i-80 Gold Reports Q4 and Full Year 2023 Operating Results
i-80 Gold Reports Q4 and Full Year 2023 Operating
Results
RENO, Nev.
,
March 12, 2024
/CNW/ -
i-80 GOLD CORP.
(TSX: IAU) (NYSE: IAUX)
("i-80", or the
"Company")
reports its operating and financial results for the year ended
December 31, 2023
. i-80's Consolidated
Financial Statements ("financial statements"), as well as i-80's Management's Discussion and Analysis of Operations
and Financial Condition ("MD&A") for the year ended
December 31, 2023
, 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).
2023 Fourth Quarter Highlights
Gold sales of 3,350 ounces at a realized gold price of
$1,996
per ounce.
61,223 tons of mineralized material sold (29,512 tons of sulfide mineralized material) for total revenues of
$19.0
million
.
December 31, 2023
cash balance of
$16.3 million
and
$44.5 million
in restricted cash.
Continued drilling of polymetallic mineralization at the Ruby Hill mine (18,804 feet).
Continued underground core drilling delineation of the CSD Gap and Helen zones at the McCoy-Cove project
(13,102 feet).
Continued drilling infill holes at South Pacific Zone at the Granite Creek mine (6,448 feet).
Completed 3,965 feet of advance at the Granite Creek mine.
2023 Full Year Highlights
Gold sales of 14,613 ounces at a realized gold price of
$1,940
per ounce.
83,933 tons of mineralized material sold (29,512 tons of sulfide mineralized material) for total revenues of
$26.3
million
.
Completed 2,644 feet of exploration ramp development at McCoy-Cove.
Completed 12,712 feet of development at the Granite Creek mine.
A total of 204,824 feet (core and RC) drilled by the end of the fourth quarter with multiple positive results to
expand mineralization further at the Ruby Hill mine, the Granite Creek mine, the McCoy-Cove project and the FAD
project.
Since
January 1, 2024
, the Company completed a non-brokered private placement of common shares. An aggregate
of 13.0 million shares were issued by the Company at a price of
C$1.80
per common share for aggregate gross
proceeds of
C$23
.4 million.
"In 2024 the Company continued to see impressive drill results from Granite Creek, Ruby Hill and McCoy-Cove. In
addition, we increased revenue with gold ounces sold from operations at Granite Creek and residual leaching in
addition to tons of mineralized material (oxide) sold under the Ore Purchase and Sale Agreements.", stated
Ryan
Snow
, Chief Financial Officer of i-80. "We continue to advance exploration and definition drilling at Granite Creek,
McCoy-Cove and Ruby Hill 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
December 31,
Year ended
December 31,
(in thousands of U.S. dollars, unless otherwise noted)
2023
2022
2023
2022
Revenue
25,837
11,647
54,910
36,958
Cost of sales
(1)
(21,878)
(13,530)
(52,852)
(28,861)
Depletion, depreciation and amortization
(1)
(1,613)
(1,579)
(7,202)
(4,528)
Mine operating income (loss)
2,346
(3,462)
(5,144)
3,569
Expenses
Exploration, evaluation, and pre-development
8,825
6,625
38,913
38,809
General and administrative
4,788
4,509
18,512
17,090
Property maintenance
2,321
2,111
10,313
3,249
Share-based payments
667
820
3,122
3,280
Operating loss
(14,255)
(17,527)
(76,004)
(58,859)
(1) For the three months and year ended December 31, 2023, includes an inventory impairment of 1.5 million and $10.0 million, respectively.
Production and sales totaled 3,350 gold ounces for the quarter and 14,613 gold ounces year to date (YTD) at a
realized gold price of
$1
,996 and
$1,940
per ounce sold
1
, respectively. Additionally, mineralized material sales totaled
61,223 tons for the quarter and 83,933 tons YTD for proceeds of
$19.0 million
and
$26.3 million
, respectively.
Exploration, evaluation, and pre-development costs were
$8.8 million
for the quarter and
$38.9 million
YTD. This
expenditure mainly reflects the exploration and pre-development work at McCoy-Cove and Ruby Hill.
Granite Creek
During the quarter the Company entered into an ore sale agreement with a third party, a total of 29,551 tons of sulfide
mineralized material has been sold. During the quarter the Company sold 61,223 tons of mineralized material under
the Ore Sale Agreement for proceeds of
$19.0 million
. Delineation drilling of the South Pacific Zone from surface and
underground continued during Q4 with 6,448 feet of core drilled yielding positive results including:
26.1 g/t Au over
5.7 m
in hole iGS23-01
25.6 g/t Au over
5.5 m
in hole iGS23-03
15.5 g/t Au over
19.7 m
in hole iGS23-05
31.1 g/t Au over
21.9 m
in hole GCPU23-22
28.7 g/t Au over
16.5 m
in hole GCPU23-30
Gold production and sales of leached ounces totaling 401 ounces of gold during the quarter and 1,745 ounces of gold
YTD at a realized gold price of
$2,010
and
$1,940
per ounce sold
1
, respectively.
