RENO,
NEV., Nov. 8, 2022 /CNW/ - i-80 GOLD
CORP. (TSX: IAU) (NYSE: IAUX) ("i-80", or the
"Company") is pleased to report its operating and
financial results for the three and nine months ended September 30, 2022. i-80's Consolidated Financial
Statements ("financial statements"), as well as i-80's Management's
Discussion and Analysis of Operations and Financial Condition
("MD&A") for the three and nine months ended September 30, 2022, are available on the
Company's website at www.i80gold.com, on SEDAR at www.sedar.com,
and on EDGAR at www.sec.gov.
Unless otherwise stated, all amounts referred to herein are in
U.S. dollars.
2022 Third Quarter Highlights:
- Record quarterly gold sales of 9,332 ounces; all-in sustaining
cost of $1,138 per ounce
sold1
- September 30 cash balance of
$76 million and $33 million in restricted cash
- Drilling at Granite Creek continued with multiple high-grade
intercepts in the Ogee and South Pacific zones (10,526 core feet
and 5,460 reverse circulation (RC) feet drilled)
- First shipment of sulfide mineralized material from Granite
Creek was made to NGM's Twin Creeks processing facility
- Continued step-out and infill drilling at Ruby Hill with
multiple high-grade intercepts and new discoveries made (17,025
core feet and 34,865 RC feet drilled)
- Engineering study of Lone Tree autoclave refurbishment
continued on plan
2022 Year to date Highlights:
- Gold sales of 14,328 ounces; all-in sustaining cost of
$1,204 per ounce
sold1
- Commenced trading on the New York Stock Exchange on
May 19, 2022 under the symbol
IAUX
- Funds received for the previously announced gold prepay and
silver purchase and sale agreements totaling $75 million
- Increased the size of the Granite Creek property package by
approximately 1,280 acres (518 hectares), extending exposure along
the primary fault structure by approximately 1.6 km north towards
the Turquoise Ridge Mine, and 1.6 km south of Granite Creek
- Commenced development of exploration ramp at McCoy-Cove
(approximately 1,900 feet of advance now completed); drilling
expected to commence in Q4
- Entered into agreement to acquire key water rights for the
development of the Cove Project
- Completed first gold sale in Company history
- A total of 208,329 feet (core and RC) drilled by the end of the
third quarter
"In the third Quarter the Company achieved record gold sales,
more than doubling previous quarter sales .", stated Ryan Snow, Chief Financial Officer of i-80. "The
Residual leaching at both Lone Tree and Ruby Hill has gone well and
increases in production and sales were recorded during the quarter.
We continued to invest in exploration generating tremendous results
and new discoveries at both Granite Creek and Ruby Hill. In
addition, we continue to advance the engineering study at Lone Tree
on plan and we completed a scoping study on restarting the oxide
mill at Ruby Hill. "
|
|
Three months
ended
September
30,
|
|
Nine months
ended
September
30,
|
|
(in thousands of
U.S. dollars, unless otherwise noted)
|
2022
|
|
2022
|
|
Revenue
|
|
|
|
|
|
16,065
|
|
25,311
|
|
Cost of
sales
|
|
|
|
|
|
(9,834)
|
|
(15,331)
|
|
Depletion,
depreciation, and amortization
|
|
|
|
|
|
(2,126)
|
|
(2,949)
|
|
Mine operating
income
|
|
|
|
|
|
4,105
|
|
7,031
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
Exploration,
evaluation, and pre-development
|
|
|
|
|
|
10,798
|
|
32,184
|
|
General and
administrative
|
|
|
|
|
|
4,743
|
|
12,581
|
|
Property
maintenance
|
|
|
|
|
|
350
|
|
1,139
|
|
Share-based
payments
|
|
|
|
|
|
471
|
|
2,460
|
|
Operating
(loss)
|
|
|
|
|
|
(12,257)
|
|
(41,333)
|
|
Production and sales from residual leaching at Ruby Hill and Lone
Tree totaled 9,332 ounces for the quarter and 14,328 ounces year to
date at cash costs per ounce sold of $1,045 and $1,061,
respectively, and all-in sustaining cost per ounce sold of
$1,138 and $1,204, respectively.
