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Calibre Reports Quarterly and Year-To-Date Financial Results, Production and Cost Guidance Reiterated for 2022

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Calibre Reports Quarterly and Year-To-Date Financial Results, Production and Cost Guidance Reiterated for 2022

 

 

 

 

 

Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF) announces financial and operating results for the three and six months ended June 30, 2022. Consolidated financial statements and management discussion and analysis can be found at www.sedar.com and the Company’s website, www.calibremining.com. All figures are expressed in U.S. dollars.

 

Year-to-Date 2022 Highlights

  • Gold sales of 112,270 ounces grossing $210.8 million in revenue, at an average realized gold price of $1,878/oz;
  • Consolidated Total Cash Costs1 of $1,121; Nicaragua $1,069/oz & Nevada $1,351/oz;
  • Consolidated All-In Sustaining Costs1 of $1,244; Nicaragua $1,149/oz & Nevada $1,365/oz;
  • Cash on hand of $92.3 million, or C$0.27 per share;
  • Cash flow from operations of $61.5 million;
  • Adjusted net income of $31.9 million2, or $0.07 per share;
  • 254% increase in Nicaragua Mineral Reserves to 1,013,000 ounces gold since Q4, 2019 (see news release dated February 23, 2022);
  • Received the environmental permit to develop the Pavon Central open pit (news release dated June 16, 2022);
  • Announced the grade driven increasing production outlook (news release dated June 22, 2022);
  • 16 drills completed 120 kilometres of drilling across the Company’s operations, which has led to new discoveries, resource building opportunities and the potential for grade-driven production growth;
  • Bonanza grade drill results from Panteon North within the Limon Complex outline multiple kilometers of high-priority discovery and resource building potential (news release June 27, 2022);
  • Drill results from the Pan Mine indicate resource expansion and higher-grade potential (news release April 12, 2022);
  • High-grade drill results and positive metallurgical results from the Gold Rock project demonstrate favourable heap leach recoveries and cycle times (news release June 29, 2022); and
  • Published our Environmental, Social and Governance Sustainability report (news release dated July 6, 2022).

 

Q2 2022 Key Results

  • Gold sales of 59,783 ounces grossing $111.3 million in revenue, at an average realized gold price1 of $1,861/oz;
  • Consolidated TCC1 and AISC1 of $1,174 and $1,284 per ounce, respectively; and
  • Net income of $15.4 million; basic net income per share of $0.03.

 

Darren Hall, President and Chief Executive Officer of Calibre, stated: “Calibre responsibly delivered another record quarter of production. Despite industry wide inflationary pressures our year to date AISC of $1,244 per ounce is favorable to budget, within guidance, and we reaffirm our commitment to deliver on our full year guidance.

 

Following receipt of the Pavon Central environmental permit approval during the quarter, we have commenced development works at the high-grade open pit, and Eastern Borosi permitting is progressing well with permits anticipated before year end.

 

Our exploration investment continues to yield positive results as evidenced by the bonanza grade drill results at Panteon North at Limon and numerous positive results at Pan and Gold Rock in Nevada. The Company is in the strongest financial position ever, with $92 million in cash and we remain fiscally responsible with the ability to self-fund exploration and organic growth from operating cash flow.”

 

CONSOLIDATED RESULTS: Q2 2022 and YTD 2022
Consolidated Results3
$’000 (except per share and per ounce amounts) Q2 2022 Q2 2021 YTD 2022 YTD 2021
Revenue $ 111,260 $ 78,785 $ 210,825 $ 160,819
Cost of sales, including depreciation and amortization $ (83,007 ) $ (54,481 ) $ (151,037 ) $ (106,555 )
Mine operating income $ 28,253 $ 24,304 $ 59,788 $ 54,264
Net income $ 15,428 $ 11,885 $ 27,129 $ 28,530
Net income per share (basic) $ 0.03 $ 0.04 $ 0.06 $ 0.08
Net income per share (fully diluted) $ 0.03 $ 0.03 $ 0.06 $ 0.08
Adjusted net income2 $ 15,475 $ 11,885 $ 31,916 $ 28,530
Adjusted net income per share (basic)2 $ 0.03 $ 0.04 $ 0.07 $ 0.08
Cash provided by operating activities $ 43,237 $ 29,348 $ 61,492 $ 54,870
Capital investment in mine development and PPE $ 23,372 $ 20,570 $ 37,473 $ 35,831
Capital investment in exploration $ 14,419 $ 5,623 $ 26,945 $ 10,283
Gold ounces produced 59,723 43,506 111,621 88,958
Gold ounces sold 59,783 43,682 112,270 89,564
Average realized gold price ($/oz)1 $ 1,861 $ 1,804 $ 1,878 $ 1,796
Total Cash Costs ($/oz)1 $ 1,174 $ 1,066 $ 1,121 $ 1,022
AISC ($/oz)1 $ 1,284 $ 1,216 $ 1,244 $ 1,154

