Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF)
(“Calibre” or the “Company”) announces financial and operating
results for the three months and year ended December 31, 2022.
Annual Consolidated Financial Statements and the corresponding
Management Discussion & Analysis for the year ended December
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
unless otherwise stated.
2022 HIGHLIGHTS
- Record gold sales of 222,991 ounces grossing $403.1 million in
revenue, at an average realized gold price1 of $1,808/oz;
- Consolidated Total Cash Costs (“TCC”)1 of $1,129/oz; Nicaragua
$1,065/oz & Nevada $1,405/oz
- Consolidated All-In Sustaining Costs (“AISC”)1 of $1,259/oz;
Nicaragua $1,154/oz & Nevada $1,421/oz;
- Generated $96.7 million in cash flow from operations;
- Adjusted net income2 of $51.4 million, or $0.12 per share;
- Pavon Central open pit mining permit was received in Q2, with
significant advancement throughout the year resulting in grade
driven growth on track for production during Q1, 2023;
- Eastern Borosi Project (“EBP”) open pit and underground mining
permits were received in Q4, with considerable progress made
throughout the year setting up for production during Q2, 2023;
- Significant exploration results across numerous assets
including a new high-grade discovery within the Limon mine complex
at Panteon North and the multi-kilometre VTEM Gold Corridor (news
releases dated September 7, 2022, June 27, 2022 and December 8,
2022), a second new discovery in Nevada at the Pan mine (news
release dated January 17, 2023) and Gold Rock Carlin-style results
(news release dated November 22, 2022) demonstrate higher grade and
expansion potential;
- Consolidated 2022 Mineral Reserves increased 33% to 1.35 Moz
over 2021, net of production depletion (news release dated February
14, 2023) and;
- Launched the Company’s five-year sustainability strategy,
ensuring responsible and sustainable mining practices and made
significant progress in the self assessment of the World Gold
Councils’ Responsible Mining Principles.
Q4 2022 HIGHLIGHTS
- Gold sales of 61,461 ounces grossing $107.0 million in revenue
at an average realized gold price1 of $1,742/oz);
- TCC1 of $1,097/oz; Nicaragua $1,079/oz & Nevada
$1,174/oz
- AISC1 of $1,236/oz; Nicaragua $1,188/oz & Nevada
$1,201/oz
- Net income of $14.5 million; basic net income per share of
$0.03 (Q4 2021: $0.04);
Darren Hall, President and Chief
Executive Officer of Calibre, stated: “The Calibre team
continues to deliver on its commitment to grow the Company through
reinvestment in exploration, mine development and acquisition. Our
investments have resulted in new discoveries, increased Mineral
Reserve and Mineral Resources, delivery of key mine permits,
development of new high-grade mines, all of which will contribute
to significant production growth. Calibre has continued to grow
production approximately 20% year over year while Mineral Reserves
have grown 370% since 2019 to 1.35 million ounces with record
grades in our Nicaraguan portfolio. 2023 production growth, of 20%
to 250,000 – 275,000 ounces, is fueled by increased grades from
Pavon Central and Eastern Borosi. I am pleased with the team’s
progress at Pavon Central open pit, year to date delivering 800 tpd
at an average grade of 6 g/t gold.
I believe we have set a solid foundation with
multiple years of Mineral Reserve life in front of us with strong
organic growth opportunities and new gold discoveries to expand our
existing assets. During 2022, within both operating jurisdictions,
we discovered new zones and, in the case of Panteon North, we went
from discovery to a Mineral Reserve estimate outlining 244,000
ounces at 9.45 g/t gold in less than 12 months. During 2023 we will
advance a multi-rig drill program that will follow up at the VTEM
Gold Corridor where we discovered 11.6 g/t gold over 9 metres, 1.5
km along trend of Panteon North. At the Golden Eagle Project in
Washington State, we are awaiting additional results from the Phase
I drill program that intersected high-grade mineralization
including 4.30 g/t Au over 92 metres.
The continued integration of our sustainability
programs across the business provides Calibre with a strong social
license to operate successfully and we remain committed to self
fund exploration and organic growth from strong operating cash flow
while delivering positive and sustainable benefits to all
stakeholders.”
