Release Date: April 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- i-80 Gold Corp (IAUX, Financial) announced a new development plan for its portfolio of three underground and two open pit gold projects, highlighting a clear path towards producing half a million ounces of gold by the early 2030s.
- The company successfully filed preliminary economic assessments for its projects, improving disclosure and clarity around its development plan.
- i-80 Gold Corp (IAUX) maintained a clean environmental compliance record, ending its fourth consecutive year without any environmental violation notices.
- The company has entered into new financial arrangements, including a gold and silver purchase agreement with National Bank of Canada, enhancing near-term liquidity and balance sheet flexibility.
- The technical team completed significant work in a short period, allowing the company to define an executable strategy and clarify capital requirements, demonstrating significant value across its gold portfolio.
Negative Points
- Production at Granite Creek Underground was impacted by higher than anticipated water ingress, delaying progress and resulting in lower than planned gold production.
- The company reported a net loss position due to ongoing development projects and lower gold sales impacted by working capital timing.
- i-80 Gold Corp (IAUX) faces challenges in securing senior financing, with potential additional work required by lending parties to complete technical due diligence.
- The transition from IFRS to US GAAP resulted in significant financial adjustments, including a capitalization reversal of $80 million for underground development work.
- The company deferred true exploration activities to future years due to limited discretionary funding, focusing instead on advancing existing projects to the feasibility stage.
Q & A Highlights
Q: Can you provide an update on the development plans for your gold projects?
A: Richard Young, CEO, explained that I-80 Gold has announced a new development plan for its portfolio, which includes three underground and two open pit gold projects. Preliminary economic assessments (PEAs) have been filed for these projects, highlighting a combined NPV of $1.6 billion at $2,175 per ounce and $4.5 billion at $2,900 per ounce. The company aims to produce half a million ounces of gold by the early 2030s.
Q: What are the key financial changes due to the transition to US GAAP?
A: Ryan Snow, CFO, stated that as of January 1, 2025, I-80 Gold transitioned from IFRS to US GAAP. This change resulted in several adjustments, including a capitalization reversal of $80 million for underground development work and a reclassification of $13.8 million related to convertible debentures. The company will now report certain pre-development costs as expenses until mineral reserves are declared.
Q: How is the company addressing the water ingress issue at Granite Creek Underground?
A: Matt Gili, COO, reported that the water ingress issue at Granite Creek Underground impacted mining rates and gold production. However, all components of the dewatering system are now operational, and the amount of contact water is declining. The company has recommenced advancing the main decline, and production rates are expected to ramp up in the second half of 2025.
Q: What are the company's plans for financing and recapitalization?
A: Richard Young, CEO, mentioned that I-80 Gold is in active discussions regarding several financing options, including a senior debt facility, royalty sales, and non-core asset sales. The company aims to have a new senior financing in place by the second quarter of 2026. Recent agreements with National Bank and Auramet are steps towards enhancing liquidity and balance sheet flexibility.
Q: What are the production expectations for 2025?
A: Matt Gili, COO, stated that I-80 Gold expects to produce between 30,000 and 40,000 ounces of gold in 2025. Granite Creek Underground is expected to contribute between 20,000 to 30,000 ounces, while the heap leach operations at Ruby Hill and Lone Tree are expected to contribute approximately 10,000 ounces.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
