Central banks were busy ramping up gold reserves in the first half of the year. In fact, “Despite a year-on-year decrease of 103 tons in purchases during the second quarter, net purchases by central banks worldwide still hit a record-breaking 387 tons in the first six months of the year, according to the latest data compiled by the World Gold Council (WGC),” as noted by Global Times. The WGC also added that central bank gold buying will remain strong throughout the year, especially with ongoing geopolitical tensions and challenging economic conditions around the world. China, for instance, just raised its gold reserves for the ninth straight month, as it continues to diversify its reserves. That’s all positive news for gold stocks, including Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF), Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Newmont Corporation (NYSE: NEM) (TSX: NGT), Franco Nevada Corp. (NYSE: FNV) (TSX: FNV), and Royal Gold Inc. (NASDAQ: RGLD).
Look at Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF), For Example
Calibre Mining Corp. announced financial and operating results for the three and six months ended June 30, 2023. Consolidated financial statements and management discussion and analysis can be found at www.sedar.com and the Company’s website, www.calibremining.com. All figures are expressed in U.S. dollars.
Q2 2023 Highlights
- Record gold sales of 69,009 ounces with $139.3 million total revenue, at an average realized gold price of $1,974/oz;
- Consolidated Total Cash Costs of $977, and All-In Sustaining Costs of $1,178 per ounce;
- Record adjusted net income of $33.6 million; $0.07 per basic share, a 133% increase over Q2 2022;
- Free cash flow of $15.9 million reflecting strong operating results;
- Cash on hand of $77.0 million, a 32% increase over Q1 2023;
- Delivered a fourth new open pit mine with ore deliveries from the Eastern Borosi mine to the Libertad mill;
- Initial drilling yielded high-grade results from the past producing Talavera deposit within the Limon Mine Complex, reaffirming the Company’s overall resource expansion and discovery potential;
- 2022 Sustainability Report illustrates a focused commitment to responsible mining business practices.
Year-to-Date 2023 Highlights
- Record consolidated gold sales of 134,779 ounces grossing $266.2 million in total revenue, at an average realized gold price of $1,933/oz;
- Consolidated TCC of $1,068/oz; Nicaragua $1,009/oz & Nevada $1,386/oz;
- Consolidated AISC of $1,239/oz; Nicaragua $1,156/oz & Nevada $1,427/oz;
- Adjusted net income of $49.8 million, or $0.11 per share; and
- Consolidated Mineral Reserves have increased 370% since acquisition in 2019, to 1,346,000 ounces gold.
Darren Hall, President and Chief Executive Officer of Calibre, stated: “I am pleased to announce another exceptional quarter in which we delivered a third consecutive production record resulting in our strongest quarterly net income to date. Our consolidated Total Cash Cost and All-in Sustaining Costs being lower than budget position the Company to deliver full year production and cost guidance and generate strong free cash flow. As we continue to strengthen our balance sheet, we remain fiscally responsible by self-funding all exploration and organic growth from operating cash flow while increasing our cash position.
Calibre continues to present a compelling investment opportunity with a diversified asset base within the Americas, high-grade, high margin gold production, extensive growth and expansion prospects and strong cash generation. During the quarter our investment into exploration continued to yield fruitful returns. In Nevada, new shallow, high grade gold mineralization has been identified in proximity to the south pit which is expected to positively impact grades as early as next year. In Nicaragua, we continue to intersect high-grade mineralization along the VTEM Gold Corridor at Limon with continued anticipated conversion to year end Resources and Reserves.
We remain focused on sustainable mining practices and responsible resource management which has contributed to our success thus far and we will continue to prioritize environmental stewardship and community engagement.”
Other related developments from around the markets include:
Barrick Gold Corporation announced the declaration of a dividend of $0.10 per share for the second quarter of 2023. The dividend is consistent with the Company’s Performance Dividend Policy announced at the start of 2022. The Q2 2023 dividend will be paid on September 15, 2023 to shareholders of record at the close of business on August 31, 2023. “As a result of the continuing overall strength of our business and balance sheet, we have maintained the distribution of a robust base dividend to our shareholders, while our Performance Dividend Policy provides the potential for additional upside going forward,” said senior executive vice-president and chief financial officer Graham Shuttleworth.
Newmont Corporation announced second quarter 2023 results and declared a second quarter dividend of $0.40 per share. "In the second quarter, Newmont delivered $910 million in adjusted EBITDA with a disciplined approach to running a safe and sustainable mining business to generate long-term value. Our business is underpinned by the industry's strongest balance sheet and a global portfolio with the size and scale to make decisions that deliver on our strategy. We remain on track to achieve our full-year guidance, and I am proud of the prudent decisions made during the second quarter to safeguard our workforce, protect long-term value and position Newmont to deliver a strong performance in the second half of the year,” as noted by Tom Palmer, Newmont President and Chief Executive Officer.
Franco Nevada Corp. announced it will report its second quarter 2023 results as follows: Second quarter 2023 results release on August 8 after market close. Conference call and webcast on August 9 at 10 a.m. ET.
Royal Gold Inc. reported net income of $63.4 million, or $0.97 per share, for the quarter ended June 30, 2023, on revenue of $144.0 million and operating cash flow of $107.9 million. Adjusted net income was $57.2 million, or $0.88 per share. “Our second quarter was relatively quiet and the portfolio provided another quarter of solid cash flow,” commented Bill Heissenbuttel, President and CEO of Royal Gold. “We repaid $100 million of our outstanding revolving credit facility balance and grew our liquidity to over $700 million by the end of the quarter. We also extended the term of our $1 billion revolving credit facility a further two years to mid-2028, which ensures continued access to a key non-dilutive and flexible financing tool. We greatly appreciate the continued support of our bank group.”
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