Undervalued Gold Mining Stock Provides “Double Play” Upside Potential for Investors

Why Under-the-Radar Calibre Mining Corp. (OTCQX: CXBMF); (TSX: CXB) Offers Investors High Upside in Both the Near-Term… and the Long-Term

Investor Alert: 7 analysts now have a “Buy” rating on this company’s stock with an average target price representing 43% upside potential

News Update: news content

Breaking News

Calibre Mining Corp. Announces 100,000 Metre Expansion on its Flagship Valentine Gold Mine Property

Jul 15, 2024 – VANCOUVER, British Columbia, July 15, 2024 (GLOBE NEWSWIRE) — Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF) (“Calibre” or the “Company”) is pleased to announce a 100,000 metre resource expansion and discovery drill program at its 100% owned, fully funded Valentine Gold Mine (“Valentine” or “VGM”) located in the central region of Newfoundland & Labrador, Canada.

For more information, click here.

8 Reasons Why You Should Strongly Consider Calibre Mining Corp. (OTCQX: CXBMF); (TSX: CXB) Right Now

1

Significantly Undervalued Opportunity: Calibre Mining Corp. (OTCQX: CXBMF); (TSX: CXB) is trading at a significant discount to its peers based on value of its gold production. While the peer average is roughly $4,433 EV/oz., Calibre Mining Corp.’s is nearly 50% less than that…at just $2,301 EV/oz. That makes the company an attractive undervalued play for those investors looking for smart exposure to the gold market.

2

Calibre Mining Corp. Continues to Deliver Impressive Production: In 2023 the company produced a record 283,494 ounces of gold. This was the company’s fourth consecutive year of gold production…and Calibre Mining Corp. is now projecting consolidated gold production of 275,000 and 300,000 ounces for 2024. Since becoming a gold producer in 2019, Calibre has delivered 28% year-over-year production growth and has produced over 825,000 ounces of gold while increasing its reserves more than 10-fold to 4.1 million ounces.⁷

3

Calibre Mining Corp. Offers Solid Value at Today’s Gold Prices Calibre’s consolidated total cash costs are between $1,075 and $1,175 per ounce of gold, while its consolidated all-in sustaining costs are between $1,275 and $1,375 per ounce. With gold prices today near $2,400 per ounce that leaves a profit margin of over $1,000 per ounce. And with up to 300,000 ounces of production in 2024, that could translate into millions in operating cash flow.

4

Predicted Higher Gold Prices Could Provide this Stock with a Potential Upside: Calibre Mining Corp. has proven to be a strong investment even with gold prices hovered around $1,700/oz. in fall 2023…and is an even greater value at today’s higher gold prices. But what could this company’s value look like if gold prices were to climb even higher? A number of experts including UBS Wealth Management are predicting higher gold prices through the end of 2024.¹

5

Calibre Was Recently Added to the Prestigious GDX Gold Miners ETF and the S&P/TSX Composite Index: In March 2024, it was announced that Calibre Mining Corp. was being added to the prestigious VanEck Gold Miners ETF (GDX). This is the nation’s oldest gold miners’ ETF and is designed to represent a portfolio of the largest global gold mining companies. Calibre’s addition to the GDX comes with a “block trade” purchase of 43.5 million shares and could generate added ongoing interest from institutional investors for Calibre in the months ahead. And in June the company announced that its shares had been added to the S&P/TSX Composite Index, marking another significant milestone for the company and reflecting the significant value it is creating for shareholders.

6

Calibre Mining Corp.’s Elite Management Team Has a History of Mining Success: The company is guided by a highly successful management team – led by President and CEO Darren Hall – with decades of experience in the exploration space. Collectively, the management team and board of directors has led the successful sale of seven mining companies exceeding US $5 billion in value, including two significant take-outs over the past five years. Mr. Hall previously worked for nearly 30 years at Newmont Mining Corporation…and was one of a handful of Calibre Mining Corp. executives who helped create Newmarket Gold, which ultimately created tremendous value for shareholders leading to a $2 billion transformational merger with Kirkland Lake Gold.

7

Calibre is Creating a High Growth, Cash Flow-Focused Mid-Tier Gold Producer: Calibre Mining Corp’s acquisition of the Valentine Gold Mine in late 2023 was a game-changer for the company. Calibre Mining Corp. is now on track to create an Americas-focused mid-tier gold producer with an estimated average annual gold production of more than 500,000 ounces in 2025-2026.⁶ Valentine Gold Mine’s construction is now nearly 75% complete – with production scheduled to commence in Q2 of 2025 – and is fully funded. The company is working to build Atlantic Canada’s largest gold mine with Valentine and could produce nearly 200,000 ounces of gold per year at this location.

