RE:RE:RE:RE:Calibre Mining Completes Acquistion of Fiore Gold edx,
The magic number of 250,000 ounces of production will in all likelihood be attained this year, barring any disruptions to production from unforeseen events, (eg. in Q2 2020 with the virus containment efforts.) Agreed, EPS has not been affected negatively with the increased outstanding shares post acquisition. The Fiore acquisition may even help the company
maintain an overall corporate All In Sustaining Costs of production comparable to 2021
CXB's own AISC, even though the company is guiding somewhat higher AISC for Nicaragua production this year, at least for the first three quarters.
I do not mind seeing some dilution, as long as it is accretive. I like the Nevada move that management has made. Production with the added benefit of a second nearby, well defined deposit. Could be some synergies that CXB mg't have in mind ... perhaps like the "hub and spoke" concept they implemented in Nicaragua .... and what did Fiore see with when they acquired Illipah a little further to the east .... and there may be a little sleeper further to
the north with the Gold Eagle prospect in Washington State. Time will tell there.
Should see a reduction in administration costs overall as senior management, and directors fees, are amalgamated under Calibre current mg't team with a reduction of admin costs from Fiore.
Calibre Mining's "magic number" is double the 250,000 oz you mention.
I speak with VP Ryan King from time to time, have known him since his days with Terrane Minerals ( Mount Milligan) and later with Newmarket Gold. He has mentioned a couple of times in the past that the company's eventual goal is to acheive 500,000 ounces of annual production. No definitive time frame mentioned. Looks like the first step to that goal has now been completed.
Production from Eastern Borosi will most likely come on line in the first half of 2023, if all permitting is in place as expected by end of 2022. HIgh grade ore will be transported to La Libertad from Eastern Borosi, not sure of annual production estimates, but between Eastern Borosi and the newly aquired Gold Rock project next door to the producing Pan Mine in Nevada, these two nearer term producing assets would not get the company up to 500,000 oz per annum, even when you consider satellite deposits like high grade Atravesada and Panteon coming onstream to replace mined out deposits currently being exploited.
I would anticipate another acquisition by CXB somewhere in the future. Producers are generating alot of cash with the current gold price environment. I think we'll see alot more
M&A activity this year. As long as gold prices co-operate ...
Currently US$100 million cash in Calibre's coffers will help the company grow production organically, but I would not be surprised to see them take a run at another near term or current producer in the next 12 -18 months.
Looking foward to Calibre's revised reserves and resources estimates by the end of Q1 from all the exploration and infill drilling completed in Nicaragua in 2021 ..... going to be continued good news flow from this company in 2022, just as we have experienced for the past couple of years.
Just wondering what the results of the Rio Tinto JV exploration drilling were like ... very much delayed from past expectations.
But, it's hard not to "cheer" for a debt free gold miner with a current P/E ratio of 5.4 :1, and growing production.
GLTA !