i-80 Gold Reports Fourth Quarter and Full Year 2024 Operating and Financial Results
Ongoing Focus on Granite Creek Underground Ramp-Up, Balance Sheet Strengthening, and Advancing Pipeline of Projects Towards Feasibility
RENO, Nev., March 31, 2025 /PRNewswire/ - i-80 GOLD CORP. (TSX:IAU) (NYSE:IAUX) ("i-80 Gold", or the "Company") reports its operating and financial results for the fourth quarter and full year ended December 31, 2024, and provides an update on recent recapitalization initiatives, including a new gold and silver prepay agreement entered into with National Bank of Canada ("National Bank").
Unless otherwise stated, all amounts referred to herein are in U.S. dollars (C$ represents Canadian dollars).
"2024 ended with a pivotal shift as we established a new development plan and commenced the work to release updated Preliminary Economic Assessments ("PEA") for each of our five gold projects, which we released as planned in the first quarter of this year," stated Richard Young, Chief Executive Officer. "These PEAs represent solid base case scenarios, and we believe the economics will continue to improve as we advance each project toward feasibility. Our focus remains on the continued ramp up at our Granite Creek Underground Project, unlocking the full potential of our portfolio, and strengthening our balance sheet to support our growth strategy. To that end, we are very pleased to have entered into an agreement with National Bank to term out the Company's gold and silver prepays due in March, and we look forward to a continued partnership with them."
OPERATING AND FINANCIAL HIGHLIGHTS
Fourth Quarter 2024
Total revenue totaled $23.2 million for the quarter compared to $25.8 million in the comparative prior year period due to lower volumes sold partially offset by a higher gold price.
Gold sales1 totaled 9,053 ounces at an average realized gold price2 of $2,560 per ounce, resulting in revenue of $23.2 million, compared to gold sales1 of 14,331 ounces at an average realized gold price2 of $1,989 per ounce, resulting in revenue of $28.5 million in the fourth quarter of 2023.
Loss per share of $0.04 per share for the quarter, a decrease from $0.12 loss per share in the comparative prior year period.
Cash used in operating activities was $9.2 million, an increase in cash used from the prior year period due to comparatively lower change in working capital.
Cash balance of $19.0 million as at December 31, 2024, an increase of $2.8 million from the end of the third quarter due to proceeds from the at-the-market equity program partially offset by cash used in operations and exploration and development activities.
Adopted a new development plan, following a leadership change, to permit, construct, and ramp up five gold projects over the balance of the decade aiming to create a mid-tier gold producer capable of producing approximately 400,000 to 500,000 ounces of gold annually, starting with the development of three underground mines while accelerating two large open pit oxide deposits.
Commenced the process of updating the Preliminary Economic Assessments for five gold projects, which were completed as planned in the first quarter of 2025.
Continued to advance gold projects which are currently at various stages of redevelopment, with a focus on the continued ramp up at the Granite Creek Underground Project, strengthening the balance sheet, and ongoing permitting at all five projects.
Initiated a recapitalization plan to reschedule current debt obligations and provide the additional capital required to execute the new development plan.
____________________________
1Gold ounces sold include attributable gold from mineralized material sales at a payable factor of 58% in 2024 (2023 - 56%).
2This is a Non-GAAP Measure; please see "Non-GAAP Measures" section.
Year ended December 31, 2024
Total revenue totaled $50.3 million compared to $54.9 million in the comparative prior year period due to lower volumes sold partially offset by a higher gold price.
Gold sales1 totaled 21,527 ounces for the year at an average realized gold price2 of $2,332 per ounce, resulting in revenue of $50.2 million, compared to gold sales1 of 29,370 ounces at an average realized gold price2 of $1,956 per ounce, resulting in revenue of $57.5 million in 2023.
Cash used in operating activities was $82.5 million, an increase from the prior year primarily due to lower production from the Company's projects, partially offset by higher average realized gold price.
Loss per share of $0.34 per share was an increase from $0.33 loss per share in the prior year.
Year-end cash balance of $19.0 million, an increase of $2.7 million during the year due to cash provided by financing activities, partially offset by cash used in operations and exploration and pre-development expenditures.
Approximately 110,000 feet of core and reverse circulation drilling completed with multiple positive results to expand mineralization further at the Granite Creek Underground Project, the Archimedes Underground Project within the Ruby Hill property, and the Cove Project.
Published its second annual sustainability report which is accessible on the Company's website.
