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Calibre Exceeds the High-End of 2023 Production Guidance, Increasing Gold Production in 2024 to 275,000 – 300,000 Ounces With Significant Future Growth Coming From the Multi-Million Ounce Valentine Gold Mine in Canada

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Calibre Exceeds the High-End of 2023 Production Guidance, Increasing Gold Production in 2024 to 275,000 – 300,000 Ounces With Significant Future Growth Coming From the Multi-Million Ounce Valentine Gold Mine in Canada

 

 

 

 

 

Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF) announces financial and operating results for the three months and year ended December 31, 2023. Annual Consolidated Financial Statements and the corresponding Management Discussion & Analysis for the year ended December 31, 2023 can be found at www.sedarplus.ca and the Company’s website, www.calibremining.com. All figures are expressed in U.S. dollars unless otherwise stated.

 

RECENT HIGHLIGHTS

 

FULL YEAR 2023 HIGHLIGHTS

  • 4th Consecutive year of production growth with gold sales of 283,525 ounces grossing $550 million in gold revenue, at an average realized gold price2 of $1,942/oz;
  • Cash on hand of $86 million, a 52% increase over end of year 2022, after a C$40 million investment in Marathon Gold during Q4;
  • Consolidated Total Cash Costs2 of $1,071/oz; Nicaragua $1,009/oz & Nevada $1,429/oz;
  • Consolidated All-In Sustaining Costs2 of $1,228/oz; Nicaragua $1,134/oz & Nevada $1,479/oz;
  • Adjusted net income3 of $96.7 million, or $0.21 per share;
  • Exploration success at Libertad yielded an initial Mineral Resource estimate at the Volcan Gold Deposit; and
  • Published our 2022 sustainability report, affirming our commitment to transparency and accountability, and joined the Mining Association of Canada, strengthening our commitment to responsible mining.

 

Darren Hall, President and Chief Executive Officer of Calibre, stated: “With record production of 283,494 ounces, 2023 represented our fourth consecutive year exceeding guidance. Throughout the year the team delivered many milestones; including bringing two new mines into production, and numerous discovery and resource exploration drill results across the portfolio. Particularly exciting is the continued high-grade expansion results along the multi-kilometre VTEM Panteon Gold Corridor within the Limon Complex. Year over year Calibre has reinvested into exploration and mine development setting up for sustainable production and growth.

 

With production guidance of 275,000 to 300,000 ounces, 2024 marks our fifth consecutive year of increasing gold production. The recently completed acquisition of the Valentine Gold Mine in Newfoundland & Labrador is transformational as it will establish Calibre as a quality, mid-tier gold producer in the Americas.

 

Our construction program, at the Valentine Gold Mine, remains on track with the critical SAG and Ball mills and motors, scheduled to arrive into the port of Argentia in Newfoundland & Labrador during February.”

 

CONSOLIDATED RESULTS: Q4 2023 AND FY 2023

 

Consolidated Financial Results

$’000 (except per share and per ounce amounts) Q4 2023   Q4 2022   2023   2022
Revenue $ 151,595     $ 108,667     $ 561,702     $ 408,613  
Cost of sales, including depreciation and amortization $ (109,742 )   $ (80,318 )   $ (391,299 )   $ (305,010 )
Mine operating income $ 41,853     $ 28,349     $ 170,403     $ 103,603  
Net income $ 12,001     $ 14,502     $ 85,025     $ 43,344  
Net income per share (basic) $ 0.03     $ 0.03     $ 0.19     $ 0.10  
Net income per share (fully diluted) $ 0.03     $ 0.03     $ 0.18     $ 0.09  
Adjusted net income(3) $ 22,305     $ 12,882     $ 96,667     $ 51,422  
Adjusted net income per share (basic)(3) $ 0.05     $ 0.03     $ 0.21     $ 0.12  
Cash provided by operating activities $ 59,230     $ 28,064     $ 200,006     $ 96,657  
Capital investment in mine development and PPE $ 98,061     $ 30,041     $ 131,051     $ 98,788  
Capital investment in exploration $ 21,588     $ 7,083     $ 29,293     $ 46,403  
Gold ounces produced   75,482       61,294       283,494       221,999  
Gold ounces sold   75,505       61,461       283,525       222,991  
Average realized gold price ($/oz)(2) $ 1,969     $ 1,742     $ 1,942     $ 1,808  
Total Cash Costs ($/oz)(2) $ 1,136     $ 1,097     $ 1,071     $ 1,129  
AISC ($/oz)(2) $ 1,317     $ 1,236     $ 1,228     $ 1,259  

 

 

Operating Results

 

