Calibre Exceeds the High-End of 2023 Production Guidance, Increasing Gold Production in 2024 to 275,000 – 300,000 Ounces With Significant Future Growth Coming From the Multi-Million Ounce Valentine Gold Mine in Canada
Press Release
VANCOUVER, British Columbia — Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF) (“Calibre” or the “Company”) announces financial and operating results for the three months (“Q4 2023”) and year ended December 31, 2023 (“Full Year 2023”). Annual Consolidated Financial Statements and the corresponding Management Discussion & Analysis for the year ended December 31, 2023 can be found at www.sedarplus.ca and the Company’s website, www.calibremining.com . All figures are expressed in U.S. dollars unless otherwise stated.
RECENT HIGHLIGHTS
- Completed the acquisition of Marathon Gold to create a high-growth, cash flow focused, mid-tier gold producer in the Americas; with consolidated mineral endowment of over 4.0 million ounces of Mineral Reserves, 8.6 million ounces of Measured and Indicated Mineral Resources (inclusive of Mineral Reserves) and 4.0 million ounces of Inferred Mineral Resources 1 ;
- Ore control drilling at the Valentine Gold Mine Leprechaun open pit intersected high-grade gold outside of the reported Mineral Reserves, adding additional tonnes;
- Positive drill results at the Valentine Gold Mine demonstrates strong exploration upside and potential for discovery and resource expansion; and
- Additional bonanza grade drill results along the Panteon VTEM Gold Corridor within the Limon Mine Complex continue to confirm the potential for resource expansion in the region.
FULL YEAR 2023 HIGHLIGHTS
- 4 th Consecutive year of production growth with gold sales of 283,525 ounces grossing $550 million in gold revenue, at an average realized gold price 2 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”) 2 of $1,071/oz; Nicaragua $1,009/oz & Nevada $1,429/oz;
- Consolidated All-In Sustaining Costs (“AISC”) 2 of $1,228/oz; Nicaragua $1,134/oz & Nevada $1,479/oz;
- Adjusted net income 3 of $96.7 million, or $0.21 per share;
- Exploration success at Libertad yielded an initial Mineral Resource estimate at the Volcan Gold Deposit ; and
- Published our 2022 sustainability report , affirming our commitment to transparency and accountability, and joined the Mining Association of Canada , strengthening our commitment to responsible mining.
Darren Hall, President and Chief Executive Officer of Calibre, stated : “With record production of 283,494 ounces, 2023 represented our fourth consecutive year exceeding guidance. Throughout the year the team delivered many milestones; including bringing two new mines into production, and numerous discovery and resource exploration drill results across the portfolio. Particularly exciting is the continued high-grade expansion results along the multi-kilometre VTEM Panteon Gold Corridor within the Limon Complex. Year over year Calibre has reinvested into exploration and mine development setting up for sustainable production and growth.
With production guidance of 275,000 to 300,000 ounces, 2024 marks our fifth consecutive year of increasing gold production. The recently completed acquisition of the Valentine Gold Mine in Newfoundland & Labrador is transformational as it will establish Calibre as a quality, mid-tier gold producer in the Americas.
Our construction program, at the Valentine Gold Mine, remains on track with the critical SAG and Ball mills and motors, scheduled to arrive into the port of Argentia in Newfoundland & Labrador during February.”
