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Calibre Reports Robust Q2 Free Cash Flow: A Third Consecutive Record Gold Production Quarter, a 133% increase in Earnings Per Share, and 32% increase in Cash on Hand

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Calibre Reports Robust Q2 Free Cash Flow: A Third Consecutive Record Gold Production Quarter, a 133% increase in Earnings Per Share, and 32% increase in Cash on Hand

 

 

 

 

 

Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF) announces financial and operating results for the three and six months ended June 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.

 

Q2 2023 Highlights

 

Year-to-Date 2023 Highlights

  • Record consolidated gold sales of 134,779 ounces grossing $266.2 million in total revenue, at an average realized gold price1 of $1,933/oz;
  • Consolidated TCC1 of $1,068/oz; Nicaragua $1,009/oz & Nevada $1,386/oz;
  • Consolidated AISC1 of $1,239/oz; Nicaragua $1,156/oz & Nevada $1,427/oz;
  • Adjusted net income2 of $49.8 million, or $0.11 per share; and
  • Consolidated Mineral Reserves have increased 370% since acquisition in 2019, to 1,346,000 ounces gold.

 

Darren Hall, President and Chief Executive Officer of Calibre, stated: “I am pleased to announce another exceptional quarter in which we delivered a third consecutive production record resulting in our strongest quarterly net income to date. Our consolidated Total Cash Cost and All-in Sustaining Costs being lower than budget position the Company to deliver full year production and cost guidance and generate strong free cash flow. As we continue to strengthen our balance sheet, we remain fiscally responsible by self-funding all exploration and organic growth from operating cash flow while increasing our cash position.

 

Calibre continues to present a compelling investment opportunity with a diversified asset base within the Americas, high-grade, high margin gold production, extensive growth and expansion prospects and strong cash generation. During the quarter our investment into exploration continued to yield fruitful returns. In Nevada, new shallow, high grade gold mineralization has been identified in proximity to the south pit which is expected to positively impact grades as early as next year. In Nicaragua, we continue to intersect high-grade mineralization along the VTEM Gold Corridor at Limon with continued anticipated conversion to year end Resources and Reserves.

 

We remain focused on sustainable mining practices and responsible resource management which has contributed to our success thus far and we will continue to prioritize environmental stewardship and community engagement.”

 

CONSOLIDATED RESULT SUMMARY: Q2 2023 and YTD 2023

 

Consolidated Financial Results

 

$’000 (except per share and per ounce amounts) Q2 2023   Q2 2022   YTD 2023   YTD 2022  
Revenue $ 139,310   $ 112,752   $ 266,223   $ 213,604  
Cost of sales, including depreciation and amortization $ (85,769 ) $ (84,499 ) $ (180,429 ) $ (153,816 )
Mine operating income $ 53,541   $ 28,253   $ 85,794   $ 59,788  
Net income $ 33,203   $ 15,428   $ 49,612   $ 27,129  
Net income per share (basic) $ 0.07   $ 0.03   $ 0.11   $ 0.06  
Net income per share (fully diluted) $ 0.07   $ 0.03   $ 0.10   $ 0.06  
Adjusted net income2 $ 33,633   $ 15,475   $ 49,831   $ 31,916  
Adjusted net income per share (basic) $ 0.07   $ 0.03   $ 0.11   $ 0.07  
Cash provided by operating activities $ 59,803   $ 43,237   $ 86,550   $ 61,492  
Capital investment in mine development and PPE $ 35,719   $ 23,372   $ 56,759   $ 37,473  
Capital investment in exploration $ 8,181   $ 14,419   $ 13,743   $ 26,945  
Gold ounces produced   68,776     59,723     134,526     111,621  
Gold ounces sold   69,009     59,783     134,779     112,270  
Average realized gold price1($/oz) $ 1,974   $ 1,861   $ 1,933   $ 1,878  
Total Cash Costs ($/oz)1 $ 977   $ 1,174   $ 1,068   $ 1,121  
AISC ($/oz)1 $ 1,178   $ 1,284   $ 1,239   $ 1,244  

