Calibre dips as Valentine advances
On track for first pour 2Q24
Calibre Mining has reported net earnings of US$20.8 million on revenues of $137.3 million for the quarter to June 30, a 37.3% decline from the $33.2 million reported a year ago, although an improvement on the $3.6 million loss reported for the March quarter.
The company produced 58,754oz of gold in the quarter, 14.6% less than a year ago and 4.9% less than in the March quarter, with the company stating that it is on track to achieve its 2024 guidance of 275,000-300,000koz.
Calibre's all-in sustaining cost (AISC) was $1533/oz, 30.1% higher than a year ago but 1.4% lower than in the March quarter. This gives it an AISC margin of 34.4%, down from 40.3% a year ago. The company said production is due to increase in the second half of the year, which would see its AISC decrease.
The company ended the quarter with $127.6 million in cash, $124.6 million of restricted cash relating to a loan from Sprott, and $316.7 million of long-term debt.
Valentine
Calibre said the construction of its Valentine gold mine in Newfoundland, Canada, is advancing on time and on budget. It was 77% complete at the end of July and is on track to produce its first gold in the June quarter of 2025.
Specifically, the tailings management facility starter dam embankment is complete, and liner placement is 96% complete. The SAG, ball mill and primary crusher installation is underway as is the CIL tank construction. Calibre said the revised initial capital cost is C$653 million with the cost to complete being $211 million, which is fully funded.
"We will be substantially mechanically complete in early Q4 in advance of winter. Winter work will be under cover inside the mill," said Calibre Mining chief executive Darren Hall in answer to a question during its results conference call.
Valentine will boost Calibre's production to 500,000 ozpa at an AISC of $1250/oz. The company produced 283,494oz in 2023.
The value of shares in Calibre Mining has increased 47% so far this year. They are trading at C$2.02, valuing the company at C$1.6 billion.
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