Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF)
(“Calibre” or the “Company”) announces financial and operating
results for the three and nine months ended September 30, 2022 (“Q3
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
161,530 ounces grossing $296.0 million in revenue, at an average
realized gold price of $1,833/oz;
- Consolidated Total
Cash Costs (“TCC”)1 of $1,141; Nicaragua $1,059/oz & Nevada
$1,491/oz;
- Consolidated All-In
Sustaining Costs (“AISC”)1 of $1,268; Nicaragua $1,141/oz &
Nevada $1,503/oz;
- Cash flow from
operations of $68.6 million;
- Adjusted net
income2 of $38.5 million, or $0.09 per share;
- Considerable
progress made at the Eastern Borosi Project (“EBP”) including the
receipt of mining permits in October 2022 (news release dated
October 28, 2022), the advancement of road upgrades, site
development, and purchase of new mining fleet;
- Continuous
expansion of the high-grade gold discovery along strike at Panteon
North within the Limon Complex (news release dated September 7,
2022);
- Drill results at
the Pan mine demonstrate strong expansion potential (news release
dated August 17, 2022);
- Receipt of
environmental permit to develop the Pavon Central open pit during
Q2 2022, on track for production in 2023 (news release dated June
16, 2022); and
- On track to meet
2022 consolidated production guidance of 220,000 – 235,000 ounces
gold and announced the 2023/2024 grade driven, increasing
production outlook during Q2 2022 (news release dated June 22,
2022).
Q3 2022 Key Results
- Gold sales of
49,260 ounces grossing $85.2 million in revenue, at an average
realized gold price1 of $1,730/oz;
- Strong Nicaragua
TCC and AISC of $1,035 and $1,122 per ounce respectively;
- Consolidated TCC1
and AISC1 of $1,188 and $1,322 per ounce, respectively; and
- Adjusted net
income2 of $6.6 million or $0.01 per basic share.
Darren Hall, President and Chief
Executive Officer of Calibre, stated: “Calibre remains on
track to meet full year production and cost guidance. Despite
industry wide inflationary pressures, our year-to-date AISC of
$1,268 per ounce is favorable to budget, within guidance, and we
reaffirm our commitment to deliver on our full year guidance.
We continue to make excellent progress at our
Eastern Borosi project with the receipt of our mining permit,
purchase of the mining fleet, commencement of road works and site
preparations. These works plus our increased growth capital spend
will accelerate the projects’ contribution to our 2023 grade-driven
production growth.
Our exploration investment continues to deliver
positive results as we expand the high-grade gold discovery at
Panteon North within the Limon Complex and continue to demonstrate
strong resource expansion potential at the Pan mine in Nevada.
The Company continues to deliver positive and
sustainable benefits to all stakeholders. Continued integration of
our sustainability programs across the entire business enables
Calibre the strong social license to operate as we continue to
self-fund exploration and organic growth from operating cash
flow.”
CONSOLIDATED RESULTS: Q3 2022 and YTD
2022
Consolidated
Results3
$'000 (except per share and per ounce amounts) |
Q3 2022 |
Q3 2021 |
YTD 2022 |
YTD 2021 |
Revenue |
$ |
85,201 |
|
$ |
79,204 |
|
$ |
296,026 |
|
$ |
240,023 |
|
Cost of sales, including
depreciation and amortization |
$ |
(69,735 |
) |
$ |
(52,477 |
) |
$ |
(220,772 |
) |
$ |
(159,033 |
) |
Mine operating income |
$ |
15,466 |
|
