Mr. Darren Hall reports
A STRONG FINISH TO 2021 AS CALIBRE EXCEEDS THE HIGH-END OF GOLD PRODUCTION GUIDANCE WITH 182,755 OUNCES AND CLOSES FIORE DEAL TO EXPAND INTO NEVADA
Calibre Mining Corp. has released its financial and operating results for the three months and year ended Dec. 31, 2021. Annual consolidated financial statements and the corresponding management discussion and analysis for the year ended Dec. 31, 2021, can be found on SEDAR and the company's website. All figures are expressed in United States dollars.
Gold production of 182,755 ounces:
- Limon produced 67,352 ounces from 495,668 tonnes of ore at an average grade of 4.69 grams per tonne Au and average recoveries of 89.7 per cent;
- Libertad produced 115,403 ounces from 1,462,912 tonnes of ore at an average grade of 2.68 g/t Au and average recoveries of 92.8 per cent.
Gold sales of 183,242 ounces (2020 -- 135,357 ounces) grossing $328.1-million in revenue (2020 -- $242.7-million), resulting in an average realized gold price (1) of $1,791/ounce (2020 -- $1,793/oz);
- Announced the acquisition of Fiore Gold in Nevada, which closed in January, 2022, creating a diversified, Americas-focused, growing, mid-tier gold producer;
- Cash of $78.5-million as at Dec. 31, 2021 (pretransaction); a 47-per-cent increase from Dec. 31, 2020;
- Generated $105.6-million in cash from operating activities (2020 -- $81.3-million);
- Net income of $58.2-million, with basic net income per share of 17 cents (2020 -- $63.4-million, basic net income per share of 19 cents);
- Consolidated total cash costs (1) and AISC (all-in sustaining costs) (1) of $1,013 and $1,136 per ounce respectively ($878 and $1,043 for 2020 respectively);
- Released the company's inaugural sustainability report, available on the company's website;
- Completed the Pavon prefeasibility study, demonstrating strong exploration potential and an after-tax NPV (net present value) of $106-million (at $1,700 Au and a discount of 5 per cent) (full technical report is available on the company's website and on SEDAR);
- Commenced open pit mining at Pavon Norte, and increased daily ore haulage rates to the Libertad mill during the year;
- Advanced technical drilling, land purchases, social and environmental activities at the initial resource zones at the Eastern Borosi project (EBP) with permitting commencing in Q1 2022 for open pit and underground operations, leading to expected production growth in the second half of 2023;
- Significant exploration results have been announced throughout 2021 resulting from the multirig exploration drill programs active across the mine sites and satellite opportunities -- most notably the high-grade EBP property, and the high-grade Volcan zone located five kilometres from the Libertad mill.
Q4 2021 highlights
Gold production of 49,218 ounces:
- Limon produced 19,599 ounces from 123,330 tonnes of ore at an average grade of 5.59 g/t Au and average recoveries of 89.8 per cent;
- Libertad produced 29,619 ounces from 456,561 tonnes of ore at an average grade of 2.29 g/t Au and average recoveries of 90.3 per cent.
Gold sales of 49,207 ounces (Q4 2020 -- 42,335 ounces) grossing $88.1-million in revenue (Q4 2020 -- $79.7-million) which resulted in an average realized gold price1 of $1,791/oz (Q4 2020 -- $1,882/oz);
- Net income of $14.6-million (Q4 2020: $23.3-million); basic net income per share of four cents (Q4 2020: seven cents);
- Consolidated total cash costs (1) and AISC (1) of $1,026 and $1,139 per ounce, respectively ($940 and $1,051 for Q4 2020, respectively).
