Vista Gold Corp · AMEX:VGZ
Vista Gold — Investor Presentation (January 2006)
15 slides from Vista Gold's investor presentation, January 2006
Slide 1: Vista Gold Corp. – The Alternative: More Leverage, Less Risk
Vista Gold Corp. The Alternative More Leverage, Less Risk Orlando January 2006
Slide 2: Disclaimer
Disclaimer UNCERTAINTY OF FORWARD LOOKING STATEMENTS The presentation contains “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and 21E of the U.S. Securities Exchange Act of 1934, as amended, that are intended to be covered by the safe h
Slide 3: Stock Exchanges VGZ (AMEX, TSE)
Stock Exchanges VGZ (AMEX, TSE) Recent Price US $5.23 -52 Week Range US $2.76-$5.65 Market Capitalization US $111 million Shares Outstanding 21.3 million -Fully Diluted 29.6 million
Slide 4: Our View of The Gold Market
Our View of The Gold Market Long term view points to a secular bull market in gold The price of Gold is poised to move much higher…. • Decreasing Supply – New production is falling – Reserve banks are buyers not sellers • Increasing Demand – Wider ownership – Global Instability – Financial Market Un
Slide 5: Growth in Gold Resource Base
Growth in Gold Resource Base Gold oz Gold oz (in millions) (Per Share) 2002 1.7 0.3 2003 5.2 0.5 2004 12.8 0.7 2005 14.8 0.7
Slide 6: Underachievers??
Underachievers?? Why do many small gold companies not achieve investor expectations?? • Exploration Risk - discovery not as expected • Uncertain Timing - permitting delays, political risks • Financing Risk-excessive dilution and/or difficult financing terms • Production Risk – lower recovery, higher
Slide 7: VISTA – The Alternative
VISTA – The Alternative Leverage with Less Risk…. • 14.8 million oz. of Total Gold Resources • 0.7 oz. per share • No Exploration Risk • No Production Risk • No Hedging • Expanding Resource Base • Conservative Balance Sheet - No Debt • Over 20 year History – Exploration, Development and Production •
Slide 8: Vista Strategic Plan
Vista Strategic Plan Provide continuous call option on gold price • Acquire Discovered Gold Resources at Low Prices – All properties have resource estimates completed by independent consultants • Hold in the Ground for Higher Gold Prices • Add Value by: – engineering studies converting resources to
Slide 9: Gold Resources
Gold Resources Measured and Indicated Inferred Tons Grade Oz. Tons Grade Oz. Project x1,000 (opt) x1,000 x1,000 (opt) x1,000 Paredones Amarillos 61,363 0.031 1,882 6,057 0.023 140 Awak Mas 52,580 0.032 1,656 8,250 0.032 259 Long Valley 68,276 0.018 1,211 32,914 0.017 572 Yellow Pine 33,835 0.066 2,2
Slide 10: Proven and Probable Gold Reserves
Proven and Probable Gold Reserves (ounces) Hycroft 663,000 Amayapampa 526,000 Paredones Amarillos 1,577,000 Subtotal 2,766,000 Long Valley 704,000 Hasbrouck/Three Hills 194,000 Total 3,664,000 11/2005
Slide 11: Paredones Amarillos, Mexico
Paredones Amarillos, Mexico • 2,022,000 oz. of Gold Resources • Updated Feasibility Study Completed – New Process Flow Sheet – Reserves 1.58 million oz., 13 year life – Initial Capital $98 million for 11,000tpd plant – Operating cost $292 per ounce – $450 IRR 11%, NPV0% $110 million, NPV5% $46 milli
Slide 12: Hycroft Mine
Hycroft Mine • Permitted, bonded and leach pads, recovery plant ready to operate • Project has produced over 1,000,000 0z. Gold, Proven and Probable Reserves of 663,000 oz gold • Feasibility Completed Jan. 2006 – Project produces 375,000 oz. of gold and 1.5 mm oz. silver over 5 years – $18-20mm capi
Slide 13: F.W. Lewis INC. Acquisition
F.W. Lewis INC. Acquisition Mineral Properties and Hycroft Royalty • Acquired by Vista for $5.25 million and 250,000 shares • 50 properties in Nevada (53 total) • 9,280 ac. patented and 11,616 ac. unpatented mining claims • Gold, silver and/or copper discoveries • Royalty on Hycroft mine production
Slide 14: Some Figures to Consider
Some Figures to Consider • In the period from 2002 to 2004 – Added 13.1 million oz. Gold resources – Raised $31.7 million – Used approx. $24 million or $1.83 per ounce of Gold resources added – Over $100 million has been invested by others in the properties acquired – Generated Value
Slide 15: Vista Value @ $550 gold price
Vista Value @ $550 gold price Value $mm $mm Paredones Amarillos 145 249 Hycroft Mine Restart 53 67 Amayapampa Sale 11 15 7.5 million ounces of M&I Resources @ $10-15 75 113 Per ounce Total 284 444 Value per share $13.33 $20.84 diluted $9.59 $15.00