Scotiabank Research OUR TAKE: Positive.
Calibre Mining announced Q4/22 financial results adjusted EPS of $0.03, (vs. our $0.02 est. and BB cons. of $0.03; range $0.02 to $0.04) and CFPS of $0.06 (vs. our $0.06 est. and BB cons. $0.06; range $0.05 to $0.07). Q4/22 Cash costs were $1,097/oz Au (vs. our $1,077/oz est.) and AISC was $1,236/oz Au (vs. our $1,224/oz est.). FY2022 gold production of 222koz was pre-reported, increasing to 250k-275koz based on FY2023 guidance. Total cash costs was $1,129/oz in FY2022 and AISCwas $1,259/oz, which declines to $1,000-$1,100/oz Au cash cost, and $1,175- $1,275/oz Au AISC.
Overall, we view the results as a positive as CXB’s earnings, cash flow, and costs were in line with our estimates. Based on 2023 guidance, production is increasing and costs are decreasing; at spot gold prices, we estimate CXB to generate ~$43M for a yield of ~17% in 2023.
CXB shares are rated SP with a C$1.75 Price Target.