i-80 Gold Reports Q2 2024 Operating Results
i-80's unaudited condensed consolidated interim financial statements ("Financial Statements"), as well as i-80's Management's Discussion and Analysis of Operations and Financial Condition ("MD&A") for the three and six months ended
Unless otherwise stated, all amounts referred to herein are in
Highlights
Second Quarter
- First mineralized material was accessed at
South Pacific Zone at theGranite Creek mine in June, 2024. - 3,760 feet of horizontal and vertical advancement at the
Granite Creek mine. - Commenced underground delineation drilling of the CSD Gap and Helen zones at the McCoy-Cove project (14,382 feet).
- Q2 2024 gold sales of 1,636 ounces at a realized gold price of
$2,361 1 per ounce. - 9,361 tons of mineralized material sold for total revenues of
$5.9 million .
Year to Date
- Completed 17,976 feet of exploration drilling at McCoy-Cove.
- Completed 6,938 feet of horizontal and vertical advancement at the
Granite Creek mine. - YTD gold sales of 4,122 ounces at a realized gold price of
$2,193 1 per ounce. - 19,528 tons of mineralized material sold (5,183 tons of sulfide mineralized material) for total revenues of
$9.1 million . - A total of 40,447 feet (core and RC) drilled YTD with multiple positive results to expand mineralization further at the Ruby Hill mine, the
Granite Creek mine and the McCoy-Cove project.
"The bought deal public offering completed during Q2 strengthens our financial flexibility and positions the Company to continue to execute on its plans", stated
Production and sales totaled 1,636 gold ounces for the quarter and 4,122 gold ounces year to date (YTD) at a realized gold price of
Exploration, evaluation, and pre-development costs were
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Three months ended
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Six months ended
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(in thousands of |
2024 |
2023 |
2024 |
2023 |
|
|
|
|
|
Revenue |
7,184 |
11,310 |
15,597 |
15,859 |
Cost of sales(1) |
(18,994) |
(12,188) |
(26,897) |
(18,731) |
Depletion, depreciation and amortization(1) |
(74) |
(2,724) |
(451) |
(4,145) |
Mine operating loss |
(11,884) |
(3,602) |
(11,751) |
(7,017) |
|
|
|
|
|
Expenses |
|
|
|
|
Exploration, evaluation, and pre-development |
5,065 |
11,095 |
7,848 |
20,074 |
General and administrative |
6,007 |
4,397 |
10,585 |
9,588 |
Property maintenance |
1,864 |
2,781 |
5,269 |
5,230 |
Share-based payments |
612 |
903 |
1,141 |
2,211 |
Operating loss |
(25,432) |
(22,778) |
(36,594) |
(44,120) |
(1) |
For the three and six months ended |
Highlights for the three and six months ended
- 33,469 wet tons of mineralized material were mined and added to the stockpile as of Q2 2024.
- Sale of total mineralized material of 9,361 tons for proceeds of
$5.9 million for the three months endedJune 30, 2024 . - Sale of total mineralized material of 19,528 tons YTD for proceeds of
$9.1 million for the six months endedJune 30, 2024 . - First mineralized material was accessed at
South Pacific Zone at theGranite Creek mine in June, 2024. - 3,760 feet of combined horizontal and vertical advancement in Q2 2024.
"
The current priority at
The Company continues to encounter elevated oxide mineralized material with approximately 83% of mined mineralization being oxide during the quarter. The oxide mineralized material is sold under an ore purchase agreement, therefore no gold ounces are reported as production. As of
During the three months ended
The Company has determined that it will be more efficient, and more cost effective, to complete definition drilling of the
- GCPU24-02: 22.0 g/t Au over 29.0 m
- GCPU24-04: 11.0 g/t Au over 22.4 m
- GCPU24-04: 60.5 g/t Au over 4.1 m
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. The primary focus is to complete the ongoing underground drill program in advance of the completion of a Feasibility Study. This program has been highly successful in demonstrating continuity of high-grade mineralization, confirming Cove as one of
- iCHU24-01: 48.3 g/t Au over 3.0 m (
Lower Helen Zone )- and 15.8 g/t Au over 15.8 m (
Lower Helen Zone )
- and 15.8 g/t Au over 15.8 m (
- iCHU24-04: 14.3 g/t Au over 13.5 m (
Lower Helen Zone ) - iCHU24-08: 15.1 g/t Au over 7.4 m (
Lower Helen Zone )- and 22.6 g/t Au over 7.1 m (
Lower Helen Zone )
- and 22.6 g/t Au over 7.1 m (
- iCHU24-12: 7.8 g/t Au over 28.7 m (
Lower Helen Zone ) - iCHU24-14: 13.7 g/t Au over 7.2 m (
Lower Helen Zone )- and 10.4 g/t Au over 38.8 m (
Lower Helen Zone ) - and 11.0 g/t Au over 20.6 m (
Lower Helen Zone )
- and 10.4 g/t Au over 38.8 m (
Highlights for the three and six months ended
- Achieved high grade infill drilling results at the Helen and Gap zones for the three and six months ended
June 30, 2024 . - 14,382 feet of drilling completed for the three months ended
June 30, 2024 . - 17,976 feet of drilling completed for the six months ended
June 30, 2024 . - Baseline field studies including vegetation, migration birds, geochemical, and hydrological continue to move forward.
- Preliminary work has also commenced on the baseline air quality impact analysis report, global climate change technical memo, and baseline geochemical characterization report.
