Calibre Mining's latest finances show fifth straight year of growth
Construction of the Valentine Gold Mine is over 77 per cent complete with remaining costs of CAD$211 million
Joseph Morton
Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF) made approximately USD$137 million the second quarter of 2024, which represented a decline of 1.44 per cent over the previous quarter’s revenue totals of USD$139 million.
The company released its financial and operating results for both the second quarter and first half on Monday. The results gave an overview of the company’s activities at each of its properties in Nicaragua, Nevada and Newfoundland.
As of July 31, 2024, construction of the multi-million-ounce Valentine Gold Mine in Newfoundland has surpassed 77 per cent. The remaining cost to complete the project is CAD$211 million. The project is also on track to commence gold production in the second quarter of 2025.
So far, the operations leadership team has been employed, and key infrastructure developments are progressing rapidly. The onsite assay lab has been completed and is now operational. The primary crusher installation is underway, and the primary conveyor from the crusher to the grinding building has arrived onsite.
“During the quarter we made excellent progress advancing the construction of the Valentine Gold Mine with SAG mill, ball mill and primary crusher installation well underway,” said Darren Hall, president and CEO of Calibre.
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Calibre gets environmental approvals for Valentine and Volcan
The mine has also recently received federal environmental approval for the development of the Berry open pit, securing all major approvals for the three-pit mine plan.
As a result, the company has started the largest pure exploration drilling campaign in Valentine’s history. The intent of which is to follow up on recent results and provide new discovery opportunities along multiple kilometers of identified shear zones.
Meanwhile in Nicaragua, the company has received environmental approval for the operation of the Volcan Gold deposit.
The company delivered the first ore to the Libertad mill within a month. This demonstrated the value of the company’s hub-and-spoke operating strategy as it continues to grow gold production organically.
Consolidated production is expected to be weighted towards the second half of 2024, with the fourth quarter anticipated to be the strongest of the year. Total Cash Cost (TCC) and All-In Sustaining Costs (AISC) are forecast to be lower during this period.
The company also achieved consolidated gold sales of 58,345 ounces in Q2. This helped gross USD$137.3 million in revenue at an average realized gold price of USD$2,302 per ounce. The consolidated TCC was USD$1,264 per ounce, with Nicaragua at USD$1,232 per ounce and Nevada at USD$1,435 per ounce. The consolidated AISC was USD$1,533 per ounce, with Nicaragua at USD$1,407 per ounce and Nevada at USD$1,766 per ounce.
As of June 30, 2024, the company held cash and restricted cash of USD$127.6 million and USD$125 million, respectively.
Company reports high gold sales
For the year-to-date 2024, the company has sold 120,122 gold ounces for USD$269.2 million in revenue. The average realized gold price for this sale was USD$2,194 per ounce. The consolidated TCC was USD$1,302 per ounce, with Nicaragua at USD$1,276 per ounce and Nevada at USD$1,468 per ounce.
The consolidated AISC was USD$1,545 per ounce, with Nicaragua at USD$1,441 per ounce and Nevada at USD$1,685 per ounce. Cash provided by operating activities amounted to USD$106.6 million, including the proceeds from the gold prepay net of the deferred revenue recognized in the second quarter of 2024.
In Q2 2024, TCC was USD$1,264 per ounce, and AISC was USD$1,533 per ounce. Altogether, higher cash costs and AISC resulted from lower gold production and sales, which were tied to mining different orebodies with lower ore grades.
In terms of shares and structure, the net income per share was $0.03 for both basic and diluted shares, compared to $0.07 in Q2 2023. For the year-to-date 2024, net income per share was $0.02 for both basic and diluted shares. This represents a decline from $0.11 for basic shares and $0.10 for diluted shares in the same period of 2023.
The Marathon Gold transaction and USD$115 million bought deal financing increased the number of outstanding shares in 2024.
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Calibre guidance shows fifth year of annual growth
Calibre’s 2024 guidance anticipates the fifth consecutive year of annual production growth.
Since acquiring the Nicaraguan assets from B2Gold Corp. (TSX: BTO) (NYSE: BTG) (NSX: B2G) in October 2019, the Nevada assets from Fiore Gold in 2022, and the Newfoundland and Labrador assets from Marathon Gold in 2024, Calibre has consistently reinvested in mine development and exploration programs.
These investments have enabled the company to discover new deposits and achieve growth in both production and reserves. This progress positions Calibre to fulfill its commitments and enhance profitability as it expands operations in Canada, with the Valentine Gold Mine expected to deliver its first gold in Q2 2025.
Consequently, the company plans to reinvest in exploration and growth. It’s starting with over 160,000 meters of drilling and the development of new satellite deposits across its asset portfolio expected in 2024.
The company expects consolidated production to be weighted towards the second half of 2024, with Q4 anticipated to be the strongest quarter of the year. TCC and AISC are also forecasted to be lower during this period.
Production in H2 and Q4 2024 will benefit from the Volcan open pit mine reaching commercial production in Q3 2024, as well as higher production from Guapinol and increased ore production from the Limon and Tigra open pits.
The company’s mineral endowment now includes 4.1 million ounces of Reserves, 8.6 million ounces of Measured and Indicated Resources (inclusive of Reserves), and 3.6 million ounces of Inferred Resources.
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