Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2024
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 001-09025
VISTA GOLD CORP.
(Exact Name of Registrant as Specified in its Charter)
British Columbia
98-0542444
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
8310 S Valley Hwy, Suite 300
Englewood, Colorado
80112
(Address of Principal Executive Offices)
(Zip Code)
(720) 981-1185
(Registrant’s Telephone Number, including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class:
Trading Symbol
Name of each exchange on which registered:
Common Shares, no par value
VGZ
NYSE American LLC
Indicate by checkmark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Large Accelerated Filer ☐
Accelerated Filer ☐
Non-Accelerated Filer ☒
Smaller Reporting Company ☒
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ☒
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date: 122,289,164 common shares, without par value, outstanding as of July 24, 2024.
For the Quarter Ended June 30, 2024
INDEX
Page
PART I – FINANCIAL INFORMATION
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
3
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
13
ITEM 4. CONTROLS AND PROCEDURES
25
PART II – OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
26
ITEM 1A. RISK FACTORS
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
ITEM 4. MINE SAFETY DISCLOSURE
ITEM 5. OTHER INFORMATION
ITEM 6. EXHIBITS
27
SIGNATURES
2
PART I
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in U.S. dollars and in thousands)
June 30,
December 31,
2024
2023
Assets:
Current assets:
Cash and cash equivalents
$
20,225
6,069
Other current assets
334
446
Total current assets
20,559
6,515
Non-current assets:
Mineral properties (Note 3)
83
2,146
Plant and equipment, net (Note 4)
260
204
Other non-current assets
69
Total non-current assets
412
2,419
Total assets
20,971
8,934
Liabilities and Shareholders’ Equity:
Current liabilities:
Accounts payable
190
Accrued liabilities and other (Note 5)
613
749
Total current liabilities
803
939
Non-current liabilities:
Deferred gain on grant of royalty (Note 6)
—
3,000
Other liabilities
28
44
Total non-current liabilities
3,044
Total liabilities
831
3,983
Commitments and contingencies (Note 8)
Shareholders’ equity:
Common shares, no par value - unlimited shares authorized; shares outstanding: 2024 - 122,289,164 and 2023 - 121,088,494 (Note 7)
476,983
476,354
Accumulated deficit
(456,843)
(471,403)
Total shareholders’ equity
20,140
4,951
Total liabilities and shareholders’ equity
Approved by the Board of Directors
/s/ Patrick F. Keenan
Patrick F. Keenan
Director
/s/ John M. Clark
John M. Clark
The accompanying notes are an integral part of these condensed consolidated financial statements.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Dollar amounts in U.S. dollars and in thousands, except per share data)
Three Months Ended June 30,
Six Months Ended June 30,
Operating income (expense):
Exploration, property evaluation and holding costs
(645)
(682)
(1,410)
(1,486)
Corporate administration
(763)
(878)
(2,006)
(2,046)
Depreciation and amortization
(14)
(10)
(26)
(20)
Gain on grant of royalty interest in mineral titles (Note 6)
16,909
Gain on sale of plant and equipment (Note 4)
802
Total operating income (expense), net
15,487
(1,570)
14,269
(3,552)
Non-operating income:
Interest income
163
70
266
139
Other income (expense)
(17)
(3)
(61)
Total non-operating income
146
67
291
78
Income (loss) before income taxes
15,633
(1,503)
14,560
(3,474)
Net income (loss)
Basic:
Weighted average number of shares outstanding
121,922,034
120,637,683
121,570,013
119,843,910
Net income (loss) per share
0.13
(0.01)
0.12
(0.03)
Diluted:
125,421,848
124,620,981
4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Total
Common
Accumulated
Shareholders’
Shares
Amount
Deficit
Equity
Balances at April 1, 2023
119,727,572
475,337
(466,789)
8,548
Shares issued, net of offering costs
875,922
560
Shares issued (DSUs vested)
485,000
Stock-based compensation
248
Net loss
Balances at June 30, 2023
121,088,494
476,145
(468,292)
7,853
Balances at April 1, 2024
121,634,045
476,613
(472,476)
4,137
360,119
191
295,000
179
Net income
Balances at June 30, 2024
122,289,164
Balances at January 1, 2023
118,480,878
474,847
(464,818)
10,029
1,710,068
1,013
Shares issued (RSUs vested, net of shares withheld)
412,548
(142)
427
Balances at January 1, 2024
460,119
244
445,551
(85)
470
5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Cash flows from operating activities:
Adjustments to reconcile net income (loss) to net cash used in operations:
20
Gain on grant of royalty interest in mineral titles
(16,909)
Proceeds from sale of plant and equipment
(900)
Change in working capital account items:
112
195
Accounts payable, accrued liabilities and other
(152)
(163)
Net cash used in operating activities
(2,793)
(2,995)
Cash flows from investing activities:
Proceeds from grant of royalty interest in mineral titles
17,000
900
Additions to plant and equipment
(82)
Capitalized mineral property development costs
(1,028)
Net cash provided by investing activities
16,790
Cash flows from financing activities:
Proceeds from equity financing, net
Payment of taxes from withheld shares
Net cash provided by financing activities
159
871
Net increase (decrease) in cash and cash equivalents
14,156
(2,124)
Cash and cash equivalents, beginning of period
8,110
Cash and cash equivalents, end of period
5,986
6
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollar amounts in U.S. dollars and in thousands, except share-related amounts)
1. Overview of Operations and Basis of Presentation
Vista Gold Corp. and its subsidiaries (collectively, “Vista,” the “Company,” “we,” “our,” or “us”) operate in the gold mining industry. The Company’s flagship asset is its 100% owned Mt Todd gold project (“Mt Todd” or the “Project”) in Northern Territory, Australia. Since acquiring Mt Todd in 2006, we have invested substantial financial resources to systematically explore, evaluate, engineer, permit, and de-risk the Project.
