Vista Gold(US:VGZ)2019-05-12 10:55Financial Data and Key Metrics Changes - The company reported a net loss of $2.7 million or $0.03 per share for Q1 2019, with operating expenses of $2.1 million and a mark-to-market loss of $0.6 million on investments [8][12][13] - Q1 2019 holding costs for Mt. Todd were approximately 25% lower than Q1 2018, attributed to a weaker Australian dollar and reduced water discharge [10][11] - Corporate administration costs in Q1 2019 were about 20% lower than Q1 2018, reflecting a decrease in costs related to the completion of the 2018 Mt. Todd PFS update [11] Business Line Data and Key Metrics Changes - The main components of operating expenses included $0.7 million in cash site holding costs at Mt. Todd, $0.3 million in discretionary costs, and $1.1 million in fixed corporate G&A costs [9] - The company expects to demonstrate an increase in gold recovery from 86.4% to over 90% through ongoing metallurgical testing [43][60] Market Data and Key Metrics Changes - The gold price improved by 6.4% from November 13 to the end of April, while Vista's share price increased by 41%, indicating a strong leverage to gold prices [30][31] Company Strategy and Development Direction - The company plans to update the preliminary feasibility study for the Mt. Todd gold project, incorporating new test results and current economic parameters [6][27] - Vista Gold will not pursue aggressive financing and development in the current gold market, focusing instead on enhancing and preserving the value of Mt. Todd [28][29] - The company aims to achieve a valuation reflective of its large project in a low-risk jurisdiction with favorable costs [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing metallurgical testing and its potential to improve project economics [20][22] - The company anticipates receiving authorization for the Mine Management Plan in the second half of the year, which will allow it to hold all major permits for the Mt. Todd project [26][35] Other Important Information - The company has expanded its Board of Directors, appointing Deborah Friedman, who brings extensive experience in mining and project finance [23][24] - The company continues to actively market its used mill equipment, with credible inquiries indicating potential sales [66] Q&A Session Summary Question: Update on PFS requirements and costs - Management indicated that the total program for the PFS is slightly over $1 million, with current expenditures around a couple hundred thousand dollars [42][43] Question: Confirmation on funding requirements for PFS - Management confirmed that no additional funding is required to complete the PFS work [46] Question: Guidance on exploration property valuation and holding costs - Management provided guidance that total burn for 2019 is expected to be about $66.5 million, with a breakdown of costs indicating a decrease from 2018 [49][50] Question: Changes in recoveries and costs in the PFS - The anticipated changes in the PFS will primarily involve gold recovery improvements and adjustments in foreign exchange rates [60][61] Question: Status of used mill equipment for sale - Management confirmed that they are actively marketing the used mill equipment and have received credible inquiries [64][66]