Darren Hall, president and chief executive officer of Calibre, stated: "The Calibre team delivered another strong quarter to beat the high end of our 2021 production guidance. A solid contribution was delivered from our Pavon open pit deposit, which we permitted, developed and ramped up production to 1,000 tonnes per day of ore to Libertad mill all within 22 months. Calibre has a compelling value proposition in that we have 2.7 million tonnes of installed processing capacity of which approximately 70 per cent is being utilized. I am very pleased with the significant progress during the year at EBP which I expect to be our next high-grade satellite deposit to feed into our existing infrastructure resulting in 2023 and 2024 production growth.
"As the year progressed, our commitment to growing the company was enhanced with the announcement of the acquisition of Fiore Gold which closed on Jan. 12, 2022. This transaction builds on our focus to continuously create value for shareholders by bringing a diversified asset base, immediate production and robust growth and exploration upside in Nevada.
"With multirig exploration drill programs active across all Calibre sites, and development opportunities advancing, we remain committed to reinvesting into mine development and exploration to increase resource confidence, expand resources, make new discoveries and grow production organically. With $78.5-million in cash pretransaction and no debt, we have commenced 2022 well positioned to enable Calibre to continue self-funding growth, exploration and mine development across all our assets."
Calibre will continue its significant exploration activities across all its assets as the company continues to realize the prospective and underexplored potential its portfolio has to offer and will continue to reinvest in the business as exploration and resource delineation programs continue in Nicaragua, and now, Nevada. Calibre's goal of becoming a growth-oriented, Americas-focused, mid-tier gold producer continues to advance with the recent agreement to acquire Fiore, which provides a logical step to building a robust and jurisdictionally diverse gold producer with three established operations, significant exploration potential and a path to future growth.
Nevada production is forecasted to be relatively flat with consistent growth and exploration spend quarter over quarter. Growth capital is largely spent on advancing state permitting and technical studies to better understand the production growth opportunity at Gold Rock. Calibre continues to see strong exploration potential at Gold Rock but in 2022 the company will significantly increase drilling activities at the Pan heap leach operation. The company currently has two rigs operating at Gold Rock and three at Pan.
Nicaraguan 2022 gold production is forecasted to increase quarter over quarter with a significant increase in Q4 2022. Production in the second half of 2022 is expected to be approximately 20 per cent higher than that of the first half due to change in deposit grade profiles and mine sequencing. As a result, the company expects lower total cash costs (1) and AISC (1) during the second half of the year.
In 2022, total cash costs (1) are forecasted to be slightly higher than 2021 as a result of incorporating the Nevada assets into the Calibre portfolio, and due to inflation impacts on fuel, consumables and labour costs. Growth capital is anticipated to be relatively consistent throughout the year to unlock value at new deposits including the high-grade Pavon Central and EBP -- both expected to increase production and reduce costs commencing in 2023.
Nicaragua growth capital outside AISC (1) includes underground development at Panteon Norte and Atravesada to advance additional mill feed sources, new open pit mine development at Pavon Central, Limon Norte and La Tigra waste stripping, land acquisition, and early construction activity at the EBP, which is expected to be the next spoke for the Libertad complex.
Fourth quarter and full year 2021 financial results and conference call details
The fourth quarter and full year 2021 financial results will be released after market close on Wednesday, Feb. 23, 2022, and management will be hosting a conference call to discuss the results and outlook in more detail.
Thursday, Feb. 24, 2022
Time: 10 a.m. ET
Dial-in: 1-866-221-1882 or 1-470-495-9179 (international)
Webcast: Edge Media website
Conference ID: 8699318
The live webcast can be accessed through the company's website under the events and media section under the investors tab. The live audio webcast will be archived and made available for replay at the company website. Presentation slides which will accompany the conference call will be made available in the investors section of the Calibre website under presentations, prior to the conference call.
Darren Hall, MAusIMM, president and chief executive officer of Calibre Mining, is a qualified person as set out under National Instrument 43-101, and has reviewed and approved the scientific and technical information in this news release.
About Calibre Mining Corp.
Calibre is 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 U.S., 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, no debt, a proven management team, strong operating cash flow, accretive development projects and district-scale exploration opportunities, Calibre will unlock significant value.
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