8

Experts Appear Very Bullish on Calibre Mining Corp.’s Potential: Seven analysts now have a “Buy” rating on the company’s stock with an average target price of $2.87 per share, including BMO Capital Markets, a subsidiary of the Bank of Montreal, which recently reiterated its outperform rating on the shares and its C$3.40 per share price target².

Calibre Mining Corp. (OTCQX: CXBMF); (TSX: CXB) is an Americas-focused, growing mid-tier gold producer with a strong pipeline of development and exploration opportunities across Newfoundland & Labrador in Canada, Nevada and Washington in the USA, and Nicaragua.

The company now appears to offer investors not only smart exposure to precious metals…but also a unique “double play” profit opportunity.

First…Calibre Mining Corp. – at this moment – offers tremendous value in terms of its consistent gold production. The company has consistently increased its gold production each year – to the tune of 28% year-over-year production growth since 2019 – and it has done so while maintaining low costs and attractive margins.

Yet the company remains undervalued when compared to others in the space, trading at a significant discount to its peers in terms of estimated value per ounce.

That consistent production – at attractive margins – combined with its undervaluation makes the company an attractive value play right now.

But the second half of this company’s “double play” potential makes it even more attractive in the long-term.

Over the past year, many experts have been puzzled as to why the price of gold has not behaved as it has traditionally during periods of inflation and stock market volatility.

In fact, a number of experts including JP Morgan and UBS Wealth Management are now calling for significantly higher gold prices over the next 12 months.

Those forecasts could have a significant positive impact on companies like Calibre Mining Corp. (OTCQX: CXBMF); (TSX: CXB).

Why are experts so confident that higher gold prices are coming?

Take a look at the chart below:

Since 2020, the U.S. has printed nearly 80% of all U.S. dollars in circulation.

In other words…at the start of 2020, we had approximately $4 trillion in circulation…

And now we have nearly $19 TRILLION in circulation – a 375% jump in just 3 years!

This rapid influx of trillions of dollars is causing inflation to soar – and that bodes well for higher gold prices in the months ahead.

As the price of gold climbs higher, institutional investors will look for undervalued opportunities in the mining sector…and companies like Calibre Mining Corp. could become even more attractive.

“In our opinion, the investment case for gold mining equities is clear and compelling…gold mining stock valuations are the lowest in 25 years. The spread between the gold price and the discount implied to spot based on the market price of the equities is a massive $700+ per ounce.”

— John Hathaway, CFA
Managing Partner, Sprott, Inc.

Rising gold prices will also trigger an increase in algorithmic buying as ETF products tied to higher gold prices will, by design, look to invest in gold mining stocks that appear to be undervalued.

This potential for a “double play” upside scenario – with both near- and long-term profit potential – makes Calibre Mining Corp. (OTCQX: CXBMF); (TSX: CXB) worthy of a closer look.

Calibre Mining Corp.’s Consistent Gold Production Year After Year

High Upside Alert: Why Calibre Mining Corp. (OTCQX: CXBMF); (TSX: CXB) Right Now Appears Significantly Undervalued Compared to its Peers

Investors looking for significant upside potential in the resource space should look no further than Calibre Mining Corp.

This is a company guided by an experienced team of experts with a proven history of successfully building mines…and delivering value for shareholders.

And now, thanks to their Valentine Gold Mine project, they appear on-track to build Atlantic Canada’s largest gold mine, which is projected to be in production in Q2 of 2025 and to produce almost 200,000 ounces of gold per year.

Among its peer group, Calibre Mining Corp. has far-and-away the highest estimated production growth from 2024-2026. The company’s 70% projected growth is nearly seven times the average of its peer group.

Yet the company’s market cap and its EV/oz. are both significantly lower than each of its peers.

Here’s a more direct comparison:

Wesdome Gold Mines Ltd. (TSX: WDO) is a Canadian-focused gold producer with two high grade underground assets, the Eagle River mine in Ontario and the recently commissioned Kiena mine in Quebec.

The company currently has a market cap of nearly C$2 billion.

