Release Date: August 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Calibre Mining Corp (CXBMF, Financial) achieved 58,754 ounces of gold production in Q2, aligning with expectations.
- The company is on track to meet its full-year production guidance of 275,000 to 300,000 ounces.
- Construction of the Valentine Gold Mine is 77% complete, with first gold expected in Q2 2025.
- The company has commenced a 100,000-meter drill program at the Valentine property, indicating strong exploration potential.
- Calibre Mining Corp (CXBMF) has maintained a strong safety record, with significant milestones in Nevada and Nicaragua operations.
Negative Points
- Higher tonnes mined in Q2 led to short-term cost tensions, impacting immediate financial performance.
- The company faces potential challenges with winter construction at the Valentine Gold Mine, although they are confident in their preparations.
- There were some production impacts earlier in the year, shifting some ounces from Q2 to H2.
- The company has significant capital expenditures remaining, with CAD211 million still to be spent on the Valentine project.
- Calibre Mining Corp (CXBMF) needs to maintain focus on delivering on its commitments, with any distractions potentially being value-destructive.
Q & A Highlights
Q: Can you remind us of the reconciliation drilling in the pits that are planned to be mined in the first year?
A: Darren Hall, President and Chief Executive Officer: In February, we provided an update on the infill drilling at Leprechaun, showing positive reconciliation results in both tonnes and ounces. This led to identifying extensions from the southwest of Leprechaun into the Frankston, which we are following up with additional infill drilling. We anticipate providing an update on Marathon infill drilling within the next one to two months, with initial results being positive.
Q: Regarding the recently permitted Volcan pit in Nicaragua, are you on track with your timing, or did you enter the pit earlier than expected?
A: Darren Hall, President and Chief Executive Officer: The timing is consistent with our earlier projections for H2. Although some ounces were moved from Q2 to H2 due to earlier impacts, Volcan was always planned for the second half, particularly leading into Q4. We demonstrated the ability to go from permit to production quickly, delivering to the plant within a month of permit receipt.
Q: How do you plan to manage construction at Valentine during the winter season, particularly in Q4 2024 and Q1 2025?
A: Darren Hall, President and Chief Executive Officer: We are well-positioned heading into the winter. Major components like crushers, conveyors, SAG mills, and ball mills will be erected before winter. We anticipate being mechanically complete early in Q4. Most work during winter will be indoors, and civil works for the tailings facility will be completed by Q3.
Q: Looking forward, do you see Nicaragua as an area for continued consolidation and new asset acquisition, or would you look elsewhere for expansion?
A: Darren Hall, President and Chief Executive Officer: Our current focus is on delivering in Nicaragua, Nevada, and Valentine. We are committed to these core activities and reinvesting in organic growth through exploration. While we are open to other opportunities, our primary focus remains on these three areas to avoid value destruction.
Q: Can you provide an update on the progress at the Valentine Gold Mine?
A: Darren Hall, President and Chief Executive Officer: Construction of the fully funded Valentine Gold Mine was 77% complete at the end of July. Key milestones include advanced liner placement at the tailings management facility, ongoing installation of SAG, ball mills, and primary crusher, and nearing completion of CIL tank reconstruction. We are on track for first gold in Q2 2025.
Q: What are the recent exploration highlights at the Valentine property?
A: Darren Hall, President and Chief Executive Officer: We commenced an additional 100,000-meter drill program to confirm the vast potential of the Valentine District. This is in addition to the previously announced 50,000-meter well-control RC drilling program and the 10,000-meter drilling program focused on bedrock geology. Results have been encouraging, supporting the expansion of our exploration program.
Q: How is the progress at the Volcan pit in Nicaragua contributing to H2 performance?
A: Darren Hall, President and Chief Executive Officer: Rapid progress at Volcan, following key environmental approvals, resulted in first ore delivery to the Libertad mill within a month of permit receipt. This will contribute to a stronger H2. Drilling confirms high-grade, near-surface gold mineralization, exceeding the initial open pit resource average of 2 grams per tonne.
Q: What are the strategic priorities for Calibre Mining moving forward?
A: Darren Hall, President and Chief Executive Officer: Our priorities include delivering on our commitments in Nicaragua, Nevada, and Valentine, driving increased production and lower costs in H2, and investing in exploration for organic growth. We aim to maximize the potential of our existing assets and choose the most sustainable and accretive path forward to drive shareholder value.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
