Calibre Mining shares jump after another quarter of record gold production

The company is well on track to deliver its full-year guidance of 220,000-235,000 ounces.

Calibre Mining (TSX: CXB) posted another record quarter of production during Q2 2022, recording consolidated gold production of 59,723 ounces, a 37% increase over the same period last year. Gold production from Nicaragua accounted for 48,810 ounces, while its Nevada operations had 10,913 ounces.

Year-to-date, Calibre’s total gold production has reached 111,621 ounces, placing the company well on track to deliver its full-year guidance of 220,000-235,000 ounces.

“Our demonstrated quarter-over-quarter delivery and continued robust operating cash flows provides the opportunity to self-fund all growth opportunities and reinvest into exciting exploration across all the assets while maintaining a strong treasury,” commented Darren Hall, president and CEO Calibre.

By June 30, 2022, the company had cash of C$92.3 million, a C$15 million increase over the previous quarter’s balance.

During the second quarter, Calibre received its environmental permit to develop the Pavon Central open pit in Nicaragua, which is expected to drive up its production in 2023-24. “With this approval confirmed we provided our robust grade-driven and reserve-backed multi-year production outlook growing up to 300,000 ounces of gold production in 2024,” Hall added.

The company also completed 62 km of drilling across its operations, leading to new discoveries, resource building opportunities and the potential for additional grade-driven production growth. Highlights include bonanza grades (66.03 g/t gold over 5.6 metres) from Panteon North within the Limon complex (Nicaragua) and high-grade results from drilling at the Gold Rock project and Pan mine (both in Nevada).

Shares of Calibre Mining closed 5.3% higher on the TSX on Tuesday. The Vancouver-based miner has a market value of C$401.26 million.