NICARAGUA Q4 2023 Q4 2022 2023 2022
Ore mined (t) 521,325 415,543 2,109,956 1,489,753
Ore milled (t) 527,753 460,181 2,072,875 1,615,039
Grade (g/t Au) 3.64 3.70 3.93 3.87
Recovery (%) 93.2 93.1 92.4 90.9
Gold produced (ounces) 64,963 49,854 242,109 180,490
Gold sold (ounces) 65,026 50,032 242,126 180,875
         
NEVADA Q4 2023 Q4 2022 2023 2022
Ore mined (t) 1,138,653 1,889,721 4,652,600 5,338,896
Ore placed on leach pad (t) 1,139,889 1,866,270 4,592,642 5,322,621
Grade (g/t Au) 0.33 0.39 0.36 0.39
Gold produced (ounces) 10,519 11,440 41,385 41,509
Gold sold (ounces) 10,479 11,429 41,399 42,117
         

 

CONSOLIDATED Q4 2023 AND FY 2023 FINANCIAL REVIEW

 

Q4 2023 TCC and AISC were $1,136 per ounce and $1,317 per ounce respectively, as compared to $1,097 and $1,236 per ounce in Q4 2022. The higher TCC and AISC were largely due to higher cash costs for the Pan Mine from a higher strip ratio and lower grade material mined and higher sustaining capital.

 

Full year 2023 consolidated TCC and AISC were $1,071 per ounce and $1,228 per ounce respectively, which is within 2023 guidance, compared to 2022 TCC of $1,129 and AISC of $1,259 per ounce. The lower TCC and AISC in 2023 relate to higher production mainly from Pavon Central and Jabali Antena mines. The higher AISC in 2023 relates to capitalized mining costs of La Tigra when the strip ratio was higher than the life of mine average.

 

Expenses and Net Income

 

For Q4 2023 and the full year 2023, corporate G&A was $3.6 million and $12.3 million, respectively, compared to $2.8 million and $12.2 million for the same periods in 2022. Corporate administration was $0.8 million higher in Q4 2023 than its comparable period mostly due to increased salaries and increased corporate administration fees.

 

The adjusted net income per share in Q4 2023 was $0.05 for basic (Q4 2022: $0.03 for basic). Full year 2023 adjusted basic net income per share was $0.21 for basic (Full Year 2022: $0.12 for basic).

 

2024 GUIDANCE

 

  CONSOLIDATED NICARAGUA NEVADA
Gold Production/Sales (ounces) 275,000 – 300,000 235,000 – 255,000 40,000 – 45,000
Total Cash Costs ($/ounce)2 $1,075 – $1,175 $1,000 – $1,100 $1,400 – $1,500
AISC ($/ounce)2 $1,275 – $1,375 $1,175 – $1,275 $1,650 – $1,750
Growth Capital ($ million) $45 – $55
Exploration Capital ($ million) $25 – $30

 

Since acquiring the Nicaraguan assets from B2Gold in October 2019 and the Nevada assets from Fiore Gold in 2022, and the Newfoundland and Labrador assets from Marathon Gold in 2024, Calibre has consistently re-invested into its exploration programs which has resulted in the discovery of new deposits, and production and reserve growth, all of which position Calibre to deliver on commitments and profitability to grow the business.

 

Calibre’s 2024 guidance reflects, what is expected to be, the fifth consecutive year of annual production growth. Given its proven track record, Calibre will continue to reinvest into exploration and growth with over 130,000 metres of drilling and development of new satellite deposits across its asset portfolio. The Company has guided slightly higher AISC and significantly lower growth capital (excluding Valentine mine capital investment). Net total spend in 2024 is expected to be similar to that of 2023 which generated strong operating cash flow. Exploration is marginally higher than 2023, reflecting the additional US$5 – $10 million investment at the Valentine Gold Mine.

 

During 2024, consolidated production will be more weighted to the second half of the year while TCC, AISC and growth capital are forecast to be more weighted during the first half, however the exact timing of specific capital items may vary. Growth capital includes underground development at Panteon Norte and Atravesada, waste stripping and land acquisition.

 

Calibre is advancing construction of the Valentine Gold Mine in Newfoundland & Labrador, Canada. Calibre will update shareholders and the market regarding capital, schedule, and progress as information becomes available. With the anticipation of production during the first half of 2025, Valentine will become Atlantic Canada’s largest gold mine and significantly add production growth to the Company’s consolidated and diversified production profile.

 

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 has reviewed and approved the scientific and technical information in this news release.

 

About Calibre

 

Calibre is a Canadian-listed, Americas focused, growing mid-tier gold producer with a strong pipeline of development and exploration opportunities across Newfoundland & Labrador in Canada, 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.

 

Posted February 21, 2024

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