- The initial hydrology model has been completed, and the Company is currently optimizing the design of the de-watering infrastructure based on this model.
Highlights for the three and six months ended
- Advanced metallurgical testing on gold, base metal, and polymetallic deposits including the Hilltop and FAD zones for the three months ended
June 30, 2024 . - Advancing permitting for water pollution control permit and social-economical baseline report.
- Residual leaching activities at Ruby Hill produced and sold 510 ounces of gold during the quarter and 954 ounces of gold YTD at a realized gold price of
$2,331 and$2,183 per ounce sold1, respectively. - As the heap leach pad is nearing the end of its production cycle the Company continues to analyze the breakeven cost to determine when the heap leach pad will cease production.
- Discussions are ongoing with the potential JV partner.
During the three months ended
More recently, the Company has commissioned a Scoping Study to provide an initial assessment of the economics of the
During the quarter, the Company continued its review of the value engineering studies and total refurbishment costs for the autoclave.
RECENT DEVELOPMENTS
Shelf Prospectus
The Company obtained a receipt for a final short form base shelf prospectus on
These filings provide added financial flexibility and allow the Company to make offerings of common shares, warrants, debt securities, subscription receipts and units (collectively, the "Securities"), or any combination thereof, from time to time over a 25-month period in both
Transition to US Generally Accepted Accounting Principles
Historically, the Company has prepared its financial statements under IFRS Accounting Standards for reporting as permitted by security regulators in
The Company will hold a conference call and webcast on
Webcast and Conference Call Participant Details:
Webcast URL: https://app.webinar.net/A5n1xDOkwv2
Conference Call Information:
North American Toll-free: 1-800-836-8184
Local Toronto: 1-289-819-1350
Qualified Persons
About
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
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 Accounting Standards 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 Accounting Standards, 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 Accounting Standards 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 Accounting Standards and does not have a standardized meaning defined by IFRS Accounting Standards. It may not be comparable to information in other gold producers' reports and filings.
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Three months ended
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Six months ended
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(in thousands of |
|
2024 |
2023 |
2024 |
2023 |
|
|
|
|
|
|
Revenue per financial statements |
$ |
7,184 |
11,310 |
15,597 |
15,859 |
Mineralized material sales revenue |
$ |
(3,288) |
(2,821) |
(6,486) |
(2,821) |
Revenue without mineralized material sales (i) |
$ |
3,896 |
8,489 |
9,111 |
13,038 |
Silver revenue from mining operations |
$ |
(34) |
(41) |
(71) |
(61) |
Gold revenue from mining operations |
$ |
3,862 |
8,448 |
9,040 |
12,977 |
Ounces of gold sold |
ounce |
1,636 |
4,329 |
4,122 |
6,678 |
Average realized gold price |
$/ounce |
2,361 |
1,951 |
2,193 |
1,943 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per financial statements |
$ |
2,682 |
5,370 |
6,985 |
6,675 |
Silver revenue from mining operations |
$ |
(9) |
(15) |
(28) |
(19) |
Gold revenue from mining operations |
$ |
2,673 |
5,355 |
6,957 |
6,656 |
Ounces of gold sold |
ounce |
1,126 |
2,700 |
3,168 |
3,363 |
Average realized gold price |
$/ounce |
2,374 |
1,983 |
2,196 |
1,979 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per financial statements |
$ |
1,214 |
3,119 |
2,126 |
5,502 |
Silver revenue from mining operations |
$ |
(25) |
(26) |
(43) |
(42) |
Gold revenue from mining operations |
$ |
1,189 |
3,093 |
2,083 |
5,460 |
Ounces of gold sold |
ounce |
510 |
1,629 |
954 |
2,871 |
Average realized gold price |
$/ounce |
2,331 |
1,899 |
2,183 |
1,902 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per financial statements |
$ |
3,288 |
2,821 |
6,486 |
3,682 |
Mineralized material sales revenue |
$ |
(3,288) |
(2,821) |
(6,486) |
(2,821) |
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 Accounting Standards 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:
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Three months ended
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Six months ended
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(in thousands of |
2024 |
2023 |
2024 |
2023 |
|
|
|
|
|
Net loss for the period |
$ (36,831) |
$ (15,962) |
$ (52,546) |
$ (29,078) |
Adjust for: |
|
|
|
|
Gain on convertible loans |
3,030 |
2,097 |
9,145 |
10,463 |
Gain on warrants |
1,645 |
4,607 |
4,275 |
10,175 |
(Loss) gain on gold prepay derivative |
(1,417) |
838 |
(4,915) |
(2,252) |
(Loss) gain on silver purchase derivative |
(4,445) |
1,309 |
(5,302) |
452 |
Gain on convertible debenture |
— |
900 |
— |
900 |
Loss on gold prepay agreement modification |
(667) |
— |
(667) |
— |
Loss on silver purchase agreement modification |
(440) |
— |
(440) |
— |
Loss on deferred consideration |
— |
(351) |
— |
(778) |
Inventory impairments |
(8,764) |
(4,506) |
(8,764) |
(8,531) |
Total adjustments |
$ (11,058) |
$ 4,894 |
$ (6,668) |
$ 10,429 |
Adjusted loss for the period |
$ (25,773) |
$ (20,856) |
$ (45,878) |
$ (39,507) |
Weighted average shares for the period |
361,145,495 |
265,433,411 |
333,234,688 |
255,573,142 |
Adjusted loss per share for the period |
$ (0.07) |
$ (0.08) |
$ (0.14) |
$ (0.15) |
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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