The company lost US$27.7 million (or 31 per share) on revenue of US$19.5 million, compared with a year-ago loss of US$1.6 million (2 per share on revenue of US$37.1 million). The net loss before the writedowns totalled US$11.5 million (13 per share), compared with US$1.6 million (2 per share) in 1998.
Gold production slipped to 65,468 oz. from 112,838 oz. in 1998, while silver production fell more than 30,000 oz. to 203,230 oz.
The Hycroft gold mine in northern Nevada, where mining ceased in December 1998, churned out 40,075 oz. gold, down from 183,170 oz. The mine continued to mill previously mined ore and chipped in US$4.5 million. The company intends to resume mining following encouraging results from recent drilling. Results from 10 holes indicate that gold grades are 36% higher than previously believed.
A new in-house estimate pegged Hycroft’s total reserves and resources at 99.3 million tons grading 0.015 oz. per ton, equivalent to 2.1 million oz. gold. The estimate included proven and probable reserves of 24 million tons grading 0.021 oz. per ton, calculated at a gold price of US$275 per oz. It did not include several areas of potential oxide.
Vista says the mine is capable of producing 380,000 oz. gold over the next six years at an average cash operating cost of US$221 per oz. Net cash flow is pegged at US$21 million.
In Bolivia, Vista recently completed a feasibility study on the Amayapampa project. Based on a gold price of US$300 per oz., the independently calculated proven and probable reserves stand at 10.2 million tons grading 0.051 oz. per ton, including dilution.
On Dec. 31, 1999, Vista had US$3 million in working capital and US$2.3 million in cash.
The company is looking for ways to fund mining at Hycroft and construction at the Amayapampa.
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