Earnings Labs

i-80 Gold Corp. (IAUX)

Q3 2023 Earnings Call· Sun, Nov 5, 2023

$1.52

-4.11%

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Transcript

Operator

Operator

Good morning. My name is Ina [ph] and I will be your conference operator today. At this time, I would like to welcome everyone to the i-80 Gold Corp. Third Quarter 2023 Financial and Operational Results Conference Call. [Operator Instructions] Thank you. Mr. Gollat, you may begin your conference.

Matt Gollat

Analyst

Thanks, Ina and welcome, everybody and thank you for joining us for our quarterly conference call this morning. We're pretty excited to talk to you about the past quarter and the past year, about all the things we've accomplished in our plans going forward. So I'm Matt Gollat on Slide 2. I'm Matt Gollat, I'm the Executive Vice President. With me on the call is Ewan Downie, CEO and Matt Gili, President and Chief Operating Officer; as well as Ryan Snow, Chief Financial Officer. Moving on to Slide 3 is our disclaimer page. We will be making forward-looking statements, so I encourage everybody to take some time to read this slide and understand it as several things, we making are certainly forward-looking. With that, I'm going to turn it over to Slide 4 and Ryan Snow will take us through the financial results. Thanks.

Ryan Snow

Analyst

Thanks, Matt. Good morning, all. The company reported our financial statements and MD&A for the third quarter and first 9 months of 2023 yesterday after market. They can be found on SEDAR, EDGAR and our website. On Slide 4 of the presentation, we provide a graph of our production and sales by quarter for the year. This production is from the residual leaching activities at both Ruby Hill and Lone Tree and the oxide material on leach from Granite Creek that we have produced and sold. The third quarter production was 4,585 ounces and year-to-date production was 11,263 ounces. In addition to the gold ounces sold, the company sold 1,659 tonnes of mineralized material under the ore purchase agreement in the third quarter, bringing the year-to-date total to 22,710 tonnes of mineralized materials sold. Note that the 10,000 tonne parcel under the sulphide toll milling agreement has been ships in Nevada Gold Mines and we expect to finalize the results of the test parcel and to commence regular sulphide shipments to NGM in the fourth quarter, leading to a significant increase in our gold production and sales. Additional Q3 highlights on Slide 5 of the presentation, show our revenue for the quarter of $13.2 million, bringing year-to-date revenue to $29.1 million. The company generated a mine operating loss of $0.5 million for the quarter and $7.5 million year-to-date. The mine operating losses year-to-date were primarily the result of write-downs of leach pad inventory at both Ruby Hill and Lone Tree totaling $8.5 million. The company reported a net loss for the quarter of $4.2 million or $0.01 per share. When adjusted for the impact of mark-to-market gains on the company's convertible debt, outstanding warrants, gold prepay modification, gold prepay and silver purchase and sale agreement, the loss was $26 million…

Ewan Downie

Analyst

Thank you, Ryan and I will provide a quarterly update for how our projects have been advancing and talk more about the company's strategy. As you can see on Slide 7, the company is entirely a U.S. focused gold producer. In terms of pure-play gold companies, we are currently the largest U.S. gold producer and our projects are located 100% in Nevada, what is considered to be one of, or if not the, most favorable mining jurisdiction anywhere in the world. We are a company with one of the largest holdings of gold and silver resources in the United States. Our M&I resources are 6.46 million ounces of gold and 104 million ounces of silver plus inferred resources of 8.15 million ounces of gold and 76.4 million ounces of silver. Our company's goal since we started as a company about 2.5 years ago is to become the second largest gold producer in all of the United States. We have one mine that is currently commencing its initial production and we have 3 projects in development and/or permitting. We have been very successful at building a very strong and accredited management team with a strong history of building and managing operations in Nevada. On Slide 8 of the presentation. This is a graph of the pure-play U.S. gold companies. There are only 3 pure-play U.S. gold producers, of which we are one and several development and exploration companies. Our 5-year plan is to grow our production to be in excess of 400,000 ounces of gold equivalent per year and we are achieving our first production at the Granite Creek operation here in 2023. On Slide 9, why do we work just in Nevada? Nevada is currently ranked as the world's number one most favorable jurisdiction for both policy, perception and investment…

Operator

Operator

Matt Gollat

Analyst

I'd like to thank you for joining the call this morning. Sorry, sorry, go ahead.

Ewan Downie

Analyst

No, you go ahead, Matt.

Matt Gollat

Analyst

Thanks, everybody, for joining the call this morning. As you had mentioned, we are all available today to speak to anyone about the quarter, about our plans, about the company. So feel free to reach out to Matt, Ryan, myself or Ewan and we'd be happy to chat with you. Thanks again for your time.

Operator

Operator

Thank you. Ladies and gentlemen, that does conclude our conference for today. Thank you all for participating. You may all disconnect.