VISTA GOLD CORP - FORM 8-K - EX-99.2 - February 21, 2014

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Exhibit 99.2

 

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

On February 14, 2014, Vista Gold Corp. (the “Company”) completed the sale of 16,000,000 Midas Gold Corp shares for Cdn$12,800,000 ($11,640,000).  The following unaudited pro forma condensed consolidated balance sheet and statement of income/(loss) are derived from the historical unaudited condensed consolidated financial statements of the Company.  The pro forma condensed consolidated balance sheet as of December 31, 2013 gives effect to the sale as if it had occurred on that date.  The pro forma condensed consolidated statement of income/(loss) for the year ended December 31, 2013 assumes that the sale had been completed January 1, 2013.  The unaudited pro forma condensed consolidated balance sheet and statement of income/(loss) should be read in conjunction with the notes thereto and the historical financial statements, including the notes thereto, of the Company included in its Annual Report on Form 10-K for the year ended December 31, 2013, which the Company anticipates filing on or about March 7, 2013. 

The preparation of the unaudited pro forma condensed consolidated financial information is based on financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).  The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts. Actual results could differ from those estimates.

The unaudited pro forma condensed consolidated financial information is provided for illustrative purposes only and does not purport to represent what the actual results of operations would have been had the transaction occurred on the respective dates assumed, nor is it necessarily indicative of the Company’s future operating results.  However, the pro forma adjustments reflected in the accompanying unaudited pro forma condense consolidated financial information represent estimates and assumptions that the Company’s management believes to be reasonable.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

December 31, 2013

(in thousands of US dollars)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical

 

 

Adjustments (1)

 

 

Adjustments (2)

 

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$
5,475 

 

$
10,913 

 

$
(5,016)

 

$
11,372 

Marketable securities

 
176 

 

 

 -

 

 

 -

 

 
176 

Other investments

 
20,990 

 

 
(10,560)

 

 

 -

 

 
10,430 

Receivable

 
6,000 

 

 

 -

 

 

 -

 

 
6,000 

Other current assets

 
1,839 

 

 

 -

 

 

 -

 

 
1,839 

   Total current assets

 
34,480 

 

 
353 

 

 
(5,016)

 

 
29,817 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

 

 

 

 

 

 

Mineral properties

 
5,648 

 

 

 -

 

 

 -

 

 
5,648 

Plant and equipment, net

 
3,698 

 

 

 -

 

 

 -

 

 
3,698 

Assets held for sale

 
6,500 

 

 

 -

 

 

 -

 

 
6,500 

Amayapampa interest

 
4,813 

 

 

 -

 

 

 -

 

 
4,813 

Long-term investments

 
65 

 

 

 -

 

 

 -

 

 
65 

Long-term deferred tax asset

 
7,038 

 

 
(3,188)

 

 

 -

 

 
3,850 

   Total non-current assets

 
27,762 

 

 
(3,188)

 

 

 -

 

 
24,574 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$
62,242 

 

$
(2,835)

 

$
(5,016)

 

$
54,391 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$
705 

 

$
191 

 

$

 -

 

$
896 

Accrued liabilities and other

 
517 

 

 

 -

 

 

 -

 

 
517 

Current deferred tax liability

 
7,038 

 

 
(3,188)

 

 

 -

 

 
3,850 

   Total current liabilities

 
8,260 

 

 
(2,997)

 

 

 -

 

 
5,263 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Debt

 
6,506 

 

 

 -

 

 
(5,016)

 

 
1,490 

   Total non-current liabilities

 
6,506 

 

 

 -

 

 
(5,016)

 

 
1,490 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 
14,766 

 

 
(2,997)

 

 
(5,016)

 

 
6,753 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

Common shares

 
404,470 

 

 

 -

 

 

 -

 

 
404,470 

Additional paid-in capital

 
32,487 

 

 

 -

 

 

 -

 

 
32,487 

Accumulated other comprehensive income (loss)

 
(59)

 

 

 -

 

 

 -

 

 
(59)

Accumulated deficit

 
(389,422)

 

 
162 

 

 

 -

 

 
(389,260)

   Total shareholders' equity

 
47,476 

 

 
162 

 

 

 -

 

 
47,638 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$
62,242 

 

$
(2,835)

 

$
(5,016)

 

$
54,391 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VISTA GOLD CORP. (An Exploration Stage Enterprise)

PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME/(LOSS)

Year Ended December 31, 2013

(in thousands of US dollars)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical

 

Adjustments (3)

 

Pro Forma

 

 

 

 

 

 

 

Operating income and (expenses):

 

 

 

 

 

 

Exploration, property evaluation and holding costs

$
(15,357)

$

 -

$
(15,357)

Corporate administration

 
(5,528)

 

 -

 
(5,528)

Depreciation and amortization

 
(1,021)

 

 -

 
(1,021)

Gain/(loss) on currency translation

 
301 

 

 -

 
301 

Gain on disposal of minera property, net

 
4,224 

 

 -

 
4,224 

   Total operating expense

 
(17,381)

 

 -

 
(17,381)

 

 

 

 

 

 

 

Non-operating income and (expenses):

 

 

 

 

 

 

Gain/(loss) on sale of marketable securities

 
(54)

 

 -

 
(54)

Unrealized gain/(loss) on other investments

 
(48,499)

 
24,400 

 
(24,099)

Realized loss on other investments

 

 -

 
(24,238)

 
(24,238)

Write-down of marketable securities

 
(275)

 

 -

 
(275)

Write-down of plant and equipment

 
(3,500)

 

 -

 
(3,500)

Interest income

 
254 

 

 -

 
254 

Interest expense

 
(547)

 

 -

 
(547)

Other income/(expense)

 
(396)

 

 

 
(396)

   Total non-operating income/(expense)

 
(53,017)

 
162 

 -
(52,855)

 

 

 

 

 

 

 

Income/(loss) from continuing operations before income taxes

 
(70,398)

 
162 

 
(70,236)

Deferred income tax benefit

 
15,373 

 

 -

 
15,373 

Net income/(loss)

$
(55,025)

$
162 

$
(54,863)

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

Weighted average number of shares outstanding

 
81,813,386 

 

 

 
81,813,386 

Net loss per share

$
(0.67)

 

 

$
(0.67)

Diluted:

 

 

 

 

 

 

Weighted average number of shares outstanding

 
81,813,386 

 

 

 
81,813,386 

Net loss per share

$
(0.67)

 

 

$
(0.67)

 

 

NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION 

1)

Adjustments to reflect the sale of 16,000,000 common shares investment in Midas Gold Corp. including the i) net cash proceeds received at closing, ii) reduction in our investment holdings; iii) estimated effect on deferred tax assets and liabilities; and iv) estimated transaction costs; and (v) estimated gain on disposition.  

  

2) 

Adjustments to reflect the repayment of debt obligations in accordance with the terms of the debt facility.  

  

3) 

Adjustments to reflect the realized loss on the sale and the unrealized loss for the remainder of the shares held.  

 

VISTA GOLD CORP Reports