i-80 Gold Reports Q1 2024 Operating Results
i-80 Gold Corp. (TSX: IAU, NYSE: IAUX) reported its Q1 2024 operating results.
Gold sales reached 2,486 ounces at an average price of $2,083 per ounce, contributing to total revenues of $8.41 million.
Key operations included 10,167 tons of mineralized material sold for $3.2 million, and significant drilling activities at Ruby Hill and McCoy-Cove projects.
Recent developments included a bought deal public offering raising approximately C$115 million.
Cash balance stood at $13.1 million, with $39.0 million in restricted cash.
Operating loss was $11.16 million, improved from $21.34 million in Q1 2023.
The company plans continued exploration and development, aiming to become a mid-tier Nevada-focused producer.
- Revenue increased to $8.41 million in Q1 2024 from $4.55 million in Q1 2023.
- Successful bought deal public offering raised C$115 million.
- Gold sales of 2,486 ounces at a high price of $2,083 per ounce.
- Completed significant drilling activities at Ruby Hill and McCoy-Cove.
- Cash balance of $13.1 million and restricted cash of $39.0 million.
- Operating loss reduced to $11.16 million from $21.34 million in Q1 2023.
- Operating loss of $11.16 million despite improved financials.
- High exploration, evaluation, and pre-development costs of $2.8 million.
- General and administrative expenses remain high at $4.57 million.
- Heap leach pad at Ruby Hill nearing end of production cycle.
Insights
The first quarter operating results of i-80 Gold Corp show a significant year-over-year improvement in revenue, which has risen to
The successful completion of a bought deal public offering raising C
Retail investors should consider the implications of the company's high operational costs and the potential for dilution due to the recent public offering. The raised funds should help the company continue its projects, but it is important to monitor how efficiently these funds are utilized and whether they translate into sustainable profitability.
i-80 Gold Corp's continued exploration and drilling activities at its Ruby Hill and McCoy-Cove projects are promising from a geological standpoint. The company's progress in drilling at the Ruby Hill mine with 4,032 feet of drilling and continued underground core drilling at McCoy-Cove with 3,594 feet highlight significant efforts to delineate and expand their resource base. The high-grade drilling results from the Helen and Gap Zones at McCoy-Cove are particularly noteworthy and could indicate a substantial addition to the company's gold reserves.
The challenges related to groundwater management at Granite Creek are a critical operational aspect. The completion of Dewatering Well #6 and commissioning a second discharge line are proactive steps but also underline the technical complexities involved in underground mining operations.
For retail investors, it's essential to understand that while these drilling activities are vital for long-term growth potential, they are also capital-intensive and come with inherent geological and operational risks. Continued positive drilling results could lead to resource upgrades and potential increases in the company's valuation, providing a significant upside potential if managed effectively.
The company's strategy to position the Lone Tree site as a central processing facility for its Nevada operations is crucial. Lone Tree's ability to process both oxide and refractory mineralization, post-refurbishment, could significantly enhance i-80 Gold Corp's processing capabilities and operational efficiency. As one of only three such facilities in the U.S., this could provide a competitive advantage.
The recent high-grade infill drilling results at Ruby Hill and the announcement of a potential joint venture are also strategically important. These developments not only show resource potential but also offer partnership opportunities that could mitigate financial risks and share development costs.
Retail investors should consider these strategic moves as part of the company's broader plan to transition from exploration to production. The successful execution of these plans can lead to a re-rating of the stock as a mid-tier producer, potentially driving long-term value. However, the success largely hinges on the company's ability to manage the complexities of project development and operational execution efficiently.
Unless otherwise stated, all amounts referred to herein are in
2024 FIRST QUARTER HIGHLIGHTS
- Gold sales of 2,486 ounces at a realized gold price of
$2,083 - 10,167 tons of mineralized material sold for total revenues of
$3.2 million - Continued drilling of polymetallic mineralization at the Ruby Hill mine (4,032 feet).
- Continued underground core drilling delineation of the CSD Gap and Helen zones at the McCoy-Cove project (3,594 feet).