$ |
26,727 |
|
$ |
75,254 |
|
$ |
80,990 |
|
Net income |
$ |
1,713 |
|
$ |
15,021 |
|
$ |
28,842 |
|
$ |
43,550 |
|
Net income per share
(basic) |
$ |
0.00 |
|
$ |
0.04 |
|
$ |
0.07 |
|
$ |
0.13 |
|
Net income per share (fully
diluted) |
$ |
0.00 |
|
$ |
0.04 |
|
$ |
0.06 |
|
$ |
0.12 |
|
Adjusted net income2 |
$ |
6,624 |
|
$ |
15,021 |
|
$ |
38,540 |
|
$ |
43,550 |
|
Adjusted net income per share
(basic)2 |
$ |
0.01 |
|
$ |
0.04 |
|
$ |
0.09 |
|
$ |
0.13 |
|
Cash provided by operating
activities |
$ |
7,101 |
|
$ |
28,341 |
|
$ |
68,593 |
|
$ |
83,211 |
|
Capital investment in mine
development and PPE |
$ |
31,274 |
|
$ |
15,678 |
|
$ |
68,747 |
|
$ |
51,509 |
|
Capital
investment in exploration |
$ |
12,375 |
|
$ |
4,364 |
|
$ |
39,320 |
|
$ |
14,647 |
|
Gold ounces produced |
|
49,081 |
|
|
44,579 |
|
|
160,704 |
|
|
133,537 |
|
Gold
ounces sold |
|
49,260 |
|
|
44,471 |
|
|
161,530 |
|
|
134,035 |
|
Average realized gold price ($/oz)1 |
$ |
1,730 |
|
$ |
1,781 |
|
$ |
1,833 |
|
$ |
1,791 |
|
Total Cash Costs ($/oz)1 |
$ |
1,188 |
|
$ |
980 |
|
$ |
1,141 |
|
$ |
1,008 |
|
AISC
($/oz)1 |
$ |
1,322 |
|
$ |
1,097 |
|
$ |
1,268 |
|
$ |
1,135 |
|
Operational Results
NICARAGUA |
Q3 2022 |
Q3 2021 |
YTD 2022 |
YTD 2021 |
Ore mined (t) |
362,843 |
538,664 |
1,074,210 |
1,532,647 |
Ore milled (t) |
397,229 |
497,507 |
1,154,859 |
1,378,689 |
Grade (g/t Au) |
3.74 |
3.20 |
3.93 |
3.27 |
Recovery (%) |
90.5 |
92.2 |
90.3 |
92.3 |
Gold produced (ounces) |
38,928 |
44,579 |
130,635 |
133,537 |
Gold
sold (ounces) |
39,076 |
44,471 |
130,842 |
134,035 |
|
|
|
|
|
NEVADA |
Q3 2022 |
Q3 2021 |
YTD 2022 |
YTD 2021 |
Ore mined (t) |
1,337,275 |
- |
3,449,175 |
- |
Ore placed on leach pad
(t) |
1,336,109 |
- |
3,456,351 |
- |
Grade
(g/t Au) |
0.37 |
- |
0.40 |
- |
Gold produced (ounces) |
10,153 |
- |
30,069 |
- |
Gold
sold (ounces) |
10,184 |
- |
30,688 |
- |
NICARAGUA MINING OPERATIONS
Open pit gold grades increased 27% in Q3 2022
versus Q3 2021 as a result of new higher-grade zones. The Company
is expecting grades to continue to increase in 2023 and 2024.
Mining |
Q3 2022 |
Q3 2021 |
YTD 2022 |
YTD 2021 |
Ore Mined – open pit (t) |
288,500 |
437,964 |
824,999 |
1,241,107 |
Ore Mined – open pit average
grade (g/t Au) |
3.30 |
2.59 |
3.65 |
2.68 |
Waste
Mined – open pit (t) |
3,570,923 |
3,800,635 |
10,289,517 |
12,262,599 |
Ore Mined – underground (t) |
74,343 |
100,700 |
249,210 |
291,540 |
Ore
Mined – underground average grade (g/t Au) |
4.64 |
4.78 |
4.80 |
4.20 |
Total Ore Mined (t) |
362,843 |
538,664 |
1,074,210 |
1,532,647 |
Total
Ore Mined – average grade (g/t Au) |
3.57 |
3.00 |
3.91 |
2.97 |
NICARAGUA PROCESSING
Limon
Gold production was 25% higher in Q3 2022 versus
Q3 2021, as a result of increased tonnes and grades from the Limon
Central and La Tigra pits.
Limon Processing |
Q3 2022 |
Q3 2021 |
YTD 2022 |
YTD 2021 |
Ore Milled (t) |
126,373 |
120,724 |
373,667 |
372,338 |
Grade (g/t Au) |
5.13 |
4.73 |
5.30 |
4.40 |
Recovery (%) |
89.4 |
90.3 |
89.4 |
89.7 |
Gold Produced (ounces) |
19,488 |
15,649 |
57,927 |
47,753 |
Gold
Sold (ounces) |
19,482 |
15,609 |
57,952 |
48,042 |
Libertad
Gold production was down, and gold sold delayed
vs Q3 2021, due to an unplanned outage in the carbon plant. Mining
and milling continued resulting in a gold in-circuit inventory
increase vs end of Q2 2022 levels. As of quarter end, the plant is
up and running. Year over year average gold grades have increased
15% and are expected to increase in 2023.
