Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF)
(“Calibre” or the “Company”) is pleased to provide 2020 production
and cost guidance; all dollar amounts are expressed in US dollars.
Calibre is expecting 2020 consolidated gold production of
between 140,000 and 150,000 ounces at Total Cash Costs1 of between
$840 and $890 an ounce, with All-In Sustaining Costs2 of between
$1,020 and $1,060 per ounce. Calibre is expected to generate
significant operating cash flows that will allow it to reinvest
aggressively in resource expansion and discovery drilling,
advancing the high-grade Limon Central open-pit, and progressing
the Pavon gold project as a satellite ore source for the La
Libertad mill.
Russell Ball, Chief Executive Officer of Calibre stated: “I look
forward to the first full year of operations at El Limon and La
Libertad under Calibre management. With significant operating
cash flow generation, we are investing in our operations to add
value for all stakeholders through the drill-bit and by focusing on
extending the mine life at La Libertad.”
2020 Production and Cost
Guidance
|
El Limon |
La Libertad |
Consolidated |
Gold Production
(ounces) |
70,000 - 75,000 |
70,000 - 75,000 |
140,000 -
150,000 |
Total Cash Costs
($/ounce)(1) |
$740 - $780 |
$930 - $970 |
$840 -
$890 |
AISC ($/ounce)(2) |
$875 - $925 |
$1,050 - $1,100 |
$1,020 -
$1,060 |
Growth Capital ($
million) |
$14 - $16 |
$10 - $12 |
$24 -
$28 |
Near-Mine Drilling ($
million) |
$3 - $4 |
$9 - $10 |
$12 -
$14 |
G&A ($
million) |
N/A |
N/A |
$6 -
$7 |
Calibre is significantly investing in operations through the
drill bit and will have a total of six drills turning by the end of
January 2020.
Qualified Person
Darren Hall, MAusIMM, MSME, SVP & Chief Operating Officer,
Calibre Mining Corp. is a “qualified person” as set out under NI
43-101 has reviewed and approved the scientific and technical
information in this press release.
ON BEHALF OF THE BOARD
“Russell Ball”
Russell BallChief Executive Officer
For further information, please contact:
Ryan King Vice President, Corporate Development
& IR Calibre Mining Corp. T: 604.628.1010 E:
calibre@calibremining.comW: www.calibremining.com About
Calibre Mining Corp.
Calibre Mining is a Canadian-listed gold mining and exploration
company with two 100%-owned operating gold mines in Nicaragua. The
Company is focused on sustainable operating performance and a
disciplined approach to growth.
Notes: Non-IFRS Disclosure
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 Cash
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.
(1) 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.
(2) 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, in-mine exploration expenses and
rehabilitation accretion and amortization 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
growth projects, 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.
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, including: the Company's projected gold production
from El Limon (the "El Limon Production"); the
Company's projected gold production from La Libertad (the
"La Libertad Production"); and outlook, guidance,
forecasts, or estimates relating to the El Limon Production or the
La Libertad Production. 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 generally,
although not always, 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. All such forward-looking statements are based on the
opinions and estimates of management as of the date such statements
are made.
Forward-looking statements necessarily involve assumptions,
risks and uncertainties, certain of which are beyond Calibre’s
control, including risks associated with or related to: the
volatility of metal prices; changes in tax laws; the dangers
inherent in exploration, development and mining activities; the
uncertainty of reserve and resource estimates; cost or other
estimates; actual production, development plans and costs differing
materially from the Company's expectations; the ability to obtain
and maintain any necessary permits, consents or authorizations
required for mining activities; the current ongoing instability in
Nicaragua and the ramifications thereof; environmental regulations
or hazards and compliance with complex regulations associated with
mining activities; the availability of financing and debt
activities, including potential restrictions imposed on Calibre’s
operations as a result thereof and the ability to generate
sufficient cash flows; remote operations and the availability of
adequate infrastructure; fluctuations in price and availability of
energy and other inputs necessary for mining operations; shortages
or cost increases in necessary equipment, supplies and labour; the
reliance upon contractors, third parties and joint venture
partners; the dependence on key personnel and the ability to
attract and retain skilled personnel; the risk of an uninsurable or
uninsured loss; adverse climate and weather conditions; litigation
risk; competition with other mining companies; community support
for Calibre’s operations, including risks related to strikes and
the halting of such operations from time to time; conflicts with
small scale miners; failures of information systems or information
security threats; compliance with anti-corruption laws, and
sanctions or other similar measures. The 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. These assumptions and factors include, but are not
limited to, assumptions and factors related to Calibre’s ability to
carry on current and future operations, including: development and
exploration activities; the timing, extent, duration and economic
viability of such operations, including any mineral resources or
reserves identified thereby; the accuracy and reliability of
estimates, projections, forecasts, studies and assessments; the
availability and cost of inputs; the price and market for outputs,
including gold; the timely receipt of necessary approvals or
permits; the ability to meet current and future obligations; the
ability to obtain timely financing on reasonable terms when
required; the current and future social, economic and political
conditions; and other assumptions and factors generally associated
with the mining industry.
Calibre's forward-looking statements are based on the opinions
and estimates of management and reflect their current expectations
regarding future events and operating performance and speak only as
of the date hereof. 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, no assurance can be given that any events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do, what benefits or liabilities Calibre
will derive therefrom. For the reasons set forth above, undue
reliance should not be placed on forward-looking statements.
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