Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF)
(“Calibre” or the “Company”) announces financial and operating
results for the three months ended March 31, 2022 (“Q1 2022”).
Consolidated financial statements and management discussion and
analysis for the three months ending March 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.
Q1 2022 HIGHLIGHTS
- Gold sales of
52,487 ounces grossing $99.6 million in revenue, at an average
realized gold price1 of $1,897/oz;
- Consolidated total
cash costs (“TCC”)1 and All-In Sustaining Costs (“AISC”)1 of
$1,060 and $1,199 per ounce,
respectively;
- Nicaragua: TCC $1,013 and AISC
$1,108 per ounce respectively;
- Nevada: TCC $1,268 and AISC $1,283
per ounce respectively;
- Successful
completion of the acquisition of Fiore Gold on January 12, 2022
creating a diversified, Americas focused, growing, mid-tier gold
producer;
- Smooth integration
of the Nevada assets recognizing initial synergies and savings
within the broader entity and stronger balance sheet despite the
current inflationary environment;
- Cash of $77.3
million as at March 31, 2022, after $19.0 million of Fiore Gold
acquisition cash components;
- Net income of $11.7
million; basic net income per share of $0.03;
- Adjusted net income
of $16.4 million or $0.04 per basic share in Q1 20222;
- Nicaragua Mineral
Reserves increased to 1,013,000 ounces of gold, at a record grade
of 4.62 g/t (see news release dated February 23, 2022);
- Nicaragua Indicated
Mineral Resources increased to 1,806,000 ounces of gold (see news
release dated February 23, 2022);
- Significant
exploration developments include:
- Drill results from the Pan Mine in
Nevada demonstrate resource expansion and higher-grade potential,
including 1.02 g/t Au over 50.3 metres, 0.83 g/t Au over 34.0
metres, 0.58 g/t Au over 41.2 metres and 0.68 g/t Au over 24.4
metres (see news release dated March 8, 2022 and April 12,
2022);
- 170,000 metre drill program
underway which includes resource delineation, infill, and
geotechnical drilling as well as early-stage generative exploration
drilling to test numerous satellite targets around Libertad, the
Eastern Borosi Project and Nevada.
- Launched the
multi-year sustainability strategy (see news release dated March
15, 2022).
Darren Hall, President and Chief
Executive Officer of Calibre, stated: “Calibre had an
excellent start to the year, responsibly delivering record gold
production at a total cash cost of $1,060 per
ounce and AISC of $1,199 per ounce positioning the
Company well to deliver on full year guidance, despite the current
inflationary environment.
During the quarter we continued making excellent
progress advancing the higher-grade open pit mines at Pavon Central
(reserve grade of 6.5 g/t Au) and Eastern Borosi (reserve grade of
6.8 g/t Au) which will fuel grade driven production growth in 2023
and 2024.
The integration of the Nevada assets solidifies
our position as a fiscally responsible and growing mid-tier gold
producer with the ability to self-fund exploration and organic
growth from operating cash flow.”