The interim Condensed Consolidated Financial Statements (“interim statements”) of the Company are unaudited. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. These interim statements should be read in conjunction with the Company’s Consolidated Financial Statements for the year ended December 31, 2023 as filed with the United States Securities and Exchange Commission and Canadian securities regulatory authorities on Form 10-K (the “2023 Financial Statements”). The balance sheet as of December 31, 2023 as presented herein was derived from the Company’s audited financial statements and, in accordance with the instructions to Form 10-Q, certain information and footnote disclosures required by United States generally accepted accounting principles have been condensed or omitted.
These interim statements have been prepared on the going concern basis of accounting, which contemplates Vista having the ability to meet its obligations when due in the normal course of business for the foreseeable future. Because the Company does not have recurring cash inflows from operations or investments, we rely on other sources of financing to fund operations. Such funding sources may include sales of non-core assets, equity issuances, royalty or stream agreements, convertible instruments, and debt facilities. Although management estimates the Company has access to sufficient cash flows for the next twelve months, there can be no assurance that the Company will be able to obtain adequate funding, or that such funding will be on terms acceptable to the Company, to meet future operational needs which may result in the delay, reduction, or discontinuation of ongoing programs.
References to $ are to United States dollars and A$ are to Australian dollars.
2. Significant Accounting Policies
Significant accounting policies are included in the 2023 Financial Statements.
3. Mineral Properties
Mt Todd, Northern Territory, Australia
The capitalized mineral property values are as follows:
At June 30, 2024
At December 31, 2023
Mt Todd, Australia
Vista acquired Mt Todd in March 2006. The purchase price and related transaction costs of $2,146 were capitalized as mineral properties. Since 2006, the Company has systematically advanced the Project through exploration, metallurgical testing, engineering, environmental/operational permitting activities, and ongoing site management activities. Prior to 2024, costs associated with these and other related activities were charged to expense as incurred.
Drilling and related costs are capitalized for an ore body where proven and probable reserves exist, and the activities are directed at obtaining additional information about the ore body or converting measured, indicated, and inferred resources to proven and probable reserves. All other drilling and related costs are expensed as incurred. Capitalized mineral property development drilling costs totaled $524 and $1,028 in the three and six months ended June 30, 2024. The Company
7
derecognized $3,091 of mineral property costs in June 2024 upon recognition of the gain on grant of a royalty interest in Mt Todd, see Note 6. See Note 8 for a discussion of commitments and contingencies associated with Mt Todd.
4. Plant and Equipment
June 30, 2024
December 31, 2023
Cost
Depreciation
Net
5,497
5,237
5,415
5,211
Corporate, United States
303
5,800
5,540
5,718
5,514
In March 2024, the Company recorded a gain of $802 upon sale of certain components of our used mill equipment. Gross proceeds totaling $900 were offset by selling expense of $98.
5. Other Current Liabilities
The following table sets forth the Company’s accrued liabilities and other at June 30, 2024 and December 31, 2023:
Accrued accounts payable
150
152
Accrued employee compensation and benefits
463
597
6. Gain on Grant of Royalty
On December 13, 2023, Vista Gold Australia Pty. Ltd. (“Vista Gold Australia”), a wholly owned subsidiary of the Company, entered into a Royalty Agreement (the “Royalty Agreement”) with Wheaton Precious Metals (Cayman) Co., an affiliate of Wheaton Precious Metals Corp. (“Wheaton”) in relation to Mt Todd.
Pursuant to the terms of the Royalty Agreement, Wheaton agreed to provide Vista with $20,000 cash to advance Mt Todd and for general corporate purposes, excluding direct expenditures for any project other than Mt Todd, in exchange for payments of a portion of the gross revenue from Mt Todd, (the “Royalty”). The Royalty is at a rate of 1% of gross revenue from the Project if the completion objectives for the Project are achieved by April 1, 2028. Beginning April 1, 2028, if the completion objectives for the Project are not achieved, the Royalty shall increase annually at a rate of up to 0.13% to a maximum Royalty rate of 2%. Any annual increases beginning April 1, 2028 shall be reduced on a pro rata basis to the extent that Mt Todd has initiated operations but has yet to achieve a completion test at an average daily processing rate of 15,000 tonnes per day. The Royalty rate, the annual increase percentage, and maximum Royalty rate can each be reduced by one-third upon the occurrence of one of the following events: (i) a change of control of Vista Gold Australia occurs prior to April 1, 2028 and Vista Gold Australia provides timely notice and payment to Wheaton of certain amounts; or (ii) payment to Wheaton of the applicable Royalty associated with Vista Gold Australia delivering 3.47 million gold ounces to a third party. The Royalty is payable on production from both the Mt Todd mining and exploration licenses. Wheaton has also been granted a right of first refusal on future royalties, streams or pre-pays pertaining to Mt Todd.
The Royalty Agreement provides for Vista Gold Australia to receive a total of $20,000 in three installments, all of which were received by Vista prior to June 30, 2024. Upon receipt of the final instalment in June 2024, the Company recognized a gain on grant of royalty interest in mineral titles of $16,909. The gain comprises previously deferred instalment payments totaling $10,000 and the $10,000 received for the final instalment, net of the associated mineral property carrying value as of the date the final instalment was received.
A security interest was granted by Vista Gold Australia to Wheaton. The security includes, among other things, a mortgage over the Mt Todd tenements and a collateralized interest in the assets, rights and interests of Vista Gold Australia.
8
7. Common Shares
Equity Financing
Vista is party to an at-the-market offering agreement (the “ATM Agreement”) with H. C. Wainwright & Co., LLC (“Wainwright”), under which the Company has the right, but is not obligated, to sell and issue common shares in the capital of the Company (each a “Common Share”) through Wainwright for aggregate gross proceeds of up to $10,000 (the “ATM Program”).
During the three and six months ended June 30, 2024, the Company realized net proceeds of $191 and $244, respectively, under the ATM Program. During the three and six months ended June 30, 2023, the Company realized net proceeds of $560 and $1,013, respectively, under the ATM Program. As of June 30, 2024, $8,450 remained available under the ATM Program.
Warrants
Warrant activity is summarized in the following table.
