Attention Business Editors:
VISTA GOLD CORP. - 1997 RESULTS
DENVER, March 20 /CNW/ - Record gold production from the Hycroft mine
more than offset declining gold prices in 1997. Vista Gold Corp. (Amex: VGZ;
Toronto) reported gold revenues of $40.1 million for 1997 compared to $34.8
million for 1996, an increase of $5.3 million. Operating cash flow for 1997
was $8.0 million compared to $6.4 million for 1996.
However, following a review of the carrying value of its mineral
properties in light of current low gold prices, the Company wrote down its
mineral properties and its investment in Zamora Gold Corp. by $43.7 million
and $2.7 million, respectively. As a result, the Company had a net loss of
$51.7 million, or $0.58 per share in 1997. There was no similar write-down in
1996. Before write-downs, the 1997 net loss was $5.3 million, or $0.06 per
share compared to losses of $11.8 million, or $0.21 per share in 1996.
Exploration expenditures for 1997 and 1996 were $2.3 million and $3.6
million, respectively. The Company had $1.8 million in cash and $19.1 million
in current assets as of December 31, 1997. Subsequently in January, the
Company took steps to improve its cash position in 1998. This was accomplished
by liquidating the existing forward position in the gold market and
temporarily reducing mining activities at Hycroft. This is expected to result
in an improvement in cash flow during the year of $16.5 million, of which
$13.0 million will be used to eliminate the Company's remaining debt.
SUMMARY RESULTS
(U.S. dollars in thousands, except share data)
Year ended
December 31
1997 1996
Gold revenues $40,123 $34,847
Operating cash flow 7,963 6,361
Net earnings (loss) before write-down (5,292) (11,826)
Net earnings (loss) after write-down (51,712) (11,826)
Net earnings (loss) per share before write-down (0.06) (0.21)
Net earnings (loss) per share after write-down (0.58) (0.21)
Consolidated Production
(ounces)
Gold 117,378 89,381
Silver 479,920 321,315
Following record gold production of 117,378 ounces in 1997, the Company
is projecting first quarter 1998 gold production from the Hycroft mine to be
approximately 34,000 ounces, a new quarterly production record. Through March
18, 1998, 27,981 ounces had been recovered including a record daily production
on March 18th of 611 ounces. The planned reduction in mining activities is
proceeding as scheduled with ore mining expected to cease in May. Gold
production will continue through 1998 and 1999 from ore on the leach pads,
with 1998 gold production projected to be approximately 95,000 ounces.
The previously announced agreement with Repadre International Corporation
for the sale of a net smelter return royalty and private placement of common
shares has been terminated by the mutual agreement of the parties.
Vista Gold Corp. is an international gold mining, development and
exploration company based in Denver, Colorado. Its holdings include the
Hycroft mine in Nevada, development projects in Bolivia and Venezuela, and
exploration projects in North and South America.
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 the targeted results. Such risks
and uncertainties include those described in the Company's Form 20-F as
amended. |
