i-80 Gold (IAU) Q3 2024 earnings summary

Executive summary

• Announced a new development plan prioritizing five gold projects in Nevada, aiming for near-term cash flow and mid-tier producer status by early 2030s, while deferring higher-risk and base metal projects until the balance sheet is strengthened.

• Organizational restructuring includes leadership changes, promotions, and new hires to support technical, legal, and financial needs for the development plan.

• Recapitalization and debt restructuring are underway to support project execution and financial stability.

• Management is focused on minimizing shareholder dilution during recapitalization and believes the asset base and location support a strong long-term outlook.

Financial highlights

• Q3 2024 revenue was $11.5 million, down from $13.2 million year-over-year, with gold sales of 3,063 ounces at an average realized price of $2,422/oz.

• Net loss for Q3 was $19.0 million, with a basic loss per share of $0.10, mainly due to a $10.3 million loss on derivatives and warrant revaluation.

• Ended Q3 with $21.8 million in cash and $176.8 million in debt, a decrease of $26 million in cash from Q2.

• ATM equity program raised $13.1 million in Q3, with $29.9 million remaining available.

• Cost of sales increased by $3.2 million year-over-year due to inventory impairment.

Outlook and guidance

• Granite Creek Underground expected to reach commercial production in 2026; production and costs will be negatively impacted by water issues until Q3 2025.

• PEAs and feasibility studies for all five gold projects targeted for release by end of Q1 2025, providing clarity on asset values.

• Recapitalization plan aims for completion in Q1 2025, with a focus on minimizing dilution and aligning debt with cash flow generation.

• Free cash flow from Granite Creek not expected until late 2025 or early 2026.

• Targeting production of 400,000–500,000 oz gold annually by early 2030s.