Release Date: March 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Integra Resources Corp (STU:IRV, Financial) transitioned from a development stage company to a producer with the acquisition of the Florida Canyon mine.
- Florida Canyon achieved its highest production output in 21 years, producing over 72,000 ounces of gold in 2024.
- The company ended 2024 with a strong cash balance of $52 million, positioning it well for future objectives.
- Significant advancements were made at the Delamar project, including engineering improvements and permitting progress.
- The Nevada North project showed promising results with successful drilling and secured conservation credits, enhancing its growth potential.
Negative Points
- The all-in sustaining cost for gold production at Florida Canyon was high at $2,103 per ounce.
- Unit costs per ton mined were considered high, with potential one-off items affecting costs.
- The company refrained from providing specific guidance on 2025 costs and expenditures.
- The mining fleet at Florida Canyon is due for major maintenance, requiring careful management and potential capital deployment.
- There are ongoing optimization studies needed to reduce costs and improve operational efficiency at Florida Canyon.
Q & A Highlights
Q: Can you provide guidance on mining costs and G&A expenses for 2025?
A: (Andree St-Germain, CFO) We are refraining from providing specific guidance for 2025 at this time. We expect to have a better update by mid-May. As we transition from a development stage company to a producer, some G&A costs will increase accordingly.
Q: Are the reported unit costs per ton mined reflective of future expectations, or were there one-off items affecting these costs?
A: (Andree St-Germain, CFO) We are currently conducting optimization studies to reduce costs, and these will take time. With the new COO, Cliff Lefler, we expect to provide guidance on cost optimization by mid-year.
Q: What is the current utilization of the mining fleet, and when can we expect capital deployment for new equipment?
A: (Greg Robinson, General Manager - Florida Canyon Mining) We are seeing good utilization, targeting around 80-85%. We are conducting a study to determine the best steps for the mining fleet, with updates expected mid-year. We are ensuring the current equipment is serviceable through this decision-making period.
Q: Can you provide an update on your hedging program?
A: (Jason Banducci, VP, Corporate Development and Investor Relations) We have completed hedging for this year, covering about 75% of gold sold ounces with put options at a floor of $2,400. This protects the downside while allowing exposure to the upside. We will consider similar strategies for next year.
Q: Are there any issues with cost inflation or bottlenecks in obtaining spares for the mining fleet?
A: (Greg Robinson, General Manager - Florida Canyon Mining) We have no issues with parts availability due to a strong supply chain with our local Caterpillar dealer. We are managing major maintenance carefully while conducting a study on the mining fleet.
Q: Can you provide a breakdown of the $12 million expenditure for the Phase 3B heap leach expansion?
A: (Greg Robinson, General Manager - Florida Canyon Mining) We are mobilizing contractors now, with major spending starting towards the end of Q2 and wrapping up by the end of Q3. The scope is smaller than Phase 3A, focusing on building the leach pad itself.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
