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Highlights

  • CXB reported a 3.9% revenue increase in Q1 2024 driven by higher gold prices
  • CXB achieved a 28.6% EBITDA margin and a quick ratio of 1.59x in Q1 2024
  • CXB aims to become a leading mid-tier gold producer in Americas after acquiring Marathon Gold

Calibre Mining Corp (TSX: CXB) is a Canadian-listed mid-tier gold producer concentrated in the Americas, particularly Nicaragua, with robust development and exploration prospects. It has a market capitalisation of CAD 1.46bn.

In the first quarter of 2024, CXB reported a 3.9% increase in revenue to USD 131.8 million, up from USD 126.9 million, primarily driven by a higher average realized gold price. However, the company's operating profit declined sharply by 67.7% due to increased operating expenses, higher depreciation costs, and elevated transaction costs. Income before taxes dropped to USD 7.4 million compared to USD 26.3 million in pcp. Overall, CXB recorded a net loss of USD 3.6 million in Q1 2024.

Moreover, in Q1 2024, the company achieved a superior EBITDA margin of 28.6% and a stronger quick ratio of 1.59x, surpassing the industry median of 25.3% and 1.31x, respectively.

Recent business update

On May 14, 2024, CXB announced the successful acquisition of Marathon Gold, aiming to establish a high-growth, cash-flow-oriented mid-tier gold producer in the Americas. This acquisition includes full ownership of the Valentine Gold Mine, renowned for its substantial mineral reserves: 2.7 million ounces of reserves, 3.96 million ounces of measured and indicated resources, and 1.10 million ounces of inferred resources.

Company outlook

CXB has revised its production outlook for FY 2024 upwards compared to FY 2023. The company anticipates producing gold within a range of 275,000 to 300,000 ounces, with total cash costs expected to fall between USD 1,075 and USD 1,175 per ounce.

Top 10 shareholders

The top 10 shareholders of Calibre Mining collectively own approximately 33.92% of the total shares. B2Gold Corporation holds the largest stake in the company at around 14.12%, followed by Van Eck Associates Corporation with approximately 9.25%.

Stock performance

CXB's stock has shown a gain of approximately 1.63% in the past week but has experienced a decline of about 18.77% over the last month. Currently, the stock is trading above its average 52-week high of CAD 2.335 and 52-week low of CAD 1.155.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is June 18, 2024. The reference data in this report has been partly sourced from EODHD/Others