Calibre Mining

Primary ticker: TSX:CXB
Stage of development: Exploration, Development, Production
Primary minerals: Gold
Project to promote: Multi-asset gold producer and developer
Project location: Nicaragua
Company presentation: Full presentation | 3D animation
Company video: Click here

Live financials

Cash: USD$43M
Debt: USD$15M

Major shareholders:
Luxor Capital
Lukas Lundin
Merk Investors
Management ownership – 6%

Management Profile

Russell Ball, CEO, Director

Mr. Ball has worked in the mining sector over 25 years most recently he was executive vice president of corporate development for Goldcorp. Prior to Goldcorp Mr. Ball was the Chief Financial Officer for Newmont.

Ryan King, Vice President Corporate Development & IR

Mr. King has worked in the mining sector over 15 years most recently he was vice president of IR for Kirkland Lake gold. Prior to Kirkland Lake Mr. King was the Vice President of IR for Newmarket Gold which was acquired by Kirkland Lake for C$1.2 billion

What is your rationale for attending 121 Mining Investment?

Additional investor exposure to our exciting developing gold company.

What recent news would you like to highlight to investors attending?

Q1 production was over 42,000 ounces consolidated at all-in costs of $1,030 per ounce. Just prior to the quarterly announcement Calibre announced a new gold deposit discovery with over 17.7g/t gold over 10 metres on a new high-grade vein structure at one of its operating mines.

What are your key goals for the next 3, 6 and 12 months?

3 Months:

Continue to execute on our business plan and deliver on our 60,000 metres of exploration drilling campaign.

6 Months:

Continue to execute on our business plan and deliver on our 60,000 metres of exploration drilling campaign. Complete a pre-feasibility study on our development stage project and finished our EIA permitting process for the project.

12 Months:

Same as above.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Continue to deliver on our commitments with strong quarterly production and continued exploration success.

What do you think makes your company such a compelling investment?

Well known board of directors and management team that have senior gold producer experience as well as a mix of entrepreneurs that have built and sold over 8 gold developers and producers creating billions of shareholder wealth.

Analyst Insight – provided by Independent Investment Research

Calibre Mining is a TSX-listed gold mining and exploration company with two 100%-owned operating gold mines in Nicaragua.

During July 2019, Calibre announced that it had entered into a transaction with B2Gold Corp whereby it would acquire the producing El Limόn and La Libertad gold mines, as well as the Pavon gold project and other mineral concessions in Nicaragua held by B2Gold, for an aggregate consideration of $100 million, to be paid with a combination of cash, common shares and a convertible debenture.  Following completion of the transaction, B2Gold owns an approximate 30% direct equity interest in Calibre.

The El Limon Mine is located in north-western Nicaragua, approximately 100km northwest of the country’s capital, Managua. Mining operations use conventional open-pit mining methods at the Limón Central open-pit and a combination of top-down and bottom-up sequenced longitudinal open stoping at the Santa Pancha underground mines.  The El Limón processing plant’s annual throughput is approximately 500,000 tonnes per annum and the historical recovery is 94% to 95%.

The La Libertad Mine is located approximately 110km east of the capital of Managua. The La Libertad Mine is an open-pit and underground operation using conventional open-pit methods at the San Juan and San Diego pits and a bottom-up sequenced long hole stoping mining method with unconsolidated backfill in the Jabalí underground mine.  The La Libertad processing plant can treat approximately 2.25 million tonnes per annum and current gold recoveries are approximately 94% to 95%.

Calibre recently announce its production and financial results for the three months ended March 31, 2020.  Gold production was 42,085 ounces – with 20,636 ounces at Limon and 21,449 ounces at Libertad. In terms of operating costs, All-In Sustaining Costs (AISC) at Limon, Libertad and Consolidated were  $984, $951 and $1,030 per ounce, respectively.   Cash generated from operating activities was $20.1 million, with cash on hand increasing by 31% (or $10.2 million) to $43.1 million as at March 31 2020, whilst net income was $12.5 million ($0.04 per share).