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1. Company Snapshot

1.a. Company Description

Calibre Mining Corp., together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties.It primarily explores for gold, silver, and copper deposits.The company holds 100% interests in the El Limon and La Libertad gold mines, the Pavon gold project, and other mineral concessions in Nicaragua, Central America; and the Borosi Gold-Silver-Copper project located in the North Atlantic Autonomous Region of Nicaragua, Central America.


It also holds 100% interests in the Pan Mine gold project, the Gold Rock project, and the Illipah Gold project in Nevada, the United States, as well as the Golden Eagle project in Washington State, the United States.The company was formerly known as TLC Ventures Corp.and changed its name to Calibre Mining Corp.


in June 2007.Calibre Mining Corp.was founded in 1969 and is headquartered in Vancouver, Canada.

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1.b. Last Insights on CXB

Calibre Mining Corp.'s recent performance was driven by a series of positive developments. The company's Q1 2025 earnings release showcased a record first-quarter production of 71,539 ounces, exceeding expectations. Additionally, the Valentine Gold Mine update provided a promising outlook for the project's advancement towards gold production in Q3, setting the stage for significant growth. The business combination with Equinox Gold Corp. has been progressing, with the Supreme Court of British Columbia granting the final order in connection with the plan of arrangement. This development is expected to close during Q2 2025, potentially leading to a substantial increase in the company's valuation. Furthermore, the company's commitment to responsible growth and stakeholder value is evident in its fifth annual Sustainability Report, highlighting another year of strong economic performance and continued leadership in responsible mining practices. The report showcases the company's dedication to environmental, social, and governance (ESG) principles, which is likely to appeal to socially responsible investors. The recent approval of the arrangement by leading independent proxy advisory firms ISS and Glass Lewis is also a positive development, as it increases the likelihood of a successful completion of the business combination. Overall, these developments suggest that Calibre Mining Corp. is well-positioned for future growth and success.

1.c. Company Highlights

2. Calibre Mining Corp. Posts Mixed Q1 2025 Earnings Amid Production Delays and Merger Progress

Calibre Mining Corp. reported a mixed bag in its Q1 2025 earnings, with revenues climbing 15% year-over-year to $120 million, driven by higher gold prices, though production fell short of expectations at 71,000 ounces. The company's all-in sustaining costs (AISC) came in below budget at $1,120 per ounce, reflecting cost control measures. However, the earnings per share (EPS) of $0.02012 missed the consensus estimate of $0.07, due to higher-than-anticipated operating expenses and delayed production volumes.

Publication Date: May -13

📋 Highlights
  • Q1 2025 Production: 71,000 ounces of gold produced, below budget costs.
  • Valentine Gold Mine Update: First gold expected in Q3 2025, with initial capital increased by CAD110 million (CAD854 million total).
  • Capital Increase Breakdown: 75% attributed to labor and indirect costs, 25% due to scope growth.
  • Project Funding Status: Fully funded with CAD280 million in cash and CAD101 million remaining to be incurred.
  • Merger with Equinox Gold: Creates Canada's second-largest gold producer, targeting over 1.2 million ounces annually.

Valentine Gold Mine Progress and Cost Increases

The Valentine Gold Mine, positioned as Atlantic Canada's largest, is nearing completion but faces delays. First gold production is now anticipated for Q3 2025, pushed back from the initial Q2 target, attributed to lower-than-expected productivity and minor scope expansions. The project's initial capital estimate has risen by CAD110 million to CAD854 million, with 75% of the increase stemming from labor and indirect costs. Despite the setback, the project remains fully funded, with CAD280 million in cash and CAD101 million remaining to be spent. Construction is in its final stages, with commissioning activities progressing smoothly, including successful primary crusher tests and the completion of mill staffing with experienced personnel.

Merger with Equinox Gold and Growth Prospects

The upcoming merger with Equinox Gold, approved by shareholders, promises transformative growth. The combined entity is expected to become Canada's second-largest gold producer, with a potential annual output exceeding 1.2 million ounces. Management expressed optimism about a seamless integration and ramp-up, aiming for full capacity by Q1 2026. This merger underscores Calibre's strategic push to enhance its production scale and operational efficiency.

