Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF)
(“Calibre” or the “Company”) announces financial and operating
results for the three (“Q3 2023”) and nine months (“YTD 2023”)
ended September 30, 2023. Consolidated financial statements and
management discussion and analysis can be found at www.sedarplus.ca
and the Company’s website, www.calibremining.com. All figures are
expressed in U.S. dollars.
Q3 2023 Highlights
- Record cash on hand
of $97 million, a 26% increase over Q2 2023 and 72% higher than the
beginning of 2023;
- Free Cash Flow
(“FCF”) (1) increased over Q2, 2023 to $16.3 million;
- 4th consecutive
record quarterly gold sales of 73,241 ounces grossing $143.9
million total revenue, at an average realized gold price of
$1,929/oz;
- Consolidated Total
Cash Costs(2) (“TCC”) of $1,007 and All-in Sustaining Costs(2)
(“AISC”) of $1,115 per ounce;
- Net income of $23.4
million or $0.05 per basic share;
- Adjusted net
income(3) of $24.5 million or $0.05 per basic share;
- Exploration success
at Libertad yielded an Initial Mineral Resource Estimate at the
Volcan Gold Deposit;
- Intercepted
high-grade gold targets at the Jabali Mine, potentially expanding
resources;
- Continued to expand
zones of high-grade gold mineralization at Atravesada and along the
VTEM gold corridor, both within the Limon Mine Complex;
- High-grade, near
surface drill results immediately north and south of the operating
Pan mine demonstrate potential to increase resources, grade, and
confidence across the property; and
- Announced Normal
Course Issuer Bid as a responsible and potential use of available
cash.
Year-to-Date (“YTD”) 2023
Highlights
- Record consolidated
gold sales of 208,020 ounces grossing $410.1 million in total
revenue, at an average realized gold price(2) of $1,932/oz;
- Consolidated TCC(2)
of $1,047/oz; Nicaragua $983/oz & Nevada $1,412/oz;
- Consolidated
AISC(2) of $1,195/oz; Nicaragua $1,101/oz & Nevada $1,456/oz;
and
- Net income of $73.0
million, or $0.16 per share.
Darren Hall, President and Chief
Executive Officer of Calibre, stated: “Calibre generated
strong free cash flow from a fourth consecutive quarter of record
production, resulting in a 72% increase in cash on hand to $97
million since the beginning of the year. Year to date costs are
favorable to budget and the Company is in excellent shape to
deliver at the high end of full year production guidance.
Our exploration investment continues to yield
success in many areas including: a new gold trend emerging
northwest of our recently announced Volcan gold deposit at
Libertad, demonstrating high-grade discovery potential; drill
results proximal to the operating Pan mine continue to yield
potential resource and grade increase opportunities; and the
expansion of existing high-grade gold discoveries across our Limon
property provide further opportunity to leverage the available
surplus processing capacity at our Libertad mill.
The Company continues to self fund all
exploration and growth from operating cash flow while increasing
our cash reserves. We remain dedicated to providing lasting and
responsible benefits to all stakeholders. Our ongoing incorporation
of sustainability initiatives throughout our operations further
solidifies our strong social license to operate.”
CONSOLIDATED RESULTS: Q3 2023 and YTD
2023
Consolidated
Results(4)
$'000 (except per share and per ounce amounts) |
Q3 2023 |
Q3 2022 |
YTD 2023 |
YTD 2022 |
Revenue |
$ |
143,884 |
|
$ |
86,342 |
|
$ |
410,107 |
|
$ |
299,946 |
|
Cost of sales, including
depreciation and amortization |
$ |
(101,128 |
) |
$ |
(70,876 |
) |
$ |
(281,556 |
) |
$ |
(224,692 |
) |
Mine operating income |
$ |
42,756 |
|
$ |
15,466 |
|
$ |
128,551 |
|
$ |
75,254 |
|
Net income |
$ |
23,412 |
|
$ |
1,713 |
|
$ |
73,024 |
|
$ |
28,842 |
|
Net income per share
(basic) |
$ |
0.05 |
|
$ |
