i-80 Gold (IAU) Q3 2024 earnings summary

Executive summary

• Announced a new development plan prioritizing near-term cash flow and advancing five gold projects, deferring higher-risk and base metal projects until the balance sheet is strengthened.

• Focus on advancing three underground and two open pit gold projects in Nevada, with Granite Creek as the main producing asset and Ruby Hill, Mineral Point, and McCoy-Cove in development or permitting stages.

• Organizational changes include key senior hires and promotions to support technical, legal, and financial needs for the development plan.

• Management is focused on recapitalizing the balance sheet, minimizing shareholder dilution, and demonstrating asset value through upcoming technical studies.

• Reported a net loss of $38.1 million for Q3 2024 and $90.6 million for the nine months ended September 30, 2024, reflecting higher costs and non-cash charges.

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 $38.1 million, with a basic loss per share of $0.10; nine-month net loss was $90.6 million.

• Ended Q3 with $21.8 million in cash and $176.8 million in debt.

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

• Significant equity financings and a public offering raised over $110 million in gross proceeds during the period.

Outlook and guidance

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

• PEAs for all five gold projects are expected by the end of Q1 2025, providing clarity on asset values.

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

• No free cash flow expected from Granite Creek until late 2025 or early 2026.

• Management expects continued operating losses until full execution of its growth strategy and successful financing.