Weighted
Average
Exercise Price
Remaining Life
Outstanding
Per Share
(Years)
As of December 31, 2022
7,408,101
1.25
1.5
As of December 31, 2023
0.5
As of June 30, 2024
0.0
All warrants expired on July 12, 2024.
Stock-Based Compensation
The Company’s active stock-based compensation plans include restricted share units (“RSUs”) issuable pursuant to the Company’s long-term equity incentive plan and deferred share units (“DSUs”) issuable pursuant to the Company’s deferred share unit plan (“DSU Plan”). The Company's stock option plan remains in place, however no new issuances can be made at this time. Stock-based compensation may be issued to our directors, officers, employees, and consultants. The maximum number of Common Shares that may be reserved for issuance under the combined stock-based compensation plans is a variable number equal to 10% of the issued and outstanding Common Shares on a non-diluted basis at any particular time. Stock-based compensation may be granted from time to time at the discretion of the Board of Directors of the Company (the “Board”), with vesting provisions as determined by the Board.
Stock-based compensation expense was:
RSUs
94
107
177
183
DSUs
85
141
293
As of June 30, 2024, unrecognized compensation expense for RSUs was $451, which is expected to be recognized over a weighted average period of 1.5 years.
9
Restricted Share Units
The following table summarizes RSU activity:
Weighted Average
Number
Grant-Date Fair
of RSUs
Value Per RSU
Unvested - December 31, 2022
1,472,008
0.60
Granted
1,163,000
0.37
Cancelled/forfeited
(335,786)
0.58
Vested, net of shares withheld
(412,548)
Unvested - December 31, 2023
1,886,674
0.46
1,630,000
0.24
(409,450)
0.50
(445,551)
0.59
Unvested - June 30, 2024
2,661,673
0.29
During the six months ended June 30, 2024 and 2023, the Company withheld Common Shares with an equivalent value to meet employee withholding tax obligations of $85 and $142, respectively, which resulted from the vesting of RSUs during these periods. Common Shares withheld are considered cancelled/forfeited.
Deferred Share Units
The DSU Plan provides for granting of DSUs to non-employee directors. DSUs vest immediately; however, the Company will issue one Common Share for each DSU only when the non-employee director ceases to be a director of the Company. During the six months ended June 30, 2024, the Board granted 767,000 DSUs and the Company recognized $293 in DSU expense. During the six months ended June 30, 2023, the Board granted 420,000 DSUs and the Company recognized $244 in DSU expense.
The following table summarizes DSU activity:
Number of
Value per DSU
Outstanding - December 31, 2022
1,254,000
0.72
420,000
Shares issued to participants
(485,000)
0.69
Outstanding - December 31, 2023
1,189,000
0.68
767,000
0.38
(295,000)
Outstanding - June 30, 2024
1,661,000
0.54
10
Stock Options
The following table summarizes option activity for vested awards:
Remaining
Aggregate
Contractual Term
Intrinsic
Options
Per Option
Value
1,367,000
0.71
0.64
Expired
(967,000)
400,000
0.70
0.47
(350,000)
0.73
50,000
0.51
0.75
Exercisable - June 30, 2024
Weighted Average Common Shares
Basic Common Shares
Effect of dilutive stock-based awards
3,499,814
3,050,968
Diluted Common Shares
Stock options to purchase 350,000 Common Shares and warrants to purchase 7,408,101 Common Shares were excluded from the computation of diluted earnings per share for the three months ended June 30, 2024 because their effect would have been antidilutive. Unvested RSUs representing 33,668 Common Shares, stock options to purchase 400,000 Common Shares, and warrants to purchase 7,408,101 Common Shares were excluded from the computation of diluted earnings per share for the six months ended June 30, 2024 because their effect would have been antidilutive.
As the Company was in a net loss position for the three and six months ended June 30, 2023, all potentially dilutive Common Shares were considered antidilutive.
8. Commitments and Contingencies
The Mt Todd site was not reclaimed by the predecessor owners when the mine closed in 2000. Reclamation obligations associated with the period before Vista’s purchase of Mt Todd are presently the responsibility of the Government of the Northern Territory, Australia (the “NT Government”). Vista may, but is not obligated to, give notice to the NT Government that it wishes to commence mining activities at Mt Todd. As a result of any such notice by the Company, the NT Government will transfer a) certain assets to the Company upon terms and conditions to be agreed or determined by an independent valuer and b) the rehabilitation, management and operational activities being carried out by the NT Government. The historical rehabilitation liabilities to be transferred to Vista are currently stated by the NT Government at approximately A$73 million.
Under an agreement with the Jawoyn Association Aboriginal Corporation with respect to Mt Todd, we have agreed to a gross proceeds royalty (“GPR”) ranging between 0.125% and 2.0%, depending on prevailing gold prices and foreign exchange rates, and a 1.0% GPR not tied to gold price or foreign exchange rates. The combined GPR ranges from 1.125% to 3.0%.
Mt Todd is also subject to the Royalty Agreement with Wheaton; see Note 6.
Our exploration and development activities are subject to various laws and regulations governing the protection of the environment and our interactions with community stakeholders, among others. These laws and regulations are continually changing and are generally becoming more restrictive. Future expenditures that may be required for compliance with these laws and regulations cannot be predicted. If the Company determines that it is probable that an obligation exists and the
11
amount can be reasonably estimated, a provision would be recorded. This may include costs associated with actions by the Company and actions attributable to others should no other responsible or potentially responsible parties be identified. We conduct our operations in a manner designed to minimize effects on stakeholders and the environment.
The Australian Aboriginal Areas Protection Authority (“AAPA”) is investigating potential surface impacts of drilling undertaken by Vista from 2020 through 2022. The Company is cooperating with the AAPA, but the potential outcome of this process is unknown at this time.
A Mexican court has issued a ruling to disallow the tax basis of certain mineral properties that was established in 2012 by the Company’s Mexican subsidiary, Minera Gold Stake (“MGS”). This tax basis was subsequently utilized by MGS to offset taxable income in subsequent years. MGS believes it has valid defenses against this ruling and other available tax positions to partially mitigate the impact of the court’s ruling, should it not be reversed upon appeal. The outcome of this matter is unknown at this time, but management estimates the effect of the court ruling creates a potential income tax liability of up to approximately $2,000 plus assessable interest and penalties.
