Unless otherwise stated, all amounts referred to herein are in
2024 FIRST QUARTER HIGHLIGHTS
- Gold sales of 2,486 ounces at a realized gold price of
$2,083 per ounce sold1. - 10,167 tons of mineralized material sold for total revenues of
$3.2 million . - Continued drilling of polymetallic mineralization at the Ruby Hill mine (4,032 feet).
- Continued underground core drilling delineation of the CSD Gap and Helen zones at the McCoy-Cove project (3,594 feet).
- Completed non-brokered private placement of common shares for aggregate gross proceeds of
C$23.5 million . March 31, 2024 cash balance of$13.1 million and$39.0 million in restricted cash.
RECENT DEVELOPMENTS
Bought Deal Public Offering
On
"The extension of the delivery requirements under the gold prepay and silver purchase agreements with Orion Mine Finance coupled with the recently completed bought deal public Offering, significantly enhance our financial flexibility and positions the Company to continue to execute on its plans", stated
Three months ended | ||
(in thousands of | 2024 | 2023 |
Revenue | 8,413 | 4,548 |
Cost of sales(1) | (7,904) | (6,542) |
Depletion, depreciation and amortization(1) | (377) | (1,421) |
Mine operating income (loss) | 132 | (3,415) |
Expenses | ||
Exploration, evaluation, and pre-development | 2,782 | 8,979 |
General and administrative | 4,578 | 5,191 |
Property maintenance | 3,405 | 2,449 |
Share-based payments | 530 | 1,308 |
Operating loss | (11,163) | (21,342) |
(1) For the three months ended |
Production and sales totaled 2,486 gold ounces for the quarter at a realized gold price of
Exploration, evaluation, and pre-development costs were
Highlights for the three months ended
- 10,167 tons of mineralized material sold under the Ore Sale Agreement for proceeds of
$3.2 million . - 28,500 tons of mineralized material added to stockpile, bringing the total stockpile material to 37,907 tons before sales.
- 3,178 feet of horizontal development.
Management of increased groundwater inflows into the underground workings continues to be a top priority. Dewatering Well #6 was completed and is in operation, and a second contact water discharge line was commissioned from the underground workings.
McCoy-Cove
The Cove deposit and the McCoy-Cove Property is expected to be the core asset in the Company's "hub and spoke" business plan and likely the highest-grade gold deposit in i-80's portfolio. During the quarter the Company achieved high grade infill drilling results at Helen and Gap Zones with 3,594 feet of total drilling completed.
During the quarter drilling at Ruby Hill was focused on infill drilling of the Hilltop zones for metallurgical sampling in relation to the previously announced potential joint venture. 4,032 feet of core drilling was completed during the quarter, fully funded by the potential joint venture partner in order to complete due diligence during the exclusivity period. Drilling highlights for the quarter include:
- 0.2% Zn, 6.3% Pb, 180.0 g/t Ag & 2.2 g/t
Au Over 5.0 m in hole iRH24-01 - 6.2% Zn, 5.6% Pb, 198.0 g/t Ag & 1.0 g/t
Au Over 3.6 m and 13.4% Zn, 2.5% Pb, 93.7 g/t Ag, & 0.6 g/t Au over 5.5 m in hole iRH24-02 - 13.7% Zn, 0.6% Cu, & 17.5 g/t
Ag Over 57.8 m in hole iRH24-03
Residual leaching activities at Ruby Hill produced and sold 444 ounces of gold during the quarter at a realized gold price of
During the quarter the Company continued its review of the value engineering studies and total refurbishment costs for the autoclave.
AGM & Investor Day Presentation
The Company will hold an "Investor Day" presentation immediately following its Annual General Meeting (AGM) on
Conference Call Participant Details | |
Webcast URL: | https://app.webinar.net/eb85pbLyxrG |
Phone Number Information: | North American Toll-free: 1-888-664-6383 |
Local Toronto: 1-416-764-8650 |
Qualified Persons
About
Forward-looking information
Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws, including but not limited to, actual production results and costs, results of operation outcomes and timing of updated technical studies at the Company's mineral projects, timing to advance mineral projects to production and advance permitting and feasibility work on its mineral projects and future production, development and exploration results, the expectation that
Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to: material adverse changes, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labor unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to i-80's filings with Canadian securities regulators, including the most recent Annual Information Form, available on SEDAR+ at www.sedarplus.ca.
