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Calibre Presents a Golden Opportunity: Breaking Records With Gold Production and Revenue in 2022; Gaining Momentum in 2023 With 20% Production Growth to 250,000 to 275,000 Ounces

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Calibre Presents a Golden Opportunity: Breaking Records With Gold Production and Revenue in 2022; Gaining Momentum in 2023 With 20% Production Growth to 250,000 to 275,000 Ounces

 

 

 

 

 

Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF) announces financial and operating results for the three months and year ended December 31, 2022. Annual Consolidated Financial Statements and the corresponding Management Discussion & Analysis for the year ended December 31, 2022 can be found at www.sedar.com and the Company’s website, www.calibremining.com. All figures are expressed in U.S. dollars unless otherwise stated.

 

2022 HIGHLIGHTS

  • Record gold sales of 222,991 ounces grossing $403.1 million in revenue, at an average realized gold price1 of $1,808/oz;
  • Consolidated Total Cash Costs 1 of $1,129/oz; Nicaragua $1,065/oz & Nevada $1,405/oz
  • Consolidated All-In Sustaining Costs 1 of $1,259/oz; Nicaragua $1,154/oz & Nevada $1,421/oz;
  • Generated $96.7 million in cash flow from operations;
  • Adjusted net income2 of $51.4 million, or $0.12 per share;
  • Pavon Central open pit mining permit was received in Q2, with significant advancement throughout the year resulting in grade driven growth on track for production during Q1, 2023;
  • Eastern Borosi Project (“EBP”) open pit and underground mining permits were received in Q4, with considerable progress made throughout the year setting up for production during Q2, 2023;
  • Significant exploration results across numerous assets including a new high-grade discovery within the Limon mine complex at Panteon North and the multi-kilometre VTEM Gold Corridor (news releases dated September 7, 2022June 27, 2022 and December 8, 2022), a second new discovery in Nevada at the Pan mine (news release dated January 17, 2023) and Gold Rock Carlin-style results (news release dated November 22, 2022) demonstrate higher grade and expansion potential;
  • Consolidated 2022 Mineral Reserves increased 33% to 1.35 Moz over 2021, net of production depletion (news release dated February 14, 2023) and;
  • Launched the Company’s five-year sustainability strategy, ensuring responsible and sustainable mining practices and made significant progress in the self assessment of the World Gold Councils’ Responsible Mining Principles.

 

Q4 2022 HIGHLIGHTS

  • Gold sales of 61,461 ounces grossing $107.0 million in revenue at an average realized gold price1 of $1,742/oz);
  • TCC1 of $1,097/oz; Nicaragua $1,079/oz & Nevada $1,174/oz
  • AISC1 of $1,236/oz; Nicaragua $1,188/oz & Nevada $1,201/oz
  • Net income of $14.5 million; basic net income per share of $0.03 (Q4 2021: $0.04);

 

Darren Hall, President and Chief Executive Officer of Calibre, stated: “The Calibre team continues to deliver on its commitment to grow the Company through reinvestment in exploration, mine development and acquisition. Our investments have resulted in new discoveries, increased Mineral Reserve and Mineral Resources, delivery of key mine permits, development of new high-grade mines, all of which will contribute to significant production growth. Calibre has continued to grow production approximately 20% year over year while Mineral Reserves have grown 370% since 2019 to 1.35 million ounces with record grades in our Nicaraguan portfolio. 2023 production growth, of 20% to 250,000 – 275,000 ounces, is fueled by increased grades from Pavon Central and Eastern Borosi. I am pleased with the team’s progress at Pavon Central open pit, year to date delivering 800 tpd at an average grade of 6 g/t gold.

 

I believe we have set a solid foundation with multiple years of Mineral Reserve life in front of us with strong organic growth opportunities and new gold discoveries to expand our existing assets. During 2022, within both operating jurisdictions, we discovered new zones and, in the case of Panteon North, we went from discovery to a Mineral Reserve estimate outlining 244,000 ounces at 9.45 g/t gold in less than 12 months. During 2023 we will advance a multi-rig drill program that will follow up at the VTEM Gold Corridor where we discovered 11.6 g/t gold over 9 metres, 1.5 km along trend of Panteon North. At the Golden Eagle Project in Washington State, we are awaiting additional results from the Phase I drill program that intersected high-grade mineralization including 4.30 g/t Au over 92 metres.

