Calibre on the upswing with third quarterly production record

With three consecutive record production quarters and a strong start to the year, Calibre Mining’s (TSX: CXB; US-OTC: CXBMF) stock has responded, rising by more than 70% year-to-date.

Calibre announced Tuesday its operating results for the second quarter and year-to-date period ending June 30, reporting record consolidated quarterly gold output, beating expectations and positioning itself well to meet its full-year production guidance of 250,000-275,000 oz. gold.

In the June quarter, Calibre produced 68,776 oz. gold, representing a 15% increase compared to the same period in 2022. The gold production in Nicaragua amounted to 58,392 oz., while Nevada contributed 10,384 oz.

As the company promised during a late February site visit, the year-to-date consolidated output reached a record high of 134,526 oz., marking a significant 20% increase compared to the year earlier.

The company also demonstrated robust financial performance, with cash increasing by 32% to US$77 million over the first quarter of 2023. This substantial growth in cash balance was driven by positive free cash flow.

Calibre has been actively pursuing exploration initiatives, which have yielded positive results. High-grade drill results within the Eastern Borosi District have reinforced the potential for discovery and expansion.

The company has also confirmed consistent gold mineralization at the Golden Eagle site in the U.S. Additionally, initial drilling at the Talavera deposit within the Limon Mine Complex showed promising high-grade results, validating the company’s resource expansion and discovery potential. Near-mine and higher-grade drilling at the Palomino target at the Pan gold mine indicate the potential for further expansion.

BMO Capital Markets mining analyst Brian Quast provided an optimistic outlook on Calibre’s performance. In a note to clients, he stated that Calibre reported another strong quarter surpassing the bank’s estimate and consensus. “The recent consistent results have contributed strong share price performance, up 70% year-to-date,” Quast said.

The analyst maintains an ‘Outperform’ rating and a target price of $2.00 for the company’s stock.

Most recently, Calibre expanded its production capacity with the start of mining at the Eastern Borosi site. Ore deliveries from the Eastern Borosi mine to the Libertad mill have started, leveraging the significant surplus capacity available at the processing facility. The mining activities focus on the high-grade Guapinol open pit, which has a reserve grade of 6.8 grams gold per ton.

The company is expected to release its June-quarter financial results after market close on Aug. 9, with a conference call scheduled for the following morning.

At $1.59 per share at market close on Tuesday, Calibre shares were indeed up 79% over the 12-month timeframe, having touched 52¢ and $1.76, giving it a market capitalization of $723 million.