Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF)
(“Calibre” or the “Company”) announces financial and operating
results for the three and six months ended June 30, 2022 (“Q2
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 (“YTD”) 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 Costs (“TCC”)1 of $1,121; Nicaragua $1,069/oz & Nevada
$1,351/oz;
- Consolidated All-In
Sustaining Costs (“AISC”)1 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: $0.08 for both).
2022 GUIDANCE
|
CONSOLIDATED2022 GUIDANCE |
NICARAGUA2022 GUIDANCE |
NEVADA2022 GUIDANCE |
Gold Production/Sales (ounces) |
220,000 - 235,000 |
180,000 - 190,000 |
40,000 – 45,000 |
Total Cash Costs ($/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 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.
Q2 2022 FINANCIAL RESULTS CONFERENCE
CALL DETAILS
Second quarter financial results will be
released after market close on Tuesday, August 9, 2022, and
management will be hosting a conference call to discuss the results
and outlook in more detail.
Date: |
|
Wednesday,
August 10, 2022 |
Time: |
|
10:00 a.m. (EDT) |
Webcast Link: |
|
https://edge.media-server.com/mmc/p/y5ismjno |
Instructions for obtaining conference call
dial-in numbers:
- All parties must register at the
link below to participate in the Calibre Mining, Q2 conference
call.
- Register by clicking
https://register.vevent.com/register/BI8dee59d100bc48b59353279a56f79893
- Once registered you will receive
the dial-in numbers and PIN number for input at the time of the
call.
The live webcast and registration link can be
accessed here and 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 PersonDarren 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) |
Q2 2022 |
Q2 2021 |
YTD 2022 |
YTD 2021 |
Net income |
$ |
15,428 |
$ |
11,885 |
$ |
27,129 |
$ |
28,530 |
Addbacks (net of tax
impacts): |
|
|
|
|
Transaction costs |
|
47 |
|
- |
|
4,787 |
|
- |
Adjusted net income |
$ |
15,475 |
$ |
11,885 |
$ |
31,916 |
$ |
28,530 |
Weighted average number of shares outstanding |
|
448,735 |
|
337,163 |
|
439,893 |
|
335,723 |
Adjusted net income (loss) per share – basic |
$ |
0.03 |
$ |
0.04 |
$ |
0.07 |
$ |
0.08 |
|
|
|
|
|
|
|
|
|
(3) Consolidated financial and
operational results for Q2 and YTD 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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