9. Geographic and Segment Information
The Company has one reportable operating segment. We seek to advance and develop Mt Todd, which may lead to gold production or value adding strategic transactions. These activities are currently focused principally in Australia. We reported no revenues during the three and six months ended June 30, 2024 and 2023. The geographic location of mineral properties and plant and equipment is provided in Notes 3 and 4, respectively.
12
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
The following discussion and analysis should be read in conjunction with our unaudited condensed consolidated financial statements for the three and six months ended June 30, 2024, and the related notes thereto, which have been prepared in accordance with generally accepted accounting principles in the United States. This discussion and analysis contains forward-looking statements and forward-looking information that involve risks, uncertainties, and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements and information as a result of many factors. See section heading “Note Regarding Forward-Looking Statements” below.
All dollar amounts are in U.S. dollars in thousands, except per share amounts, commodity prices, and currency exchange rates unless specified otherwise.
Overview
Vista Gold Corp. and its subsidiaries (collectively, “Vista,” the “Company,” “we,” “our,” or “us”) operate as a development stage company in the gold mining industry. Vista does not currently generate cash flows from mining operations. The Company’s flagship asset is the Mt Todd gold project (“Mt Todd” or the “Project”) in Northern Territory, Australia (the “NT”). Mt Todd is among the largest development stage opportunities in Australia. A feasibility study was completed in 2022 and updated in 2024 demonstrating strong economics for development of a 50,000 tonnes per day (“tpd”) operation. All major operating and environmental permits necessary to initiate development of Mt Todd are in place.
Mt Todd benefits from its location in a leading mining jurisdiction and demonstrates multiple opportunities to add value through growth of mineral reserves, alternative development strategies, and other de-risking activities. The Project offers strategic optionality through development as a large-scale project or a smaller-scale start-up with subsequent staged expansion.
In view of the substantial investment required to develop Mt Todd, we are evaluating alternatives that offer the potential to provide shareholders with greater financial returns and lower exposure to risk. We are focused on maximizing shareholder value in the current climate of a strong and rising gold price. We continue to work to identify and advance interest in Mt Todd. Potential strategic investors continue to show interest in Mt Todd and have provided positive feedback on the technical merits of the Project. However, interested parties continue to maintain a cautious approach to large-scale development projects and some have expressed interest in alternative development strategies at Mt Todd. In 2023, we completed a favorable internal scoping study for a 15,000 tpd operation, and we continue to evaluate alternatives for the staged development of Mt Todd.
Management continues to prioritize a low overall spending profile and efficient use of resources to advance Mt Todd. Our funding strategy is to maintain adequate liquidity while minimizing dilution as we seek to preserve, enhance, and realize value from Mt Todd. The Company periodically raises funds in the capital markets and considers alternative strategies and possible corporate opportunities as means to enhance its liquidity and deliver shareholder value.
The Batman deposit at Mt Todd hosts proven and probable mineral reserves of 6.98 million ounces as reported in the March 2024 feasibility study (the “Mt Todd FS”). There is also an opportunity to add gold mineral resources beyond presently defined mineral reserves through further exploration. Exploration at Mt Todd has identified additional growth targets immediately outside the Batman deposit along a 5.4 kilometer trend within the Company’s mining licenses and other precious and base metals prospects within the broader footprint of the Company’s exploration licenses.
In March 2024, we completed an updated feasibility study for Mt Todd in conjunction with our annual reporting of mineral resources and mineral reserves as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as required pursuant to Item 1300 of Regulation S-K (“S-K 1300”) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The updated feasibility study reflects changes in project economics since the feasibility study filed in February 2022. Material capital and operating cost components have been updated with quotes obtained in the first quarter of 2024. The updated study also reflects the current outlook for the long-term gold price and foreign
exchanges rates, and the recently announced royalty. Mt Todd mineral resources and mineral reserves, mine plans, gold recoveries, and gold production schedules remain unchanged.
The Mt Todd FS contemplates a plant processing 50,000 tpd and demonstrates the underlying value potential of a large-scale gold project. Highlights include:
In December 2023, Vista entered into a royalty agreement (the “Royalty Agreement”) with Wheaton Precious Metals (Cayman) Co., an affiliate of Wheaton Precious Metals Corp. (“Wheaton”), in relation to Mt Todd. Pursuant to the terms of the Royalty Agreement, Vista granted Wheaton a royalty in the amount of 1% of gross revenue from the sale or disposition of minerals from the Project (the “Royalty”), subject to adjustments in certain circumstances. As consideration for the Royalty, Wheaton agreed to provide Vista with $20 million to advance Mt Todd and for general corporate purposes, subject to certain conditions set forth in the Royalty Agreement. Wheaton has also been granted a right of first refusal on future royalties, streams or pre-pays pertaining to Mt Todd. Vista received Royalty proceeds of $3 million in December 2023, $7 million in February 2024, and the remaining $10 million in June 2024.
In June 2024, the Company announced that the Government of the NT passed legislation to enact the Mineral Royalties Act 2024 (“Royalties Act”) effective July 1, 2024. The Royalties Act replaces the prior net profits royalty regime with an ad valorem royalty regime for new mines. The 3.5% royalty to be applied to gold production from Mt Todd represents a nearly 50% reduction in payable royalties. This results in improved project economics and shareholder returns compared to our 2024 updated Mt Todd FS, which included NT royalties equivalent to nearly a 7% ad valorum rate. Under the previous net profits royalty regime, our base case economic analysis at an $1,800 gold price estimated the payment of $765 million in NT royalties over the life of the mine.
In January 2024, the Company commenced a 6,000-7,000 meter drill program, with its focus at the north end of the Batman deposit. This drilling program is required by the Royalty Agreement. The objective of this program is to convert gold resources to gold reserves that can be included in the mine production schedule and project cash flows. The drilling program is expected to have an all-in cost of approximately $2,000 and to be completed by year end.
