Calibre Mining Corp. (TSX: CXB) updated its operating results for the third quarter and the year to date, while also adjusting its production guidance for the remainder of the year.
During Q3, Calibre reported gold sales of 46,076 ounces, with 36,427 ounces coming from Nicaragua and 9,649 ounces from Nevada. The company’s consolidated total cash costs (TCC) for the quarter averaged $1,580 per ounce, and its all-in sustaining costs (AISC) came in at $1,946 per ounce.
These results reflected several operational challenges, particularly in Nicaragua, where historical artisanal mining activities at the Volcan open pit hampered the company’s initial plans.
For the first nine months of 2024, consolidated gold sales totaled 166,200 ounces, with 140,646 ounces from Nicaragua and 25,554 ounces from Nevada. The year-to-date TCC averaged $1,379 per ounce, while the AISC stood at $1,656 per ounce.
Looking ahead, Calibre revised its full-year production guidance to 230,000-240,000 ounces, a significant reduction from its original forecast of 275,000-300,000 ounces. Nicaragua’s Q4 mine plans are projected to contribute 60,000-70,000 ounces, driven by higher ore tonnage and grade alignment at the Volcan open pit, which should help offset the year’s earlier shortfalls.
“Q3 production was lower than expected primarily due to higher-than-expected historical artisanal mining activity on the initial benches of the Volcan open pit and mine sequencing at Limon. However, ore tonnes and grade from Volcan are now aligning with expectations, and we forecast a stockpile build of approximately 30,000 ounces, which will be processed in 2025,” CEO Darren Hall said.
The challenges in both Nicaragua and Nevada impacted Calibre’s cost profile. The company revised its full-year TCC guidance to $1,300-$1,350 per ounce, up from its previous estimate of $1,075-$1,175. Likewise, the AISC forecast was raised to $1,550-$1,600 per ounce, compared to the earlier range of $1,275-$1,375.
The updated guidance reflects not only the operational challenges but also the higher expenses associated with artisanal mining and lower ore deliveries in Nicaragua, as well as lower-than-expected tonnes stacked in Nevada, which are expected to reduce metal production by around 5,000 ounces for the full year.
As of September 30, 2024, Calibre held approximately US$115.8 million in unrestricted cash, along with US$100 million in restricted cash. This financial buffer, combined with strong gold price conditions, gives the company confidence in its ability to execute its near-term operational plans and complete the Valentine project without additional financing.
Looking ahead to 2025, Calibre is positioned to build on its 2024 results, with the added boost from Valentine’s expected first gold pour in Q2. The company’s strategy of expanding its operations in both Nicaragua and Nevada, while advancing its Canadian assets, puts it in a strong position for future growth.
“We are guiding to finish 2024 approximately 18% below the midpoint of our original production guidance, but the 30,000-ounce stockpile positions us well for a strong close to the year and a solid start to 2025,” Hall concluded.
Calibre Mining last traded at $2.67 on the TSX.
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