- Completed non-brokered private placement of common shares for aggregate gross proceeds of
C .$23.5 million - March 31, 2024 cash balance of
$13.1 million $39.0 million
RECENT DEVELOPMENTS
Bought Deal Public Offering
On May 1, 2024, the Company completed a bought deal public offering of an aggregate of 69,698,050 units (each, a "Unit") at a price of
"The extension of the delivery requirements under the gold prepay and silver purchase agreements with Orion Mine Finance coupled with the recently completed bought deal public Offering, significantly enhance our financial flexibility and positions the Company to continue to execute on its plans", stated Ryan Snow, Chief Financial Officer of i-80. "We continue to advance exploration and definition drilling at Granite Creek and McCoy-Cove and permitting activities at our projects allowing the Company to advance our projects towards the ultimate goal of building a mid-tier
Three months ended | ||
(in thousands of | 2024 | 2023 |
Revenue | 8,413 | 4,548 |
Cost of sales(1) | (7,904) | (6,542) |
Depletion, depreciation and amortization(1) | (377) | (1,421) |
Mine operating income (loss) | 132 | (3,415) |
Expenses | ||
Exploration, evaluation, and pre-development | 2,782 | 8,979 |
General and administrative | 4,578 | 5,191 |
Property maintenance | 3,405 | 2,449 |
Share-based payments | 530 | 1,308 |
Operating loss | (11,163) | (21,342) |
(1) For the three months ended March 31, 2024, includes an inventory impairment of nil (2023 - | ||
Production and sales totaled 2,486 gold ounces for the quarter at a realized gold price of
Exploration, evaluation, and pre-development costs were
Granite Creek
Highlights for the three months ended March 31, 2024, include:
- 10,167 tons of mineralized material sold under the Ore Sale Agreement for proceeds of
$3.2 million - 28,500 tons of mineralized material added to stockpile, bringing the total stockpile material to 37,907 tons before sales.
- 3,178 feet of horizontal development.
Management of increased groundwater inflows into the underground workings continues to be a top priority. Dewatering Well #6 was completed and is in operation, and a second contact water discharge line was commissioned from the underground workings.
McCoy-Cove
The Cove deposit and the McCoy-Cove Property is expected to be the core asset in the Company's "hub and spoke" business plan and likely the highest-grade gold deposit in i-80's portfolio. During the quarter the Company achieved high grade infill drilling results at Helen and Gap Zones with 3,594 feet of total drilling completed.
Ruby Hill
During the quarter drilling at Ruby Hill was focused on infill drilling of the Hilltop zones for metallurgical sampling in relation to the previously announced potential joint venture. 4,032 feet of core drilling was completed during the quarter, fully funded by the potential joint venture partner in order to complete due diligence during the exclusivity period. Drilling highlights for the quarter include:
0.2% Zn,6.3% Pb, 180.0 g/t Ag & 2.2 g/t Au Over 5.0 m in hole iRH24-016.2% Zn,5.6% Pb, 198.0 g/t Ag & 1.0 g/t Au Over 3.6 m and13.4% Zn,2.5% Pb, 93.7 g/t Ag, & 0.6 g/t Au over 5.5 m in hole iRH24-0213.7% Zn,0.6% Cu, & 17.5 g/t Ag Over 57.8 m in hole iRH24-03
Residual leaching activities at Ruby Hill produced and sold 444 ounces of gold during the quarter at a realized gold price of
Lone Tree
Lone Tree is expected to become the hub of i-80's
During the quarter the Company continued its review of the value engineering studies and total refurbishment costs for the autoclave.
Lone Tree produced and sold from its residual leaching activities 2,042 ounces of gold during the quarter at a realized gold price of
AGM & Investor Day Presentation
The Company will hold an "Investor Day" presentation immediately following its Annual General Meeting (AGM) on May 14, 2024, being held at Bennett Jones LLP office – 100 King St W Suite 3400,
Conference Call Participant Details | |
Webcast URL: | |
Phone Number Information: | North American Toll-free: 1-888-664-6383 |
Local Toronto: 1-416-764-8650 | |
Qualified Persons
Tyler Hill, CPG-12146, Chief Geologist, and Tim George, PE, Mining Operations Manager, at i-80 have reviewed this press release and are the Qualified Persons for the information contained herein and are a "Qualified Person" within the meaning of National Instrument 43-101.
About i-80 Gold Corp.
i-80 Gold Corp. is a
Forward-looking information
Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws, including but not limited to, actual production results and costs, results of operation outcomes and timing of updated technical studies at the Company's mineral projects, timing to advance mineral projects to production and advance permitting and feasibility work on its mineral projects and future production, development and exploration results, the expectation that Lone Tree will become the hub of i-80's
Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to: material adverse changes, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labor unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to i-80's filings with Canadian securities regulators, including the most recent Annual Information Form, available on SEDAR+ at www.sedarplus.ca.