CONSOLIDATED RESULTS SUMMARY – Q1
2022
Consolidated
Results3
$'000 (except per share and per ounce amounts) |
Q1 2022 |
|
|
Q1 2021 |
|
Revenue |
$ |
99,565 |
|
|
$ |
82,034 |
|
Cost of sales, including
depreciation and amortization |
|
(68,030 |
) |
|
|
(52,074 |
) |
Mine operating income |
$ |
31,535 |
|
|
$ |
29,960 |
|
Net income |
$ |
11,701 |
|
|
$ |
16,645 |
|
Net income per share
(basic) |
$ |
0.03 |
|
|
$ |
0.05 |
|
Net income per share (fully
diluted) |
$ |
0.03 |
|
|
$ |
0.05 |
|
Adjusted net income |
$ |
16,441 |
|
|
$ |
16,645 |
|
Adjusted net income per share
(basic) |
$ |
0.04 |
|
|
$ |
0.05 |
|
Cash provided by operating
activities |
$ |
18,255 |
|
|
$ |
25,522 |
|
Capital investment in mine
development and PPE |
$ |
14,101 |
|
|
$ |
15,261 |
|
Capital
investment in exploration |
$ |
12,526 |
|
|
$ |
4,660 |
|
Gold ounces produced |
|
51,898 |
|
|
|
45,452 |
|
Gold
ounces sold |
|
52,487 |
|
|
|
45,882 |
|
Average realized gold price ($/oz)1 |
$ |
1,897 |
|
|
$ |
1,788 |
|
Total Cash Costs ($/oz)1 |
$ |
1,060 |
|
|
$ |
979 |
|
AISC
($/oz)1 |
$ |
1,199 |
|
|
$ |
1,095 |
|
|
|
|
|
|
|
|
|
Operational Results
NICARAGUA |
|
Q1 2022 |
|
|
|
Q1 2021 |
|
Ore mined (t) |
|
352,266 |
|
|
|
485,654 |
|
Ore milled (t) |
|
401,214 |
|
|
|
419,341 |
|
Grade (g/t Au) |
|
3.81 |
|
|
|
3.54 |
|
Recovery (%) |
|
89.9 |
|
|
|
91.3 |
|
Gold produced (ounces) |
|
42,897 |
|
|
|
45,452 |
|
Gold
sold (ounces) |
|
42,918 |
|
|
|
45,882 |
|
NEVADA |
|
Q1 2022 |
|
|
|
Q1 2021 |
|
Ore mined (t) |
|
974,305 |
|
|
|
- |
|
Ore placed on leach pad
(t) |
|
1,006,540 |
|
|
|
- |
|
Grade
(g/t Au) |
|
0.47 |
|
|
|
- |
|
Gold produced (ounces) |
|
9,001 |
|
|
|
- |
|
Gold
sold (ounces) |
|
9,569 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
NICARAGUA MINING OPERATING
RESULTS
Open Pit Mining Operations
During Q1 2022, most of the open pit production
came from Limon Central totaling 176,674 ore tonnes at an average
grade of 4.29 g/t, supplemented by 58,563 tonnes from Pavon Norte
at a grade of 2.96 g/t, and 3,202 tonnes at 9.69 g/t from small
artisanal miners.
With excellent productivity in the open pits
during Q1 2022, pre-stripping activities at the Limon Norte and La
Tigra pits advanced ahead of schedule, and lower overall waste
movement was required compared to Q1 2021. Management expects the
strip ratio at Limon Central to decline through 2022, while
pre-stripping activities for Limon Norte and La Tigra pits continue
at current levels.
Underground Mining
Operations
Ore mined during Q1 2022 of 97,045 tonnes at
4.79 g/t was similar to Q1 2021 production of 95,040 tonnes
averaging 3.69 g/t.
Nicaragua Mining Operating Results |
|
Q1 2022 |
|
|
|
Q1 2021 |
|
Operating
Information |
|
|
|
|
|
|
|
Ore Mined – open pit (t) |
|
255,221 |
|
|
|
390,614 |
|
Ore Mined – open pit (t) – average grade (g/t Au) |
|
3.84 |
|
|
|
3.32 |
|
Waste Mined – open pit (t) |
|
3,162,725 |
|
|
|
4,475,807 |
|
Ore Mined – underground (t) |
|
97,045 |
|
|
|
95,040 |
|
Ore Mined – underground – average grade (g/t Au) |
|
4.79 |
|
|
|
3.69 |
|
Total Ore Mined (t) |
|
352,266 |
|
|
|
485,654 |
|
Total Ore Mined – average grade (g/t Au) |
|
4.10 |
|
|
|
3.39 |
|
|
|
|
|
|
|
|
|
NICARAGUA PROCESSING OPERATING
RESULTS
Processing at Limon
During Q1 2022, the Limon mill processed 123,594
tonnes at an average grade of 5.20 g/t with resulting gold
production of 18,192 ounces.