CONSOLIDATED RESULTS: Q4 2022 AND FY 2022
Consolidated Financial
Results
$'000 (except per share and per ounce amounts, as noted) |
|
Q4 2022 |
|
|
Q4 2021 |
|
|
2022 |
|
|
2021 |
|
Revenue |
$ |
107,046 |
|
$ |
88,109 |
|
$ |
403,072 |
|
$ |
328,132 |
|
Cost of sales, including
depreciation and amortization |
$ |
(78,697 |
) |
$ |
(64,850 |
) |
$ |
(299,469 |
) |
$ |
(223,883 |
) |
Mine operating income |
$ |
28,349 |
|
$ |
23,259 |
|
$ |
103,603 |
|
$ |
104,249 |
|
Net income |
$ |
14,502 |
|
$ |
14,649 |
|
$ |
43,344 |
|
$ |
58,199 |
|
Net income per share
(basic) |
$ |
0.03 |
|
$ |
0.04 |
|
$ |
0.10 |
|
$ |
0.17 |
|
Net income per share (fully
diluted) |
$ |
0.03 |
|
$ |
0.04 |
|
$ |
0.09 |
|
$ |
0.16 |
|
Adjusted net income2 |
$ |
12,882 |
|
$ |
15,456 |
|
$ |
51,422 |
|
$ |
59,842 |
|
Adjusted net income per share
(basic) |
$ |
0.03 |
|
$ |
0.05 |
|
$ |
0.12 |
|
$ |
0.18 |
|
Cash provided by operating
activities |
$ |
28,064 |
|
$ |
22,389 |
|
$ |
96,657 |
|
$ |
105,600 |
|
Capital investment in mine
development and PPE |
$ |
30,041 |
|
$ |
11,520 |
|
$ |
98,788 |
|
$ |
63,029 |
|
Capital
investment in exploration |
$ |
7,083 |
|
$ |
6,710 |
|
$ |
46,403 |
|
$ |
21,357 |
|
Gold ounces produced |
|
61,294 |
|
|
49,218 |
|
|
221,999 |
|
|
185,755 |
|
Gold
ounces sold |
|
61,461 |
|
|
49,207 |
|
|
222,991 |
|
|
183,242 |
|
Average realized gold price ($/oz)1 |
$ |
1,742 |
|
$ |
1,791 |
|
$ |
1,808 |
|
$ |
1,791 |
|
Total Cash Costs ($/oz)1 |
$ |
1,097 |
|
$ |
1,026 |
|
$ |
1,129 |
|
$ |
1,013 |
|
AISC
($/oz)1 |
$ |
1,236 |
|
$ |
1,139 |
|
$ |
1,259 |
|
$ |
1,136 |
|
Operating Results
NICARAGUA |
Q4 2022 |
Q4 2021 |
2022 |
2021 |
Ore mined (t) |
415,543 |
559,953 |
1,489,753 |
2,092,598 |
Ore milled (t) |
460,181 |
579,891 |
1,615,039 |
1,958,580 |
Grade (g/t Au) |
3.70 |
2.99 |
3.87 |
3.19 |
Recovery (%) |
93.1 |
90.1 |
90.9 |
91.7 |
Gold produced (ounces) |
49,854 |
49,218 |
180,490 |
182,755 |
Gold
sold (ounces) |
50,032 |
49,207 |
180,875 |
183,242 |
|
|
|
|
|
NEVADA |
Q4 2022 |
Q4 2021 |
2022 |
2021 |
Ore mined (t) |
1,889,721 |
- |
5,338,896 |
- |
Ore placed on leach pad
(t) |
1,866,270 |
- |
5,322,621 |
- |
Grade
(g/t Au) |
0.39 |
- |
0.39 |
- |
Gold produced (ounces) |
11,440 |
- |
41,509 |
- |
Gold
sold (ounces) |
11,429 |
- |
42,117 |
- |
NICARAGUA MINING OPERATIONS
Gold grades increased 26% in 2022 vs 2021
because of new higher-grade zones coming into the production plan
and the Company is expecting grades to continue to increase in 2023
and 2024.