Exploration, evaluation, and pre-development costs were
$10.8 million in Q3 and $32.2 million year to date (YTD). This spend
reflects mainly the exploration and pre-development work at Granite
Creek and Ruby Hill.
Lone Tree Processing Facilities
Lone Tree is expected to become the hub of i-80's Nevada operations and the central processing
facility for mineralization from the first four planned mining
projects. Importantly, Lone Tree is host to infrastructure that,
following successful refurbishment efforts, will position i-80 as
one of only three companies in the United
States capable of processing both oxide and refractory
mineralization.
During the quarter, the Company continued to advance the
detailed engineering study for the restart of the autoclave. The
study is progressing on plan and is expected to be completed in the
fourth quarter of 2022. Permitting work on Buffalo Mountain
continued during the quarter and a drill program was started.
Residual leaching activities at Lone Tree produced 3,513 ounces
gold during Q3 and 5,298 YTD at a cash cost per ounce sold of
$9981 and $9581, respectively, and all-in
sustaining cost per ounce sold of $1,1711 and $1,2291, respectively.
Granite Creek
In the third quarter, 2022, drilling continued for resource
expansion on the Ogee and South Pacific Zones with multiple
high-grade intercepts. Completed 10,526 feet of core drilling and
5,460 feet of RC drilling during the quarter. The amount of
drilling completed as of September 30,
2022 totaling 83,887 feet was in line with the Company's
drilling plan. Drilling targets were expansion and delineation of
the newly discovered South Pacific Zone as well as delineation
drilling that targeted the Otto, Adam
Peak, Range Front and Ogee fault zones with underground
drilling.
McCoy-Cove
Total development through the end of the third quarter was
1,938 feet including 1,735 feet for construction of the
exploration ramp which continued on plan. Additional work on
metallurgical and hydrology studies, engineering of de-watering and
mining options, and reclamation activities associated with the
inactive tailings storage facility is also being advanced. It is
expected that the underground drill campaign will commence in Q4
2022.
Ruby Hill
In the third quarter, infill and step-out drilling of the Ruby
Deeps, 426 and Hilltop zones continued with multiple high-grade
intercepts and multiple brownfield exploration targets
tested.17,025 feet of core drilling and 34,865 feet of RC drilling
was completed during the quarter, with a combined total of 120,692
feet completed in the first nine months, in line with the Company's
drilling plan. Owing to the substantial success of the 2022
exploration campaign at Ruby Hill, the program has been
expanded.
The Company continued to advance permitting for the construction
of a decline to access the high-grade Ruby Deeps deposit and the
Blackjack Zone with the intent of trucking refractory
mineralization for processing at Lone Tree. The Company also
completed a scoping study during the quarter for the restart of the
existing oxide mill
Residual leaching activities at Ruby Hill produced 5,819 ounces
gold during Q3 and 9,030 YTD at a cash cost per ounce sold of
$1,0731 and $1,1221, respectively, and all-in
sustaining cost per ounce sold of $1,1181 and $1,1891, respectively.
Conference Call
Participant Details
|
Webcast
URL:
|
https://app.webinar.net/XGDgY2P3lMp
|
Confirmation
#:
|
5905476
|
Phone Number
Information:
|
North American
Toll-free:
1-888-882-4478
|
Qualified Person
The scientific and technical information
contained in this press release was reviewed by Tim George, PE,
Mining Operations Manager, and a Qualified Person within the
meaning of National Instrument 43-101.
