Calibre Mining reported robust Q1 production and financial results. The company produced over 45k oz. Au, the highest quarterly production since Q3 2016, when B2Gold operated Limon and Libertad. Production was boosted (marginally) by the first ore delivery from the Pavon Norte mine to the Libertad mill. Pavon Norte is an excellent example of Calibre executing its "hub-and-spoke" strategy as Calibre advanced new satellite deposits in less than 18-months.
All-in sustaining costs (AISC) were in line with guidance for the year, with AISC of $1,095/oz. in Q1. Calibre generated $82m in revenue and operating cash flow of $25.5m. Calibre’s financial position improved, with the company having a net cash position of $58.2m. Free cash flow generation was muted in Q1 ($5m) due to expansionary and exploration capital are more heavily weighted in the 1H 2021. During the quarter, Calibre announced a greater than 200% increase in reserves to 864k oz. Au, the largest reserve base since 2010 with the highest grade on record (4.49 g/t).
Catalysts through the remainder of 2021 include production growth over 2020, exploration results from its ongoing 80,000-meter, 15 rig, expansion, and discovery drill program, focusing on satellite opportunities, emerging districts, and near mill growth targets. Two sizeable exploration projects include Easter Borosi and the JV agreement with Rio Tinto on the Borosi concessions in Northeastern Nicaragua. The focus for Calibre regarding near-medium term growth is Eastern Borosi, where Calibre has another high-grade inferred resource of some scale (700k oz. Au).
About the author
Chief Mining Analyst with GoldSeek.com and SilverSeek.com. Author of the Gold Seeker Report weekly newsletter and analyst at the 24K Gold Fund. Previously he was the Senior Mining Equity and Economic Analysis at The Morgan Report. He was a Co-Founder and Director of Lemuria Royalties, before it was acquired in March 2018. He also co-authored The Silver Manifesto with David Morgan in 2015.
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