i-80 Gold (IAUX) - 2025 Q2 - Quarterly Results

Company Overview & Q2 2025 Highlights i-80 Gold's Q2 2025 marked a strategic turning point with significant financing, advancing key gold projects, and improving financial performance CEO's Strategic Outlook CEO Richard Young emphasized Q2 2025 as a turning point, driven by financing to advance gold projects and target over 600,000 ounces annually by the early 2030s - Q2 2025 marked a major turning point, driven by equity financing to advance key development initiatives and the Lone Tree autoclave refurbishment study for a hub-and-spoke strategy[3] - Anticipated catalysts over 12-18 months include initiating underground development at Archimedes, completing infill drill programs and feasibility studies for four gold projects, and completing the Lone Tree autoclave feasibility study[3] - The company aims to secure the next phase of its recapitalization plan to achieve an average annual target of over 600,000 ounces of gold by the early 2030s[3] Operating and Financial Highlights (Q2 2025) Q2 2025 saw revenue increase to $27.8 million and gold sales to 8,400 ounces, with improved loss per share and a $133.7 million cash balance Key Operating and Financial Metrics | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | Revenue (millions of dollars) | $27.8 | $7.2 | +286.1% | | Gold Sales (ounces) | 8,400 | 3,445 | +143.8% | | Average Realized Gold Price (dollars per ounce) | $3,301 | $2,337 | +41.2% | | Loss per Share (dollars) | ($0.05) | ($0.11) | Improved | | Cash Used in Operating Activities (millions of dollars) | ($11.3) | ($24.6) | Decreased | - Executed financing initiatives, including a public offering and private placement, generated net proceeds of $175.2 million[4][9] - Cash balance increased by $120.2 million to $133.7 million as of June 30, 2025, primarily due to financing proceeds[4] Operational and Financial Overview This section details i-80 Gold's Q2 2025 consolidated financial results, recapitalization efforts, and outlines key upcoming development catalysts Consolidated Financial Results For Q2 2025, i-80 Gold reported $27.8 million in revenue, a $0.8 million gross profit, and a $30.2 million net loss Consolidated Statement of Operations Summary | Metric (thousands of dollars) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Revenue | 27,836 | 7,184 | 41,884 | 15,597 | | Cost of sales | (26,491) | (19,422) | (37,257) | (27,753) | | Depletion, depreciation and amortization | (547) | (74) | (923) | (451) | | Gross profit (loss) | 798 | (12,312) | 3,704 | (12,607) | | Loss from operations | (18,751) | (31,262) | (34,527) | (47,378) | | Net loss | (30,215) | (41,005) | (71,420) | (60,705) | - Gross profit significantly improved to $0.8 million in Q2 2025 from a loss of $12.3 million in Q2 2024, contributing to a reduced net loss[12] Recapitalization Update The company raised $175.2 million net in May 2025, allocating funds for project development and actively seeking additional financing to complete its recapitalization plan May 2025 Financing Details | Financing Activity | Gross Proceeds (millions of dollars) | Net Proceeds (millions of dollars) | | :----------------- | :------------- | :----------- | | Bought Deal Public Offering | $172.9 | $162.7 | | Private Placement | $12.6 | $12.5 | | Total May 2025 Financing | $185.5 | $175.2 | - Warrants issued could provide up to an additional $130 million if fully exercised by November 16, 2027[9] - Proceeds allocation includes $42.0 million for prepay instruments and an expected $92 million for construction, drilling, permitting, and technical studies across five gold projects, including the Lone Tree autoclave processing facility[9] - The company is pursuing additional financing options, including debt facilities, a royalty sale, and the sale of its non-core FAD property, aiming to complete the recapitalization plan by mid-2026[10] Upcoming Catalysts i-80 Gold outlined a three-phase development plan with catalysts including Archimedes underground development, infill drilling, and multiple feasibility studies by Q1 2027 - Archimedes Underground: Commence underground development (Q3 2025), initiate infill drilling (Q4 2025 - upper zone; Q1 2026 - lower zone)[11] - Feasibility Studies: Lone Tree autoclave refurbishment (Q4 2025), Granite Creek Underground (Q1 2026), Cove Underground (Q1 2026), Granite Creek Open Pit (Mid-2026), Archimedes Underground (Q1 2027)[14] - Recapitalization Plan: Advance debt financing options, sale of non-core asset (FAD property), royalty sale[14] Project Development Updates This section provides updates on the Granite Creek, Ruby Hill, Cove, and Lone Tree projects, detailing operational progress and future development plans Granite Creek Property The Granite Creek property saw increased mining