0.00 |
|
$ |
0.16 |
|
$ |
0.07 |
|
Net income per share (fully
diluted) |
$ |
0.05 |
|
$ |
0.00 |
|
$ |
0.15 |
|
$ |
0.06 |
|
Adjusted net income(3) |
$ |
24,530 |
|
$ |
6,624 |
|
$ |
74,361 |
|
$ |
38,540 |
|
Adjusted net income per share
(basic)(3) |
$ |
0.05 |
|
$ |
0.01 |
|
$ |
0.16 |
|
$ |
0.09 |
|
Cash provided by operating
activities |
$ |
54,226 |
|
$ |
7,101 |
|
$ |
140,776 |
|
$ |
68,593 |
|
Capital investment in mine
development and PPE |
$ |
32,990 |
|
$ |
31,274 |
|
$ |
89,749 |
|
$ |
68,747 |
|
Capital
investment in exploration |
$ |
7,705 |
|
$ |
12,375 |
|
$ |
21,448 |
|
$ |
39,320 |
|
Gold ounces produced |
|
73,485 |
|
|
49,081 |
|
|
208,011 |
|
|
160,704 |
|
Gold
ounces sold |
|
73,241 |
|
|
49,260 |
|
|
208,020 |
|
|
161,530 |
|
Average realized gold price ($/oz)(2) |
$ |
1,929 |
|
$ |
1,730 |
|
$ |
1,932 |
|
$ |
1,833 |
|
Total Cash Costs
($/oz)(2) |
$ |
1,007 |
|
$ |
1,188 |
|
$ |
1,047 |
|
$ |
1,141 |
|
AISC
($/oz)(2) |
$ |
1,115 |
|
$ |
1,322 |
|
$ |
1,195 |
|
$ |
1,268 |
|
Operating Results
NICARAGUA |
Q3 2023 |
Q3 2022 |
YTD 2023 |
YTD 2022 |
Ore mined (t) |
491,835 |
362,843 |
1,588,631 |
1,074,210 |
Ore milled (t) |
546,555 |
397,229 |
1,545,122 |
1,154,859 |
Grade (g/t Au) |
4.35 |
3.74 |
4.03 |
3.93 |
Recovery (%) |
91.6 |
90.5 |
92.3 |
90.3 |
Gold produced (ounces) |
63,756 |
38,928 |
177,145 |
130,635 |
Gold
sold (ounces) |
63,517 |
39,076 |
177,100 |
130,842 |
|
|
|
|
|
NEVADA |
Q3 2023 |
Q3 2022 |
YTD 2023 |
YTD 2022 |
Ore mined (t) |
1,129,042 |
1,337,275 |
3,513,948 |
3,449,175 |
Ore placed on leach pad
(t) |
1,076,876 |
1,336,109 |
3,452,753 |
3,456,351 |
Grade
(g/t Au) |
0.34 |
0.37 |
0.37 |
0.40 |
Gold produced (ounces) |
9,729 |
10,153 |
30,866 |
30,069 |
Gold
sold (ounces) |
9,724 |
10,184 |
30,920 |
30,688 |
Gold production in Nicaragua increased 64% over
Q3, 2022, driven by higher grades and tonnes processed.
CONSOLIDATED Q3 and YTD 2022 FINANCIAL
REVIEW
Q3 2023 TCC(2) and AISC(2) were $1,007 per ounce
and $1,115 per ounce, positive to budget. The lower quarter over
quarter AISC was achieved through higher gold sales from an
increase in open pit ore tonnes, underground mining optimization
improvements with associated increases in tonnes mined and higher
head grades coupled with a reduction in diesel prices.
YTD 2023 TCC(2) and AISC(2) were $1,047 per
ounce and $1,195 per ounce respectively, within guidance and
favorable to budget, positioning the Company well to meet full year
cost guidance. YTD costs are favorable due to higher-grade ore from
the Pavon Central deposit, mining the Jabali Antena deposit, lower
stripping at the Limon Central deposit and higher silver revenue.
Expenses and Net Income
For Q3 2023 and year to date 2023, corporate
G&A was $3.2 million and $8.6 million respectively, compared to
$3.1 million and $9.4 million for the same periods in 2022.
Year-to-date corporate administration was lower due to a reduced
use of professional consultants.
2023 GUIDANCE
|
CONSOLIDATED2023 GUIDANCE |
NICARAGUA2023 GUIDANCE |
NEVADA2023 GUIDANCE |
Gold Production/Sales (ounces) |
250,000 – 275,000 |
210,000 - 230,000 |
40,000 – 45,000 |
Total Cash Costs ($/ounce)(2) |
$1,000 - $1,100 |
$950 - $1,050 |
$1,300 - $1,400 |
AISC ($/ounce)(2) |
$1,175 - $1,275 |
$1,100 - $1,200 |
$1,350 - $1,450 |
Growth Capital ($ million) |
$55 - $65 |
Exploration Capital ($ million) |
$25 - $30 |
For the fourth consecutive quarter, the Company
achieved record gold production of 73,485 ounces with year-to-date
production of 208,011 ounces, at costs below budget. This puts the
Company in a strong position to deliver the high end of its full
year 2023 production guidance. Given the current gold prices,
Calibre is generating strong cash flow, self-funding all
investments in growth, development and exploration while
significantly growing its net cash balance.