The Company plans to leverage the results of the drilling program and prior technical studies by advancing evaluations of staged development scenarios for Mt Todd. Vista continues to evaluate the technical and economic merits of staged development scenarios with a focus on lower initial capital, strong gold production and cash flow profiles, while preserving the opportunity for subsequent staged development. In 2023, we completed a 5.2 million tonnes per annum (“tpa”), nominally 15,000 tpd, internal scoping study. By using contract mining and power generation, and construction practices commonly used in Australia, we believe there is opportunity to maintain high capital efficiency at this smaller initial project scale. Using a higher ore cutoff grade at the start is also expected to help maintain competitive cash costs. The scoping study demonstrated the economic merits of a smaller scale initial project but restricted the mine life to the 80 million tonne
14
capacity of the existing tailings facility. Additional evaluation is needed to incorporate staged development scenarios that improve resource utilization, mine life, and economic returns.
Maria Vallejo Garcia joined the Company as Director, Projects and Technical Services in June 2024. Ms. Vallejo is a registered Professional Engineer (P. Eng) and Fellow of The Australasian Institute of Mining and Metallurgy (FAusIMM). She is also a Qualified Person (“QP”) as defined by Item 1300 of Regulation S-K under the Securities Exchange Act of 1934, as amended, and Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
The Company published its inaugural Environmental, Social, and Governance Report (“ESG Report”) during the first quarter of 2024.
Mineral Resources and Mineral Reserves Estimates
The tables below present the estimated mineral resources and mineral reserves for the Project. The following mineral resources and mineral reserves were prepared in accordance with both S-K 1300 and Canadian Institute of Mining, Metallurgy and Petroleum definition standards (“CIM Definition Standards”) all as set forth in the Mt Todd FS, which is available as Exhibit 96.1 to the Company’s Annual Report on Form 10-K/A as filed with the SEC on March 14, 2024.
The Mt Todd FS is the technical report summary, prepared pursuant to S-K 1300, that was filed with the SEC on March 14, 2024 and is entitled “S-K 1300 Technical Report Summary – Mt Todd Gold Project – 50,000 tpd Feasibility Study – Northern Territory, Australia” with an effective date of March 12, 2024 and an issue date of March 14, 2024. The technical report summary remains current in all material respects.
A companion feasibility study for Canadian purposes, pursuant to National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), was filed on SEDAR on April 16, 2024 and is entitled “NI 43-101 Technical Report – Mt Todd Gold Project – 50,000 tpd Feasibility Study – Northern Territory, Australia” with an effective date of March 12, 2024 and an issue date of April 16, 2024. The companion report is referenced herein for informational purposes only.
The Mt Todd FS is available for review at www.sec.gov and under our profile at www.sedarplus.ca. The Mt Todd FS is not incorporated by reference into this quarterly report on Form 10-Q.
Mt Todd Gold Project – Summary of Gold Mineral Resource (Exclusive of Gold Mineral Reserves)
Based on US$1,300/oz Gold
Batman Deposit
Heap Leach Pad
Quigleys Deposit
Contained
Tonnes
Grade
Ounces
(000s)
(g Au/t)
Measured
594
1.15
22
Indicated
10,816
1.76
7,301
1.11
18,117
1.49
873
Measured & Indicated
7,895
282
18,711
895
Inferred
61,323
1,421
3,981
1.46
187
65,304
0.77
1,608
Notes:
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Mt Todd Gold Project – Summary of Gold Mineral Reserves
Based on 50,000 tpd, 0.35 g Au/t cut-off and $1,500 per Ounce Pit Design
Proven
81,277
0.84
2,192
Probable
185,744
0.76
4,555
13,354
232
199,098
4,787
Proven & Probable
267,021
0.79
6,747
280,375
6,979
Economic analysis conducted only on proven and probable mineral reserves.
Cautionary note to investors: Proven and probable mineral reserves are estimated in accordance with each of S-K 1300 and CIM Definition Standards. A number of risk factors may adversely affect estimated mineral reserves and mineral resources, any of which may result in a reduction or elimination of reported mineral reserves and mineral resources. See “Item 1A. Risk Factors” in the Company’s Form 10-K as filed with the SEC on March 14, 2024.
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Results from Operations
Summary
Cash totaled $20,225 and working capital was $19,756 at June 30, 2024. See “Liquidity and Capital Resources”. The Company had no debt as of June 30, 2024.
Consolidated net income (loss) for the three months ended June 30, 2024 and 2023 was $15,633 and ($1,503), or $0.13 and ($0.01) per basic share, respectively. Consolidated net income (loss) for the six months ended June 30, 2024 and 2023 was $14,560 and ($3,474), or $0.12 and ($0.03) per basic share, respectively. The principal components of the period-over-period changes are discussed below.
Operating income and expenses
Gain on Grant of Royalty Interest in Mineral Titles
The Company recognized a gain on grant of royalty interest in mineral titles of $16,909 in June 2024. The gain comprises the previously deferred gain on instalment payments totaling $10,000 and the gain on $10,000 received for the final instalment, net of the associated mineral property carrying value of $3,091 as of the date the final instalment was received.
Exploration, property evaluation and holding costs were $645 and $682 for the three months ended June 30, 2024 and 2023, respectively; and $1,410 and $1,486 for the six months ended June 30, 2024 and 2023, respectively. The decrease in 2024 for the comparable three-month periods was primarily attributable to capitalization of $64 of labor costs related to the 2024 drilling program whereas these costs were expensed in 2023, partially offset by higher site costs. The decrease in 2024 for the comparable six-month periods was primarily attributable to capitalization of $154 of labor costs related to the 2024 drilling program whereas these costs were expensed in 2023, partially offset by higher net discretionary spending of $58 mostly related to the 2024 update of the Mt Todd FS.
Corporate administration costs were $763 and $878 during the three months ended June 30, 2024 and 2023, respectively; and $2,006 and $2,046 for the six months ended June 30, 2024 and 2023, respectively. The decrease in 2024 for the comparable three-month periods was due to personnel costs being lower by $69 and DSU expense being lower by $65. The total expenses in the comparable six-month periods were substantially unchanged.