Mining Operating Results |
Q4 2022 |
Q4 2021 |
2022 |
2021 |
Ore Mined – open pit (t) |
337,845 |
442,560 |
1,162,845 |
1,683,666 |
Ore Mined – open pit (t) –
average grade (g/t Au) |
3.37 |
2.85 |
3.57 |
2.73 |
Waste
Mined – open pit (t) |
3,927,838 |
2,591,783 |
14,217,355 |
14,854,381 |
Ore Mined – underground (t) |
77,698 |
117,393 |
326,908 |
408,932 |
Ore
Mined – underground – average grade (g/t Au) |
5.12 |
5.08 |
4.87 |
4.42 |
Total Ore Mined (t) |
415,543 |
559,953 |
1,489,753 |
2,092,598 |
Total
Ore Mined – average grade (g/t Au) |
3.70 |
3.32 |
3.85 |
3.06 |
NICARAGUA PROCESSING
Limon
Gold production was 13% higher in 2022 versus
2021, as a result of higher grades from Limon Central, Tigra open
pits and Panteon underground.
Limon Processing |
Q4 2022 |
Q4 2021 |
2022 |
2021 |
Ore Milled (t) |
120,815 |
123,330 |
494,481 |
495,668 |
Grade (g/t Au) |
5.36 |
5.59 |
5.31 |
4.69 |
Recovery (%) |
88.6 |
89.8 |
89.2 |
89.7 |
Gold Produced (ounces) |
18,244 |
19,599 |
76,171 |
67,352 |
Gold
Sold (ounces) |
18,388 |
19,578 |
76,341 |
67,620 |
Libertad
Gold grades increased 21% as a result of new
higher-grade zones, yet gold production was down in 2022 versus
2021 due to an unplanned equipment failure in the carbon plant and
less lower grade stock piles processed.
Libertad Processing |
Q4 2022 |
Q4 2021 |
2022 |
2021 |
Ore Milled (t) |
339,366 |
456,561 |
1,120,559 |
1,462,912 |
Grade (g/t Au) |
3.11 |
2.29 |
3.23 |
2.68 |
Recovery (%) |
94.7 |
90.3 |
92.1 |
92.8 |
Gold Produced (ounces) |
31,611 |
29,619 |
104,319 |
115,403 |
Gold
Sold (ounces) |
31,644 |
29,629 |
104,534 |
115,622 |
NEVADA MINING & PROCESSING
OPERATIONS
Mining |
Q4 2022 |
Q4 2021 |
2022 |
2021 |
Ore mined (t) |
1,889,721 |
- |
5,338,896 |
- |
Waste mined (t) |
2,274,772 |
- |
10,916,990 |
- |
Total
mined (t) |
4,164,493 |
- |
16,255,886 |
- |
Grade (g/t Au) |
0.38 |
- |
0.39 |
- |
Gold
mined (ounces) |
23,101 |
- |
67,253 |
- |
Processing |
Q4 2022 |
Q4 2021 |
2022 |
2021 |
Ore placed on leach pad
(t) |
1,866,270 |
- |
5,322,621 |
- |
Grade (g/t Au) |
0.39 |
- |
0.39 |
- |
Contained gold (ounces) |
23,187 |
- |
67,217 |
- |
Gold produced |
11,440 |
- |
41,509 |
- |
Gold
sold (ounces) |
11,429 |
- |
42,117 |
- |
Operations at the Pan mine in Nevada are
included in the consolidated financial statements from January 12,
2022.
Mining operations at Pan advanced as planned
throughout Q4 2022. During Q3 2022, the value of ounces contained
in the heap leach pad were reduced by $3.3 million ($2.9 million
cash costs plus $0.4 million non-cash) to reflect the potential net
realizable value based on the Q3 average gold price of $1,728, less
process and completion costs. This write down was subsequently
partially reversed by $2.1 million during Q4 2022, of which $0.2
million was non-cash.
CONSOLIDATED Q4 2022 AND FY 2022
FINANCIAL REVIEW
Q4 2022 TCC and AISC were $1,097 per ounce and
$1,236 per ounce respectively, as compared to $1,026 and $1,139 per
ounce in Q4 2021. The higher AISC in Q4 2022 was due to
inflationary impacts related to diesel, and other commodities, and
higher Cash Costs tied to operations at the Pan mine.