Processing Operating Results at Limon |
|
Q1 2022 |
|
|
|
Q1 2021 |
|
Ore Milled (t) |
|
123,594 |
|
|
|
124,149 |
|
Grade (g/t Au) |
|
5.20 |
|
|
|
4.42 |
|
Recovery (%) |
|
89.7 |
|
|
|
89.3 |
|
Gold Produced (ounces) |
|
18,192 |
|
|
|
16,337 |
|
Gold
Sold (ounces) |
|
18,218 |
|
|
|
16,651 |
|
|
|
|
|
|
|
|
|
Processing at Libertad
During Q1 2022, the Libertad mill processed
277,620 tonnes at an average grade of 3.19 g/t, with resulting gold
production of 24,705 ounces. Libertad production benefited from the
delivery of higher-grade ore from the Limon open pit and the Jabali
underground mines.
Ore deliveries from Limon totaled 96,555 tonnes
at an average grade of 3.28 g/t compared to Q1 2021 tonnes of
86,856 at an average grade of 3.36 g/t. Pavon Norte deliveries
during the quarter totalled 89,964 at 3.07 g/t in comparison to
31,983 at 3.25 g/t in Q1 2021.
Processing Operating Results at Libertad |
|
Q1 2022 |
|
|
|
Q1 2021 |
|
Ore Milled (t) |
|
277,620 |
|
|
|
295,191 |
|
Grade (g/t Au) |
|
3.19 |
|
|
|
3.17 |
|
Recovery (%) |
|
90.1 |
|
|
|
92.4 |
|
Gold Produced (ounces) |
|
24,705 |
|
|
|
29,115 |
|
Gold
Sold (ounces) |
|
24,700 |
|
|
|
29,231 |
|
|
|
|
|
|
|
|
|
NEVADA MINING & PROCESSING OPERATING
RESULTS
Mining |
|
Q1 2022 |
|
|
|
Q1 2021 |
|
Ore mined (t) |
|
974,305 |
|
|
|
- |
|
Waste mined (t) |
|
2,515,794 |
|
|
|
- |
|
Total
mined (t) |
|
3,490,099 |
|
|
|
- |
|
Grade (g/t Au) |
|
0.48 |
|
|
|
- |
|
Gold
mined (ounces) |
|
15,065 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Processing |
|
Q1 2022 |
|
|
|
Q1 2021 |
|
Ore placed on leach pad
(t) |
|
1,006,540 |
|
|
|
- |
|
Grade (g/t Au) |
|
0.47 |
|
|
|
- |
|
Contained gold (ounces) |
|
15,182 |
|
|
|
- |
|
Gold produced |
|
9,001 |
|
|
|
- |
|
Gold
sold (ounces) |
|
9,569 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Operations at the Pan mine are included in the
consolidated financial statements from January 12, 2022. Mining
operations advanced well through the quarter with total material
movement of 3.5 million tonnes from January 12 through March 31,
which included 974,305 ore tonnes at a grade of 0.48 g/t. Mine
tonnages and grades complied well with plan at an average mining
rate of 44,178 tpd. One million tonnes of ore was placed on the
heap leach pad, containing 10,111 ounces of recoverable gold, with
9,001 ounces produced during the quarter.
CONSOLIDATED Q1 2022 FINANCIAL
REVIEW
Mining Operations
Total Cash Costs1 and AISC1 for Q1 2022 were
$1,060 per ounce and $1,199 per ounce respectively, as compared to
$979 and $1,095 per ounce in Q1 2021. The slightly higher cash
costs and AISC quarter over quarter is a result of pre-stripping
activities in Limon Central pit that were capitalized as they
facilitated multi-year operation of the pit.
Expenses and Net Income
For the three months ended March 31, 2022,
corporate G&A was $3.1 million compared to $2.0 million for the
same period in 2021 partially due to the addition of $0.6 million
of G&A expenses related to the United States assets.
Share-based compensation for Q1 2022 was $1.3
million. The increase in expense over the prior year quarter
relates to the vesting of options and RSUs granted in prior years
as well as the exercise of RSUs and PSUs which were
equity-settled.
