i-80 Gold Reports Q1 2024 Operating Results
i-80 Gold Reports Q1 2024 Operating Results
RENO, Nev.
,
May 13, 2024
/CNW/ -
i-80 GOLD CORP.
(TSX: IAU) (NYSE: IAUX)
("i-80", or the
"Company")
reports its operating and financial results for the three months ended
March 31, 2024
. i-
80's
unaudited condensed consolidated interim financial statements
("Financial Statements"), as well as
i-80's Management's Discussion and Analysis of Operations and Financial Condition ("MD&A") for the
three months ended
March 31, 2024
, are available on the Company's website at
www.i80gold.com
, on
SEDAR+ at
www.sedarplus.ca
, and on EDGAR at
www.sec.gov
.
Unless otherwise stated, all amounts referred to herein are in U.S. dollars (C$ represents Canadian
dollars).
2024 FIRST QUARTER HIGHLIGHTS
Gold sales of 2,486 ounces at a realized gold price of
$2,083
per ounce sold
1
.
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
May 1, 2024
, the Company completed a bought deal public offering of an aggregate of 69,698,050
units (each, a "Unit") at a price of
C$1.65
per Unit for aggregate gross proceeds to the Company of
approximately
C$115 million
(the "Offering"). Each unit consisted of one common share of the Company
and one-half of one common share purchase warrant of the Company (each whole Common Share
purchase warrant, a "Warrant"). Each Warrant is exercisable to acquire one common share for a period
of 48 months from closing of the Offering at an exercise price of
C$2.15
per share. The Offering was
completed pursuant to a short form prospectus dated
April 25, 2024
(the "Prospectus").
"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
Ryan Snow
, Chief Financial Officer of i-80. "We continue to advance exploration and definition drilling at
Granite Creek and McCoy-Cove and permitting activities at our projects allowing the Company to
advance our projects towards the ultimate goal of building a mid-tier
Nevada
focused producer."
Three months ended
March 31,
(in thousands of U.S. dollars, unless otherwise noted)
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 March 31, 2024, includes an inventory impairment of nil (2023 - $4.0 million)
Production and sales totaled 2,486 gold ounces for the quarter at a realized gold price of
$2
,083 per
ounce sold
1
. Additionally, mineralized material sales totaled 10,167 tons for the quarter for proceeds of
$3.2 million
.
Exploration, evaluation, and pre-development costs were
$2.8 million
for the quarter. This expenditure
mainly reflects the exploration and pre-development work at McCoy-Cove and Ruby Hill.
Granite Creek
Highlights for the three months ended
March 31, 2024
, include:
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.
Ruby Hill
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
$2,016
per ounce sold
1.
As the heap leach pad is nearing the end of its production
cycle the Company continues to analyze the breakeven cost and anticipates that the heap leach pad will
cease production in 2024.
Lone Tree
Lone Tree
is expected to become the hub of i-80's
Nevada
operations and the central processing facility
for gold mineralization from the Granite Creek, McCoy-Cove and Ruby Hill underground gold deposits.
Importantly,
Lone Tree
is host to infrastructure that, following successful refurbishment efforts, will
position i-80 as one of only three companies in
the United States
capable of processing both oxide and
refractory mineralization.
During the quarter the Company continued its review of the value engineering studies and total
refurbishment costs for the autoclave.
Lone Tree
produced and sold from its residual leaching activities 2,042 ounces of gold during the quarter
at a realized gold price of
$2,097
per ounce sold
1.
AGM & Investor Day Presentation
The Company will hold an "Investor Day" presentation immediately following its Annual General Meeting
(AGM) on
May 14, 2024
, being held at Bennett Jones LLP office – 100 King St W Suite 3400,
Toronto
in
the Canada Boardroom on the 34th floor. The in
person AGM will begin at
4:00pm EST
followed by the
Investor Day presentation commencing at
4:30pm EST
. The presentation can also be accessed via a
conference call and webcast (details below). Investors are invited to attend the event in
person where
they can meet and discuss details with members of i-80's Board of Directors and Management Team.
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
Tyler Hill
, CPG-12146, Chief Geologist, and Tim George, PE, Mining Operations Manager, at i-80 have
reviewed this press release and are the Qualified Persons for the information contained herein and are a
"Qualified Person" within the meaning of National Instrument 43-101.
About i-80 Gold Corp.
i-80 Gold Corp.
is a
Nevada
-focused mining company with a goal of achieving mid-tier gold producer
status through the development of multiple deposits within the Company's advanced-stage property
portfolio with processing at i-80's centralized milling facilities. i-80 Gold's common shares are listed on
the TSX and the NYSE American under the trading symbol IAU:TSX and IAUX:NYSE. Further
information about i-80 Gold's portfolio of assets and long-term growth strategy is available at
www.i80gold.com
or by email at
.
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
Lone Tree
will become the hub of i-80's
Nevada
operations and the central
processing facility for gold mineralization from the Granite Creek, McCoy-Cove and Ruby Hill
underground gold deposits; and the expectation that the Cove deposit and the McCoy-Cove Property will
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. 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 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
March 31,
(in thousands of U.S. dollars, unless otherwise noted)
2024
2023
Nevada production
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
Lone Tree
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
Ruby Hill
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
Granite Creek
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
March 31,
(in thousands of U.S. dollars, unless otherwise noted)(i)
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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i-80 Gold Corp
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For further information:
Ewan Downie - CEO, Ryan Snow - CFO, Matt Gili - President & COO,
Matthew Gollat - Executive Vice-President; 1.866.525.6450, [email protected], www.i80gold.com
CO: i-80 Gold Corp
CNW 18:02e 13-MAY-24