In 2024, the company is projected to produce 160,000 to 180,000 ounces of gold and its all-in sustaining costs are C$1,750 to $1,950 per ounce.

Wesdome’s 2025 guidance calls for production of 175,000 to 210,000 ounces.

Compare this with Calibre Mining Corp.

Calibre Mining Corp. is projected to produce 275,000 to 300,000 ounces of gold in 2024 and its all-in sustaining costs are US$1,275 to $1,375 per ounce. And the company’s guidance calls for production of 400,000 to 500,000 ounces in 2025.

Yet Calibre Mining Corp.’s current market cap is just C$1.69 billion…significantly lower than Wesdome Gold Mines.

And that’s despite appearing to be superior in both production and cost.

This comparison – along with how Calibre Mining Corp. currently ranks among its peer group – suggests that significant re-rate potential exists for the company. And that could mean high upside potential for early investors in Calibre Mining Corp. (OTCQX: CXBMF); (TSX: CXB).

What Analysts Are Saying About Calibre Mining Corp. (OTCQX: CXBMF); (TSX: CXB)

Progress at Calibre Mining Corp.’s Valentine Gold Mine Has the Company on a Path to Becoming a 500,000-ounce Gold Producer in the Americas

Calibre Mining Corp.’s late 2023 acquisition of Marathon Gold – including the Valentine Gold Project – has the potential to be a true game-changer.

This acquisition could help the company potentially double its production as well as provide further diversification opportunity within North America.

The Valentine Gold Mine is in the Central Region of Newfoundland and Labrador, one of the top mining jurisdictions in the world. When completed, Valentine will be the largest gold mine in Atlantic Canada and a significant contributor to the economy of Newfoundland and Labrador.

A December 2022 feasibility study for Valentine outlined an open pit mining and conventional milling operation over a 14.3-year mine life with a 22% after-tax rate of return and an average gold production profile of 195,000 ounces of gold per year for the first 12 years. Production is scheduled to begin production in early 2025.

Valentine Project Highlights:

Valentine Gold Mine in Central Newfoundland; World leading mining jurisdiction
100% ownership
Largest Undeveloped Gold Resource in Atlantic Canada
- M&I 3.96 Moz (64.62 Mt at 1.90 g/t Au)
- Inferred 1.10 Moz (20.75 Mt at 1.65 g/t Au)
December 2022 Feasibility Study
- After-tax 22% IRR & C$634 NPV5% at US $1700 Gold, C$463M Cost to Complete
- 14.3 Year Mine Life; 2.7 Moz Mineral Reserve; 195k oz/a Years 1 to 12
Ongoing Exploration on 20km Mineralized Trend
- Focus on Sprite, Victory

And the story for the Valentine Gold Project continues to get better.

On July 9, Calibre Mining Corp. announced that construction of the Valentine Gold Mine was at 73% complete as of June 30. Operational readiness is progressing as the company planned with pre-commissioning well underway. First gold pour remains scheduled for Q2 2025, marking a key milestone as the company advances towards becoming a quality, mid-tier gold producer poised to deliver substantial additional value to shareholders.

And on June 5, the company announced drill results from its 2024 exploration program within the Valentine Gold Mine complex.

Highlights from the Leprechaun Southwest drill program include:

2.25 g/t Au over 15.30 meters Estimated True Width (“ETW”) including 24.68 g/t Au over 0.85 metres ETW in Hole LS-24-002;
1.87 g/t Au over 11.57 meters ETW including 9.26 g/t Au over 0.89 meters in Hole LS-14-007;
36.83 g/t Au over 0.91 meters ETW in Hole LS-24-010;
13.32 g/t Au over 0.85 meters ETW in Hole LS-24-011.

According to President and CEO Darren Hall, these drill results “reinforce the vast potential of the 32 km long Valentine Lake Shear Zone. Initial 2024 drilling intersected near surface gold mineralization outside of the current Mineral Reserve block model and in two holes outside of the Leprechaun Mineral Resource model. This new mineralization is located between 100 and 175 meters south of the recent high grade ore control drilling and both areas remain open for expansion. This, coupled with earlier positive results from the Frank Zone, located approximately one kilometer south of these Leprechaun results, indicates potential for further expansion at near mine targets.”

In other words…the potential resource at Valentine could be even larger than first imagined.

