Calibre reports lower earnings in quarter

Calibre Mining Corp. posted adjusted net earnings of nearly $2.3 million, or zero per share, in the third quarter, down from $24.5 million, or 5 cents per share, in the third quarter of last year as the company continues construction of the Valentine Gold Mine in Canada.

Calibre produced 45,697 ounces of gold in the quarter, down from 73,485 ounces in the third quarter of 2023, including 9,270 ounces from the Pan Mine in Nevada, which was down slightly from Pan's 9,729 ounces in the 2023 quarter.

The Vancouver-based company's president and chief executive officer, Darren Hall, said in the Nov. 5 earnings announcement that fourth-quarter production "is expected to be the strongest of the year, delivering 70,000 to 80,000 ounces, driven by Nicaragua's Q4 mine plans, which are tracking and plan for significant higher ore tons mined."

He said that after increasing ore haulage to Libertad in Nicaragua by 30% to 3,000 metric tons per day, "we forecast a stockpile build of approximately 30,000 ounces, which will be processed in 2025."

Calibre's revised production guidance for this year is 230,000 to 240,000 ounces of gold at all-in sustaining costs of $1,550 to $1,600 per ounce. The original guidance was 275,000 to 300,000 ounces.

Hall said in the company's production report in October that the lower gold production in the third quarter compared with last year was "primarily due to higher-than-expected historical artisanal mining activity on the initial benches of the Volcan open pit and mine sequencing at Limon."

He also said in the company's Oct. 18 webcast that "it is important to note there are no current artisanal activities" at the Volcan open pit in Nicaragua.

"We have mined through the impacted area. Ore tons and grading are aligning with expectations and the deposit model has been confirmed by infill drilling."

The company's average realized gold price was $2,418 per ounce in the third quarter, compared with $1,929 per ounce in the 2023 quarter.

Calibre operates mines in Nicaragua and Pan in White Pine County but is planning to produce gold from the Valentine Gold Mine next year. The company acquired Valentine in Newfoundland and Labrador in January of this year from Marathon Gold.

"The Valentine team continues to make significant progress with construction completion at 81% at the end of September, and we remain on track to deliver first gold during Q2 2025," Hall said. "I am pleased with the increased focus, and we are confidently heading toward mechanical and electrical completion in early Q1, 2025."

Hall said the Valentine Gold Mine and surrounding property "offers an impressive 5-million-ounce resource base and numerous discovery opportunities."

The financial report stated that the tailings management facility is complete and ready to receive water, construction is nearing completion for the carbon-in-leach tanks, the reclaim tunnel and coarse ore stockpile construction is progressing, installation of the primary crusher is well advanced, and overland conveyor construction has begun.

Calibre reported that pre-commissioning is underway, and the company has initial project capital fully financed for the project. However, Hall said in the Oct. 18 webcast that "it hasn't all been smooth sailing" at Valentine because of cost pressures that have led to initial capital projections being revised to $533.9 million, up $65.3 million.

Calibre additionally said that it has expanded the resource expansion and discovery drill program at Valentine, and had good drilling results in Nicaragua, including a new discovery along the VTEM Gold Corridor and high-grade gold mineralization intercepts at the Talavera deposit, both at the Limon mining complex.

In Nevada, the company reported additional near surface, above reserve grade gold mineralization at the Pan Mine, demonstrating the potential to increase resources, grade and mine life. Third-quarter all-in sustaining costs at Pan were $1,813 per ounce in the third quarter.

Production guidance for 2024 at Pan is 34,000 to 36,000 ounces of gold.

Calibre is also exploring at the Gold Rock site near Pan and owns the former Illipah Mine in White Pine County.