Operating Results

 

 NICARAGUA Q2 2023   Q2 2022   YTD 2023   YTD 2022  
Ore mined (t) 613,536   359,099   1,096,797   711,367  
Ore milled (t) 515,478   356,417   998,567   757,631  
Grade (g/t Au) 4.06   4.28   3.85   4.03  
Recovery (%) 92.4   90.7   92.7   90.3  
Gold produced (ounces) 58,392   48,810   113,389   91,707  
Gold sold (ounces) 58,588   48,848   113,583   91,766  
                 
NEVADA Q2 2023   Q2 2022   YTD 2023   YTD 2022  
Ore mined (t) 1,096,313   1,137,595   2,384,906   2,111,900  
Ore placed on leach pad (t) 1,072,046   1,113,702   2,375,878   2,120,242  
Grade (g/t Au) 0.39   0.34   0.38   0.41  
Gold produced (ounces) 10,384   10,913   21,137   19,914  
Gold sold (ounces) 10,420   10,935   21,195   20,504  

Gold production in Nicaragua increased 20% in Q2 2023 vs Q2 2022 driven by higher tonnes mined and milled.

 

CONSOLIDATED Q2 and YTD 2023 FINANCIAL REVIEW

 

TCC(1) and AISC(1) for Q2 2023 were $977 per ounce and $1,178 per ounce respectively, placing the Company in a strong position to deliver full year cost guidance.   The lower quarter over quarter cash costs per ounce were achieved through an increase in open pit ore tonnes, underground mining optimization improvements with associated increases in tonnes mined and higher head grades, and a reduction in diesel prices. The on-going mining improvements have resulted in an increase of ore stockpiles and in-circuit inventories.

 

TCC(1) and AISC(1) for YTD 2023 were $1,068 per ounce and $1,239 per ounce, respectively, as compared to $1,121 and $1,244 per ounce in the comparable 2022 period. The YTD 2023 amounts are within guidance.

 

Expenses and Net Income

 

For the three and six months ended June 30, 2023, corporate G&A was $2.7 million and $5.4 million compared to $3.2 million and $6.3 million for the same periods in 2022. Corporate administration was lower due to a reduced use of consultants.

 

Share based compensation for Q2 2023 and YTD 2023 was $0.1 million and $1.7 million. The increase in expense over the prior year relates to the vesting of options and RSUs granted in prior years, higher share price, and associated revaluation of cash settled RSUs and PSUs.

 

Total finance expense for Q2 2023 and YTD 2023 was $1.0 million and $1.9 million, respectively, compared to $0.5 million and $1.0 million from the same periods in 2022.

 

Current and deferred income tax expense was $16.2 million during Q2 2023 and $26.2 million YTD, compared to the same periods in 2022 of $10.5 million and $18.6 million. Q2 2023 saw an increase in current and deferred tax expense when compared to Q2 2022, from higher pre-tax income partially offset by a lower overall tax rate.

 

As a result of the above, net income per share in Q2 2023 was $0.07 for both basic and diluted.

 

2023 GUIDANCE

 

  CONSOLIDATED
2023 GUIDANCE
NICARAGUA
2023 GUIDANCE
NEVADA
2023 GUIDANCE
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

 

The Company achieved record performance in Q2 on multiple fronts. Operationally, Calibre produced 68,776 ounces, at costs below budget placing the Company in a strong position to meet its full year production and cost guidance. Given current gold prices, Calibre is poised to generate strong free cash flow and continue to grow cash after investments in growth, development, and exploration.

 

Calibre continues to invest in its exploration programs, advancing a 100,000+ metre drilling program which includes resource delineation, infill, and geotechnical drilling, as well as discovery drilling to test numerous satellite targets around Limon, Libertad, Eastern Borosi and Nevada.

 

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 10, 2023

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