CONSOLIDATED RESULTS: Q4 2023 AND FY 2023
Consolidated Financial Results
| $’000 (except per share and per ounce amounts) | Q4 2023 | Q4 2022 | 2023 | 2022 | |||||||||||
| Revenue | $ | 151,595 | $ | 108,667 | $ | 561,702 | $ | 408,613 | |||||||
| Cost of sales, including depreciation and amortization | $ | (109,742 | ) | $ | (80,318 | ) | $ | (391,299 | ) | $ | (305,010 | ) | |||
| Mine operating income | $ | 41,853 | $ | 28,349 | $ | 170,403 | $ | 103,603 | |||||||
| Net income | $ | 12,001 | $ | 14,502 | $ | 85,025 | $ | 43,344 | |||||||
| Net income per share (basic) | $ | 0.03 | $ | 0.03 | $ | 0.19 | $ | 0.10 | |||||||
| Net income per share (fully diluted) | $ | 0.03 | $ | 0.03 | $ | 0.18 | $ | 0.09 | |||||||
| Adjusted net income ( 3 ) | $ | 22,305 | $ | 12,882 | $ | 96,667 | $ | 51,422 | |||||||
| Adjusted net income per share (basic) ( 3 ) | $ | 0.05 | $ | 0.03 | $ | 0.21 | $ | 0.12 | |||||||
| Cash provided by operating activities | $ | 59,230 | $ | 28,064 | $ | 200,006 | $ | 96,657 | |||||||
| Capital investment in mine development and PPE | $ | 98,061 | $ | 30,041 | $ | 131,051 | $ | 98,788 | |||||||
| Capital investment in exploration | $ | 21,588 | $ | 7,083 | $ | 29,293 | $ | 46,403 | |||||||
| Gold ounces produced | 75,482 | 61,294 | 283,494 | 221,999 | |||||||||||
| Gold ounces sold | 75,505 | 61,461 | 283,525 | 222,991 | |||||||||||
| Average realized gold price ($/oz) ( 2 ) | $ | 1,969 | $ | 1,742 | $ | 1,942 | $ | 1,808 | |||||||
| Total Cash Costs ($/oz) ( 2 ) | $ | 1,136 | $ | 1,097 | $ | 1,071 | $ | 1,129 | |||||||
| AISC ($/oz) ( 2 ) | $ | 1,317 | $ | 1,236 | $ | 1,228 | $ | 1,259 | |||||||
Operating Results
| NICARAGUA | Q4 2023 | Q4 2022 | 2023 | 2022 |
| Ore mined (t) | 521,325 | 415,543 | 2,109,956 | 1,489,753 |
| Ore milled (t) | 527,753 | 460,181 | 2,072,875 | 1,615,039 |
| Grade (g/t Au) | 3.64 | 3.70 | 3.93 | 3.87 |
| Recovery (%) | 93.2 | 93.1 | 92.4 | 90.9 |
| Gold produced (ounces) | 64,963 | 49,854 | 242,109 | 180,490 |
| Gold sold (ounces) | 65,026 | 50,032 | 242,126 | 180,875 |
| NEVADA | Q4 2023 | Q4 2022 | 2023 | 2022 |
| Ore mined (t) | 1,138,653 | 1,889,721 | 4,652,600 | 5,338,896 |
| Ore placed on leach pad (t) | 1,139,889 | 1,866,270 | 4,592,642 | 5,322,621 |
| Grade (g/t Au) | 0.33 | 0.39 | 0.36 | 0.39 |
| Gold produced (ounces) | 10,519 | 11,440 | 41,385 | 41,509 |
| Gold sold (ounces) | 10,479 | 11,429 | 41,399 | 42,117 |
CONSOLIDATED Q4 2023 AND FY 2023 FINANCIAL REVIEW
Q4 2023 TCC and AISC were $1,136 per ounce and $1,317 per ounce respectively, as compared to $1,097 and $1,236 per ounce in Q4 2022. The higher TCC and AISC were largely due to higher cash costs for the Pan Mine from a higher strip ratio and lower grade material mined and higher sustaining capital.
Full year 2023 consolidated TCC and AISC were $1,071 per ounce and $1,228 per ounce respectively, which is within 2023 guidance, compared to 2022 TCC of $1,129 and AISC of $1,259 per ounce. The lower TCC and AISC in 2023 relate to higher production mainly from Pavon Central and Jabali Antena mines. The higher AISC in 2023 relates to capitalized mining costs of La Tigra when the strip ratio was higher than the life of mine average.
