits.

Speaker Change: And one of the most stable and mining friendly jurisdictions in the world.

Speaker Change: We are committed to seeing its development in keeping with the highest mining and ESG standards, but.

Speaker Change: But we will do so when the time is right.

Speaker Change: And we will work diligently toward that goal in the interim.

Speaker Change: Our success is important not only to the northern territory and the people and families of the project area, but ultimately to Vista shareholders in.

Frederick H. Earnest: In the current rising gold price environment, we believe that thoughtful evaluations and a focus on minimizing shareholder risk will ultimately help us create and realize greater value for all stakeholders. Our primary objective is to achieve a valuation for Mount Todd that is reflective of the intrinsic value of the project and that recognizes the favorable operating costs and the robust project economics as demonstrated by the updated feasibility study and those studies which we'll be undertaking in the coming months and concluding, as Doug indicated, the first part of next year.

Speaker Change: In the current rising gold price environment, we believe that thoughtful evaluations and a focus on minimizing shareholder risk will.

Speaker Change: We will ultimately help us create and realize greater value for all stakeholders.

Speaker Change: Our primary objective is to achieve a valuation for Mt. Todd.

Speaker Change: That is reflective of the intrinsic value of the project.

Speaker Change: That recognizes the favorable operating cost and the robust robust project economics as demonstrated by the updated feasibility study.

Speaker Change: And those studies, which will be undertaking in the coming months and concluding as Doug indicated the first part of next year.

Frederick H. Earnest: We would like to thank all of you for joining the call. We invite you to learn more about Vista Gold and Mt. Todd project. If you need further information, please feel free to reach out to Pamela Solly, our Vice President of Investor Relations. I invite you all to give serious consideration to how an investment in Vista Gold or increasing your holding in Vista Gold might be an opportunity for greater value creation in the future. With that, I thank all of you and wish you all a very pleasant afternoon.

Speaker Change: We would like to thank all of you for joining the call.

Speaker Change: We invite you to learn more about Vista gold and the Mt. Todd project.

Speaker Change: If you need further information please feel free to reach out to Pamela Solly, Vice President of Investor Relations.

Speaker Change: I invite you all to give serious consideration to how an investment in Vista gold or increasing your holding in Vista gold.

Speaker Change: Might be an opportunity for greater value creation in the future with that.

Speaker Change: Thank all of you and wish you all a very pleasant afternoon.

Operator: Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining us, and we will all disconnect our lines.

Speaker Change: Thank you ladies and gentlemen, the conference has now ended thank.

Speaker Change: Thank you all for joining you may all disconnect your lines.

Speaker Change: Okay.

Speaker Change: Yeah.