Goldman Sachs Raises Gold Price Target to $2,500 An Ounce By End of 2022(11)
Landmark Gold Discovery Could Prove To Be Major Gamechanger For This Junior Miner.(12)
Maybe that’s why — on August 10, 2022 — analysts at Canaccord have targets providing well over 100% potential upside for shares of…(13)
Calibre Mining Corp.(12)
6 Reasons Why Calibre Mining Corp. Could Be The Value Play in the Sector
Calibre Mining Corp.
Goldman Sachs, the multinational investment banking firm, has raised its 2022 year-end gold price forecast to $2,500.(11)
The investment bank explained that increasing prospects of a recession could power the move. It noted that inflation is likely to remain an important factor in the gold price for the rest of this year.(11)
Goldman Sachs explained, as they have repeatedly, that gold has no liabilities. It is not dependent on someone else’s promises or performance but is a monetary asset in its own right.(11)
This is especially important in times of economic turmoil.(11)
Exploration companies also present new opportunities for those looking to gain from a rise in gold prices.
While small-cap stocks and explorers often see the effects of a boost from gold prices later than major producers, the effect is often significant.
One of those companies, Calibre Mining Corp. (OTCQX: CXBMF) (TSX: CXB), has shown that strong recent news and the right conditions in the gold market could become major catalysts moving forward.
Maybe that’s why — on August 10, 2022 — Michael Fairbairn, an analyst at Canaccord Genuity announced a target that at the time provided 106% potential upside for shares of Calibre Mining Corp. (OTCQX: CXBMF) (TSX: CXB).(13)
Citing: Overall, CXB delivered another strong operational quarter. Higher-than-expected head grades in Nicaragua and strong recoveries in Nevada drove costs below our expectations. The company continues to prove out its hub-and-spoke model in Nicaragua, is successfully integrating its Nevada operations, and is tracking well against 2022 guidance.(13)
On August 10, 2022, Canaccord Genuity reiterated its C$2.25 target on the same day when shares were trading at C$1.09 — which would be an approximate 106% potential upside.(13)
Calibre Mining Corp. Reports Quarterly and Year-To-Date Financial Results. (14)
- Gold sales of 112,270 ounces grossing $210.8 million in revenue, at an average realized gold price of $1,878/oz
- Cash on hand of $92.3 million, or C$0.27 per share
- Cash flow from operations of $61.5 million
- Adjusted net income of $31.9 million2, or $0.07 per share
- Received the environmental permit to develop the Pavon Central open pit
- Announced the grade driven increasing production outlook
16 drills completed 120 kilometres of drilling across the Company’s operations, which has led to new discoveries, resource building opportunities and the potential for grade-driven production growth - Bonanza grade drill results from Panteon North within the Limon Complex outline multiple kilometers of high-priority discovery and resource building potential
- Drill results from the Pan Mine, Nevada indicate resource expansion and higher-grade potential
- High-grade drill results and positive metallurgical results from the Gold Rock, Nevada project demonstrate favourable heap leach recoveries and cycle times
Darren Hall, President and Chief Executive Officer of Calibre, stated: “Calibre responsibly delivered another record quarter of production. Despite industry wide inflationary pressures our year to date AISC of $1,244 per ounce is favorable to budget, within guidance, and we reaffirm our commitment to deliver on our full year guidance.(14)
Calibre Mining Corp.’s
“Hube & Spoke” Operating Strategy in Nicaragua
Calibre’s asset base includes multiple ore sources, 2.7 million tonnes per annum of installed mill capacity from two processing facilities, reliable in-country infrastructure and favorable transportation costs. The Company will continue to optimize its mine and process plans as it progresses the “hub-and-spoke” approach to maximize value and allow the Company to quickly translate exploration success into production and cash flow.(15)
Limon and Pavon Resources Hauled to Libertad “Hub”(15)
- Excellent Infrastructure
Surplus Mill Capacity at Libertad Complex
- ~1.5 Mtpa average surplus mill capacity (2021 to 2025)
- Capital is “sunk” and all permits and people are in place
Streamlined Permitting Environment
- Numerous key permits approved 2019-present
- ~18 months from permit application to first ore delivery
- Allows Calibre to quickly translate future exploration success into production
Calibre Mining Corp.’s 4 Producing Assets(16)
#1 Limon Mine & Mill – Western Nicaragua (100% Owned) (16)
Source 16
Probable Mineral Reserves
Indicated Mineral Resources
Inferred Mineral Resources
#2 Libertad Mine & Mill – Central Nicaragua (100% Owned)
Source 16
Probable Mineral Reserves
Indicated Mineral Resources
Inferred Mineral Resources
The La Libertad processing plant can treat approximately 2.25 million tonnes per annum (tpa), and current gold recoveries are approximately 94% to 95%. Currently the mine is fed by ore trucked from Limon and Pavon as well ore mined near the mill at the Jabali underground mine. The Jabali underground mine uses a bottom-up sequenced long hole stoping mining method with unconsolidated backfill.