About i-80 Gold Corp.
i-80 Gold Corp. is a well-financed, Nevada-focused, mining company with a goal of
achieving mid-tier gold producer status through the development of
multiple deposits within the Company's advanced-stage property
portfolio anticipated to be processed at the centrally located Lone
Tree processing facility and autoclave.
www.i80gold.com
Forward-looking information
Certain statements in this
release constitute "forward-looking statements" or "forward-looking
information" within the meaning of applicable securities laws,
including but not limited to, actual production results and costs,
results of operation outcomes and timing of updated technical
studies at the Company's mineral projects, timing to advance
mineral projects to production and advance permitting and
feasibility work on the on its mineral projects and future
production, development and exploration results. Such statements
and information involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or
achievements of the company, its projects, or industry results, to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements or information. Such statements can be identified by the
use of words such as "may", "would", "could", "will", "intend",
"expect", "believe", "plan", "anticipate", "estimate", "scheduled",
"forecast", "predict" and other similar terminology, or state that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved. These statements reflect
the Company's current expectations regarding future events,
performance and results and speak only as of the date of this
release.
Forward-looking statements and information involve significant
risks and uncertainties, should not be read as guarantees of future
performance or results and will not necessarily be accurate
indicators of whether or not such results will be achieved. A
number of factors could cause actual results to differ materially
from the results discussed in the forward-looking statements or
information, including, but not limited to: material adverse
changes, unexpected changes in laws, rules or regulations, or their
enforcement by applicable authorities; the failure of parties to
contracts with the company to perform as agreed; social or labor
unrest; changes in commodity prices; and the failure of exploration
programs or studies to deliver anticipated results or results that
would justify and support continued exploration, studies,
development or operations. For a more detailed discussion of such
risks and other factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements, refer to i-80's filings with Canadian securities
regulators, including the most recent Annual Information Form,
available on SEDAR at www.sedar.com.
NON-IFRS FINANCIAL PERFORMANCE MEASURES
The Company
has included certain terms or performance measures commonly used in
the mining industry that are not defined under IFRS in this
document. These include: by-product cash cost per ounce sold,
by-product all-in sustaining cost ("AISC") per ounce sold, earnings
before interest, tax, depreciation and amortization, capital
expenditures (expansionary), capital expenditures (sustaining),
adjusted net earnings and average realized price per ounce.
Non-IFRS financial performance measures do not have any
standardized meaning prescribed under IFRS, and therefore, they may
not be comparable to similar measures employed by other companies.
The data presented is intended to provide additional information
and should not be considered in isolation or as a substitute for
measures prepared in accordance with IFRS and should be read in
conjunction with the Company's Financial Statements.
Definitions
Adjusted earnings / (loss) and adjusted earnings / (loss) per
share excludes significant write-down adjustments and the gain
/ (loss) from financing instruments.
All-in sustaining costs on a by-product basis per ounce
include total production cash costs on a by-product basis and costs
related to sustaining production.
Average realized gold price represents the sales price of
gold per ounce before deducting mining royalties, treatment and
refining charges and gains or losses derived from the offtake
agreement with Orion.
By-product credits include revenues from the sale of
by-products from operating mines.
Capital expenditure (expansionary) is a capital
expenditure intended to expand the business or operations by
increasing production capacity beyond current levels of performance
and includes capitalized exploration.
Capital expenditure (sustaining) is a capital
expenditure necessary to maintain existing levels of production.
The sustaining capital expenditures maintain the existing mine
fleet, mill and other facilities so that they function at levels
consistent from year to year.
Cost of sales per ounce sold is calculated by
dividing the attributable cost of sales by the attributable ounces
sold.
Exploration and evaluation (sustaining) expense is
presented as mine site sustaining if it supports current mine
operations.
Rehabilitation – accretion and amortization include
depreciation on the assets related to the rehabilitation provision
of gold operations and accretion on the rehabilitation provision of
gold operations.