NON-IFRS FINANCIAL PERFORMANCE MEASURES
The Company has included certain terms or performance measures commonly used in the mining industry that are not defined under IFRS in this document. These include: adjusted net earnings and average realized price per ounce. Non-IFRS financial performance measures do not have any standardized meaning prescribed under IFRS, and therefore, they may not be comparable to similar measures employed by other companies. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and should be read in conjunction with the Company's Financial Statements.
Definitions
Adjusted earnings / (loss) and adjusted earnings / (loss) per share excludes from net earnings / (loss) significant write-down adjustments and the gain / (loss) from financing instruments.
Average realized gold price represents the sales price of gold per ounce before deducting mining royalties, treatment and refining charges and gains or losses derived from the offtake agreement with Orion.
Average realized gold price per ounce of gold sold
Average realized gold price per ounce of gold sold is a non-IFRS measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. It may not be comparable to information in other gold producers' reports and filings.
Three months ended | |||
(in thousands of | 2024 | 2023 | |
Revenue per financial statements | $ | 8,413 | 4,548 |
Mineralized material sales revenue | $ | (3,198) | — |
Revenue without mineralized material sales (i) | $ | 5,215 | 4,548 |
Silver revenue from mining operations | $ | (37) | (20) |
Gold revenue from mining operations | $ | 5,178 | 4,528 |
Ounces of gold sold | ounce | 2,486 | 2,349 |
Average realized gold price | $/ounce | 2,083 | 1,928 |
Lone Tree | |||
Revenue per financial statements | $ | 4,302 | 1,305 |
Silver revenue from mining operations | $ | (19) | (4) |
Gold revenue from mining operations | $ | 4,283 | 1,301 |
Ounces of gold sold | ounce | 2,042 | 663 |
Average realized gold price | $/ounce | 2,097 | 1,962 |
Ruby Hill | |||
Revenue per financial statements | $ | 913 | 2,382 |
Silver revenue from mining operations | $ | (18) | (16) |
Gold revenue from mining operations | $ | 895 | 2,366 |
Ounces of gold sold | ounce | 444 | 1,242 |
Average realized gold price | $/ounce | 2,016 | 1,905 |
Granite Creek | |||
Revenue per financial statements | $ | 3,198 | 861 |
Mineralized material sales revenue | $ | (3,198) | — |
Revenue without mineralized material sales (i) | $ | — | 861 |
Silver revenue from mining operations | $ | — | — |
Gold revenue from mining operations | $ | — | 861 |
Ounces of gold sold | ounce | — | 444 |
Average realized gold price | $/ounce | — | 1,939 |
(i) Does not include revenue from mineralized material sales. | |||
Adjusted loss
Adjusted loss and adjusted loss per share are non-IFRS measures that the Company considers to better reflect normalized earnings because it eliminates non-recurring items. Certain items that become applicable in a period may be adjusted for, with the Company retroactively presenting comparable periods with an adjustment for such items and conversely, items no longer applicable may be removed from the calculation. Neither adjusted loss nor adjusted loss per share have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies.
The following table shows a reconciliation of adjusted loss to the net earnings / (loss) for each period. Adjusted loss and adjusted loss per share exclude a number of temporary or one-time items detailed in the following table:
Three months ended | ||
(in thousands of | 2024 | 2023 |
Net loss for the period | $ (15,716) | $ (13,118) |
Adjust for: | ||
Gain on warrants | 2,630 | 5,568 |
Gain on convertible loans | 6,115 | 8,366 |
Loss on deferred consideration | — | (427) |
Loss on fair value measurement of gold prepay derivative | (3,498) | (3,091) |
Loss on fair value measurement of silver purchase derivative | (857) | (857) |
Inventory impairments | — | (4,025) |
Total adjustments | $ 4,390 | $ 5,534 |
Adjusted loss for the period | $ (20,106) | $ (18,652) |
Weighted average shares for the period | 305,324 | 245,603 |
Adjusted loss per share for the period | $ (0.07) | $ (0.08) |
1 Specified financial measure which is not a standardized measure under IFRS and may not be comparable to similar specified financial measures used by other entities. Please see "Non-IFRS Financial Performance Measures" for the composition of such specified financial measure, an explanation of how such specified financial measure provides useful information to a reader and the purposes for which management of i-80 uses the specified financial measure, and where required, a reconciliation of the specified financial measure to the most directly comparable IFRS measure. |
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SOURCE i-80 Gold Corp
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