 

 

Operational Results

NICARAGUA Q2 2022 Q2 2021 YTD 2022 YTD 2021
Ore mined (t) 359,099 508,330 711,367 993,983
Ore milled (t) 356,417 461,843 757,631 881,183
Grade (g/t Au) 4.28 3.11 4.03 3.31
Recovery (%) 90.7 93.4 90.3 92.3
Gold produced (ounces) 48,810 43,506 91,707 88,958
Gold sold (ounces) 48,848 43,682 91,766 89,564
NEVADA Q2 2022 Q2 2021 YTD 2022 YTD 2021
Ore mined (t) 1,137,595 2,111,900
Ore placed on leach pad (t) 1,113,702 2,120,242
Grade (g/t Au) 0.34 0.41
Gold produced (ounces) 10,913 19,914
Gold sold (ounces) 10,935 20,504

 

 

NICARAGUA MINING

 

Open pit operations during Q2 continued as planned, with pre-stripping at La Tigra advancing ahead of schedule.

Underground ore mined grade was 23% higher in Q2 2022 vs Q2 2021, with lower volumes reflecting the completion of mining at Veta Nueva.

Mining Q2 2022 Q2 2021 YTD 2022 YTD 2021
Ore Mined – open pit (t) 281,276 412,529 536,499 803,143
Ore Mined – open pit average grade (g/t Au) 3.83 2.16 3.83 2.72
Waste Mined – open pit (t) 3,555,868 3,986,157 6,718,594 8,461,963
Ore Mined – underground (t) 77,823 95,801 174,868 190,840
Ore Mined – underground average grade (g/t Au) 4.96 4.03 4.86 3.86
Total Ore Mined (t) 359,099 508,330 711,367 993,983
Total Ore Mined – average grade (g/t Au) 4.08 2.51 4.08 2.94

 

 

NICARAGUA PROCESSING

 

Limon

 

Gold production was 28% higher in Q2 2022 vs Q2 2021, as a result of higher grades from Limon Central and Panteon.

 

Limon Processing Q2 2022 Q2 2021 YTD 2022 YTD 2021
Ore Milled (t) 123,700 127,465 247,294 251,614
Grade (g/t Au) 5.56 4.06 5.38 4.23
Recovery (%) 89.2 89.6 89.4 89.4
Gold Produced (ounces) 20,247 15,767 38,439 32,104
Gold Sold (ounces) 20,252 15,782 38,470 32,433

 

 

Libertad

 

Combined tonnes and grades delivered from Limon and Pavon Norte to the Libertad mill increased 25% in Q2 2022 vs Q2 2021:

 

  • Limon: 97,038 tonnes at 3.75 g/t vs 95,760 tonnes at 2.52 g/t.
  • Pavon Norte: 85,160 tonnes at 3.19 g/t vs 50,006 tonnes at 3.38 g/t.

