Calibre Mining – Q2 Financials, The Volcan Open Pit Moves Into Production, Exploration Update At All Projects, and Valentine Gold Mine Development Progress

The KE Report

Ryan King, Senior VP of Corporate Development and IR at Calibre Mining (TSX:CXB) (OTCQX:CXBMF), joins me to review the Q2 Financials and operations, the Volcan open pit mine coming into production, the exploration strategy in Nicaragua, Nevada, and Newfoundland, and the development progress at the Valentine Gold Mine.

Q2 2024 Highlights

• Consolidated gold sales of 58,345 ounces grossing $137.3 million in revenue at an average realized gold price1 of $2,302/oz;
• Consolidated TCC1 of $1,264/oz; Nicaragua $1,232/oz and Nevada $1,435/oz;
• Consolidated AISC1 of $1,533/oz; Nicaragua $1,407/oz and Nevada $1,766/oz; and
• Cash and restricted cash of $127.6 million and $125.0 million, respectively, as at June 30, 2024.

YTD 2024 Highlights

• Consolidated gold sales of 120,122 ounces grossing $269.2 million in revenue, at an average realized gold price1 of $2,194/oz;
• Consolidated TCC1 of $1,302/oz; Nicaragua $1,276/oz and Nevada $1,468/oz;
• Consolidated AISC1 of $1,545/oz; Nicaragua $1,441/oz and Nevada $1,685/oz; and
• Cash provided by operating activities of $106.6 million including the proceeds from the gold prepay net of the deferred revenue recognized in Q2 2024.

We discussed that the company has continued to demonstrate value utilizing their hub and spoke development strategy, achieving another significant milestone with the receipt of the Environmental approval for operation of the Volcan Gold deposit in Nicaragua. Within a month they delivered first ore to the Libertad Mill, located 5kms away, with 2024 guidance maintained in the 275,000 – 300,000 ounces of gold targeted. We also discuss some of the ongoing exploration programs in both Nicaragua and Nevada, as well the exploration upside in Newfoundland at and around the Valentine Gold Project.

Next Ryan outlined that the company received the Federal Environmental approval for the development of the Berry open pit at the Valentine Gold Mine, with this, the major approvals are in place for the three-pit mine plan. We review the history of discovery at the 3 pits – Leprechaun, Marathon, and Berry, and some of the other exploration areas of focus like the growing mineralization at the Frank area. Ryan updated us that construction of the multi-million-ounce Valentine Gold Mine surpasses 77% completion as of July 31, 2024, with a cost to complete of C$211 million and remains on track for gold production in Q2 2025. The Valentine Gold Project has a 14-year life of mine hosting Mineral Reserves, last updated in 2022, of 51.6Mt grading 1.62 g/t gold containing 2.7 Moz.

We wrapped up discussing the key takeaways moving forward of the Company as it continues transitioning 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 55% NAV in tier-1 North American mining jurisdictions 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 [e-mail].

• In full disclosure Shad is a shareholder of Calibre Mining at the time of this recording.

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