Calibre Mining Corp.’s Nicaraguran Gold Producing Assets

#1 Limon Mine & Mill – Western Nicaragua (100% owned)

Source 3

Mining operations use conventional open pit mining methods at the Limón Central open pit and a combination of top-down and bottom-up sequenced longitudinal open stoping (“LOS”) at the Santa Pancha underground mines. The El Limón processing plant consists of agitated cyanide leaching and carbon adsorption, followed by carbon elution, electrowinning, and doré production. The annual throughput is approximately 500,000 tonnes per annum (“tpa”) and the historical recovery is 94% to 95%.

Calibre’s asset base includes multiple ore sources, 2.7 million tpa of installed mill capacity from two processing facilities (El Limon and La Libertad), reliable in-country infrastructure, and favourable transportation costs. The Company will continue to optimize its consolidated mine and process plans as the Company progresses our “hub-and-spoke” approach to maximizing value from our integrated asset base.

#2 Libertad Mine & Mill – Central Nicaragua (100% owned)

Source 3

The La Libertad processing plant can treat approximately 2.25 million tonnes per annum (tpa), and current gold recoveries are approximately 94% to 95% for a blend of spent ore and run of mine (ROM) ore. 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 Libertad mill currently has surplus capacity and therefore benefits from satellites deposits.

#3 Pavon Gold Mine – Northwest Nicaragua (100% owned)

Source 3

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 & Pavon Central, completed mine design and construction and began open pit mining and transporting to the Libertad processing plant.

The Pavon project represents a newly emerging gold district in Nicaragua in a region that has remained largely underexplored by modern methods.

#4 Eastern Borosi Gold-Silver Property – Northeastern Nicaragua (100% owned)

Calibre controls an undivided 100% interest in the Eastern Borosi Gold-Silver Property, located in the northeastern Nicaraguan low-sulphidation, epithermal district that hosts numerous high-grade, gold-silver vein systems.

The 176 km² land package consists of open pip and underground known resources including the Guapinol open pit mine
Mineral resources have been defined in six vein systems that are exposed along an eight-by-ten kilometer structural corridor that remains open for resource expansion and discovery to the northeast and southwest;
There is an indicated mineral resource of 1.031 MT at 8.48 g/t for contained gold of 281,000 ounces;
There is an inferred mineral resource of 2.895 MT at 3.18 g/t Au for contained gold of 296,000 ounces;
The “Mining Triangle” of northeast Nicaragua of which EBP is a part has produced in excess of 8 million ounces of gold but remains significantly underexplored;
2023 resource conversion and expansion drilling returned high grade drill results, including 12.9 g/t Au over 8.5 meters including 23.30 g/t Au over 1.6 meters and 35.50 g/t Au over ½ meters. This reinforces the potential for discovery and resource expansion.
EBP is located approximately 400 km by road from the Company’s 2.2 million tonne per annum Libertad Mill which is currently less than 50% utilized.

Calibre Mining Corp.’s Nevada-Based Gold Producing Assets

*Pan Gold Mine – Nevada (100% owned)

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.

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.

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.

Source 3

8 Reasons Why You Should Strongly Consider Calibre Mining Corp. (OTCQX: CXBMF); (TSX: CXB) Right Now

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Sources

*Current share price as of 8/10/23 is C$1.55
and Haywood’s target price is C$3.00
[i] https://www.cnbc.com/2022/12/22/gold-at-4000-analysts-share-their-
2023-outlook-for-prices.html
[ii] https://www.cnbc.com/2022/12/22/gold-at-4000-analysts-share-their-
2023-outlook-for-prices.html
[iii] https://www.calibremining.com/news/calibre-increases-nicaraguan-
mineral-reserve-grade-4957/ –
https://www.calibremining.com/site/assets/files/7183/cxb_
aif_december_31_2022.pdf

1 https://www.zerohedge.com/the-market-ear/ubs-says-gold-could-double-here

2 https://m.netdania.com/news/Calibre%20Mining%20Maintained%20at%20Outperform
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3 https://m.netdania.com/news/Calibre%20Mining%20
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4 https://www.zerohedge.com/the-market-ear/ubs-says-gold-could-double-here

5 https://m.netdania.com/news/Calibre%20Mining%20Maintained%20at%20Outperform
%20at%20BMO%20Following%20Q2%20Production%20Results%3B%20Price%20Target
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6 based on analyst consensus numbers 400,000 – 500,000 ounces

7 https://www.calibremining.com/news/calibre-delivers-fourth-consecutive-year-of-minera-8123/

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