activity in Q2 2025, with ongoing infrastructure improvements and infill drilling to support a Q1 2026 feasibility study Granite Creek Operating Metrics | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :------------------------------------ | :------ | :------ | :----------- | | Total oxide and sulfide mineralized material mined (tonnes) | 35,275 | 19,510 | +80.8% | | Gold ounces sold (ounces) | 5,981 | 1,809 | +230.6% | | Mining cost (total mineralized material and waste) (dollars per tonne) | 175 | 113 | +54.9% | | Processing cost (processed mineralized material) (dollars per tonne) | 133 | 88 | +51.1% | | Capital expenditure (thousands of dollars) | 1,114 | 278 | +300.7% | - Mining activities exceeded prior-year levels due to additional available faces and changes in sequencing[16] - Encountered elevated levels of lower-grade oxide mineralized material, suitable for heap leach at Lone Tree, with 1,554 ounces sold from this material during the quarter[17] - Approximately 28,000 tonnes of sulfide mineralized material are awaiting processing under a new toll milling agreement, expected within 120 days of delivery[18] - Infill drilling of the South Pacific Zone began in June 2025 with two rigs, with three more expected in Q3, aiming to support mineral resource definition and a feasibility study targeted for Q1 2026[20] Granite Creek Underground Mining activities at Granite Creek Underground significantly increased in Q2 2025, with infrastructure improvements and infill drilling supporting a Q1 2026 feasibility study - Mining activities in Q2 2025 exceeded prior-year levels due to additional faces available from stope development and sequencing changes[16] - Infrastructure improvements, including dewatering wells, an expanded water treatment facility, and a piping system, are underway to positively impact development rates[16] - Infill drilling for the South Pacific Zone commenced in June 2025, with a feasibility study targeted for completion in Q1 2026[20] Granite Creek Open Pit Technical work is advancing the Granite Creek Open Pit towards a pre-feasibility or feasibility study, with initial permitting underway for potential gold output by decade-end - Technical work is underway to advance the project towards a pre-feasibility or feasibility-level study, with simultaneous trade-off analyses for economic optimization[21] - Permitting is in initial stages and progressing as expected, with potential for company-wide gold output contribution by the end of the decade[21] Ruby Hill Property The Ruby Hill property is advancing with Archimedes underground development starting in Q3 2025 and a drill program at Mineral Point to support future studies - Ruby Hill property hosts Archimedes underground (second underground mine) and Mineral Point open pit (potential largest gold producing asset)[22] - 665 ounces of gold were sold from Ruby Hill's historic leach pads during Q2 2025[25] Archimedes Underground Surface infrastructure for Archimedes Underground is complete, with initial underground development expected in Q3 2025 and infill drilling commencing in Q4 2025 - Surface infrastructure is complete, and initial underground exploration drift development is expected to commence in Q3 2025[23] - Permitting for mining above the 5100-foot level is nearing completion, with approval expected shortly, and permitting for lower sections to follow[24] - Infill drilling will begin in Q4 2025 for the upper zone and Q1 2026 for the lower zone[25] - First gold is anticipated approximately 14 months from the commencement of portal construction[25] Mineral Point Open Pit A Q2 2025 drill program at Mineral Point supported geotechnical and metallurgical studies, with strategic evaluations ongoing for future pre-feasibility or feasibility studies - A drill program completed approximately 5,800 feet of surface core drilling in Q2 2025 to support geotechnical, metallurgical, and hydrogeology studies for permitting and technical reports[26] - Strategic evaluations are underway to determine the optimal timing for a pre-feasibility or feasibility-level study, following the Q1 2025 PEA[26] Cove Project NEPA permitting is underway for the Cove Project, with an infill drill program supporting a Q1 2026 feasibility study and an updated mineral resource estimate in Q3 2025 - NEPA permitting activities are underway with the BLM, anticipating an EIS, to align regulatory approvals with development timelines[27] - An infill drill program completed in Q1 2025 (totaling approximately 145,000 feet) will inform a feasibility study targeted for Q1 2026 and an updated mineral resource estimate in Q3 2025[28] - Cove is expected to be the company's third underground mine and begin contributing to company-wide production in mid-2029[27] Lone Tree Processing Facility The