Calibre Mining – H1 2022 Operations Report And Successful Self-Funded 170,000 Meter Exploration Program On 15 Drill Rigs In Nevada and Nicaragua
Ryan King, VP of Corporate Development and IR at Calibre Mining (TSX: CXB – OTCQX: CXBMF), joins us to review the H1 2022 financial and production metrics, as well as an overview of the 15 drill rigs turning at both the Nevada and Nicaragua operations, continuing to make new discoveries and grow resources. Year-to-date for the first half of 2022 the Company has had gold sales of 112,270 ounces grossing $210.8 million in revenue, at an average realized gold price of $1,878/oz; with a consolidated All-In Sustaining Costs (“AISC”) of $1,244, cash on hand of $92.3 million, and cash flow from operations of $61.5 million.
We discuss how the Company has continued to grow the resources with a 254% increase in Nicaragua Mineral Reserves to 1,013,000 ounces gold since Q4, 2019 and also grown the associated metals grades over the last few years. This ties into the hub and spoke model of bringing more satellite deposits into production utilizing their excess mill capacity, and also continuing to ramp up production from higher grade zones giving further production upside potential over the next 2 years.
Ryan provides a well-rounded overview of all the drilling success the company is having in Nevada around the operating Pan Mine, and the Gold Rock development project, with over 50,000 meters of drilling expected to be completed in 2022 and leading to an updated resource and reserves statement in Q1 of 2023. We also discuss a number of get growth targets in Nicaragua at Limon, Pavon Norte, and around Libertad with many more drill results to be released over the balance of the year. Calibre Mining has an ongoing 170,000 meter exploration program at multiple properties in both Nicaragua and Nevada, with over 15 drill rigs turning.
If you have any follow up questions for Ryan on Calibre Mining, then please email us at Fleck@kereport.com or Shad@kereport.com.
It’s a conundrum alright. Couple of things come to mind, apart from them being in Nicaragua. They have about 1M of reserves when it seems to take multiple millions to move the needle and wake people up. And the spokes of their model are sucking up increasing amounts of diesel fuel.
Yeah, I get that they may have some jurisdiction discount due to Nicaragua, but so far both Calibre and Mako have been blazing forward in this country without incident or government pushback. In addition, Calibre has now diversified into the #1 best gold mining jurisdiction on the planet = Nevada. With them looking to double production from Nevada from 40K-45K to 80k-90k in the next 2 years once they bring on Gold Rock into production, then that should be lowering their risk profile.
As for the 1 million ounce of reserves… you may have a point there… but they’ve grown them by 254% since 2019, while continuously mining 150K-180K ounces per year, and by all indications with all their drilling at Limon, Pavon Norte, and Eastern Borosi, they should be able to expand their resources even further. Then in Nevada, they are going to be putting out their updated resource and reserve estimate in Nevada for both Pan and Gold Rock, so that could give their overall global resources a boost.
Regardless, I see so many other mid-tiers and even some of the majors fumbling the ball, missing guidance, raising production costs, and having cost over-runs on development projects, and in contrast, Calibre keeps hitting the ball out of the park and delivering. I’m just surprised that more investors aren’t picking up on all the good work they’ve been doing for the last few years, especially post Fiore acquisition, where they should have picked up more eyeballs and interest for the Nevada assets.
Oh well…. personally I’ve got a heavy weighting in CXB in my portfolio, and feel over the next 2 years it should have good upside torque to production growth, exploration/development growth, and to rising metals prices. Hopefully this will become more and more obvious to a larger field of resource investors over time.
Hi Ex, great insights as always, you are on top of your game and out front for everyone to see. In the end you will be proven right about your thesis on Calibre Mining. DT
Hi DT. Thanks for those kind words, and the encouragement. Investing is a solo sport, and can often times be quite lonely, where it is easy to doubt one’s choices and give in to human emotions or poor sentiment.
In the case of Calibre, after talking to them regularly for 2 years, reviewing their press releases on exploration or operations reports quarter after quarter, I keep coming away impressed with their team consistent execution of strategies and ongoing success. Then I look at the share price performance and ask myself, what in the world do investors want out of a company? I look around and do not see most companies delivering on their strategies in contrast. There is the realization that the whole sector has been through an overall brutal correction the last 2 years, so the beautiful babies are being thrown out with the proverbial bathwater it would seem.
The focus in my portfolio this year has been reducing the overall number of positions I hold by about 35% (mostly by shedding explorers and stagnant developers), and building larger positions in growth-oriented gold producers like Calibre, Karora, i-80 gold, Minera Alamos, Mako Mining, Superior Gold, and Steppe Gold, while also shoring up ugly ducklings that have fallen hard the last few months and are due for a turnaround like Kinross, Coeur, Equinox, Jaguar, etc… Of course, I still have almost 2 dozen silver stocks as well at various stages, but I’ve mostly just been trading around the periphery of those by adding on dips and fading on rips.
Speaking of Mako and ongoing success in Nicaragua…
(MKO) (MAKOF) Mako Mining Intersects 85.10 g/t Au and 153.0 g/t Ag over 0.8 m (Estimated True Width) at Las Conchitas Central Connecting Mina Bonanza and Cruz Grande and Expanding the Known Strike Length to Over 295m in this Zone
Aug. 18, 2022
https://ceo.ca/@newswire/mako-mining-intersects-8510-gt-au-and-1530-gt-ag
See you tomorrow. Same algos, same alternating days, same result. When every day is a mirror, there are no markets.