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. Highlight 2023 results from drilling at McCoy-
Cove include:
9.6 g/t Au over
22.8 m
in hole iCHU23-09
14.9 g/t Au over
32.7 m
in hole iCHU23-10
15.7 g/t Au over
22.5 m
and 18.9 g/t Au over
29.3 m
in hole iCHU23-11
10.6 g/t Au & 5.2 g/t Ag over
38.8 m
and 11.1 g/t Au & 3.4 g/t Ag over
20.6 m
in hole iCHU23-14
Underground delineation drilling continued during Q4 with 13,102 feet of core drilled yielding positive results including:
21.8 g/t Au & 4.8 g/t Ag over
10.3 m
in hole iCHU23-22
28.0 g/t Au & 5.1 g/t Ag over
10.4 m
And 21.0 g/t Au & 7.4 g/t Ag over
10.8 m
in hole iCHU23-23
25.4 g/t Au & 5.1 g/t Ag over
20.1 m
in hole iCHU23-28
Ruby Hill
During the quarter drilling at Ruby Hill was focused on advancing exploration and delineation of multiple CRD
mineralized discoveries. Definition and expansion drilling of high-grade polymetallic mineralization along the Hilltop fault
structure remains a priority. 7,941 feet of core drilling and 10,890 feet of RC drilling was completed during the quarter
and 42,791 feet of core drilling and 50,695 feet of RC drilling was completed YTD. Drilling highlights for the fourth
quarter include:
8.3 % Zn, 0.6 % Pb, 50.1 g/t Ag & 0.6 g/t Au over
20.1 m
in hole iRH23-42
10.1 % Zn, 0.6 % Pb, 37.0 g/t Ag & 0.3 g/t Au over
116.3 m
in hole iRH23-42A
16.1 % Zn, 0.1 % Pb, 12.4 g/t Ag & 0.5 g/t Au over
16.1 m
in hole iRH23-
43B
Residual leaching activities at Ruby Hill produced and sold 1,862 ounces of gold during the quarter and 6,643 ounces
of gold YTD at a realized gold price of
$1,976
and
$1,910
per ounce sold
1
, respectively.
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.
The Company advanced the autoclave engineering study to a level three estimate (FS level). Value engineering will
continue to better optimize the cost, engineering, and project management aspects of the study.
Lone Tree
produced and sold from its residual leaching activities 1,087 ounces of gold during the quarter and 6,225
ounces of gold YTD at a realized gold price of
$2,024
and
$1,972
per ounce sold
1
, respectively.
The Company will hold a conference call and webcast on
March 13, 2024
, commencing at
10:00 am ET
to discuss its
fourth quarter and full year 2023 results and answer questions from participants.
Conference Call Participant Details
Webcast URL:
https://app.webinar.net/02oRadQXbq9
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. 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.sedar.com
.
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
December 31,
Year ended
December 31,
(in thousands of U.S. dollars, unless otherwise
2023
2022
2023
2022
Nevada production
Revenue per financial statements
$
25,837
11,647
54,910
36,958
Mineralized material sales revenue
$
(19,028)
—
(26,305)
—
Revenue without mineralized material sales (i)
$
6,809
11,647
28,605
36,958
Silver revenue from mining operations
$
(124)
(46)
(256)
(169)
Gold revenue from mining operations
$
6,685
11,601
28,349
36,789
Ounces of gold sold
ounce
3,350
6,769
14,613
21,097
Average realized gold price
$/ounce
1,996
1,714
1,940
1,744
Lone Tree
Revenue per financial statements
$
2,232
4,896
12,324
14,543
Silver revenue from mining operations
$
(32)
(7)
(51)
(34)
Gold revenue from mining operations
$
2,200
4,889
12,273
14,509
Ounces of gold sold
ounce
1,087
2,768
6,225
8,066
Average realized gold price
$/ounce
2,024
1,766
1,972
1,799
Ruby Hill
Revenue per financial statements
$
3,771
6,752
12,896
22,415
Silver revenue from mining operations
$
(92)
(38)
(205)
(135)
Gold revenue from mining operations
$
3,679
6,714
12,691
22,280
Ounces of gold sold
ounce
1,862
4,002
6,643
13,031
Average realized gold price
$/ounce
1,976
1,678
1,910
1,710
Granite Creek
Revenue per financial statements
$
19,834
—
29,690
—
Mineralized material sales revenue
$
(19,028)
—
(26,305)
—
Revenue without mineralized material sales (i)
$
806
—
3,385
—
Silver revenue from mining operations
$
—
—
—
—
Gold revenue from mining operations
$
806
—
3,385
—
Ounces of gold sold
ounce
401
—
1,745
—
Average realized gold price
$/ounce
2,010
—
1,940
—
(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 for 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
December 31,
Year ended
December 31,
(in thousands of U.S. dollars, unless otherwise noted)(i)
2023
2022
2023
2022
Net income / (loss) for the period
$ (31,919)
$ (63,938)
$ (65,196)
$ (79,197)
Adjust for:
Gain (loss) on warrants
(846)
(10,789)
16,686
(1,040)
Gain (loss) on convertible loans
(2,204)
(19,000)
21,833
(9,899)
Gain on convertible debenture
—
—
900
—
Loss on deferred consideration
(60)
(821)
(1,194)
(3,262)
Gain (loss) on fair value measurement of gold prepay
(4,528)
(4,205)
(4,592)
2,916
Gain (loss) on fair value measurement of silver purchase
(1,274)
(9,524)
—
1,898
Loss on Gold Prepay Agreement modification
—
—
(1,831)
—
Inventory impairments
(1,516)
(6,468)
(10,047)
(6,468)
Total adjustments
$ (10,428)
$ (50,807)
$ 21,755
$ (15,855)
Adjusted loss for the period
$ (21,491)
$ (13,131)
$ (86,951)
$ (63,342)
Weighted average shares for the period
297,351
240,420
274,057
240,100
Adjusted loss per share for the period
$ (0.07)
$ (0.05)
$ (0.32)
$ (0.26)
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.
View original content to download multimedia:
https://www.prnewswire.com/news-releases/i-80-gold-reports-q4-and-full-year-2023-operating-results-302087362.html
SOURCE
i-80 Gold Corp
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/March2024/12/c4411.html
%SEDAR: 00052022E
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 18:56e 12-MAR-24