Average realized gold price per ounce of gold sold
Average realized gold price per ounce of gold sold is a non-IFRS
measure and does not constitute a measure recognized by IFRS and
does not have a standardized meaning defined by IFRS. It may not be
comparable to information in other gold producers' reports and
filings.
|
|
Three months
ended
September
30,
|
Nine months
ended
September
30,
|
(in thousands of U.S.
dollars, unless otherwise noted)(i,ii)
|
2022
|
2022
|
Nevada
production
|
|
|
|
Revenue per financial
statements
|
$
|
16,065
|
25,311
|
Silver revenue from
mining operations
|
$
|
(83)
|
(123)
|
Gold revenue from
mining operations
|
$
|
15,982
|
25,188
|
Ounces of gold
sold
|
ounce
|
9,332
|
14,328
|
Average realized
gold price
|
$/ounce
|
1,712
|
1,758
|
|
|
|
|
Lone
Tree
|
|
|
|
Revenue per financial
statements
|
$
|
6,189
|
9,647
|
Silver revenue from
mining operations
|
$
|
(10)
|
(27)
|
Gold revenue from
mining operations
|
$
|
6,179
|
9,620
|
Ounces of gold
sold
|
ounce
|
3,513
|
5,298
|
Average realized
gold price
|
$/ounce
|
1,759
|
1,816
|
|
|
|
|
Ruby
Hill
|
|
|
|
Revenue per financial
statements
|
$
|
9,876
|
15,664
|
Silver revenue from
mining operations
|
$
|
(74)
|
(96)
|
Gold revenue from
mining operations
|
$
|
9,802
|
15,568
|
Ounces of gold
sold
|
ounce
|
5,819
|
9,030
|
Average realized
gold price
|
$/ounce
|
1,685
|
1,724
|
(i)
|
May not add due to
rounding.
|
(ii)
|
Revenue from 2021 was
related to the Company's 40% interest in the South Arturo mine. On
October 14, 2021, the Company completed the asset exchange with NGM
and South Arturo was classified as a discontinued operation.
Revenue from 2022 relates to the residual heap leaching operations
continuing at Lone Tree and Ruby Hill.
|
Cash Costs
Cash costs per ounce sold represents all direct and indirect
operating costs related to the physical activities of producing
gold, including on-site mining costs, processing, third-party
smelting, refining and transportation costs, on-site general and
administrative costs, community site relations, royalties and
royalty taxes. State of Nevada net
proceeds taxes are excluded. Cash costs incorporate the Company's
share of production costs but exclude, among other items, the
impact of depletion, depreciation and amortization ("DD&A"),
reclamation costs, financing costs, capital development and
exploration and income taxes. In order to arrive at consolidated
cash costs, the Company includes its attributable share of total
cash costs from operations where less than 100% interest in the
economic share of production is held.
Cash cost: by-product - When deriving the cash costs associated
with an ounce of gold, the Company includes by-product credits, as
the Company considers that the cost to produce the gold is reduced
as a result of the by-product sales incidental to the gold
production process. Accordingly, total production costs are reduced
for revenues earned from silver sales.
Cash costs per ounce is a common financial performance measure
in the mining industry, but the term does not have any standardized
meaning. In determining its cash cost and cash cost per ounce, the
Company has considered the guidelines provided by the World Gold
Council, a non-regulatory, non-profit market development
organization for the gold industry. A Company's adoption of the
standard is voluntary and other companies may quantify these
measures differently as a result of different underlying principles
and policies applied.
All-in Sustaining Costs ("AISC")
AISC include total production cash costs incurred at the
Company's mining operations, which forms the basis of the Company's
by-product cash costs. Additionally, the Company includes
sustaining capital expenditures which are expended to maintain
existing levels of production (to which costs do not contribute to
a material increase in annual gold ounce production over the next
12 months), rehabilitation accretion and amortization, and
exploration and evaluation expenses. The Company does not allocate
corporate general and administrative expenses. The measure seeks to
reflect the full cost of production from current operations,
therefore expansionary capital is excluded. Certain other cash
expenditures, including tax payments (including the State of Nevada net proceeds tax), dividends
and financing costs are also excluded. The Company reports AISC on
a per ounce sold basis.