Lone Tree facility, a strategic asset, is undergoing an autoclave refurbishment study with an updated feasibility study targeted for Q4 2025, central to the hub-and-spoke strategy - Lone Tree is a strategic asset with one of Nevada's three autoclaves, central to the hub-and-spoke processing strategy for high-grade refractory material[29][30] - A Class 3 engineering study for autoclave refurbishment is underway with Hatch Ltd., building on a 2023 internal study, with an updated feasibility study targeted for Q4 2025[30][31] - Permitting modifications are required for air quality, mercury operating programs, Water Pollution Control, and Reclamation Permit[32] - The leaching of historic leach pads at Lone Tree continues to produce profitable gold, with 1,754 ounces sold during Q2 2025[33] - Capital expenditures of approximately $0.6 million in Q2 2025 were related to technical work on the autoclave refurbishment[34] Supplemental Information This section provides additional context, including financial statement references, qualified persons, company overview, forward-looking statements, and non-GAAP measures Financial Statements & Conference Call Readers are directed to the Form 10-Q for detailed financial statements, and a conference call was held on August 13, 2025, to discuss Q2 results - Readers are directed to the Company's Quarterly Report on Form 10-Q for detailed financial statements and MD&A[35] - A conference call and audio webcast were held on August 13, 2025, to discuss the second quarter results[36] Qualified Persons & Endnotes Scientific and technical information was verified by "Qualified Persons," with endnotes clarifying definitions and preliminary production estimates - Scientific and technical information was reviewed and verified by Paul Chawrun, P.Eng., and Tyler Hill, CPG., both "Qualified Persons"[36] - Endnotes clarify definitions for gold ounces sold (attributable gold at 57% payable factor in 2025) and non-GAAP measures[37] - Consolidated production estimates are preliminary, based on mineral resources (not reserves), and subject to completion of the autoclave refurbishment study, Board approval, and successful funding/development[37] About i-80 Gold Corp. i-80 Gold Corp. is a Nevada-focused mining company aiming to become a mid-tier gold producer, leveraging its high-grade projects and hub-and-spoke strategy - i-80 Gold Corp. is a Nevada-focused mining company committed to building a mid-tier gold producer[38] - The company is the fourth largest gold mineral resource holder in Nevada, with strategically located high-grade projects[38] - i-80 Gold is executing a hub-and-spoke regional mining and processing strategy utilizing its central processing facility[38] Cautionary Statement on Forward Looking Information The document contains forward-looking statements subject to numerous risks and uncertainties, with no obligation to update except as required by law - The document contains forward-looking statements regarding future plans, operations, project merit, development, recapitalization, gold output, expenditures, and timing of activities[39] - Forward-looking statements are subject to numerous risks and uncertainties, including general economic conditions, commodity price volatility, capital access, currency fluctuations, and operational risks[39] - Readers are advised to review "Risks Factors" in the Form 10-K for the fiscal year ended December 31, 2024, for more information[39] Non-GAAP Financial Performance Measures The company uses non-GAAP measures like "Adjusted loss" and "Average realized gold price" to provide additional insights into financial performance - Non-GAAP measures (Adjusted loss, Adjusted loss per share, Average realized gold price) are used to provide additional information not defined under US GAAP[41] - "Average realized gold price" improves understanding of revenue, while "Adjusted loss" and "Adjusted loss per share" aim to reflect normalized earnings by excluding temporary or non-recurring items[42][43] Average Realized Gold Price by Segment | Segment | Q2 2025 (dollars per ounce) | Q2 2024 (dollars per ounce) | 6M 2025 (dollars per ounce) | 6M 2024 (dollars per ounce) | | :---------------- | :------ | :------ | :------ | :------ | | Consolidated | 3,301 | 2,337 | 3,124 | 2,188 | | Lone Tree | 3,307 | 2,374 | 3,096 | 2,196 | | Ruby Hill | 3,311 | 2,331 | 3,174 | 2,183 | | Granite Creek | 3,298 | 2,315 | 3,128 | 2,183 | Adjusted Loss Reconciliation | Metric (thousands of dollars, unless noted) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Net loss | (30,215) | (41,005) | (71,420) | (60,705) | | Total adjustments | 9,949 | (1,187) | (7,660) | 3,203 | | Adjusted loss | (40,164) | (39,818) | (63,760) | (63,908) | | Adjusted loss per share | (0.07) | (0.11) | (0.12) | (0.19) |