i-80 Gold Corp ((TSE:IAU)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for i-80 Gold Corp was marked by a cautiously optimistic sentiment, reflecting significant strides in financial fortification through an equity raise and ambitious plans for increased gold production. Despite these positive developments, the company acknowledged ongoing challenges, particularly with net losses and dewatering issues at Granite Creek. The overall tone was one of optimism, with a strong emphasis on future growth and development.
Successful Equity Raise
The company successfully completed an equity raise in May, which significantly strengthened its balance sheet and improved liquidity. This financial maneuver resulted in gross proceeds of $186 million through a bought deal offering and private placement, providing a robust foundation for future growth initiatives.
Gold Production Plans
Ambitious gold production targets were outlined, with plans to increase average annual production from less than 50,000 ounces to between 150,000 and 200,000 ounces by 2028. The company aims to further boost production to 300,000-400,000 ounces by 2030, ultimately reaching over 600,000 ounces by 2032, showcasing a clear trajectory for substantial growth.
Granite Creek Underground Production
Mining volumes at Granite Creek showed improvement, with the second quarter seeing higher volumes compared to the previous year. Approximately 24,000 tons of oxide mineralized material and 11,200 tons of sulfide material were mined, indicating progress in underground production efforts.
Increased Gold Sales
Gold sales saw a notable increase, with approximately 8,400 ounces sold during the quarter. This rise in sales contributed to a total revenue of about $28 million from gold sales, highlighting the company’s successful efforts in enhancing its revenue streams.
Strong Cash Position
The company ended the quarter with a strong cash position of approximately $134 million, bolstered by the recent equity raise. This financial strength provides a solid base for pursuing future development and expansion plans.
Net Loss Position
Despite the positive developments, the company concluded the quarter in a net loss position of $0.05 per share. This was primarily attributed to the ramp-up and development stage of operations, reflecting the costs associated with scaling up production.
Dewatering Challenges at Granite Creek
The company faced dewatering challenges at Granite Creek, encountering higher-than-expected levels of oxide mineralized material. This necessitated additional dewatering infrastructure, impacting development timelines and posing a challenge to the company’s operational plans.
Forward-Looking Guidance
Looking ahead, i-80 Gold Corp outlined an ambitious growth strategy with a three-phase plan to boost annual gold production to over 600,000 ounces by the early 2030s. The first phase aims to increase production to between 150,000 and 200,000 ounces by 2028, focusing on high-grade underground projects. By 2030, production is expected to rise to 300,000-400,000 ounces, with further expansion to over 600,000 ounces by 2032. The company plans to support this growth with a new senior debt facility of $350-$400 million by mid-2026.
In summary, the earnings call for i-80 Gold Corp was characterized by a cautiously optimistic sentiment, underscored by significant financial strengthening and ambitious growth plans. While challenges remain, particularly with net losses and operational hurdles, the company’s strategic focus on increasing gold production and securing financial stability paints a promising picture for future development.