Calibre continues to advance its 100,000+ metre
drill program which includes resource delineation drilling, infill
and geotechnical drilling, as well as early-stage generative
exploration drilling to test numerous satellite targets around
Limon, Libertad, the Eastern Borosi Mine and within Nevada.
Q3 and YTD 2023 FINANCIAL RESULTS AND
CONFERENCE CALL DETAILS
Third quarter financial results will be released
after market close on Tuesday, November 7, 2023, and management
will be hosting a conference call on Wednesday, November 8 to
discuss the results and outlook in more detail.
Date: |
Wednesday,
November 8, 2022 |
Time: |
10:00 a.m. (ET) |
Webcast Link: |
https://edge.media-server.com/mmc/p/uippamra |
Instructions for obtaining conference call
dial-in numbers:
- All parties must register at the link below to participate in
the Calibre Mining, Q3 conference call.
- Register by clicking
https://register.vevent.com/register/BIaeef792eb39c469b8d3571c2423f7f24
and completing the online registration form.
- Once registered you will receive
the dial-in numbers and PIN number for input at the time of the
call.
The live webcast and registration link can be
accessed here and at http://www.calibremining.com under the Events
and Media section under the Investors tab. The live audio webcast
will be archived and made available for replay at
www.calibremining.com. Presentation slides that will accompany the
conference call will be made available in the Investors section of
the Calibre website under Presentations prior to the conference
call.
Qualified Person
Darren Hall, MAusIMM President and Chief
Executive Officer of Calibre Mining Corp. is a “qualified person”
as set out under NI 43-101 and has reviewed and approved the
scientific and technical information in this news
release.
ON BEHALF OF THE BOARD
“Darren Hall”
Darren Hall, President and Chief Executive Officer
For further information, please contact:
Ryan KingSenior Vice President, Corporate
Development & IRT: (604) 628-1012E: calibre@calibremining.comW:
www.calibremining.com
https://twitter.com/CalibreMiningCo
https://www.facebook.com/CalibreMining
https://ca.linkedin.com/company/calibre-mining-corp-cxb-
https://www.youtube.com/@calibreminingcorp
About Calibre Mining Corp.
Calibre Mining is a Canadian-listed, Americas
focused, growing mid-tier gold producer with a strong pipeline of
development and exploration opportunities across Nevada and
Washington in the USA, and Nicaragua. Calibre is focused on
delivering sustainable value for shareholders, local communities
and all stakeholders through responsible operations and a
disciplined approach to growth. With a strong balance sheet, a
proven management team, strong operating cash flow, accretive
development projects and district-scale exploration opportunities
Calibre will unlock significant value.
Notes:
(1) FREE CASH FLOW
Free cash flow is calculated by subtracting
expenditures on mineral properties, plant and equipment from net
cash provided by operating activities.
(2) NON-IFRS FINANCIAL
MEASURESThe Company believes that investors use certain non-IFRS
measures as indicators to assess gold mining companies,
specifically Total Cash Costs per Ounce and All-In Sustaining Costs
per Ounce. In the gold mining industry, these are common
performance measures but do not have any standardized meaning. The
Company believes that, in addition to conventional measures
prepared in accordance with IFRS, certain investors use this
information to evaluate the Company’s performance and ability to
generate cash flow. Accordingly, it is intended to provide
additional information and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS.
Total Cash Costs per
Ounce of Gold: Total cash costs include mine site operating costs
such as mining, processing, and local administrative costs
(including stock-based compensation related to mine operations),
royalties, production taxes, mine standby costs and current
inventory write downs, if any. Production costs are exclusive
of depreciation and depletion, reclamation, capital, and
exploration costs. Total cash costs per gold ounce are net of
by-product silver sales and are divided by gold ounces sold to
arrive at a per ounce figure.
All-In Sustaining
Costs per Ounce of Gold: A performance measure that reflects all of
the expenditures that are required to produce an ounce of gold from
current operations. While there is no standardized meaning of the
measure across the industry, the Company’s definition is derived
from the AISC definition as set out by the World Gold Council in
its guidance dated June 27, 2013 and November 16, 2018.
