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Calibre up despite lower production

Calibre Mining touched a one-year high as it outlined June quarter operating results, which included a phased restart after a 10-week suspension due to COVID-19 precautions at its two gold mines in Nicaragua.
Calibre up despite lower production Calibre up despite lower production Calibre up despite lower production Calibre up despite lower production Calibre up despite lower production

Calibre Mining has the Limon and La Libertad gold mines in Nicaragua

Staff reporter

The company said it had produced 6,010 ounces of gold and sold 9,426oz during the period.

This compares with 42,085oz produced in the March quarter.

Calibre had issued revised guidance last month, which forecast a circa 20% drop in 2020 production to 110,000-125,000oz but only a 4% increase in costs on a per ounce basis. 

The higher-grade Limon mine had produced 2,837oz from 3.85g/t ore during the June quarter, and La Libertad 3,173oz at 1.54g/t.

Calibre had acquired both mines and other assets from B2Gold in October 2019, in a US$100 million cash and scrip transaction

"The team utilised the temporary suspension effectively by adding key senior management, advancing permitting and technical studies, and progressing a supply chain management review," CEO Russell Ball said.

Calibre has increased its exploration drilling programme by 30% and was targeting "a significant increase in indicated resources" by year-end.

It ended June with US$25 million cash on hand.

The company plans to release financial results after market close on August 11.

Calibre's share price (TSX: CXB) has risen from a March low of C47c to a high intraday of $1.60.

It closed up 14.7%, on a positive day for gold equities amid a strengthening gold price, to $1.56 to capitalise it about $512 million (US$376 million).