i-80 Gold Reports 2021 Q3 Results
i-80 Gold Reports 2021 Q3 Results
RENO, Nev.
,
Nov. 9, 2021
/CNW/ -
i-80 GOLD CORP.
(TSX: IAU) (OTC: IAUCF)
("i-80", or the
"Company")
is pleased to report its unaudited operating and financial results for the three and nine
months ended
September 30, 2021
. i-80's unaudited condensed interim consolidated financial
statements ("financial statements"), as well as i-80's management discussion and analysis ("MD&A")
for the three and nine months ended
September 30, 2021
, are available on the Company's website
at
www.i80gold.com
and on SEDAR at
www.sedar.com
2021 Third Quarter Highlights
Announced Acquisition of the Ruby Hill Mine and the asset swap for the Lone Tree Complex
Gold production of 3,254 ounces, year-to-date production of 14,330 ounces
Gold sales of 4,575 ounces, year-to-date sales of 17,848 ounces
Total revenue of
$8.2 million
,
$32.0 million
year-to-date
Mine operating income of
$3.3 million
for the quarter, and
$13.1 million
year-to-date
Net loss of
$9.3 million
for the quarter, and
$13.6 million
year-to-date
Adjusted loss for the quarter of
$10.7 million
and adjusted income of
$19.5 million
year-to-date
from continuing operations
Period-end cash and cash equivalents balance of
$51.6 million
"With the announcement of the Lone Tree and
Ruby Hill
transactions, we have leveraged our non-
operating interest in South Arturo to provide the company with a foundation to become a mid-tier,
stand alone, producer in the state of
Nevada
", stated
Ewan Downie
, Chief Executive Officer of i-80.
"The recently acquired properties will provide near-term production to replace South Arturo".
Three months ended
September 30, 2021
South Arturo was included in the Q3 results as a discontinued operation and held for sale and was
disposed of in the fourth quarter. The Company is in the progress of valuing the asset swap and
completing the corresponding accounting.
A total of 3,254 ounces of gold were produced during Q3 2021 from South Arturo.
The Company reported total revenue of
$8.2 million
and a mine operating income of
$3.3 million
during the third quarter compared to revenue of
$9.3 million
and mine operating income of
$3.8
million
during Q3 2020.
Total mine operating income of
$3.3 million
for Q3 2021 compared to income of
$3.8
in Q3 2020
illustrates the consistent nature South Arturo. A total of
$3.7 million
in exploration and pre-
development expenses were incurred during the quarter.
Nine months ended
September 30, 2021
A total of 14,330 ounces of gold were produced for the nine months ended
September 30, 2021
,
compared to 18,589 ounces of gold for the prior year period.
The Company reported total revenue of
$32.0 million
and mine operating income of
$13.1 million
for
the nine months ended
September 30, 2021
compared to revenue of
$28.6 million
and mine
operating income of
$8.8 million
for the prior year period. The reduction in production when
compared to the prior year period is the result of stope sequencing within the mine, resulting in
increased waste tonnes, and disruptions at the
Carlin
mill operations.
A total of
$7.0 million
in exploration and pre-development expenses were incurred during the nine
months ended
September 30, 2021
.
The Company closed the quarter with cash and cash equivalents of
$51.6 million
from continuing
operations.
South Arturo
The South Arturo Mine in
Nevada
is a joint venture, operated by Nevada Gold Mines LLC, with
Barrick Gold Corporation ("Barrick"). Subsequent to the end of the period this property was included
in an asset exchange with NGM whereby the Company's 40% was swapped for the Lone Tree
Complex.
Table 1 - South Arturo Selected Financial and Operating Results
Three months ended Sep 30
Nine months ended Sep 30
(in millions of U.S. dollars, unless otherwise stated)
(iv)
2021
2020
2021
2020
Ore & Metals
Ore milled
tonnes
16,936
29,416
70,647
74,448
Gold produced
ounces
3,254
7,095
14,330
18,589
Silver produced
ounces
272
601
1,715
1,793
Gold sold
ounces
4,575
4,783
17,848
16,411
Average gold grade
grams/t
6.90
8.83
7.21
8.86
Average gold recovery rate
%
86.7
85.0
87.5
87.6
Realized Price
Average realized gold price
(i,ii)
$/ounce
1,785
1,879
1,792
1,742
Non-IFRS Performance Measures
By-product cash costs per ounce of gold sold
(i,ii,iii)
$/ounce
952
987
1,084
984
By-product all- in sustaining costs per ounce of gold sold
(i,ii,iii)
$/ounce
1,355
1,148
1,169
1,065
Financial Measures
Gold revenue
m $
8.2
9.3
32.0
28.6
Mine operating income / (loss)
m $
3.3
3.8
13.1
8.8
Exploration, evaluation & pre-development expense
m $
0.6
0.3
1.0
0.3
Capital
Total capital expenditures
m $
1.1
0.2
2.2
0.2
Capital expenditures - sustaining
(i,ii)
m $
1.1
0.0
1.9
0.0
Capital expenditures - expansionary
(i,ii)
m $
(0.1)
0.2
0.3
0.2
(i)
A cautionary note regarding Non-IFRS financial metrics is included in the "Non-IFRS Measures" section of this Management's Discussion and Analysis.
