Calibre Mining – Continued Development And Production Growth, Augmented By A Substantial Exploration Program In Nicaragua
Ryan King, VP of Corporate Development and IR at Calibre Mining (TSX: CXB – OTCQX: CXBMF), joins us to overview the continued development and production growth pipeline, and aggressive exploration strategy for the Company in Nicaragua and Nevada. We focus initially in this discussion on the recently announced news of the US sanctions to specific people and the DGM entity, and how despite the confusion caused by incorrect media coverage, that Calibre is in compliance with these sanctions and not really affected in any meaningful way and thus continuing their normal operations. This clears up a number of market misconceptions about how these sanctions would impact the company, and Ryan reiterated their commitment to the local stakeholders and that business is still growing and moving forward.
We have Ryan outline the Q3 operations and financials, which are still above guidance despite a brief shut down at one of their 2 mills during the quarter. More importantly, we focus on the production growth profile, targeting between 250,000 – 275,000 ounces of gold production for 2023, with the addition of 2 new spokes; the Pavon Central and Eastern Borosi development projects that will be ramping up into production next year.
Next we transition over to all the ongoing exploration work the company has underway, and highlighted the recent high-grade drill results from its Panteon North zone within the Limon Mine Complex, part of the Company’s 85,000 meter resource expansion and discovery drilling program in Nicaragua. Ryan also mentioned that the exploration team continues to make new discoveries and has been doing some initial work at the new La Fortuna concession, which will have more news to come.
We wrap up discussing 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.
If you have any follow up questions for Ryan on Calibre Mining, then please email us at Fleck@kereport.com or Shad@kereport.com.
*In full disclosure, Shad is a shareholder of Calibre Mining.
Nice to see Calibre getting a little traction again lately, since plumbing the Nicaragua sanction confusion low of $0.52 and closing up to $0.74 today. That up 42% since early last week, and it closed up 8.8% just in today’s trading.
Clearly based on it’s market cap and valuation, it is still in the Nicaragua penalty box, especially compared to where other peer producers are valued doing north of 200,000 ounces of gold production per year. (even compared to some only doing around 100,000 ounces per year).
Hopefully the comments that Ryan made, about how the sanctions actually work, and why they are not a threat to their operations at present will start to resonate with investors, as it was the typical over reaction and run for the exit doors, before gathering all the data.
I sold Calibre when the Nicaragua issue was raised. Then bought it back when it dropped. When they put out multiple PRs about no impact, I got nervous and rolled it into i-80 and it started turning today. I hope to get Calibre again.
Added: I held half of Mako.
We interviewed Ewan from I-80 Gold today actually, and we’ve got that interview coming out Monday so stay tuned. Yeah it’s one of my favorite growth oriented gold producers for sure.
Calibre is still one of my heaviest weighted positions as another growth-oriented gold producer, with big exploration upside. I did reduce a little exposure when the Nicaragua sanctions first broke, not knowing what to expect and because many of the media outlets did not portray the actual impact correctly. I’m glad we cleared that up today on this interview.
The sentiment in commodities has been overly bearish for months now, and so on days like this where the momentum shifts back to the upside, the initial moves seen are typically short-covering rallies as people cover their shorts on the futures markets. Nice to see the shorts get squeezed to end the week.
Gold closed the week up above the first key resistance at $1675, (closing at $1676.60, and heading up to $1684 in afterhours trading).
Silver rocketed higher today closing at $20.78 (up to $20.92 in afterhours trading).
A nice green day and nice way to end the week… 🙂
While today’s move in gold was nice to see, there is still a lot of work to do for the yellow metal to get on a bullish track. In afterhours it has traded just barely above the 50 day SMA, but it could get rejected from here to open next week lower. It would be nice to see a solid close early next week above the 50 day SMA.
Next there is the 200 day EMA around $1767, and the 200 day SMA around $1809 that will be other key moving average to get price above on closing basis and get a little more positive momentum going.
In contrast, Silver’s chart looks more constructive than Gold’s does at present… which is good for the whole sector, and the mining stocks which tend to track Silver more closely.
Notice that Silver has already blasted well above it’s 50 day SMA (currently down at $19.14), and has approached it’s 200 day EMA at $20.95 (with Silver pretty close to that up in after-hours trading). Again, this level could swat it back down early next week, but it would be encouraging to see Silver close above that level, and the 200 day SMA at $21.57. That level coincides with that key $21.41 level (prior support that was tagged a few times, and now is resistance). Ultimately Silver needs to break through those levels and get a $22 handle to attract more investor interest.
Another key takeway from the Silver chart is the pattern of recent higher lows being put in, which is a bullish development.
Note the recent bottom tick price at $17.40, then the next higher low at $17.90, then the next higher low at $18.01, and then the most recent higher low at $18.81. That’s the kind of trend we want to see.
Hecla:silver has been basing for 20 years and been making lower highs for 30 years.
The 200 WMA and 600 WMA have been on top of each other and running completely flat for 2 years.
Something very big could be brewing for Hecla in the years ahead.
Silver is where it’s at and it has been leading gold for quite awhile but gold looks good too and is now finally confirming silver’s message.
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=7&mn=3&dy=0&id=p93978491278&a=1284031045
As always, good stuff that helps us all.
What a week for silver at +8.55% and +19.5% since its low two months ago. Today’s volume was the highest since it topped on March 8th.
https://stockcharts.com/h-sc/ui?s=%24SILVER&p=W&yr=7&mn=3&dy=0&id=p81673335002&a=1284100415
Yeah nice to see that big volume on the upmove today in silver for sure. That’s what leads me to believe it was also a short squeeze in play. Good stuff!
Plenty of shorts were most definitely squeezed and SILJ vs GDX just had its highest weekly close since 2021…
https://stockcharts.com/h-sc/ui?s=SILJ%3AGDX&p=W&yr=3&mn=0&dy=0&id=p42543613684&a=1236281491
About 2 weeks ago (Oct. 22) I said: “Weeks ago I said that the bulls were now in control but that it would be awhile before the herd figured that out.”
— — — — —
We’re getting there and Monday should be interesting in the best way.
https://stockcharts.com/h-sc/ui?s=SILJ&p=D&yr=0&mn=5&dy=28&id=p81702650873&a=1282906982
I thought today “had” to be different, but my account had 3 walk backs. But…. It didn’t look as easy for them and when I see silver miners kind of leading, it gives me confidence. Ever since JPM got to be the silver traders the paper fraud markets have dominated. Very concerning …. but they have to control “all” markets. There are some out there that have had enough. Too bad it isn’t the US that detests thieves.
And all that talk about hey Joe. Where’s he going now, with that gun in his hand???
Stock Target Advisor: Buy Rating for (CXB:TSX) Calibre Mining Corp
“Based on the Calibre Mining Corp stock forecasts from 7 analysts, the average analyst target price for Calibre Mining Corp is CAD 1.98 over the next 12 months. Calibre Mining Corp’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Calibre Mining Corp is Bullish , which is based on 9 positive signals and 3 negative signals.”
https://www.stocktargetadvisor.com/stock/Canada/TSX/CXB