Current and deferred income tax expense was $8.2
million during Q1 2022. Q1 2022 saw a decrease in current and
deferred tax expense when compared to Q1 2021, from lower pre-tax
income.
As a result of the above, net income per share
in Q1 2022 was $0.03 for basic and $0.03 for diluted.
2022 GUIDANCE
|
CONSOLIDATED2022 GUIDANCE |
NICARAGUA2022 GUIDANCE |
NEVADA2022 GUIDANCE |
Gold Production/Sales (ounces) |
220,000 - 235,000 |
180,000 - 190,000 |
40,000 – 45,000 |
Total Cash Costs ($/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 includes the Nevada
assets which were acquired from Fiore Gold on January 12, 2022.
Calibre will continue its exploration activities across all assets
as we continue to realize the prospective and under-explored
potential the portfolio has to offer and will continue to re-invest
in the business as exploration and resource delineation programs
continue in Nicaragua and Nevada.
Nicaragua 2022 gold production is forecast to
increase through the year with second half production expected to
be approximately 20% higher than the first half due to change in
deposit grade profiles and mine sequencing.
Nevada production is forecast to be relatively
consistent through the year, as is growth and exploration spend.
Growth capital is primarily focused on advancing state permitting
and technical studies on the growth opportunity at Gold Rock.
Calibre continues to see strong exploration potential at Gold Rock
but in 2022 the Company will significantly increase drilling
activities at the Pan heap leach operation. Cash costs and AISC for
the Nevada assets have benefited from acquisition synergies such as
the elimination of head office costs, reduced size of the executive
team, reduction in insurance costs and group buying synergies.
Calibre continues to invest in its exploration
programs, with a planned 170,000 metre drill program which includes
resource delineation, infill, and geotechnical drilling as well as
early-stage generative exploration drilling to test numerous
satellite targets around Libertad, the Eastern Borosi Project and
Nevada.
Q1 2022 FINANCIAL RESULTS CONFERENCE
CALL DETAILS
First-quarter financial results will be released
after market close on Tuesday, May 3, 2022, and management will be
hosting a conference call to discuss the results and outlook in
more detail.
Date: |
|
Wednesday, May 4, 2022 |
Time: |
|
10:00 a.m. (EDT) |
Dial-in: |
|
+1 (866) 221-1882 or +1 (470) 495-9179 (International) |
Webcast Link: |
|
https://edge.media-server.com/mmc/p/pmkzndus |
Conference ID: |
|
1776837 |
The live webcast can be accessed here or at
www.calibremining.com under the Events and Media section under the
Investors tab. The live audio webcast will be archived and made
available for replay at www.calibremining.com. Presentation slides
that will accompany the conference call will be made available in
the Investors section of the Calibre website under Presentations,
prior to the conference call.
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.
ON BEHALF OF THE BOARD
“Darren Hall”
Darren HallPresident and Chief Executive Officer
For further information, please
contact:Ryan KingSenior Vice President,
Corporate Development & IRT: 604.628.1010E:
calibre@calibremining.comW: www.calibremining.com
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.
Notes:
(1) NON-IFRS
FINANCIAL MEASURES
The Company believes that investors use certain
non-IFRS measures as indicators to assess gold mining companies,
specifically Total Cash Costs per Ounce and All-In Sustaining Costs
per Ounce. In the gold mining industry, these are common
performance measures but do not have any standardized meaning. The
Company believes that, in addition to conventional measures
prepared in accordance with IFRS, certain investors use this
information to evaluate the Company’s performance and ability to
generate cash flow. Accordingly, it is intended to provide
additional information and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS.
Total Cash Costs per
Ounce of Gold: Total cash costs include mine site operating costs
such as mining, processing, and local administrative costs
(including stock-based compensation related to mine operations),
royalties, production taxes, mine standby costs and current
inventory write downs, if any. Production costs are exclusive
of depreciation and depletion, reclamation, capital, and
exploration costs. Total cash costs per gold ounce are net of
by-product silver sales and are divided by gold ounces sold to
arrive at a per ounce figure.
