- Shares in Calibre Mining (CXB) have jumped more than six per cent today after the company released significant results for the third quarter of 2020
- The company has more than recovered from a major drop-off in production that saw a total of 6,009 ounces of gold generated in the second quarter
- Production for the third quarter totalled 45,341 ounces while gold sales came to 44,842 ounces
- Cash on hand also increased by C$31 million to roughly $56 million
- Calibre Mining (CXB) is currently up 5.68 per cent and is trading at $1.86 per share
Shares in Calibre Mining (CXB) have jumped more than six per cent today after the company released significant results for the third quarter of 2020.
The Vancouver-based company took a major hit in the second quarter of the year due to the impact of COVID-19, which saw gold production drop to just 6,009 ounces from 42,085 ounces in the first quarter. Likewise, gold sales fell from 38,755 ounces to 9,426 ounces.
However, Calibre has now more than made up for those losses, reporting total production of 45,341 ounces of gold and total sales of 44,842 ounces.
Of this amount, 22,079 ounces were produced from the company’s Limon Mine while 23,262 ounces came from the Libertad Mine, both of which are located in Nicaragua and were acquired through Calibre’s takeover of B2Gold in October 2019.
The company also reported a 124 per cent, or C$41 million, increase in cash on hand to roughly $74.3 million.
Calibre is now focused on an 80,000-metre drilling program, which is currently utilising 14 active drill rigs. This work consists of various infill, resource expansion and discovery activities, focusing on targets that could quickly translate into organic growth and free cash flow, given a surplus in processing capacity at Libertad.
During the quarter, the company also acquired the remaining 70 per cent interest in the Eastern Borosi Project from IAMGOLD, which hosts an inferred resource of 4.4 million tonnes at an average grade of 4.93 grams per tonne of gold and 80 grams per tonne of silver.
Russell Ball, CEO of Calibre Mining, commented on the company’s strong performance.
“With the consolidation of the Eastern Borosi Gold Project, which hosts 700,500 ounces of gold, the focus there has shifted from a stand-alone operation that had to carry in excess of $100 million in CAPEX, to considering the Eastern Borosi as the next satellite pit for the Libertad complex,” he said.
Calibre Mining (CXB) is currently up 5.68 per cent to $1.86 per share at 1:55pm EDT.