Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Calibre Mining Corp (CXBMF, Financial) achieved record production of 76,000 ounces in Q4 and 242,000 ounces for the full year, exceeding the upper end of their production guidance.
- The company reported a 20% reduction in lost time injury frequency rate year-over-year, highlighting a commitment to safe operations.
- Cash reserves increased by 23% to $161 million as of mid-February 2025, indicating strong financial health.
- The Valentine Gold Mine is on track for first gold production in Q2 2025, with a forecasted production of 50,000 to 100,000 ounces for the year.
- A 200,000-meter company-wide drilling program, the largest in Calibre's history, is planned for 2025, aiming to increase mineral resources significantly.
Negative Points
- The company faces uncertainties related to the ramp-up of production at the Valentine Gold Mine, with no specific timeline for reaching commercial production.
- There is a wide production guidance range for Nicaragua (230,000 to 280,000 ounces), indicating potential variability in output.
- The Sprott loan facility is almost fully drawn, and the company will need to explore refinancing options, which could impact financial flexibility.
- The timeline for releasing a new technical report on the Valentine project expansion is uncertain, with no updates expected in the next 12 months.
- Despite strong cash reserves, the increase in cash was partly due to timing of spending and working capital adjustments, which may not be sustainable.
Q & A Highlights
Q: Could you reiterate the production outlook for the Valentine project this year?
A: The feasibility study projected 195,000 ounces per year for the first 12 years. With first gold expected in Q2, we anticipate 50,000 to 100,000 ounces of production in 2025.
Q: When do you expect to reach commercial production and nameplate capacity at the Valentine mine?
A: Our focus is on safely delivering the asset and ramping up production to an annualized rate of around 2.5 million tons by the end of the year. The milling capacity has an implicit throughput rate of about 3 million tons a year.
Q: When will you release a new technical report outlining the cost and timeline for the planned mill expansion?
A: We are progressing with detailed engineering and expect to provide more clarity around late Q2, possibly associated with our Q2 results. The next formal technical report would be after the end of this year.
Q: What are the best available options for refinancing the loan facility, and when might you explore refinancing?
A: We have the ability to refinance at the end of this year. As we progress, we'll explore the best structure for our balance sheet. Given our production growth and cash flow, we expect to have multiple options.
Q: Is the Phase 2 expansion contingent on any assumptions about mining rates or exploration success?
A: The feasibility study only considered reserves, not the full resource base. We see opportunities to improve on the existing resource base and accelerate mining without needing to add new resources.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