This financial performance measure was adopted as a result of an
initiative undertaken within the gold mining industry; however,
this performance measure has no standardized meaning and should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. In determining AISC,
the Company has considered the guidelines provided by the World
Gold Council, a non-regulatory, non-profit market development
organization for the gold industry. A Company's adoption of the
standard is voluntary and other companies may quantify these
measures differently as a result of different underlying principles
and policies applied.
The following table provides a reconciliation on a by-product
basis for gold cash cost and AISC for the three and nine months
ended September 30, 2022:
For the three and nine
months ended September 30, 2022
|
|
|
|
|
(in thousands of U.S.
dollars, except per ounce information in dollars) (i)
|
Nevada
Production
|
|
Three months
ended
September 30,
2022
|
Nine months
ended
September 30,
2022
|
By-Product
|
000$
|
Per gold ounce
sold
|
000$
|
Per gold ounce
sold
|
Cost of sales excluding
depletion, depreciation and amortization
|
9,544
|
1,023
|
14,826
|
1,035
|
Depletion, depreciation
and amortization
|
2,126
|
228
|
2,949
|
206
|
Total cost of
sales
|
11,670
|
1,251
|
17,775
|
1,241
|
|
|
|
|
|
Depletion, depreciation
and amortization
|
(2,126)
|
(228)
|
(2,949)
|
(206)
|
By-product
credits
|
(83)
|
(9)
|
(123)
|
(9)
|
Cash cost :
by-product
|
9,749
|
1,045
|
15,208
|
1,061
|
Rehabilitation -
accretion and amortization
|
873
|
93
|
2,036
|
143
|
All-in sustaining
cost : by-product
|
10,622
|
1,138
|
17,244
|
1,204
|
|
|
|
|
|
Total gold ounces
produced
|
|
9,332
|
|
14,328
|
Total ounces
sold
|
|
9,332
|
|
14,328
|
(1)
|
May not add due to
rounding.
|
For the three and nine
months ended September 30, 2022
|
|
|
|
|
(in thousands of U.S.
dollars, except per ounce information in dollars) (i)
|
Lone Tree
|
|
Three months
ended
September 30,
2022
|
Nine months
ended
September 30,
2022
|
By-Product
|
000$
|
Per gold ounce
sold
|
000$
|
Per gold ounce
sold
|
Cost of sales excluding
depletion, depreciation and amortization
|
3,516
|
1,001
|
5,102
|
963
|
Depletion, depreciation
and amortization
|
338
|
96
|
460
|
87
|
Total cost of
sales
|
3,854
|
1,097
|
5,562
|
1,050
|
|
|
|
|
|
Depletion, depreciation
and amortization
|
(338)
|
(96)
|
(460)
|
(87)
|
By-product
credits
|
(11)
|
(3)
|
(27)
|
(5)
|
Cash cost :
by-product
|
3,505
|
998
|
5,075
|
958
|
Rehabilitation -
accretion and amortization
|
611
|
173
|
1,437
|
271
|
All-in sustaining
cost : by-product
|
4,116
|
1,171
|
6,512
|
1,229
|
|
|
|
|
|
Total gold ounces
produced
|
|
3,513
|
|
5,298
|
Total ounces
sold
|
|
3,513
|
|
5,298
|
(1)
|
May not add due to
rounding.
|
For the three and nine
months ended September 30, 2022
|
|
|
|
|
(in thousands of U.S.
