Calibre Mining (TSX: CXB) celebrated a significant milestone as the Canadian gold mining company revealed record annual consolidated production figures for 2023, exceeding its previous guidance. The company also achieved a fifth consecutive quarterly production record, providing a boost to its performance on Tuesday.
Total gold production across Calibre’s operations reached an impressive 283,494 ounces, surpassing the upper limit of its 2023 production forecast. The Nicaragua assets, predominantly driven by the Limon mine complex, contributed 242,109 ounces, while an additional 41,385 ounces originated from Nevada.
In the fourth quarter alone, the company produced 75,482 ounces of gold, with Nicaragua contributing 64,963 ounces and Nevada accounting for 10,519 ounces.
As of December 31, Calibre boasted $86 million in cash, marking a substantial 52% increase compared to the end of 2022. This commendable financial position persists despite the company’s investment of C$40 million in Marathon Gold, a recent acquisition finalized in November 2023.
Calibre’s CEO, Darren Hall, expressed enthusiasm about the recent merger’s transformative impact, stating that the union with Marathon Gold positions the company favorably, establishing an Americas-focused, high-growth mid-tier gold entity.
The acquisition of Marathon notably includes the Valentine gold project in central Newfoundland, a valuable addition to Calibre’s portfolio. This project entails an open-pit mining setup and conventional milling operation, projecting an annual production of 195,000 ounces over 12 years within a 14.3-year mine lifespan. Construction is underway, with a targeted initial pour expected in 2025.
Looking ahead to 2024, Calibre anticipates its gold production to range between 275,000 and 300,000 ounces. Approximately 235,000 to 255,000 ounces are projected to be sourced from Nicaragua.
By 11:45 a.m. ET, Calibre’s stock experienced a 0.8% surge in Toronto, resulting in a market capitalization of C$579.6 million ($432.8 million). This positive market response reflects investor confidence in Calibre’s robust operational performance and strategic advancements in the gold mining sector.