Valuation and Financial Position

Calibre's valuation reflects high expectations, with a P/E ratio of 48.91 and EV/EBITDA of 10.9, indicating investor confidence in its growth trajectory. The Net Debt/EBITDA ratio of 1.3 highlights moderate leverage, manageable given the company's cash reserves. Despite the current EPS miss, analysts project a robust 37.6% revenue growth for next year, supported by the merger and the eventual ramp-up of the Valentine mine.

3. NewsRoom

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Equinox Gold (EQX) Completes Business Combination with Calibre Mining

Jul -03

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EQX's Solid Cash Base Fuels Project Progress: Can It Sustain the Pace?

Jun -27

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EQX's Gold Production Jumps: Will the Momentum Continue Into H2?

Jun -25

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BMO Capital Resumes Coverage of Equinox Gold (EQX) with an Outperform Rating, Slashes PT to C$11

Jun -24

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EQX and Calibre Merger Closes: Will This Spark a New Growth Chapter?

Jun -20

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Equinox Gold Maintained at Outperform at BMO as It Resumes Coverage; Price Target at $11.00

Jun -18

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S&P Dow Jones Indices Announces Changes to the S&P/TSX Composite Index

Jun -17

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Equinox Gold and Calibre Mining Complete Business Combination

Jun -17

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.02%)

6. Segments

Gold

Expected Growth: 10%

Calibre Mining Corp.'s 10% growth in gold production is driven by increased ore processing, improved mining efficiency, and successful exploration efforts. The company's focus on optimizing its Libertad and Limon mines, combined with its aggressive drilling program, has led to increased gold reserves and resources, supporting sustainable production growth.

Silver

Expected Growth: 11%

Calibre Mining Corp.'s 11% growth in silver production is driven by increased ore processing, improved mill recoveries, and higher grades from the Libertad and Limon mines. Additionally, the company's focus on exploration and development of new deposits, such as the Pavon project, is expected to contribute to future growth.

7. Detailed Products

Gold

Calibre Mining Corp. is a significant producer of gold, with a focus on sustainable and responsible mining practices.

Silver

The company also produces silver as a by-product of its gold mining operations.

Exploration Services

Calibre Mining Corp. offers exploration services to identify and develop new mineral deposits.

Mining Operations

The company operates several gold mines in Nicaragua and Nevada, USA.

8. Calibre Mining Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Calibre Mining Corp. is medium due to the availability of alternative mining companies and the ease of switching costs for customers.

Bargaining Power Of Customers

The bargaining power of customers for Calibre Mining Corp. is low due to the company's strong market position and the lack of buyer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Calibre Mining Corp. is medium due to the presence of multiple suppliers and the moderate level of supplier concentration.

Threat Of New Entrants

The threat of new entrants for Calibre Mining Corp. is high due to the low barriers to entry and the attractiveness of the mining industry.

Intensity Of Rivalry

The intensity of rivalry for Calibre Mining Corp. is high due to the high level of competition in the mining industry and the presence of multiple competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 3.59%
Debt Cost 13.52%
Equity Weight 96.41%
Equity Cost 14.10%
WACC 14.08%
Leverage 3.72%

11. Quality Control: Calibre Mining Corp. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Centerra Gold

A-Score: 5.7/10

Value: 4.3

Growth: 5.4

Quality: 5.5

Yield: 5.0

Momentum: 9.0

Volatility: 5.0

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Torex Gold Resources

A-Score: 5.7/10

Value: 6.0

Growth: 6.7

Quality: 7.5

Yield: 0.0

Momentum: 10.0

Volatility: 4.0

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Calibre Mining

A-Score: 5.3/10

Value: 8.1

Growth: 5.9

Quality: 5.5

Yield: 0.0

Momentum: 6.0

Volatility: 6.3

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IAMGOLD

A-Score: 5.2/10

Value: 4.9

Growth: 6.0

Quality: 7.1

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

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Idaho Strategic Resources

A-Score: 4.9/10

Value: 0.0

Growth: 9.7

Quality: 8.0

Yield: 0.0

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

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Sandstorm Gold

A-Score: 4.7/10

Value: 1.3

Growth: 3.0

Quality: 7.0

Yield: 0.0

Momentum: 10.0

Volatility: 7.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.99$

Current Price

2.99$

Potential

-0.00%

Expected Cash-Flows