Ryan King, Senior VP of Corporate Development and IR at Calibre Mining (TSX.V:CXB – OTCQX:CXBMF), joins me to review the announcement from January 9^th, on the Q4 and year-end operations and production.  We also get into some of the synergies and rerating value drivers with the new pro-forma company, with the definitive arrangement agreement whereby Calibre will acquire all of the issued and outstanding common shares of Marathon Gold (TSX: MOZ – OTC: MGDPF ) pursuant to a court-approved plan of arrangement.

Record Q4 and Full Year 2023 Highlights

• Cash $86 million, a 52% increase over end of year 2022, after a C$40 million investment in Marathon Gold;
• 5^th Consecutive record consolidated quarterly gold production of 75,482 ounces:
  • Nicaragua Q4 gold production of 64,963 ounces and Nevada gold production of 10,519 ounces;
• Record consolidated full year production of 283,494 ounces, exceeding 2023 production guidance:
  • Nicaragua full year gold production of 242,109 ounces and Nevada gold production of 41,385 ounces;
• Achieved another successful year on many fronts including exploration success and milestones across all assets, reaffirming the Company’s multi-year, grade-driven, socially, and environmentally sustainable production growth strategy;
• Announced the combination of Calibre Mining and Marathon Gold to create a high-growth, cash flow focused, mid-tier gold producer in the Americas with expected annual production of 500,000 ounces and completed the C$40 million financing to become Marathon’s largest shareholder;

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 development plans in Nicaragua and Nevada projects, as well the main value drivers of the pro-forma company, with regards to the development project and exploration upside in Newfoundland at and around the Valentine Gold Project.

The merger creates 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 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. Valentine  is expected to add an average annual gold production of 195,000 oz at low projected All-in Sustaining Costs (AISC) of US$1,007 per ounce through the first 12 years of production beginning in 2025.

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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