 

Libertad Processing Q2 2022 Q2 2021 YTD 2022 YTD 2021
Ore Milled (t) 232,716 334,378 510,337 629,569
Grade (g/t Au) 3.60 2.74 3.38 2.94
Recovery (%) 91.9 95.5 90.9 94.0
Gold Produced (ounces) 28,563 27,739 53,268 56,854
Gold Sold (ounces) 28,596 27,900 53,296 57,131

 

 

NEVADA MINING & PROCESSING

 

Mining Q2 2022 Q2 2021 YTD 2022 YTD 2021
Ore mined (t) 1,137,595 2,111,900
Waste mined (t) 3,137,103 5,652,897
Total mined (t) 4,274,698 7,764,797
Grade (g/t Au) 0.34 0.41
Gold mined (ounces) 12,278 28,036

 

Processing Q2 2022 Q2 2021 YTD 2022 YTD 2021
Ore placed on leach pad (t) 1,113,702 2,120,242
Grade (g/t Au) 0.34 0.41
Contained gold (ounces) 12,265 28,168
Gold produced 10,913 19,914
Gold sold (ounces) 10,935 20,504

 

The Pan mine in Nevada is included in the consolidated financial statements from January 12, 2022.

 

Consistent with budget, waste movement increased during Q2 vs Q1 (3.1 million tonnes versus 2.5 million tonnes) resulting in approximately $150 per ounce increase in cash costs. YTD 2022, 7.8 million tonnes were moved, including 2.1 million ore tonnes mined at a grade of 0.41 g/t.

 

CONSOLIDATED Q2 2022 FINANCIAL REVIEW

 

Q2 2022 TCC(1) and AISC (1) were $1,174 per ounce and $1,284 per ounce, as compared to $1,060 and $1,199 per ounce in Q1 2022. Inflationary impacts of increased diesel prices and other commodities negatively impacted cash costs by approximately 5% quarter over quarter. In addition, the higher Nevada cost was due to budgeted additional waste movement and lower grade.

 

YTD 2022 TCC(1) and AISC (1) were $1,121 per ounce and $1,244 per ounce and are within guidance and favorable to budget. Continued grade increases in Nicaragua during the second half will positively impact production and cash costs.

 

Expenses and Net Income

 

For the three and six months ended June 30, 2022, corporate G&A was $3.2 million and $6.3 million compared to $1.8 million and $3.8 million for the same periods in 2021. Corporate administration was higher than the comparable 2021 periods due to the addition of G&A expenses related to the Nevada assets.

 

Share based compensation for Q2 2022 and YTD 2022 was $0.05 million and $1.3 million, respectively (Q2 2021 $1.4 million, YTD 2021 $2.1 million). The decrease in expense over the prior year quarter relates to the revaluation of cash settled RSUs and PSUs.

 

Current and deferred income tax expense was $10.5 million during Q2 2022 and $18.6 million YTD 2022, compared to the same periods in 2021 of $8.6 million and $19 million. Q2 2022 saw an increase in current and deferred tax expense, when compared to Q2 2021, from higher pre-tax income and the prior period utilized previously unrecognized loss carry forwards.

 

As a result of the above, net income per share in Q2 2022 was $0.03 for both basic and diluted (Q2 2021: $0.04 for basic and $0.03 for diluted). YTD 2022 net income per share was $0.06 for both basic and diluted (YTD 2021: $0.08 for both).

 

2022 GUIDANCE

 

CONSOLIDATED
2022 GUIDANCE
NICARAGUA
2022 GUIDANCE
NEVADA
2022 GUIDANCE
Gold Production/Sales (ounces) 220,000 – 235,000 180,000 – 190,000 40,000 – 45,000
Total Cash Costs ($/ounce)1 $1,075 – $1,150 $1,000 – $1,100 $1,400 – $1,500
AISC ($/ounce)1 $1,200 – $1,275 $1,100 – $1,200 $1,450 – $1,550
Growth Capital ($ million) $55 – $60 $45 – $50 $5 – $10
Exploration Capital ($ million) $40 – $42 $20 – $22 $18 – $20

 

Calibre’s 2022 guidance remains unchanged. We will continue to invest in our multi-rig, 170,000 metre drill program which includes resource delineation, infill, and geotechnical drilling as well as early-stage generative exploration to test numerous satellite targets, across all assets as the Company continues to realize the prospective and under-explored potential the portfolio has to offer.

 

With $92.3 million in cash at the end of the quarter, no debt and strong cashflow from our producing assets, the Company remains able to self fund additional, low capital intensity growth initiatives while continuing to invest in value accretive exploration to support Calibre’s future.

 

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.

 

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, no debt, a proven management team, strong operating cash flow, accretive development projects and district-scale exploration opportunities Calibre will unlock significant value.

 

Posted August 11, 2022

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