dollars, except per ounce information in dollars) (i)
|
Ruby Hill
|
|
Three months
ended
September 30,
2022
|
Nine months
ended
September 30,
2022
|
By-Product
|
000$
|
Per gold ounce
sold
|
000$
|
Per gold ounce
sold
|
Cost of sales excluding
depletion, depreciation and amortization
|
6,029
|
1,036
|
9,724
|
1,077
|
Depletion, depreciation
and amortization
|
1,788
|
307
|
2,489
|
276
|
Total cost of
sales
|
7,817
|
1,343
|
12,213
|
1,353
|
|
|
|
|
|
Depletion, depreciation
and amortization
|
(1,788)
|
(307)
|
(2,489)
|
(276)
|
Royalty tax
|
289
|
50
|
505
|
56
|
By-product
credits
|
(74)
|
(13)
|
(96)
|
(11)
|
Cash cost :
by-product
|
6,244
|
1,073
|
10,133
|
1,122
|
Rehabilitation -
accretion and amortization
|
262
|
45
|
599
|
67
|
All-in sustaining
cost : by-product
|
6,506
|
1,118
|
10,732
|
1,189
|
|
|
|
|
|
Total gold ounces
produced
|
|
5,819
|
|
9,030
|
Total ounces
sold
|
|
5,819
|
|
9,030
|
(1)
|
May not add due to
rounding.
|
Adjusted Earnings / (Loss)
Adjusted earnings / (loss) and adjusted earnings / (loss) per
share are non-IFRS measures that the Company considers to better
reflect normalized earnings because it eliminates non-recurring
items. Certain items that become applicable in a period may be
adjusted for, with the Company retroactively presenting comparable
periods with an adjustment for such items and conversely, items no
longer applicable may be removed from the calculation. Neither
adjusted earnings / (loss) nor adjusted earnings / (loss) per share
have any standardized meaning prescribed by IFRS and are therefore
unlikely to be comparable to similar measures presented by other
companies.
The following table shows a reconciliation of adjusted earnings
/ (loss) for the three and nine months ended September 30, 2022 and 2021, to the net earnings
/ (loss) for each period.
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
(in thousands of
U.S. dollars, unless otherwise noted)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Net income / (loss)
for the period - Continuing operations
|
$
|
(11,272)
|
$
|
(11,938)
|
$
|
(15,260)
|
$
|
(25,106)
|
Adjust
for:
|
|
|
|
|
|
|
|
|
Restructuring
costs
|
|
—
|
|
—
|
|
—
|
|
(4,444)
|
Gain / (loss) on
warrants
|
|
849
|
|
(3,633)
|
|
9,749
|
|
(3,098)
|
Gain / (loss) on
convertible loans
|
|
(1,112)
|
|
—
|
|
9,101
|
|
—
|
Loss on deferred
consideration
|
|
(806)
|
|
—
|
|
(2,441)
|
|
—
|
Gain on fair value
measurement of Gold Prepayment Agreement
|
|
3,036
|
|
—
|
|
7,120
|
|
—
|
Gain on fair value
measurement of Silver Purchase Agreement
|
|
2,297
|
|
—
|
|
11,421
|
|
—
|
Total
Adjustments
|
$
|
4,264
|
$
|
(3,633)
|
$
|
34,950
|
$
|
(7,542)
|
Adjusted loss for
the period
|
$
|
(15,536)
|
$
|
(8,305)
|
$
|
(50,210)
|
$
|
(17,564)
|
Weighted average
shares for the period
|
|
240,368,617
|
|
190,764,885
|
|
239,992,077
|
|
121,292,230
|
Adjusted loss per
share for the period
|
$
|
(0.06)
|
$
|
(0.04)
|
$
|
(0.21)
|
$
|
(0.14)
|
1 Specified
financial measure which is not a standardized measure under IFRS
and may not be comparable to similar specified financial measures
used by other entities. Please see "Non-IFRS Financial Performance
Measures" for the composition of such specified financial measure,
an explanation of how such specified financial measure provides
useful information to a reader and the purposes for which
management of i-80 uses the specified financial measure, and where
required, a reconciliation of the specified financial measure to
the most directly comparable IFRS measure.
|
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SOURCE i-80 Gold Corp