Calibre Mining (TSX: CXB) (OTCQX: CXBMF) has had a strong start to the year with record gold sales of 65,770 ounces in the first quarter of 2023.
The Vancouver-based gold producer announced its financial results for the quarter ending March 31 on Monday and had US$60.8 million cash on hand at the end Q1.
The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) have exceeded the amount of revenue generated from gold sales in Q1 last year by US$26 million from US$100.85 million or 25.84 per cent and Calibre produced 13,283 more ounces of gold as well, a 25.3 per cent increase from 2022.
Calibre generated US$26.7 million in cash flow from its operations with a net income of US$16.4 million, up 40.23 per cent from US$11.7 million in the first quarter of last year.
Calibre’s production guidance indicates that it will generate between 250,000-275,000 ounces of gold this year. The company has budgeted a total of $29 million for its mining endeavours in Nevada and Nicaragua during 2023.
Calibre has planned a budget for 2023 that will result in a robust year of free cash flow by reducing growth capital by 30 per cent and exploration capital by 40 per cent in comparison to the 2022 budget. Calibre also spent 13.2 per cent less on general and administrative expenses than Q1 2022 at US$2.7 million.
“Calibre had an excellent start to the year, responsibly delivering record gold production of 65,750 ounces. During the quarter we continued to solidify our position as a growing mid-tier gold producer, expanding our hub and spoke operating strategy to include the new high-grade open pit mine at Pavon Central,” said Calibre’s President and CEO Darren Hall.
Mineral reserves have increased 370 per cent since entering Nicaragua
Calibre had total cash costs of $1,164 per ounce and all-in sustaining costs of $1,302 per ounce for Nevada and Nicaragua in Q1. Production costs for Nevada and Nicaragua in Q1 totalled US$74.18 million, a 40.65 per cent increase from last year.
The company increased the amount of ore going to the Libertad Mill in Nicaragua by 11 per cent from Q1 last year for an average daily rate of 2,294 tonnes. Additionally, gold production at the company’s Nicaragua operations increased by 28 per cent last quarter from Q1 2022.
During the quarter, Calibre continued to expand the high-grade gold discovery in the Limon Complex, specifically at Panteon North and along the VTEM Gold Corridor, having a recent intercept of 17.45 g/t gold over 4.1 metres.
Last month, the company started drilling in the Guapinol open-pit mining operation at Eastern Borosi, northeast Nicaragua.
Consolidated mineral reserves have increased for the company by 370 per cent since it acquired its Nicaraguan assets from B2Gold Corp. (TSX: BTO) (NYSE AMERICAN: BTG) (NSX: B2G) in 2019.
A new discovery during Q1 at Nevada’s Pan Mine indicated strong potential for resource expansion to the south of the project.
Drilling results from Phase 1 and 2 of the Golden Eagle Project in Washington State have confirmed the presence of consistent gold mineralization over wide areas, which strengthens the potential of the mineral resource, estimated to be two million ounces.
Metallurgical testing has begun to investigate the possibility of future gold extraction and recovery methods.
Continuing its commitment to expanding operations, Calibre is directing funds towards new mine development such as Pavon Central and Eastern Borosi, and executing a drill program across Nevada and Nicaragua spanning 100,000 metres. The company is focused on discovering new resources and expanding existing ones.
A recent survey from Canada’s Fraser Institute showed that Nevada was the world’s best mining jurisdiction to invest in.
Calibre’s shares dropped by 4.17 per cent Tuesday to $1.61 on the Toronto Stock Exchange.
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