Full year 2022 consolidated TCC and AISC were
$1,129 per ounce and $1,259 per ounce respectively, within 2022
guidance. The higher Cash Costs and AISC in 2022 versus 2021 relate
to commodity inflation, and the costs associated with the operation
of the Nevada assets.
Expenses and Net Income
For Q4 2022 and the year 2022, corporate G&A
was $2.8 million and $12.2 million compared to $2.1 million and
$7.6 million for the same periods in 2021. Corporate administration
for 2022 was higher than the comparable 2021 periods due partially
to the addition of G&A expenses related to the Nevada assets.
The remaining variance is mostly attributed to increased salaries,
professional fees and increased travel and marketing expenses when
compared to prior periods.
2023 GUIDANCE
|
CONSOLIDATED |
NICARAGUA |
NEVADA |
Gold Production/Sales (ounces) |
250,000 - 275,000 |
210,000 - 230,000 |
40,000 - 45,000 |
Total Cash Costs ($/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 |
Since acquiring the Nicaraguan assets from
B2Gold in October 2019 and Fiore Gold in 2022, the Company has
consistently re-invested into the business with demonstrated
results of strong production, reserve growth, discovery of new
deposits, and identification of new targets, all of which position
Calibre to unlock additional mill feed sources and grow production
both in Nicaragua and Nevada. Calibre continues to invest in its
exploration programs, with a discovery and resource expansion
100,000 metre drilling program, underway in Nevada and
Nicaragua.
Calibre’s 2023 production guidance reflects
grade-drive production growth of approximately 20% over 2022 yet
2023 total cash cost per ounce is budgeted to be lower than 2022
actuals. Additionally, Calibre’s 2023 growth capital is budgeted to
be 30% less than 2022 setting the Company up for a strong free cash
flow year.
Growth and sustaining capital are anticipated to
be higher throughout the first half of the year to unlock value at
the new high-grade Pavon Central and at EBP mines. Growth also
includes underground development, Limon Norte and Tigra waste
stripping, and land acquisition.
Fourth Quarter and Full Year 2022
Financial Results and Conference Call Details
The fourth quarter and full-year 2022 financial
results will be released after market close on Wednesday, February
22, 2023 and management will be hosting a conference call to
discuss the results and outlook in more detail.
Date: |
Thursday,
February 23, 2023 |
Time: |
10:00 a.m. (ET) |
Webcast Link: |
https://edge.media-server.com/mmc/p/5qjci7oa |
Instructions for obtaining conference call dial-in numbers:
- All parties must register at the link below to participate in
Calibres’ Q4 and full year 2022 conference call.
- Register by clicking
https://register.vevent.com/register/BI868e1e65f2574b20a557a2de7726fd1b
- 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 available for replay for 12 months after the event
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 & Chief
Executive Officer, of 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 news release.
ON BEHALF OF THE BOARD
“Darren Hall”
Darren Hall, President & Chief Executive Officer
For further information, please contact:
Ryan KingSenior Vice President,
Corporate Development & IRT: 604.628.1010E:
calibre@calibremining.comW: www.calibremining.comAbout
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
MEASURESThe 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 Sold |
Average 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 IncomeAdjusted 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) |
Q4 2022 |
Q4 2021 |
2022 |
2021 |
Net income |
$14,502 |
$14,649 |
$43,344 |
$58,199 |
Addbacks (net of tax
impacts): |
|
|
|
|
Transaction costs |
26 |
807 |
4,868 |
1,643 |
Nevada inventory write-down |
(1,646) |
- |
946 |
- |
Mineral property write-off |
- |
- |
2,265 |
- |
Adjusted net income |
$12,882 |
$15,456 |
$51,422 |
$59,842 |
Weighted average number of shares outstanding |
460,153 |
341,351 |
444,800 |
337,813 |
Adjusted net income (loss) per share - basic |
$0.03 |
$0.05 |
$0.12 |
$0.18 |
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
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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