 

The continued integration of our sustainability programs across the business provides Calibre with a strong social license to operate successfully and we remain committed to self fund exploration and organic growth from strong operating cash flow while delivering positive and sustainable benefits to all stakeholders.”

 

CONSOLIDATED RESULTS: Q4 2022 AND FY 2022

 

Consolidated Financial Results

 

$’000 (except per share and per ounce amounts, as noted)   Q4 2022     Q4 2021     2022     2021  
Revenue $ 107,046   $ 88,109   $ 403,072   $ 328,132  
Cost of sales, including depreciation and amortization $ (78,697 ) $ (64,850 ) $ (299,469 ) $ (223,883 )
Mine operating income $ 28,349   $ 23,259   $ 103,603   $ 104,249  
Net income $ 14,502   $ 14,649   $ 43,344   $ 58,199  
Net income per share (basic) $ 0.03   $ 0.04   $ 0.10   $ 0.17  
Net income per share (fully diluted) $ 0.03   $ 0.04   $ 0.09   $ 0.16  
Adjusted net income2 $ 12,882   $ 15,456   $ 51,422   $ 59,842  
Adjusted net income per share (basic) $ 0.03   $ 0.05   $ 0.12   $ 0.18  
Cash provided by operating activities $ 28,064   $ 22,389   $ 96,657   $ 105,600  
Capital investment in mine development and PPE $ 30,041   $ 11,520   $ 98,788   $ 63,029  
Capital investment in exploration $ 7,083   $ 6,710   $ 46,403   $ 21,357  
Gold ounces produced   61,294     49,218     221,999     185,755  
Gold ounces sold   61,461     49,207     222,991     183,242  
Average realized gold price ($/oz)1 $ 1,742   $ 1,791   $ 1,808   $ 1,791  
Total Cash Costs ($/oz)1 $ 1,097   $ 1,026   $ 1,129   $ 1,013  
AISC ($/oz)1 $ 1,236   $ 1,139   $ 1,259   $ 1,136  

Operating Results

NICARAGUA Q4 2022 Q4 2021 2022 2021
Ore mined (t) 415,543 559,953 1,489,753 2,092,598
Ore milled (t) 460,181 579,891 1,615,039 1,958,580
Grade (g/t Au) 3.70 2.99 3.87 3.19
Recovery (%) 93.1 90.1 90.9 91.7
Gold produced (ounces) 49,854 49,218 180,490 182,755
Gold sold (ounces) 50,032 49,207 180,875 183,242
         
NEVADA Q4 2022 Q4 2021 2022 2021
Ore mined (t) 1,889,721 5,338,896
Ore placed on leach pad (t) 1,866,270 5,322,621
Grade (g/t Au) 0.39 0.39
Gold produced (ounces) 11,440 41,509
Gold sold (ounces) 11,429 42,117

 

NICARAGUA MINING OPERATIONS

 

Gold grades increased 26% in 2022 vs 2021 because of new higher-grade zones coming into the production plan and the Company is expecting grades to continue to increase in 2023 and 2024.

 

Mining Operating Results Q4 2022 Q4 2021 2022 2021
Ore Mined – open pit (t) 337,845 442,560 1,162,845 1,683,666
Ore Mined – open pit (t) – average grade (g/t Au) 3.37 2.85 3.57 2.73
Waste Mined – open pit (t) 3,927,838 2,591,783 14,217,355 14,854,381
Ore Mined – underground (t) 77,698 117,393 326,908 408,932
Ore Mined – underground – average grade (g/t Au) 5.12 5.08 4.87 4.42
Total Ore Mined (t) 415,543 559,953 1,489,753 2,092,598
Total Ore Mined – average grade (g/t Au) 3.70 3.32 3.85 3.06

 

NICARAGUA PROCESSING

 

Limon

 

Gold production was 13% higher in 2022 versus 2021, as a result of higher grades from Limon Central, Tigra open pits and Panteon underground.

 

Limon Processing Q4 2022 Q4 2021 2022 2021
Ore Milled (t) 120,815 123,330 494,481 495,668
Grade (g/t Au) 5.36 5.59 5.31 4.69
Recovery (%) 88.6 89.8 89.2 89.7
Gold Produced (ounces) 18,244 19,599 76,171 67,352
Gold Sold (ounces) 18,388 19,578 76,341 67,620

 

Libertad

 

Gold grades increased 21% as a result of new higher-grade zones, yet gold production was down in 2022 versus 2021 due to an unplanned equipment failure in the carbon plant and less lower grade stock piles processed.