The World Gold Council is a non-regulatory, non-profit organization
established in 1987 whose members include global senior mining
companies. The Company believes that this measure will be useful to
external users in assessing operating performance and the ability
to generate free cash flow from current operations. The Company
defines AISC as the sum of total cash costs (per above), sustaining
capital (capital required to maintain current operations at
existing levels), capital lease repayments, corporate general and
administrative expenses, exploration expenditures designed to
increase resource confidence at producing mines, amortization of
asset retirement costs and rehabilitation accretion related to
current operations. AISC excludes capital expenditures for
significant improvements at existing operations deemed to be
expansionary in nature, exploration and evaluation related to
resource growth, rehabilitation accretion and amortization not
related to current operations, financing costs, debt repayments,
and taxes. Total all-in sustaining costs are divided by gold ounces
sold to arrive at a per ounce figure.
Average Realized
Price per Ounce SoldAverage realized price per ounce sold is a
common performance measure that does not have any standardized
meaning. The most directly comparable measure prepared in
accordance with IFRS is revenue from gold sales.
(3) ADJUSTED NET INCOMEAdjusted net
income and adjusted earnings per share – basic exclude a number of
temporary or one-time items described in the following table, which
provides a reconciliation of adjusted net income to the
consolidated financial statements:
(in thousands - except per share amounts) |
|
Q3 2023 |
|
|
Q3 2022 |
|
|
YTD 2023 |
|
|
|
YTD 2022 |
Net income |
$ |
23,412 |
|
$ |
1,713 |
|
$ |
73,024 |
|
|
$ |
28,842 |
Addbacks (net of tax impacts): |
|
|
|
|
|
|
|
|
|
|
|
|
Other corporate expenses |
|
1,118 |
|
|
55 |
|
|
1,630 |
|
|
|
4,842 |
Nevada inventory write down |
|
- |
|
|
2,592 |
|
|
(616 |
) |
|
|
2,592 |
Mineral property write-off |
|
- |
|
|
2,265 |
|
|
323 |
|
|
|
2,265 |
Adjusted net income |
$ |
24,530 |
|
$ |
6,624 |
|
$ |
74,361 |
|
|
$ |
38,540 |
Weighted average
number of shares outstanding |
|
455,754 |
|
|
453,932 |
|
|
454,190 |
|
|
|
443,009 |
Adjusted net income
(loss) per share - basic |
$ |
0.05 |
|
$ |
0.01 |
|
$ |
0.16 |
|
|
$ |
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Consolidated financial and operational
results for Q3 and YTD 2022 includes the results from the United
States assets acquired and discussed in the MD&A.
Cautionary Note Regarding Forward
Looking Information
This news release includes certain
"forward-looking information" and "forward-looking statements"
(collectively "forward-looking statements") within the meaning of
applicable Canadian securities legislation. All statements in this
news release that address events or developments that we expect to
occur in the future are forward-looking statements. Forward-looking
statements are statements that are not historical facts and are
identified by words such as "expect", "plan", "anticipate",
"project", "target", "potential", "schedule", "forecast", "budget",
"estimate", "intend" or "believe" and similar expressions or their
negative connotations, or that events or conditions "will",
"would", "may", "could", "should" or "might" occur. Forward-looking
statements in this news release include but are not limited to: the
Company’s expectations toward higher grades mined and processed
going forward; statements relating to the Company’s 2023 priority
resource expansion opportunities; the Company’s metal price and
cut-off grade assumptions. Forward-looking statements necessarily
involve assumptions, risks and uncertainties, certain of which are
beyond Calibre's control. For a listing of risk factors applicable
to the Company, please refer to Calibre's annual information form
(“AIF”) for the year ended December 31, 2022, and its management
discussion and analysis (“MD&A”) for the year ended December
31, 2022, all available on the Company’s SEDAR+ profile at
www.sedarplus.ca. This list is not exhaustive of the factors that
may affect Calibre's forward-looking statements such as potential
sanctions implemented as a result of the United States Executive
Order 13851 dated October 24, 2022.
Calibre's forward-looking statements are based
on the applicable assumptions and factors management considers
reasonable as of the date hereof, based on the information
available to management at such time. Such assumptions include but
are not limited to: the Company being able to mine and process
higher grades and keep production costs relatively flat going
forward; there not being an increase in production costs as a
result of any supply chain issues or ongoing COVID-19 restrictions;
there being no adverse drop in metal price or cut-off grade at the
Company’s Nevada properties. Calibre does not assume any obligation
to update forward-looking statements if circumstances or
management's beliefs, expectations or opinions should change other
than as required by applicable securities laws. There can be no
assurance that forward-looking statements will prove to be
accurate, and actual results, performance or achievements could
differ materially from those expressed in, or implied by, these
forward-looking statements. Accordingly, undue reliance should not
be placed on forward-looking statements.
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