Three months ended
December 31,
Year ended
December 31,
2024
2023
2024
2023
Revenue
$000s
23,228
25,837
50,335
54,910
Net loss
$000s
(17,730)
(36,053)
(121,533)
(89,654)
Loss per share
$/share
(0.04)
(0.12)
(0.34)
$(0.33)
Cash flow used in operating activities
$000s
(9,223)
(4,919)
(82,501)
(77,465)
Cash and cash equivalents
$000s
19,001
16,277
19,001
16,277
Exploration feet drilled
ft
26,533
38,354
106,221
182,030
Gold ounces sold1
oz
9,053
14,331
21,527
29,370
Average realized gold price2
$/oz
2,560
1,989
2,332
1,956
1.Gold ounces sold include attributable gold from mineralized material sales at a payable factor of 58% in 2024 (2023 - 56%).
2. This is a Non-GAAP Measure; please see "Non-GAAP Measures" section.
STRATEGY OVERVIEW
Following a leadership change, the Company adopted a new development plan in the fourth quarter which presents a new view on the most effective strategy to generate free cash flow, while progressing earlier stage projects to provide a pipeline of growth over the medium and long-term. Management is now focused on permitting and developing its portfolio of assets through the balance of the decade. Consistent with i-80 Gold's focus since inception, this plan includes the development of the three underground mines but also includes accelerating, permitting, and the development of two large oxide open pit deposits, one at Granite Creek and the other at Mineral Point, within the Ruby Hill Project area. The Lone Tree Autoclave remains as the centralized refractory mineral processing facility in the new development plan in support of i-80 Gold's hub-and-spoke regional mining and processing strategy. Management intends to continue its work towards completion of the refurbishment feasibility study planned in 2025. In support of the new development plan, the Company has initiated a recapitalization plan of its balance sheet.
OUTLOOK AND RECAPITALIZATION UPDATE
The Company expects to produce between 30,000 to 40,000 ounces1 of gold in 2025. Production from Granite Creek underground is expected to range between 20,000 to 30,000 ounces1 of gold, and the Company's two residual heap leach operations are expected to contribute approximately 10,000 ounces of gold in 2025.
The PEAs covering the Company's five gold projects were filed in March 2025, and outline three areas of growth expenditure over the next three years to support the advancement of the Company's development plan. These growth expenditures which are discretionary and subject to available resources, ranked from highest priority are: (i) advancing permitting activities, (ii) feasibility studies, and (iii) development work at Archimedes underground. For 2025, the growth expenditures are expected to total between $40 million to $50 million.
Management is advancing its recapitalization plan to support the Company's development plan on several fronts, and is in active discussions with several parties regarding a number of financing options including a senior lending facility, royalty sales, non-core asset sales (such as its FAD property), a working capital facility, as well as terming out the 2025 quarterly gold prepays. Further to the recapitalization plan, the Company restructured its March 31, 2025, gold prepay and silver deliveries and entered into a working capital facility, as described herein.
This outlook, including expected results and targets, is subject to various risks, uncertainties and assumptions, which may impact future performance and the Company's ability to achieve the results and targets discussed in this section. Please refer to "Forward Looking Information" section. The Company may update this outlook depending on changes in metal prices and other factors.
New Gold & Silver Prepay Agreement & Working Capital Facility
On March 31, 2025 the Company entered into a new gold and silver prepay arrangement with National Bank of Canada ("National Bank") under which National Bank purchased approximately 6,800 ounces of gold and 345,000 ounces of silver from the Company for delivery to National Bank by September 30, 2025 or earlier, upon an infusion of capital in line with the recapitalization plan. The proceeds of this new prepay arrangement will be used to satisfy the March 31, 2025 gold and silver deliveries due to an affiliate of Orion Mine Finance under its respective Gold Prepay and Silver Purchase and sale agreements. The obligations under the prepay arrangement with National Bank are secured by the FAD project. In addition, the Company is finalizing a working capital facility with Auramet International, Inc. for up to $12 million, maturing in 12 months.
1Gold ounces sold include attributable gold from mineralized material sales at a payable factor of 58%
OPERATIONAL AND FINANCIAL OVERVIEW
Three months endedDecember 31,
Year endedDecember 31,
(in thousands of USD)
2024
2023
2024
2023
Revenue
23,228
25,837
50,335
54,910
Cost of sales
(20,939)
(21,878)
(64,569)
(52,852)
Depletion, depreciation and amortization
(486)
(1,613)
(1,489)
(7,202)
Gross profit (loss)
1,803
2,346
(15,723)
(5,144)
Expenses
Exploration, evaluation and pre-development
9,406
14,319
38,430
61,091
General and administrative
6,346
5,459
20,773
21,638
Property maintenance
3,592
3,012
14,161
13,080
Loss from operations
(17,541)
(20,444)
(89,087)
(100,953)
Other income and expenses, net
12,195
(2,487)
24,000
41,022
Interest expense
(7,944)
(8,051)
(32,951)
(27,336)
Loss before income taxes
(17,391)
(36,906)
(120,035)
(92,868)
https://www.benzinga.com/pressreleases/25/03/n44576665/i-80-gold-reports-fourth-quarter-and-full-year-2024-operating-and-financial-results