The Libertad mill currently has surplus capacity and therefore benefits from satellites deposits within a 300km radius.(16)
By implementing our ‘Hub-and-Spoke’ operating model and by developing the Pavon gold project, the Libertad Complex processing life has been significantly extended and is now expected to generate robust cash flows over several years.(16)
The Pavon satellite deposit (“Spoke”) feeding into the Libertad Complex represents a portion of the mill feed from 2021 through 2024. The Pavon PFS demonstrates the value of the Company’s operating approach by utilizing the surplus capacity at the Libertad mill, investing in exploration to expand the current mineral resource base at Pavon as well as the opportunity for additional low-cost growth. Over 50% excess mill capacity exists at the Libertad mill underpinning Calibre’s focus on exploration to expand resources and discover new satellite deposits which could provide future mill feed.(16)
#3 Pavon Gold Mine – Northwest Nicaragua (100% Owned)(16)
Source 16
Since acquiring the asset in 2019 Calibre completed an initial open pit resource estimate, initiated and completed the Environmental Impact Assessment (“EIA”) for Pavon Norte, completed mine design and construction and began open pit mining and transporting to the Libertad processing plant.(16)
#4 Pan Gold Mine – Nevada (100% Owned)(16)
Source 16
Proven
& Probable
Measured & Indicated Mineral Resources
Inferred
Mineral Resources
The Pan Mine is a Carlin-style, open-pit, heap-leach mine in east-central Nevada, approximately 28 km southeast of the town of Eureka, on the prolific Battle-Mountain – Eureka gold trend.(16)
Pan ramped up smoothly after restarting operations in September 2017. Gold production has increased year over year since 2017 with 2021 gold production reaching 45, 397 ounces benefitting from the recent heap leach pad expansion and primary crushing circuit installed in 2020.(16)
Previous operators spent approximately $1.5 million over the past four years on exploration, this presents a significant opportunity for Calibre to ramp up generative and regional exploration but also follow up on numerous targets surrounding the North and South pits that have limited drilling.(16)
Calibre Mining Corp.’s News and Updates(15)
- August 09, 2022 Calibre Reports Quarterly and Year-To-Date Financial Results, Production and Cost Guidance Reiterated for 2022
- July 12, 2022 Calibre Mining Delivers Another Record Quarter, Producing 59,723 Ounces of Gold; On Track to Deliver 2022 Production Guidance
- July 06, 2022 Calibre Announces the Publication of its 2021 Environmental, Social and Governance Sustainability Report
- June 29, 2022 Calibre Reports High Grade Drill Intercepts at its Gold Rock Project, Nevada; Advances Technical Studies with Positive Metallurgical Results; High-Grade Drill Results Include
- June 27, 2022Calibre intersects Bonanza-Grade Gold at The Limon Complex; Reinforcing the Strong Potential to Add Resources and Expand the Panteon Mine
- June 22, 2022 Calibre Mining Provides Multi-Year Grade Driven Increasing Production Outlook, 2023 Increasing to 250 – 275 Koz & 2024 Increasing to 275 – 300 Koz
- June 16, 2022 Calibre Mining Receives Environmental Permit for Development and Operation of the High-Grade Pavon Central Open-Pit Mine Expected to Drive Production Increase in 2023
- May 16, 2022 High-Grade Gold Drill Results at the Limon Complex Panteon North Zone Demonstrate Strong Potential to Add Resources and Expand Panteon Mine
Calibre Mining Corp.’s Key Statistics (As of 8/15/22)
Calibre Mining Corp. has been keeping the public updated as the company makes progress throughout 2022. It’s almost certain that additional updates and news will be breaking soon.
6 Reasons Why Calibre Mining Corp. Could Be The Value Play in the Sector
Source List
Source 1: https://www.nbcnews.com/business/inflation-numbers-trend-rising-prices-goods-soar-rcna15692
Source 2: https://www.investopedia.com/terms/s/safe-haven.asp
Source 3: https://goldprice.org/spot-gold.html
Source 4: https://www.calibremining.com/
Source 5: https://www.calibremining.com/site/assets/files
/6975/calibre_investor_presentation_january_2022_final.pdf
Source 6: https://finance.yahoo.com/news/calibre-outlines-multi-rig-exploration-123000232.html
Source 7: https://www.researchandmarkets.com/reports/5438482/gold-mining-market-2021-2026
Source 8: https://stockcharts.com/h-sc/ui
Source 9: https://investorplace.com/2020/10/esg-investing-10-best-esg-stocks-buy-for-brighter-future/
Source 10: https://www.calibremining.com/esg/overview/
Source 11: https://seekingalpha.com/article/4520661-goldman-sachs-raises-gold-target-yet-again-to-2500oz-by-year-end-signaling-boost-to-gold-industry
Source 12:https://www.calibremining.com/assets/producing-assets/limon-mine-mill/
Source 13: https://goldsectorreport.com/wp-content/uploads/sites/39/2022/08/Canaccord-Q2-Financial-Results-2.pdf
Source 14: https://www.globenewswire.com/en/news-release/2022/08/09/2495395/0/en/Calibre-Reports-Quarterly-and-Year-To-Date-Financial-Results-Production-and-Cost-Guidance-Reiterated-for-2022.html
Source 15: https://www.calibremining.com/assets/hub-spoke-strategy/
Source 16: https://www.calibremining.com/assets/asset-portfolio/
Source 17:https://www.otcmarkets.com/stock/CXBMF/security
Source 18: https://www.calibremining.com/site/assets/files/7123/
calibre_investor_presentation_july_2022_final.pdf