(ii)
Cash costs, all-in sustaining costs, sustaining and expansionary capital expenditures as well as average realized gold\silver price per ounce are Non-IFRS metrics and
discussed in the section "Non-IFRS Measures" of this Management's Discussion and Analysis.
(iii)
Given the small nature and timing of South Arturo silver output, no silver by-product credits are reported.
(iv)
May not add due to rounding.
There has been little to no impact on the operations at South Arturo due to COVID-19 pandemic.
Measures were successfully implemented by the operator to control the risk to the employees and
communities.
Granite Creek
During the quarter, the Company performed 7,795 meters (m) of surface and underground drilling
bringing the nine-month total to
9,841 m
. Drilling has successfully intersected mineralization in every
target area both inside and outside of the current resource areas and initial assay results were
released on
October 28, 2021
. Additional results are expected to be released in the near future.
The primary goal of the 2021 drill program is to advance the underground deposit to production, and
advance permitting and feasibility work on the open pit opportunity. Underground drilling is focused
on delineating sufficient resources for developing a near–term development and mining plan.
Ongoing surface drilling also tested near-surface mineralization for metallurgical and geotechnical
purposes, open pit and underground definition and expansion, and to advance permitting for open pit
mining including on-site heap leach processing.
Orion/Equinox Financing Update
The Company continues to work with Orion Mine Finance to complete the previously disclosed (See
Press Release dated
October 8, 2021
, titled "i–80 Gold Corp. Announces Additional Details on
Financing Package") financing package of up to
$140 million
. The Orion financing is contemplated to
include a mix of equity, convertible securities, warrants as well as secured instruments, and has a
target size of
$140 million
and, at the election of i-80, an accordion feature of up to an additional
$100 million
.
Equinox has committed to a partial exercise of its Anti-Dilution Right and has executed a subscription
agreement to subscribe for
$10 million
of Common Shares at a price of CAD
$2.62
per Common
Share, which subscription remains conditional and subject to change in connection with the receipt of
all required regulatory approvals.
Both the Orion and Equinox financing are expected to close during the fourth quarter of 2021.
Third Quarter Financial Results Webcast
The Company will host a live conference call and webcast on
November 10
th
, 2021, commencing at
10:00 am ET, providing the opportunity for analysts and investors to ask questions of i-80 Gold's
executive team.
Conference Call
North American Toll-free: 1-866-269-4262
Confirmation #: 3277771
Webcast Link
Click
HERE
to access the webcast or visit our website at
www.i80gold.com
.
Conference Call Replay
A recording of the call can be accessed until
November 17, 2021
.
North American Toll-free Replay: 1-888-203-1112
Replay Code: 3277771
Qualified Person
The scientific and technical information contained in this press release was reviewed by Tim George,
PE, Manager of Engineering Services, and a Qualified Person within the meaning of National
Instrument 43–101.
About i-80 Gold Corp.
i-80 Gold Corp. is a well-financed
Nevada
-focused mining company with a goal of achieving mid-tier
gold producer status. The Company is one of the largest holders of gold and silver resources in the
State of Nevada
with plans to advance multiple projects to production.
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, outcomes and timing of completion of the Orion and Equinox Gold
financings, and future production and exploration results. Such statements and information involve
known and unknown risks, uncertainties and other factors that may cause the actual results,
performance or achievements of the company, its projects, or industry results, to be materially
different from any future results, performance or achievements expressed or implied by such
forward-looking statements or information. Such statements can be identified by the use of words
such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate",
"scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events
or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements
reflect the Company's current expectations regarding future events, performance and results and
speak only as of the date of this release.
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 labour 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.
SOURCE
i-80 Gold Corp
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/November2021/09/c3320.html
%SEDAR: 00052022E
For further information:
Ewan Downie - CEO; Ryan Snow - CFO; Matthew Gollat - EVP Business
& Corporate Development, 1.866.525.6450, [email protected], www.i80gold.com
CO: i-80 Gold Corp
CNW 19:22e 09-NOV-21