Gain on sale of plant and equipment
In March 2024, the Company recorded a gain of $802 upon sale of certain components of our used mill equipment. Gross proceeds totaled $900 and were offset by selling expense of $98.
Non-operating income and expenses
Interest income was $163 and $70 for the three months ended June 30, 2024 and 2023, respectively; and $266 and $139 for the six months ended June 30, 2024 and 2023, respectively. The Company benefited from greater cash on hand and higher market interest rates for short-term government debt securities in the 2024 period.
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Financial Position, Liquidity and Capital Resources
Operating activities
Net cash used in operating activities was $2,793 and $2,995 for the six months ended June 30, 2024 and 2023, respectively. The decrease in operating cash outflows largely resulted from net changes in working capital account items and capitalization of direct labor costs associated with the development drilling program.
Investing activities
Net cash provided by investing activities was $16,790 and $nil for the six months ended June 30, 2024 and 2023, respectively. The Company received the second instalment payment of $7,000 and final instalment payment of $10,000 under the Royalty Agreement and $900 for the sale of certain used mill equipment in the 2024 period. These inflows were partially offset by capitalized development drilling costs of $1,028.
Financing activities
During the six months ended June 30, 2024 and 2023, net cash of $159 and $871, respectively, was provided by financing activities. Cash provided by financing activities during the six months ended June 30, 2024 was $244 of net proceeds under the ATM Program (as defined below) offset by payments of $85 for employee withholding tax obligations in lieu of issuing common shares of the Company (“Common Shares”) earned from the vesting of restricted share unit awards. Cash provided by financing activities during the six months ended June 30, 2023 was $1,013 of net proceeds under the ATM Program offset by payments of $142 for employee withholding tax obligations in lieu of issuing Common Shares earned from the vesting of restricted share unit awards.
Liquidity and capital resources
The Company considers available cash, cash equivalents, and any short-term investments to be its primary measure of liquidity. Our cash liquidity position as of June 30, 2024, comprising cash and cash equivalents of $20,225, reflected a net increase of $14,156 during the six months ended June 30, 2024.
Current assets, net of current liabilities (“Working Capital”), is a secondary measure of liquidity for the Company. The Company had Working Capital of $19,756 and $5,576 at June 30, 2024 and December 31, 2023, respectively.
During the six months ended June 30, 2024, the Company benefited from cash inflows of $17,000 from its grant of the Royalty on Mt Todd and $900 upon sale of a portion of its used mill equipment. As of June 30, 2024, Vista has received the entire $20,000 as set forth in the Royalty Agreement. Cash received from Wheaton is only for the purposes of advancing Mt Todd and general corporate purposes. These sources of cash were offset by operating cash outflows of $2,793 and other expenditures of $1,195. Recurring costs for corporate administration and Mt Todd maintenance were most of the Company’s operating cash outflows during the six months ended June 30, 2024. Of the other expenditures, $1,028 related to Vista’s development drilling program at Mt Todd. Additional details regarding 2024 financial results are presented in the “Results from Operations” section above and the preceding discussions in this section regarding operating activities, investing activities, and financing activities.
For the ensuing 12 months following June 30, 2024, the Company estimates recurring costs will be approximately $5,900. Work plans at Mt Todd are expected to increase during the next twelve-month period as the Company continues a 6,000-7,000-meter drilling program in the area immediately north and northeast of the Batman pit, undertakes other Mt Todd-related technical programs, and completes several planned maintenance projects. Overall, these activities are projected to include spending totaling approximately $3,700, for the ensuing 12 months following June 30, 2024. Management expects to fund Vista’s activities during the next twelve months from existing cash and cash equivalents and interest income.
In addition to Vista’s existing capital resources, we are a party to an at-the-market offering agreement (the “ATM Agreement”) with H. C. Wainwright & Co., LLC (“Wainwright”) to provide balance sheet flexibility at a potentially lower cost than other means of equity issuances. Under the ATM Agreement, the Company can, but is not obligated to, issue and
18
sell Common Shares through Wainwright for aggregate gross proceeds of up to $10,000 (the “ATM Program”). During the six months ended June 30, 2024, the Company issued 460,119 Common Shares under the ATM Program for net proceeds of $244. As of June 30, 2024, $8,450 remained available under the ATM Program.
Offers and sales of Common Shares under the ATM Program were and will be made only in the United States in an “at the market offering” as defined in Rule 415 under the United States Securities Act of 1933, as amended, subject to an effective registration statement under the U.S. Securities Act of 1933, as amended, and no offers or sales of Common Shares under the ATM Agreement will be made in Canada. The Common Shares were and will be distributed at market prices prevailing at the time of sale.
Other potential sources of cash inflows may include other equity issuances not covered by the ATM Program, monetization of Vista’s remaining non-core assets, which include a royalty interest on a property in the U.S., another royalty interest on a property in Canada, and used mill equipment that is being marketed by a third-party mining equipment dealer.
Considering current economic conditions and the Company’s ongoing initiatives, we believe our Working Capital as of June 30, 2024, together with other potential future sources of financing and sales of non-core assets, will be sufficient to fund our currently planned corporate expenses, Mt Todd holding costs, and anticipated discretionary programs for at least one year from the date of issuance of this quarterly report on Form 10-Q.
Vista’s long-term viability depends upon our ability to realize value from our principal asset, Mt Todd. We seek to maintain adequate liquidity and minimize dilution as we advance our primary objective to maximize returns to our shareholders by preserving, enhancing, and realizing value from Mt Todd. Our funding strategy is to maintain a low expenditure profile, realize value from our remaining non-core assets and, when considered appropriate, issue additional equity or find other means of financing. Vista also considers possible corporate opportunities as a means to enhance our liquidity. The underlying value and recoverability of the amounts shown as mineral properties and plant and equipment as presented in our Condensed Consolidated Balance Sheets depend on market and industry conditions, our ability to attract sufficient capital resources to execute our strategy, and the ultimate success of our programs to enhance and realize value at Mt Todd.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements.
Contractual Obligations
We have no material contractual obligations as of June 30, 2024.