NON-IFRS FINANCIAL PERFORMANCE MEASURES
The Company has included certain terms or performance measures commonly used in the mining industry that are not defined under IFRS in this document. These include: adjusted net earnings and average realized price per ounce. Non-IFRS financial performance measures do not have any standardized meaning prescribed under IFRS, and therefore, they may not be comparable to similar measures employed by other companies. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and should be read in conjunction with the Company's Financial Statements.
Definitions
Adjusted earnings / (loss) and adjusted earnings / (loss) per share excludes from net earnings / (loss) significant write-down adjustments and the gain / (loss) from financing instruments.
Average realized gold price represents the sales price of gold per ounce before deducting mining royalties, treatment and refining charges and gains or losses derived from the offtake agreement with Orion.
Average realized gold price per ounce of gold sold
Average realized gold price per ounce of gold sold is a non-IFRS measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. It may not be comparable to information in other gold producers' reports and filings.
Three months ended | |||
(in thousands of | 2024 | 2023 | |
Revenue per financial statements | $ | 8,413 | 4,548 |
Mineralized material sales revenue | $ | (3,198) | — |
Revenue without mineralized material sales (i) | $ | 5,215 | 4,548 |
Silver revenue from mining operations | $ | (37) | (20) |
Gold revenue from mining operations | $ | 5,178 | 4,528 |
Ounces of gold sold | ounce | 2,486 | 2,349 |
Average realized gold price | $/ounce | 2,083 | 1,928 |
Revenue per financial statements | $ | 4,302 | 1,305 |
Silver revenue from mining operations | $ | (19) | (4) |
Gold revenue from mining operations | $ | 4,283 | 1,301 |
Ounces of gold sold | ounce | 2,042 | 663 |
Average realized gold price | $/ounce | 2,097 | 1,962 |
Revenue per financial statements | $ | 913 | 2,382 |
Silver revenue from mining operations | $ | (18) | (16) |
Gold revenue from mining operations | $ | 895 | 2,366 |
Ounces of gold sold | ounce | 444 | 1,242 |
Average realized gold price | $/ounce | 2,016 | 1,905 |
Revenue per financial statements | $ | 3,198 | 861 |
Mineralized material sales revenue | $ | (3,198) | — |
Revenue without mineralized material sales (i) | $ | — | 861 |
Silver revenue from mining operations | $ | — | — |
Gold revenue from mining operations | $ | — | 861 |
Ounces of gold sold | ounce | — | 444 |
Average realized gold price | $/ounce | — | 1,939 |
(i) Does not include revenue from mineralized material sales. |
Adjusted loss
Adjusted loss and adjusted loss per share are non-IFRS measures that the Company considers to better reflect normalized earnings because it eliminates non-recurring items. Certain items that become applicable in a period may be adjusted for, with the Company retroactively presenting comparable periods with an adjustment for such items and conversely, items no longer applicable may be removed from the calculation. Neither adjusted loss nor adjusted loss per share have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies.
The following table shows a reconciliation of adjusted loss to the net earnings / (loss) for each period. Adjusted loss and adjusted loss per share exclude a number of temporary or one-time items detailed in the following table:
Three months ended | ||
(in thousands of | 2024 | 2023 |
Net loss for the period | $ (15,716) | $ (13,118) |
Adjust for: | ||
Gain on warrants | 2,630 | 5,568 |
Gain on convertible loans | 6,115 | 8,366 |
Loss on deferred consideration | — | (427) |
Loss on fair value measurement of gold prepay derivative | (3,498) | (3,091) |
Loss on fair value measurement of silver purchase derivative | (857) | (857) |
Inventory impairments | — | (4,025) |
Total adjustments | $ 4,390 | $ 5,534 |
Adjusted loss for the period | $ (20,106) | $ (18,652) |
Weighted average shares for the period | 305,324 | 245,603 |
Adjusted loss per share for the period | $ (0.07) | $ (0.08) |
1 Specified financial measure which is not a standardized measure under IFRS and may not be comparable to similar specified financial measures used by other entities. Please see "Non-IFRS Financial Performance Measures" for the composition of such specified financial measure, an explanation of how such specified financial measure provides useful information to a reader and the purposes for which management of i-80 uses the specified financial measure, and where required, a reconciliation of the specified financial measure to the most directly comparable IFRS measure. |
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