Libertad Processing |
Q3 2022 |
Q3 2021 |
YTD 2022 |
YTD 2021 |
Ore Milled (t) |
270,856 |
376,783 |
781,192 |
1,006,351 |
Grade (g/t Au) |
3.09 |
2.71 |
3.28 |
2.86 |
Recovery (%) |
91.3 |
93.3 |
91.1 |
93.8 |
Gold Produced (ounces) |
19,440 |
28,930 |
72,708 |
85,784 |
Gold
Sold (ounces) |
19,594 |
28,862 |
72,890 |
85,993 |
NEVADA MINING & PROCESSING
OPERATIONS
Mining |
Q3 2022 |
Q3 2021 |
YTD 2022 |
YTD 2021 |
Ore mined (t) |
1,337,275 |
- |
3,449,175 |
- |
Waste mined (t) |
2,989,322 |
- |
8,642,219 |
- |
Total
mined (t) |
4,326,597 |
- |
12,091,393 |
- |
Grade (g/t Au) |
0.37 |
- |
0.40 |
- |
Gold
mined (ounces) |
16,116 |
- |
44,153 |
- |
Processing |
Q3 2022 |
Q3 2021 |
YTD 2022 |
YTD 2021 |
Ore placed on leach pad
(t) |
1,336,109 |
- |
3,456,351 |
- |
Grade (g/t Au) |
0.37 |
- |
0.40 |
- |
Contained gold (ounces) |
15,862 |
- |
44,031 |
- |
Gold produced |
10,153 |
- |
30,069 |
- |
Gold
sold (ounces) |
10,184 |
- |
30,688 |
- |
Operations at the Pan mine in Nevada are
included in the consolidated financial statements from January 12,
2022.
Mining operations at Pan advanced per plan
through Q3 2022. During the quarter the value of the ounces
contained in the heap leach pad were revalued to reflect an updated
inventory model calculation. This resulted in an adjustment of $3.3
million or a $289 AISC per ounce negative impact for US operations.
Calibre and third-party consultants are reviewing the inventory to
determine if historic recovery models understate full cycle
recoveries; however, YTD AISC for Nevada are $1,503 per ounce which
continue to be in line with guidance.
CONSOLIDATED Q3 and YTD 2022 FINANCIAL
REVIEW
Q3 2022 TCC(1) and AISC(1) were $1,188 per ounce
and $1,322 per ounce respectively, as compared to $980 and $1,097
per ounce in Q3 2021. The higher AISC in the quarter over Q3 2021
was due to inflationary impacts related to diesel and other
commodities, an adjustment of the Pan heap leach inventory by $2.9
million ($3.3 million including depreciation), and higher cash
costs tied to operations at the Pan mine.
YTD consolidated 2022 TCC(1) and AISC(1) were
$1,141 per ounce and $1,268 per ounce which are within 2022
guidance compared to YTD 2021 cash costs of $1,008 and AISC of
$1,135 per ounce. The higher cash costs and AISC in 2022 relate to
commodity inflation and the costs associated with the operation of
the Nevada assets.
Expenses and Net Income
For the three and nine months ended September
30, 2022, corporate G&A was $3.1 million and $9.4 million
compared to $1.6 million and $5.4 million for the same periods in
2021. Corporate administration was higher than the comparable 2021
periods due partially to the addition of G&A expenses related
to the Nevada assets as well as increased salaries, professional
fees, travel and marketing expenses when compared to prior
periods.
Share based compensation for Q3 2022 consisted
of a credit of $0.05 million while YTD 2022 had a charge of $1.3
million (Q3 2021 - $0.4 million, YTD 2021 $2.5 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 $7.1
million during Q3 2022 and $25.8 million YTD 2022, compared to the
same periods in 2021 of $9.2 million and $28.2 million. Q3 2022 saw
an increase in current and deferred tax expense when compared to Q3
2021, from lower pre-tax income and the prior period utilized
previously unrecognized loss carry forwards.
As a result of the above, net income per share
in Q3 2022 was $0.00 for both basic and diluted (Q3 2021: $0.04 for
both basic and diluted). YTD 2022 net income per share was $0.07
for basic and $0.06 for diluted (YTD 2021: $0.13 for basic and
$0.12 for diluted).