Critical Accounting Policies
See "Critical Accounting Estimates and Recent Accounting Pronouncements" under Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 as filed with the SEC.
Non-U.S. GAAP Financial Measures
In this report, we have provided information prepared or calculated according to U.S. GAAP, as well as provided certain non-U.S. GAAP prospective financial performance measures. Because the non-U.S. GAAP performance measures do not have standardized meanings prescribed by U.S. GAAP, they may not be comparable to similar measures presented by other companies. These measures should not be considered in isolation or as substitutes for measures of performance prepared in accordance with U.S. GAAP. There are limitations associated with the use of such non-U.S. GAAP measures. Since these measures do not incorporate revenues, changes in working capital and non-operating cash costs, they are not necessarily indicative of potential operating profit or loss, or cash flow from operations as determined in accordance with U.S. GAAP.
19
The non-U.S. GAAP measures associated with cash costs, cash costs per ounce, and initial capital requirements per payable ounce of gold metrics are not, and are not intended to be, presentations in accordance with U.S. GAAP. These metrics represent costs and unit-cost measures related to the Project.
We believe that these metrics help investors understand the economics of the Project. We present the non-U.S. GAAP financial measures for our Project in the tables below. Actual U.S. GAAP results may vary from the amounts disclosed in this report. Other companies may calculate these measures differently.
Cash Costs, Initial Capital Requirements per Payable Ounce of Gold, and Respective Unit Cost Measures
Cash costs, cash costs per ounce, and initial capital requirements per payable ounce of gold, are non-U.S. GAAP metrics developed by the World Gold Council to provide transparency into the costs associated with producing gold and provide a standard for comparison across the industry. The Company reports cash costs on a per ounce basis because we believe this metric appropriately reflects the direct mining costs associated with gold production over the life of mine. The Company reports initial capital cost requirements per payable ounce of gold because this metric provides a standard measurement of initial capital efficiency. Similar metrics are widely used in the gold mining industry as comparative benchmarks of performance.
Cash costs consist of Project operating costs, refining costs, and the Jawoyn Association royalty and Wheaton Royalty. The sum of these costs is divided by the corresponding payable gold ounces to determine cash cost per ounce.
Other costs excluded from cash costs include depreciation and amortization, income taxes, government royalties, financing charges, costs related to business combinations, asset acquisitions, and asset dispositions.
Initial capital requirements per payable ounce of gold consists of total initial capital requirements divided by the corresponding payable gold ounces.
The following tables demonstrate the calculation of cash costs, cash costs per ounce, and initial capital requirements per ounce metrics for amounts presented in this report.
Units
Life of Mine
(16 years)
Payable gold
koz
6,313
Operating costs
US$ millions
$5,420
Refining cost
$23
Royalties
$324
Cash costs
$5,767
Cash cost per ounce
US$/oz
$913
Initial capital requirements
$1,030
Initial capital requirements per payable ounce of gold
$163
Project Updates
Mt Todd Gold Project, Northern Territory, Australia
Recent Developments
Vista acquired Mt Todd in 2006. Since that time, we have invested over $110 million to systematically explore, evaluate, engineer, permit and de-risk the Project. We continue to de-risk Mt Todd and undertake activities to increase shareholder value in a cost-effective manner. We believe Mt Todd’s attributes and advanced stage of technical evaluation and permitting provide a solid foundation as we seek to maximize shareholder value. We seek to achieve a valuation that
reflects Mt Todd’s gold production profile, long operating life, excellent gold recovery, favorable operating costs, and robust economics and minimizes future equity dilution.
The Company commenced a 6,000-7,000 meter drilling program in January 2024, targeting resources at the north end of the Batman deposit with the potential to add lower-stripping ratio reserves. Vista plans to follow this drilling program with technical studies to evaluate an initially smaller-scale, staged development strategy which would result in lower initial capital costs.
The Company announced the results of updated SK-1300 and NI 43-101 feasibility studies in March and April 2024, respectively. The updated feasibility studies reflect changes in project economics since the feasibility study report filed in February 2022. Material capital and operating cost components have been updated with quotes obtained during the first quarter of 2024. The studies reflect the current outlook for the long-term gold price and foreign exchange rates, and the Wheaton Royalty. Mt Todd mineral resources and mineral reserves, mine plans, gold recoveries, and gold production schedules remain unchanged. The technical data and economic conclusions of the NI 43-101 Report are materially identical to the results of the S-K 1300 Report, with differences in the formatting of the reports and details of certain assumptions resulting only from the respective disclosure requirements of NI 43-101 and S-K 1300.
Vista released its inaugural ESG Report in March 2024. The ESG Report provides transparency and outlines progress on the Company’s ESG performance in 2023, and goals and key initiatives for the coming year.
In December 2023, the Company announced the Royalty Agreement whereby Vista granted a 1% gross revenue royalty, subject to adjustment, on future gold production from Mt Todd to Wheaton in exchange for cash payments totaling $20 million. As of June 30, 2024, the entire $20 million had been received by Vista.
The Company completed a 5.2 million tpa internal scoping study during the first quarter of 2023 to evaluate the technical and economic merits of smaller-scale alternatives that contemplate significantly lower initial capital costs while preserving the opportunity for subsequent staged development. The results of this study formed the basis for pursuing a more extensive assessment of the opportunity to initially develop Mt Todd on a smaller scale basis and consider possible expansion scenarios.
Vista expects to incur expenditures of approximately $2,200 for its Mt Todd site management and environmental stewardship activities and $3,700 for discretionary programs for the ensuing 12 months following June 30, 2024, most of which relates to the 2024 drilling program.
The Australian Aboriginal Areas Protection Authority (“AAPA”) is investigating potential surface impacts of drilling undertaken by Vista from 2020 through 2022. The Company is cooperating with the AAPA.
All scientific and technical information herein has been reviewed and approved by John Rozelle, a technical consultant, and designated Qualified Person.