All-In Sustaining
Costs per Ounce of Gold: A performance measure that reflects all of
the expenditures that are required to produce an ounce of gold from
current operations. While there is no standardized meaning of the
measure across the industry, the Company’s definition is derived
from the AISC definition as set out by the World Gold Council in
its guidance dated June 27, 2013 and November 16, 2018. The World
Gold Council is a non-regulatory, non-profit organization
established in 1987 whose members include global senior mining
companies. The Company believes that this measure will be useful to
external users in assessing operating performance and the ability
to generate free cash flow from current operations. The Company
defines AISC as the sum of total cash costs (per above), sustaining
capital (capital required to maintain current operations at
existing levels), capital lease repayments, corporate general and
administrative expenses, exploration expenditures designed to
increase resource confidence at producing mines, amortization of
asset retirement costs and rehabilitation accretion related to
current operations. AISC excludes capital expenditures for
significant improvements at existing operations deemed to be
expansionary in nature, exploration and evaluation related to
resource growth, rehabilitation accretion and amortization not
related to current operations, financing costs, debt repayments,
and taxes. Total all-in sustaining costs are divided by gold ounces
sold to arrive at a per ounce figure.
Average Realized
Price per Ounce SoldAverage realized price per ounce sold is a
common performance measure that does not have any standardized
meaning. The most directly comparable measure prepared in
accordance with IFRS is revenue from gold sales.
(2) ADJUSTED
NET INCOME
Adjusted net income and adjusted earnings per
share – basic exclude a number of temporary or one-time items
described in the following table, which provides a reconciliation
of adjusted net income to the consolidated financial
statements:
(in thousands – except per share amounts) |
Q1 2022 |
|
|
Q1 2021 |
|
Net income |
$ |
11,701 |
|
|
$ |
16,645 |
|
Addbacks (net of tax
impacts): |
|
|
Transaction costs |
|
4,740 |
|
|
|
- |
|
Adjusted net income |
$ |
16,441 |
|
|
$ |
16,645 |
|
Weighted average number of shares outstanding |
|
444,599 |
|
|
|
334,284 |
|
Adjusted net income (loss) per share - basic |
$ |
0.04 |
|
|
$ |
0.05 |
|
|
|
|
|
|
|
|
|
(3) Consolidated financial and
operational results for Q1 2022 includes the results from the
United States assets acquired and discussed in the MD&A.
Cautionary Note Regarding Forward
Looking Information
This news release includes certain
“forward-looking information” and “forward-looking statements”
(collectively “forward-looking statements”) within the meaning of
applicable Canadian securities legislation. All statements in this
news release that address events or developments that we expect to
occur in the future are forward-looking statements. Forward-looking
statements are statements that are not historical facts and are
identified by words such as "expect", "plan", "anticipate",
"project", "target", "potential", "schedule", "forecast", "budget",
"estimate", "intend" or "believe" and similar expressions or their
negative connotations, or that events or conditions "will",
"would", "may", "could", "should" or "might" occur. Forward-looking
statements necessarily involve assumptions, risks, and
uncertainties, certain of which are beyond Calibre’s control. For a
listing of risk factors applicable to the Company, please refer to
Calibre’s annual information form for the year ended December 31,
2021, available on www.sedar.com. This list is not exhaustive of
the factors that may affect Calibre’s forward-looking
statements.
Calibre’s forward-looking statements are based
on the applicable assumptions and factors management considers
reasonable as of the date hereof, based on the information
available to management at such time. Calibre does not assume any
obligation to update forward-looking statements if circumstances or
management’s beliefs, expectations or opinions should change other
than as required by applicable securities laws. There can be no
assurance that forward-looking statements will prove to be
accurate, and actual results, performance or achievements could
differ materially from those expressed in, or implied by, these
forward-looking statements. Accordingly, undue reliance should not
be placed on forward-looking statements.
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