Calibre Mining Could Shine As Central Banks Aggressively Buy Gold

Some central banks all over the world have been aggressively buying gold. 

In fact, in September alone, central banks bought 77 tonnes of gold. Even more impressive, sales of one tonne were overshadowed by gross purchases of 78 tonnes. In August, central banks also added 77 tonnes – a 38% uptick month over month. In July, they bought 55 tonnes of gold. In addition, central banks were busy ramping up gold reserves in the first half of the year. 

 “Despite a year-on-year decrease of 103 tons in purchases during the second quarter, net purchases by central banks worldwide still hit a record-breaking 387 tons in the first six months of the year, according to the latest data compiled by the World Gold Council (WGC),” as noted by Global Times. 

The WGC also added that central bank gold buying will remain strong throughout the year, especially with ongoing geopolitical tensions and challenging economic conditions around the world. 

With that, one of the top gold companies to keep an eye on is Calibre Mining Corp. CXB CXBMF, a Canadian-listed, Americas focused, growing mid-tier gold producer with a strong pipeline of development and exploration opportunities across Nevada and Washington in the USA, and Nicaragua. Even better, company earnings have been solid.

In fact, Calibre Mining Corp. just announced financial and operating results for the three and nine months ended September 30, 2023. All figures are expressed in U.S. dollars.

Q3 2023 Highlights 

• Record cash on hand of $97 million, a 26% increase over Q2 2023 and 72% higher than the beginning of 2023;
• Free Cash Flow increased over Q2, 2023 to $16.3 million;
• 4th consecutive record quarterly gold sales of 73,241 ounces grossing $143.9 million total revenue, at an average realized gold price of $1,929/oz;
• Consolidated Total Cash Costs of $1,007 and All-in Sustaining Costs of $1,115 per ounce;
• Net income of $23.4 million or $0.05 per basic share;
• Adjusted net income of $24.5 million or $0.05 per basic share;
• Exploration success at Libertad yielded an Initial Mineral Resource Estimate at the Volcan Gold Deposit;
• Intercepted high-grade gold targets at the Jabali Mine, potentially expanding resources;
• Continued to expand zones of high-grade gold mineralization at Atravesada and along the VTEM gold corridor, both within the Limon Mine Complex;
• High-grade, near surface drill results immediately north and south of the operating Pan mine demonstrate potential to increase resources, grade, and confidence across the property; and
• Announced Normal Course Issuer Bid as a responsible and potential use of available cash.

Year-to-Date 2023 Highlights

• Record consolidated gold sales of 208,020 ounces grossing $410.1 million in total revenue, at an average realized gold price of $1,932/oz;
• Consolidated TCC of $1,047/oz; Nicaragua $983/oz & Nevada $1,412/oz;
• Consolidated AISC of $1,195/oz; Nicaragua $1,101/oz & Nevada $1,456/oz; and
• Net income of $73.0 million, or $0.16 per share.

Darren Hall, President and Chief Executive Officer of Calibre, stated: “Calibre generated strong free cash flow from a fourth consecutive quarter of record production, resulting in a 72% increase in cash on hand to $97 million since the beginning of the year. Year to date costs are favorable to budget and the Company is in excellent shape to deliver at the high end of full year production guidance.

Our exploration investment continues to yield success in many areas including: a new gold trend emerging northwest of our recently announced Volcan gold deposit at Libertad, demonstrating high-grade discovery potential; drill results proximal to the operating Pan mine continue to yield potential resource and grade increase opportunities; and the expansion of existing high-grade gold discoveries across our Limon property provide further opportunity to leverage the available surplus processing capacity at our Libertad mill.

The Company continues to self fund all exploration and growth from operating cash flow while increasing our cash reserves. We remain dedicated to providing lasting and responsible benefits to all stakeholders. Our ongoing incorporation of sustainability initiatives throughout our operations further solidifies our strong social license to operate.”

CONSOLIDATED Q3 and YTD 2022 FINANCIAL REVIEW

Q3 2023 TCC and AISC were $1,007 per ounce and $1,115 per ounce, positive to budget. The lower quarter over quarter AISC was achieved through higher gold sales from an increase in open pit ore tonnes, underground mining optimization improvements with associated increases in tonnes mined and higher head grades coupled with a reduction in diesel prices.

YTD 2023 TCC and AISC) were $1,047 per ounce and $1,195 per ounce respectively, within guidance and favorable to budget, positioning the Company well to meet full year cost guidance. YTD costs are favorable due to higher-grade ore from the Pavon Central deposit, mining the Jabali Antena deposit, lower stripping at the Limon Central deposit and higher silver revenue. 

Expenses and Net Income

For Q3 2023 and year to date 2023, corporate G&A was $3.2 million and $8.6 million respectively, compared to $3.1 million and $9.4 million for the same periods in 2022. Year-to-date corporate administration was lower due to a reduced use of professional consultants.

For the fourth consecutive quarter, the Company achieved record gold production of 73,485 ounces with year-to-date production of 208,011 ounces, at costs below budget. This puts the Company in a strong position to deliver the high end of its full year 2023 production guidance. Given the current gold prices, Calibre is generating strong cash flow, self-funding all investments in growth, development and exploration while significantly growing its net cash balance.

Calibre continues to advance its 100,000+ metre drill program which includes resource delineation drilling, infill and geotechnical drilling, as well as early-stage generative exploration drilling to test numerous satellite targets around Limon, Libertad, the Eastern Borosi Mine and within Nevada.

Q3 and YTD 2023 FINANCIAL RESULTS AND CONFERENCE CALL DETAILS

Third quarter financial results will be released after market close on Tuesday, November 7, 2023, and management will be hosting a conference call on Wednesday, November 8 to discuss the results and outlook in more detail.

Instructions for obtaining conference call dial-in numbers:

1. All parties must register at the link below to participate in the Calibre Mining, Q3 conference call.
2. Register by clicking https://register.vevent.com/register/BIaeef792eb39c469b8d3571c2423f7f24 and completing the online registration form.
3. 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 http://www.calibremining.com under the Events and Media section under the Investors tab. The live audio webcast will be archived and made available for replay 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.

Learn more about Calibre Mining here.

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