Certain U.S. Federal Income Tax Considerations
Vista believes it is possible the Company may be classified as a “passive foreign investment company” (“PFIC”) as defined under Section 1297 of the U.S. Internal Revenue Code of 1986, as amended, in recent years and expects to continue to be a PFIC in the future. Current and prospective United States shareholders should consult their tax advisors as to the tax consequences of PFIC classification and the U.S. federal tax treatment of PFICs. Additional information on this matter is included in Vista’s Annual Report on Form 10-K for the year ended December 31, 2023, under “Part II. Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities — Certain United States Federal Income Tax Considerations for U.S. Residents.”
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Note Regarding Forward-Looking Statements
This quarterly report on Form 10-Q contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and forward-looking information under Canadian securities laws that are intended to be covered by the safe harbor created by such legislation. All statements, other than statements of historical facts, included in this quarterly report on Form 10-Q, our other filings with the Securities and Exchange Commission and Canadian securities commissions and in press releases and public statements by our officers or representatives that address activities, events or developments that we expect or anticipate will or may occur in the future are forward-looking statements and forward-looking information, including, but not limited to, such things as those listed below.
Operations
Business and Industry
Forward-looking statements and forward-looking information have been based upon a number of estimates and assumptions including material estimates and assumptions related to our current business and operating plans, as approved by the Company’s Board of Directors; our cash and other funding requirements and timing and sources thereof; results of pre-feasibility and feasibility studies, mineral resource and mineral reserve estimates, preliminary economic assessments and exploration activities; advancements of the Company’s required permitting processes; our experience working with regulators; current market conditions and project development plans. The words “estimate,” “plan,” “anticipate,” “expect,” “intend,” “believe,” “will,” “may” and similar expressions are intended to identify forward-looking statements and forward-looking information.
These statements involve known and unknown risks, uncertainties, assumptions and other factors which may cause our actual results, performance or achievements to be materially different from any results, performance or achievements expressed or implied by such forward-looking statements and forward-looking information. These factors include risks such as:
Operating Risks
23
Financial and Business Risks
24
Industry Risks
For a more detailed discussion of such risks and other important factors that could cause actual results to differ materially from those in such forward-looking statements and forward-looking information, please see the risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2023, under “Part I-Item 1A. Risk Factors”. Although we have attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements and forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that these statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in the statements. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially adversely affect our business, financial condition, cash flows, and/or future results. Except as required by law, we assume no obligation to publicly update any forward-looking statements and forward-looking information, whether as a result of new information, future events or otherwise.
ITEM 4. CONTROLS AND PROCEDURES.
Disclosure Controls and Procedures.
At the end of the period covered by this quarterly report on Form 10-Q for the three and six months ended June 30, 2024, an evaluation was carried out under the supervision of and with the participation of our management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operations of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act). Based on that evaluation, the CEO and the CFO have concluded that as of the end of the period covered by this quarterly report, our disclosure controls and procedures were effective in ensuring that: (i) information required to be disclosed by us in reports that we file or submit to the SEC under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in applicable rules and forms and (ii) material information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow for accurate and timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting
There has been no change in our internal control over financial reporting during the three months ended June 30, 2024, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
PART II
ITEM 1. LEGAL PROCEEDINGS.
Information regarding legal proceedings is contained in Note 8 of the Consolidated Financial Statements contained in this report and is incorporated herein by reference.
ITEM 1A. RISK FACTORS.
There have been no material changes from the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the SEC and Canadian securities regulatory authorities in March 2024. The risks described in our Annual Report and as otherwise herein are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially adversely affect our business, financial condition, cash flows, and/or future results.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
ITEM 4. MINE SAFETY DISCLOSURE.
We consider health, safety, and environmental stewardship to be a core value for us.
Pursuant to Section 1503(a) of the United States Dodd-Frank Wall Street Reform and Consumer Protection Act of 2011 (the “Dodd-Frank Act”), issuers that are operators, or that have a subsidiary that is an operator, of a coal or other mine in the United States are required to disclose in their periodic reports filed with the SEC information regarding specified health and safety violations, orders and citations, related assessments and legal actions, and mining-related fatalities under the regulation of the Federal Mine Safety and Health Administration (“MSHA”) under the United States Federal Mine Safety and Health Act of 1977 (the “Mine Act”). During the three months ended June 30, 2024, we had no U.S. properties subject to regulation by the MSHA under the Mine Act and consequently no disclosure is required under Section 1503(a) of the Dodd-Frank Act.
ITEM 5. OTHER INFORMATION.
(a) None.
(b) None.
(c) During the quarter ended June 30, 2024, none of our directors or officers adopted, modified, or terminated any “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.
ITEM 6. EXHIBITS.
The following exhibits are filed as part of this report:
Exhibit
Description
3.01
Certificate of Continuation, previously filed as Exhibit 3.1 to the Company’s Form 8-K filed with the SEC on June 12, 2013 and incorporated by reference herein (File No. 1-09025)
3.02
Notice of Articles, previously filed as Exhibit 3.2 to the Company’s Form 8-K filed with the SEC on June 12, 2013 and incorporated herein by reference (File No. 1-09025)
3.03
Articles, previously filed as Exhibit 3.3 to the Company’s Form 8-K filed with the SEC on June 12, 2013 and incorporated herein by reference (File No. 1-09025)
4.01
Form of Warrants previously filed as Exhibit 4.1 to the Company’s Form 8-K filed with the SEC on July 12, 2021 and incorporated by reference herein (File No. 1-09025)
4.02
Form of Underwriters Warrants previously filed as Exhibit 4.2 to the Company’s Form 8-K filed with the SEC on July 12, 2021 and incorporated by reference herein (File No. 1-09025)
23.1*
Consent of John Rozelle
23.2*
Consent of Rex Clair Bryan
23.3*
Consent of Thomas Dyer
23.4*
Consent of Deepak Malhotra
31.1*
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended
31.2*
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended
32.1*
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS(1)
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101.DEF(1)
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* - Filed herewith
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant)
Dated: July 29, 2024
By:
/s/ Frederick H. Earnest
Frederick H. Earnest,
Chief Executive Officer
/s/ Douglas L. Tobler
Douglas L. Tobler
Chief Financial Officer