Ryan King, Senior VP of Corporate Development and IR at Calibre Mining (TSX.V:CXB – OTCQX:CXBMF), joins me to review the 2023 operations and production results as well as drill results and expansion at multiple projects, and we also look ahead to 2024 guidance and the exploration strategy in Nicaragua, Nevada, and Newfoundland. We also get into some of the synergies and rerating value drivers with the new pro-forma company, after acquiring Marathon Gold (TSX: MOZ – OTC: MGDPF ) for the Valentine Gold Project.
FULL YEAR 2023 HIGHLIGHTS
- 4th Consecutive year of production growth with gold sales of 283,525 ounces grossing $550 million in gold revenue, at an average realized gold price2 of $1,942/oz;
- Cash on hand of $86 million, a 52% increase over end of year 2022, after a C$40 million investment in Marathon Gold during Q4;
- Consolidated Total Cash Costs (“TCC”) of $1,071/oz;
- Consolidated All-In Sustaining Costs (“AISC”) of $1,228/oz;
- Adjusted net income of $96.7 million, or $0.21 per share;
- Exploration success at Libertad yielded an initial Mineral Resource estimate at the Volcan Gold Deposit
Ryan provides a nice snapshot of where future production growth will be coming from, with 2024 guidance in the 275,000 – 300,000 ounces of gold targeted. We also discuss some of the drill results seen in both Nicaragua and Nevada projects, as well the exploration upside in Newfoundland at and around the Valentine Gold Project.
The Valentine Gold Project has a 14-year life of mine plan including the Leprechaun, Berry and Marathon open pits hosts Mineral Reserves (2022) of 51.6Mt grading 1.62 g/t gold containing 2.7 Moz. At Leprechaun, the Company completed 486 ore control RC drill holes totaling 9,168 metres. In this recent drilling, news announced on February 14th, highlighted higher grades, tonnes, and ounces coming in than seen in the 2022 Mineral Reserves. The headline assays returned were 46.53 g/t Au over 5.3 metres in drill hole LP-RC-23-235; and 17.16 g/t Au over 7.0 metres in hole LP-RC-23-204.
We wrapped up discussing the key takeaways moving forward of the merged company as moves to transition into a high-margin, cash flow focused, mid-tier gold producer in the Americas with estimated annual production of 400koz – 500 koz Au per year (2025 – 2026E average). That will give the combined Company approximately 60% NAV in tier-1 North American mining jurisdictions with pro-forma market capitalization of approximately US$750 million, providing scale, enhanced trading liquidity, and a strong re-rating potential as a mid-tier gold producer.
If you have any questions for Ryan regarding Calibre Mining, then please email me at Shad@kereport.com.
- In full disclosure Shad is a shareholder of Calibre Mining at the time of this recording.
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