Scotiabank Research Note Latest Research (May 08, 2023):OUR TAKE: Mild Positive. Calibre Mining reported Q1/23 financial and operating results with adj. EPS of $0.04, (vs. our $0.04 est. and Bloomberg cons. of $0.05, range $0.04 to $0.06) and CFPS of $0.06 (vs. our $0.08 est. and Bloomberg cons. $0.07, range $0.05 to $0.09) driven by higher-than-expected production costs but offset by lower taxes. Q1 gold production of 65.8koz was pre-reported, and CXB has now reported cash cost of $1,164/oz (slightly higher than our $1,131/oz est.) and AISC of $1,302/oz (slightly lower than our $1,366/oz est.). CXB reiterated its FY2023 guidance calling for gold production of 250- 275koz, total cash costs of $1,000-$1,100/oz Au, and all-in sustaining costs of $1,175-$1,275/oz Au. CXB continues to expand its hub-and-spoke strategy, to include the high-grade open pit mine at Pavon Central and
Eastern Borosi which should accelerate gold production and cash flow generation into 2H/23.We view this announcement as a mild positive for CXB shares as EPS was in line with our expectation, while AISC was slightly lower than expected. We look forward to additional higher-grade ore coming from Pavon Central and Eastern Borosi in the second half of this year. CXB shares are rated SP with a C$2.00 PT.