 

Libertad Processing Q4 2022 Q4 2021 2022 2021
Ore Milled (t) 339,366 456,561 1,120,559 1,462,912
Grade (g/t Au) 3.11 2.29 3.23 2.68
Recovery (%) 94.7 90.3 92.1 92.8
Gold Produced (ounces) 31,611 29,619 104,319 115,403
Gold Sold (ounces) 31,644 29,629 104,534 115,622

 

NEVADA MINING & PROCESSING OPERATIONS

 

Mining Q4 2022 Q4 2021 2022 2021
Ore mined (t) 1,889,721 5,338,896
Waste mined (t) 2,274,772 10,916,990
Total mined (t) 4,164,493 16,255,886
Grade (g/t Au) 0.38 0.39
Gold mined (ounces) 23,101 67,253

 

 

Processing Q4 2022 Q4 2021 2022 2021
Ore placed on leach pad (t) 1,866,270 5,322,621
Grade (g/t Au) 0.39 0.39
Contained gold (ounces) 23,187 67,217
Gold produced 11,440 41,509
Gold sold (ounces) 11,429 42,117

 

Operations at the Pan mine in Nevada are included in the consolidated financial statements from January 12, 2022.

 

Mining operations at Pan advanced as planned throughout Q4 2022. During Q3 2022, the value of ounces contained in the heap leach pad were reduced by $3.3 million ($2.9 million cash costs plus $0.4 million non-cash) to reflect the potential net realizable value based on the Q3 average gold price of $1,728, less process and completion costs. This write down was subsequently partially reversed by $2.1 million during Q4 2022, of which $0.2 million was non-cash.

 

CONSOLIDATED Q4 2022 AND FY 2022 FINANCIAL REVIEW

 

Q4 2022 TCC and AISC were $1,097 per ounce and $1,236 per ounce respectively, as compared to $1,026 and $1,139 per ounce in Q4 2021. The higher AISC in Q4 2022 was due to inflationary impacts related to diesel, and other commodities, and higher Cash Costs tied to operations at the Pan mine.

 

Full year 2022 consolidated TCC and AISC were $1,129 per ounce and $1,259 per ounce respectively, within 2022 guidance. The higher Cash Costs and AISC in 2022 versus 2021 relate to commodity inflation, and the costs associated with the operation of the Nevada assets.

 

Expenses and Net Income

 

For Q4 2022 and the year 2022, corporate G&A was $2.8 million and $12.2 million compared to $2.1 million and $7.6 million for the same periods in 2021. Corporate administration for 2022 was higher than the comparable 2021 periods due partially to the addition of G&A expenses related to the Nevada assets. The remaining variance is mostly attributed to increased salaries, professional fees and increased travel and marketing expenses when compared to prior periods.

 

2023 GUIDANCE

 

  CONSOLIDATED NICARAGUA NEVADA
Gold Production/Sales (ounces) 250,000 – 275,000 210,000 – 230,000 40,000 – 45,000
Total Cash Costs ($/ounce)1 $1,000 – $1,100 $950 – $1,050 $1,300 – $1,400
AISC ($/ounce)1 $1,175 – $1,275 $1,100 – $1,200 $1,350 – $1,450
Growth Capital ($ million) $55 – $65
Exploration Capital ($ million) $25 – $30

 

Since acquiring the Nicaraguan assets from B2Gold in October 2019 and Fiore Gold in 2022, the Company has consistently re-invested into the business with demonstrated results of strong production, reserve growth, discovery of new deposits, and identification of new targets, all of which position Calibre to unlock additional mill feed sources and grow production both in Nicaragua and Nevada. Calibre continues to invest in its exploration programs, with a discovery and resource expansion 100,000 metre drilling program, underway in Nevada and Nicaragua.

 

Calibre’s 2023 production guidance reflects grade-drive production growth of approximately 20% over 2022 yet 2023 total cash cost per ounce is budgeted to be lower than 2022 actuals. Additionally, Calibre’s 2023 growth capital is budgeted to be 30% less than 2022 setting the Company up for a strong free cash flow year.

 

Growth and sustaining capital are anticipated to be higher throughout the first half of the year to unlock value at the new high-grade Pavon Central and at EBP mines. Growth also includes underground development, Limon Norte and Tigra waste stripping, and land acquisition.

 

Qualified Person

 

Darren Hall, MAusIMM, President & 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 Mining Corp.

Calibre 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.

 

Posted February 25, 2023

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