Ex,
You have done a great job of trying to keep this site always going for the better by providing in-depth analysis or of so many companies that I can’t even remember and I believe always in good faith.
Investing or wealth building is not no easy task as we all know in here it can take one’s own inner self rip it up and spit it out repeatedly and I have been victim to it on occasion. I’ve always said time and patience is always key to investing but what is also monumental is the ability to get research and information that is consistent and has a track record to help ones learning experience. I don’t think there’s many other places like here at the Ker that provides that.
Since I came to the ker Way back then there have always been heated debates, constructive dialogue, and intelligent chatter. I for one have been guilty of getting into some debates and the times wrongfully soul as emotions can get the better of us. We all know nobody is perfect in their method but we do know that many in here provide great outlook, technicals, fundamentals and cycles.
I for one do not like Matthew and doc going at each other because I truly appreciate each other’s forecast and analysis and I think they’re both good at what they do, well-versed and super experienced. I do not think for one moment that anyone has bad intentions of giving the wrong advice on purpose. We are all grown people in here and ultimately everybody makes their own decisions and ultimately everybody has a track record.
I would prefer not to see personal attacks on anybody and if one does not like someone’s post there’s always the ignore option. I agree that it’s OK to disagree with some of the panel that come on here for example Jordan or anybody else but I also agree that nobody should be bashed as many have their own reputation and I working extremely hard to build their own net work. Again it’s prudent that one chooses their correct so-called gurus that they have had success with throughout the years. Bashing doesn’t accomplish anything unless truly exposing someone who has a very long record of being wrong but even then bashing will only accomplish one thing for many guess not to wanna come on here and that’s a complete negative something I do not want. I do not want to lose great voices right or wrong that can provide value.
I think for the most part ask you have been fair with everyone and you and Cory do a great job
Of feel turning it out.
On a different note looks to me as it does too many play Charles indicated the other day that the minors seem to be putting in an inverse head and shoulders formation which means this weekly candle from my eyes can go down as far as$1738-$1742 before reversing. That is not investment advice just what Glen is seeing. Trying to put in a cycle low here which can run 5-8 days. Depending we’re you see the recent top we could be on day 7 or more precise day 4..
Great thoughts and feedback Glenfidish and very much appreciated. I agree with you on the different points reviewed and overall we have a great community here at the KER between the guests we bring on the show, the companies we interview providing interesting opportunities in the junior resource sector, and the contributors here on the forum. Cory & I work very hard to keep it all balanced, present different sides of a debate, or varying opinions, and avoid being a pump site. We appreciate the people that come on to help others look at things from various vantage points, both the bulls and the bears, and the fundamental folks, quantitative folks, technical folks, etc…
Because humans are emotional creatures, sometimes certain days posters will get into entanglements, and the vast majority of folks that regularly post here have gotten into it with other regular posters from time to time. That is just human nature, within families, with friends, and especially on investing chat forums. It’s fine to disagree, including with our guests interviews, and a lot can be learned in that process, as long as it is done respectfully and logically. People seem to think it’s not OK to be bearish, but that is 100% not true. However, it is not helpful to be blanket bullish or bearish, but rather to provide one’s reasoning and data to support their opinion. Coming on and screaming at people to take a certain action with no discernable logical rationale is 100% unhelpful though.
What is completely unwanted and unwarranted is when people are trolling other users or trolling the site insulting the people here, or making personal attacks, or making slanderous and untrue statements about our guests or others. We do our best to be fair, but ultimately, some people just come here to whine and complain, and don’t offer any valid insights or ideas to help fellow investors, so they grate on our nerves. I have little patience for those kinds of people and would prefer they find another site to go dump on or heckle investors somewhere else. Those type of wet blankets are not a value-add and bring everyone down.
Yes, I think it was Dan that mentioned the inverse head and shoulders patterns showing up in many charts the other day, but Charles may have mentioned that as well. We’ll see how it goes, but with so many on the bearish side of the boat expecting lower lows in metals and miners, it is a ripe environment for upside surprises, and so waiting to see if some overhead resistance levels can be taken out and get a bit more bullish momentum going. I think August and early September may be a bit more sideways boring action, but usually September gets pretty active in the PMs as Indian wedding season kicks off Sept-Oct and we start seeing more buying out of Asia. The metals and mining stocks are often peppy in September as a pretty good seasonal factor, similar to Jan & Feb, and we have both the next Fed rate hike in Sept, as well as quad-witching expiration of options the 3rd week of September, so we could see some fireworks around those events.
Until then…. wishing all investors prosperity as we are in challenging market conditions. Ever Upward!
Oh Yeah…
Ever Upward!
🙂
China’s housing bubble is finally collapsing, Chen Lin
https://www.kitco.com/news/2022-08-18/China-s-housing-bubble-is-finally-popping-Chen-Lin.html
I am biased as an existing shareholder of Calibre and they are also a KE Report sponsor, but their 15 drill rigs, 170,000 meters of drilling, and finding high grade gold all over Nicaragua, and expanding bulk minable resources in Nevada is impressive any way you look at it. They are generating free cash flows, self funding all their exploration in a far bigger way than any exploration or development companies we talk to, and they’ve continue to hit their guidance for production, grade, and development (unlike so many companies in this sector).
It continually amazes me that (CXB) Calibre isn’t getting more market love for being one of the more reliable and successful growth-oriented gold producers with massive exploration and development upside. It is currently my largest position in any gold stock out of the 2 dozen I hold positions in for these reasons.