DENVER, Aug. 12 /CNW/ -- Vista Gold Corp.
(Amex: VGZ; TSX) announced today its financial results for the quarter and six
months ended June 30, 2005, as filed on August 12, 2005, with the US
Securities and Exchange Commission in the Corporation's Quarterly Report on
Form 10-Q. Vista reported a consolidated net loss for the three-month period
ended June 30, 2005, of US$1.5 million or US$0.08 per share compared to a
consolidated net loss of US$1.4 million or US$0.09 per share for the same
period in 2004. The Corporation's consolidated net loss for the six-month
period ended June 30, 2005, was US$2.4 million or US$0.13 per share compared
to a consolidated net loss of US$2.5 million or US$0.17 per share for the same
period in 2004. The net losses for the three-month and six-month periods were
minimally different from those for the prior-year periods, primarily
reflecting slightly decreased exploration, property evaluation and holding
costs, and increased corporate administration and investor relations costs of
US$0.1 million for the three-month period due to a mass mailing marketing
campaign, with slightly decreased costs for the six-month period.
Net cash used for operations was US$1,127,000 for the three-month period
ended June 30, 2005, compared to US$1,207,000 for the same period in 2004.
Cash used in operations was US$1,819,000 for the six-month period ended
June 30, 2005, compared to US$1,655,000 for the same period in 2004. The
decrease of US$80,000 for the three-month period can be attributed to
reduction in prepaid expenses and accounts payable and accruals of US$99,000
for the same period in 2004. The increase of US$164,000 for the six-month
period was attributable to a reduction in accounts receivable for the same
period in 2004.
Net cash used for investing activities increased to US$1,964,000 for the
three-month period ended June 30, 2005, compared to US$70,000 for the same
period in 2004. The increase of US$1,894,000 in 2005 was due to the purchase
of the Awak Mas project in May 2005 for US$1.5 million and exploration
activities at the Paredones Amarillos project of US$0.4 million. For the six-
month period ended June 30, 2005, net cash used for investing activities
decreased by US$279,000 to US$2,228,000 compared to US$2,507,000 for the same
period in 2004. Overall expenditures were higher during the 2004 period,
primarily reflecting the restricted cash payment of US$2.3 million made by the
Corporation in the first quarter of 2004, in connection with bonding
requirements for the Hycroft Mine.
The Corporation did not receive any cash from financing activities for the
three-month-period ended June 30, 2005, compared to US$853,000 for the same
period in 2004, all of which was attributable to the exercise of warrants.
Net cash provided by financing activities was US$398,000 for the six-month
period ended June 30, 2005, compared to US$3,056,000 for the same period in
2004. The amounts raised in the 2005 six-month period were from the exercise
of warrants in the amount of US$373,000 and stock options in the amount of
US$25,000, all during the first quarter. The aggregate US$3,056,000 proceeds
in the 2004 six-month period were from the exercise of warrants in the amount
of US$3,039,000 and stock options in the amount of US$17,000.
The financial position of the Corporation included current assets at
June 30, 2005, of US$3.0 million compared to US$6.8 million at December 31,
2004, and total assets at June 30, 2005, of US$31.0 million compared to
US$32.8 million at December 31, 2004.
Current liabilities were US$0.3 million at June 30, 2005, approximately
the same as at December 31, 2004. Total liabilities at June 30, 2005, were
US$4.5 million, compared to US4.4 million at December 31, 2004. Shareholders'
equity at June 30, 2005, was US$26.5 million compared to US$28.3 million at
December 31, 2004.
The Corporation's working capital as of June 30, 2005, was US$2.7 million
compared to US$6.6 million at December 31, 2004.
The June 30, 2005 unaudited consolidated financial statements have been
prepared on a going concern basis, which assumes that the Corporation will
continue in operation for the foreseeable future and will be able to realize
its assets and discharge its liabilities and commitments in the normal course
of business. The Corporation's current working capital is not sufficient to
satisfy current general and administrative activities, holding costs and
property obligations which will be approximately US$3.2 million over the next
twelve months. The Corporation may raise funds through warrant exercises or
private placements, or may joint venture one or more of its properties. The
Corporation has successfully raised money to support its activities in the
past; however, there are no assurances that the Corporation will be able to
raise sufficient funds from these sources in the future.
The selected financial data including the results of operations for the
three-month and six-month periods ended June 30, 2005 compared to 2004, and
the financial positions as at June 30, 2005 compared to December 31, 2004, is
summarized in the following table:
Selected Financial Data
Three Months Six Months
Ended June 30, Ended June 30,
2005 2004 2005 2004
U.S. $000's, except
loss per share
Results of
operations
Net loss $(1,450) $(1,391) $(2,408) $(2,537)
Basic and diluted
loss per share (0.08) (0.09) (0.13) (0.17)
Net cash used
in operations (1,127) (1,207) (1,819) (1,655)
Net cash used
in investing
activities (1,964) (70) (2,228) (2,507)
Net cash provided
by financing
activities -- 853 398 3,056
Financial position June 30, December 31,
2005 2004
Current assets $2,993 $6,826
Total assets 31,040 32,788
Current liabilities 302 256
Total liabilities 4,534 4,444
Shareholders' equity 26,506 28,344
Working capital 2,691 6,570
The Corporation recently received assay results of a drill program to
explore the Tocopilla area north of the Paredones Amarillos gold deposit in
Baja California Sur, Mexico. The drilling confirmed the presence of
mineralization and a structure similar to that which hosts the Paredones
Amarillos deposit. No drill intercepts of ore grade quality were found,
however the sampling helped to identify and locate favorable targets for
follow up programs. The drill program was conducted under the supervision of
Warren Bates, previously Vista's Chief Geologist (P. Geo.), and assaying was
done by ALS Chemex of Hermosillo, Sonora, Mexico. Additional targets remain
to be drill tested.
The statements that are not historical facts are forward-looking
statements involving known and unknown risks and uncertainties that could
cause actual results to vary materially from targeted results. Such risks and
uncertainties include those described from time to time in the Corporation's
periodic reports, including its latest annual report on Form 10-K filed with
the U.S. Securities and Exchange Commission. The Corporation assumes no
obligation to publicly update any forward-looking statements, whether as a
result of new information, future events or otherwise.
For further information, please contact Greg Marlier at (720) 981-1185, or
visit the Vista Gold Corp. website at www.vistagold.com
