Calibre Mining (TSX: CXB) (OTXQX: CXBMF) has revealed its impressive third-quarter gold production, exceeding both its own estimates and consensus predictions.
In a recent report by the analytics branch of Bank of Montreal Financial Group (TSE: BMO) analysts have maintained their “Outperform” rating on the company and set a target price of C$2.00. Analyst Brian Quast and associate Andrew Lennie showcased the company’s ability to consistently outperform, driven by solid results from its Nicaragua operations.
Calibre Mining reported production of 73,485 ounces of gold for the third quarter of 2023, comfortably surpassing earlier estimates. This was a 6.5 per cent increase over the projections that had been set at 69,000 ounces, with an 8 per cent increase in consensus expectations at 68,000 ounces.
This marks the fourth consecutive quarter of record-breaking gold production and represents a remarkable 50 per cent year-over-year increase compared to the third quarter of 2022. Year-to-date, the company has already achieved 79 per cent of its annual production guidance, which ranges between 250,000 and 275,000 ounces.
The strength of Calibre Mining’s performance in the third quarter has positioned the company favourably to meet or even exceed the upper end of its annual production targets, the analysts concluded.
Read more: Calibre Mining to achieve high-end gold production guidance by end of 2023: TD Securities
Read more: Calibre Mining’s Q3 gold production on track to meet upper-end of guidance: Scotiabank report
Once again, Nicaraguan operations played a vital role
The company’s operations in Nicaragua played a pivotal role in its exceptional performance. Nicaragua contributed significantly to the gold production, with a total output of 63,800 ounces, exceeding the estimated 58,500 ounces. Meanwhile, production from the Nevada operations fell slightly below expectations, with 9,700 ounces compared to the anticipated 10,700 ounces.
In addition to its stellar production results, Calibre Mining also reported a boost in its cash position. The company ended the quarter with a substantial cash balance of $97 million, reflecting a quarter-over-quarter increase of approximately $20 million.
Calibre Mining is not resting on its laurels, the company remains committed to exploration and expansion efforts.
During the third quarter, the company unveiled an initial open-pit Mineral Resource Estimate for its Volcan deposit, situated just 5 kilometres from the Libertad processing facility. The Mineral Resource Estimate indicates an Indicated Resource of 508,000 tons at an average grade of 1.83 grams per ton, equivalent to 30,000 ounces of gold.
The Inferred Resource is reported at 1.78 million tons with an average grade of 2.28 grams per ton, representing an estimated 131,000 ounces of gold.
Read more: Calibre Mining remains an excellent operator with ample exploration targets: Cormark Securities
Read more: Calibre Mining reports strong Q3 cash flow with 26% increase to US$97M
Other analysts from Toronto-Dominion Bank (TSX: TD) have given a share target price of $2.25 within one year given its successful production results during the third quarter of 2023. Additionally, in a similar report, Analysts at Cormark Securities Inc. highlighted Calibre’s strong and fourth production record in a row.
Bank of Nova Scotia’s (TSX: BNS) Global Equity Research also gave Calibre Mining’s Q3 performance a positive grade and a Sector Perform rating with a share price target of $2.00.
Calibre’s stock price was $1.10 per share on Friday on the Toronto Stock Exchange.
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Read More:Calibre Mining outshines expectations with robust Q3 gold production: BMO Capital Markets
2023-10-20 22:21:17