FINANCING AND INVESTMENT
ACTIVITIES
Calibre, through its Nicaragua subsidiary DMSA,
established a secured loan facility with Banco Lafise in Nicaragua
to borrow up to $19 million over a 3-year period to facilitate the
purchase and importation of mining equipment for the Eastern Borosi
Project. The agreement allows DMSA to borrow funds at US Prime rate
plus a margin of 2.25%, with a floor of 7% and a maximum of 10%. In
addition, the agreement did not include any material arrangement
fees, and it allows DMSA to repay early without penalty.
2022 UPDATED GUIDANCE
|
ORIGINAL CONSOLIDATED2022
GUIDANCE |
REVISED CONSOLIDATED 2022 GUIDANCE NOV 2,
2022 |
NICARAGUA |
NEVADA |
Gold Production/Sales (ozs) |
220,000 - 235,000 |
220,000 – 235,000 |
180,000 - 190,000 |
40,000 – 45,000 |
Total Cash Costs ($/ounce)1 |
$1,075 - $1,150 |
$1,075 - $1,150 |
$1,000 - $1,100 |
$1,400 - $1,500 |
AISC ($/ounce)1 |
$1,200 - $1,275 |
$1,200 - $1,275 |
$1,100 - $1,200 |
$1,450 - $1,550 |
Growth Capital ($ million) |
$55 - $60 |
$84 - $87 |
$78 - $80 |
$6 - $7 |
Exploration Capital ($ million) |
$40 - $42 |
$45 - $47 |
$25 - $26 |
$20 - $21 |
Calibre has updated its 2022 growth and
exploration capital guidance to reflect approved activities.
Consolidated gold production and cost guidance remains unchanged.
Exploration capital guidance has been slightly increased in both
Nevada and Nicaragua as we continue to see success in our discovery
drilling, resource delineation, infill, and geotechnical drilling
as well as early-stage generative exploration to test numerous
satellite targets across all assets. Growth capital guidance has
increased in Nicaragua as a result of Eastern Borosi and Pavon
Central mine development. The Company committed to $19 million of
new mining equipment for Eastern Borosi, of which $10 million was
paid for 2022. As a result of recently approved EBP mine
development permits the Company has increased activity and is ahead
of schedule.
With $66.5 million in cash and restricted cash
at the end of the quarter and strong cashflow from our producing
assets, the Company remains able to self fund and accelerate
additional production growth opportunities while continuing to
invest in value accretive exploration to support Calibre’s
future.
Q3 2022 FINANCIAL RESULTS CONFERENCE
CALL DETAILS
Third quarter financial results will be released
Wednesday, November 2, 2022, and management will be hosting a
conference call to discuss the results and outlook in more
details.
Date: |
Wednesday, November 2, 2022 |
Time: |
9:00 a.m. (ET) |
Webcast Link: |
https://edge.media-server.com/mmc/p/b6oxp5rp |
Instructions for obtaining conference call
dial-in numbers:
- All parties must register at the link below to participate in
the Calibre Mining, Q3 conference call.
- Register by clicking
https://register.vevent.com/register/BId2373aa1f3f04d759a4eaf20463df234
- 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, 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) |
Q3 2022 |
Q3 2021 |
YTD 2022 |
YTD 2021 |
Net income |
$ |
1,713 |
|
$ |
15,021 |
|
$ |
28,842 |
|
$ |
43,550 |
|
Addbacks (net of tax
impacts): |
|
|
|
|
Transaction costs |
|
55 |
|
|
- |
|
|
4,842 |
|
|
- |
|
Nevada inventory write down |
|
2,592 |
|
|
- |
|
|
2,592 |
|
|
- |
|
Mineral property write-off |
|
2,265 |
|
|
- |
|
|
2,265 |
|
|
- |
|
Adjusted net income |
$ |
6,624 |
|
$ |
15,021 |
|
$ |
38,540 |
|
$ |
43,550 |
|
Weighted average number of shares outstanding |
|
453,932 |
|
|
341,351 |
|
|
443,009 |
|
|
336,984 |
|
Adjusted net income (loss) per share – basic |
$ |
0.01 |
|
$ |
0.04 |
|
$ |
0.09 |
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Consolidated
financial and operational results for Q3 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 http://www.sedar.com. This list is not
exhaustive of the factors that may affect Calibre’s forward-looking
statements such as potential sanctions implemented as a result of
the United States Executive Order 13851 dated October 24, 2022.
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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