Expenses and Net Income
For Q4 2023 and the full year 2023, corporate G&A was $3.6 million and $12.3 million, respectively, compared to $2.8 million and $12.2 million for the same periods in 2022. Corporate administration was $0.8 million higher in Q4 2023 than its comparable period mostly due to increased salaries and increased corporate administration fees.
The adjusted net income per share in Q4 2023 was $0.05 for basic (Q4 2022: $0.03 for basic). Full year 2023 adjusted basic net income per share was $0.21 for basic (Full Year 2022: $0.12 for basic).
2024 GUIDANCE
| CONSOLIDATED | NICARAGUA | NEVADA | |
| Gold Production/Sales (ounces) | 275,000 – 300,000 | 235,000 – 255,000 | 40,000 – 45,000 |
| Total Cash Costs ($/ounce) 2 | $1,075 – $1,175 | $1,000 – $1,100 | $1,400 – $1,500 |
| AISC ($/ounce) 2 | $1,275 – $1,375 | $1,175 – $1,275 | $1,650 – $1,750 |
| Growth Capital ($ million) | $45 – $55 | ||
| Exploration Capital ($ million) | $25 – $30 | ||
Since acquiring the Nicaraguan assets from B2Gold in October 2019 and the Nevada assets from Fiore Gold in 2022, and the Newfoundland and Labrador assets from Marathon Gold in 2024, Calibre has consistently re-invested into its exploration programs which has resulted in the discovery of new deposits, and production and reserve growth, all of which position Calibre to deliver on commitments and profitability to grow the business.
Calibre’s 2024 guidance reflects, what is expected to be, the fifth consecutive year of annual production growth. Given its proven track record, Calibre will continue to reinvest into exploration and growth with over 130,000 metres of drilling and development of new satellite deposits across its asset portfolio. The Company has guided slightly higher AISC and significantly lower growth capital (excluding Valentine mine capital investment). Net total spend in 2024 is expected to be similar to that of 2023 which generated strong operating cash flow. Exploration is marginally higher than 2023, reflecting the additional US$5 – $10 million investment at the Valentine Gold Mine.
During 2024, consolidated production will be more weighted to the second half of the year while TCC, AISC and growth capital are forecast to be more weighted during the first half, however the exact timing of specific capital items may vary. Growth capital includes underground development at Panteon Norte and Atravesada, waste stripping and land acquisition.
Calibre is advancing construction of the Valentine Gold Mine in Newfoundland & Labrador, Canada. Calibre will update shareholders and the market regarding capital, schedule, and progress as information becomes available. With the anticipation of production during the first half of 2025, Valentine will become Atlantic Canada’s largest gold mine and significantly add production growth to the Company’s consolidated and diversified production profile.
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS AND CONFERENCE CALL DETAILS
Fourth quarter and full year 2023 financial results will be released after market close on Tuesday, February 20, 2024, and management will be hosting a conference call to discuss the results and outlook in more detail.
| Date: | Wednesday, February 21, 2024 |
| Time: | 10:00 a.m. (ET) |
| Webcast Link: | https://edge.media-server.com/mmc/p/iztvitjw |
Instructions for obtaining conference call dial-in numbers:
- All parties must register at the link below to participate in Calibre’s Q4 and full year 2023 conference call.
- Register by clicking https://register.vevent.com/register/BI8a07aefbbb744810aa9588af54442c62 and completing the online registration form.
- 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 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 and 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.
About Calibre
Calibre is a Canadian-listed, Americas focused, growing mid-tier gold producer with a strong pipeline of development and exploration opportunities across Newfoundland & Labrador in Canada, 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.
ON BEHALF OF THE BOARD
“Darren Hall”
Darren Hall, President & Chief Executive Officer
For further information, please contact:
Ryan King
Senior Vice President, Corporate Development & IR
T: 604.628.1010
E: calibre@calibremining.com
W: www.calibremining.com
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