PRECIOUS METALS

Calibre keeps costs down

Gold miner Calibre Mining’s Q1 costs came in below its full-year guidance ranges which sets the company up well amid the global inflationary environment.

 Calibre El Limon

Calibre El Limon

The consolidated total cash costs and all-in sustaining costs for the three months stood at US$1,060 per ounce and $1,199/oz, respectively. Both were below 2022 cash cost and AISC guidance ranges of $1,075-$1,150/oz and $1,200-$1,275, respectively.

Calibre's president and CEO Darren Hall called it an "excellent start to the year", positioning the company well to deliver on full year guidance, "despite the current inflationary environment".

Canaccord Genuity Capital Markets analyst Michael Fairbairn called it "a strong quarter" for Calibre with the cash costs beating CG's estimate of $1,115/oz and AISC forecast of $1,199/oz.

"This bodes well for full year guidance as management expects relatively stable operations in Nevada throughout the year and improving performance in Nicaragua as the year progresses, with 20% higher production in the second half of the year.

"We estimate this will result in lower costs in H2/22 than in H2/22.

"As expected, industry-wide inflationary pressures and the inclusion of Pan in Calibre's portfolio drove a modest increase q/q, however both Nicaragua and Nevada had a strong operational quarter and sustaining capital at Pan was lower than expected," Fairbairn said.

Calibre's cash costs and AISC in Q4 2022 had been $979/oz and $1,095/oz, respectively.

Fairbairn noted that Calibre's adjusted earnings per share were in line with consensus estimates of $0.04 and slightly above CG's $0.03.

The company's Q1 revenue was $99.57 million, up from $82.03 million a year earlier.

Calibre earlier in the year released its first quarter production of 51,900oz, which compares to guidance of 220,000-235,000oz.

The company's share price rose 8% day on day to C$1.44 (US$1.13) on May 4. In the past 52-weeks it has seen a high/low of C$2.36/C$1.11. The company has a market capitalisation of C$639.84 million.

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