Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF)
(“Calibre” or the “Company”) announces financial and operating
results for the three (“Q2 2023’’) and six months (“YTD 2023”)
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
-
Record gold sales of 69,009 ounces with $139.3 million total
revenue, at an average realized gold price1 of $1,974/oz;
-
Consolidated Total Cash Costs (“TCC”)1 of $977, and All-In
Sustaining Costs (“AISC”)1 of $1,178 per ounce;
-
Record adjusted net income2 of $33.6 million; $0.07 per basic
share, a 133% increase over Q2 2022;
-
Free cash flow of $15.9 million reflecting strong operating
results3;
-
Cash on hand of $77.0 million, a 32% increase over Q1 2023;
-
Delivered a fourth new open pit mine with ore deliveries from the
Eastern Borosi mine to the Libertad mill;
-
Initial drilling yielded high-grade results from the past producing
Talavera deposit within the Limon Mine Complex, reaffirming the
Company’s overall resource expansion and discovery potential;
-
Positive Higher-grade Near Surface Drilling at the Pan Gold Mine,
Nevada; and
-
2022 Sustainability Report illustrates a focused commitment to
responsible mining business practices.
Year-to-Date (“YTD”) 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 $0.07 for both basic and diluted.
2023 GUIDANCE
|
CONSOLIDATED2023 GUIDANCE |
NICARAGUA2023 GUIDANCE |
NEVADA2023 GUIDANCE |
Gold Production/Sales (ounces) |
250,000 – 275,000 |
210,000 - 230,000 |
40,000 – 45,000 |
Total Cash Costs ($/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.
Q2 and YTD 2023 FINANCIAL RESULTS
CONFERENCE CALL DETAILS
Second quarter and YTD 2023 financial results
will be released after market close on Wednesday, August 9, 2023,
and management will be hosting a conference call on Thursday,
August 10 to discuss the results and outlook in more detail.
Date: |
Thursday, August 10, 2023 |
Time: |
10:00 a.m. (EDT) |
Webcast Link: |
https://edge.media-server.com/mmc/p/foapjc5f |
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/BI90d77f8cec114018bd6e9e389a376de5
and completing the online registration form.
- 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 2023 |
Q2 2022 |
YTD 2023 |
YTD 2022 |
Net income |
$ |
33,203 |
|
$ |
15,428 |
|
$ |
49,612 |
|
$ |
27,129 |
|
Addbacks (net of tax
impacts): |
|
|
|
|
Other corporate expenses |
|
430 |
|
|
47 |
|
|
512 |
|
|
4,787 |
|
Nevada inventory write down |
|
- |
|
|
- |
|
|
(616 |
) |
|
- |
|
Mineral property write-off |
|
- |
|
|
- |
|
|
323 |
|
|
- |
|
Adjusted net income |
$ |
33,633 |
|
$ |
15,475 |
|
$ |
49,831 |
|
$ |
31,916 |
|
Weighted average number of shares outstanding |
|
454,978 |
|
|
448,735 |
|
|
453,005 |
|
|
439,893 |
|
Adjusted net income (loss) per share – basic |
$ |
0.07 |
|
$ |
0.03 |
|
$ |
0.11 |
|
$ |
0.07 |
|
(3) FREE CASH FLOW
Free cash flow is calculated by subtracting
expenditures on mineral properties, plant and equipment from net
cash provided by operating activities.
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 in this news release include, but are not limited to:
the Company’s expectations toward higher grades mined and processed
going forward; statements relating to the Company’s 2023 priority
resource expansion opportunities; the Company’s metal price and
cut-off grade assumption. 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
(“AIF”) for the year ended December 31, 2022, and its management
discussion and analysis (“MD&A”) for the year ended December
31, 2022, all available on the Company’s SEDAR+ profile at
www.sedarplus.ca. 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. Such assumptions include but
are not limited to: the Company being able to mine and process
higher grades and keep production costs relatively flat going
forward; there not being an increase in production costs as a
result of any supply chain issues or ongoing COVID-19 restrictions;
there being no adverse drop in metal price or cut-off grade at the
Company’s Nevada properties. 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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