i-80 Gold (US:IAUX)2026-02-20 16:02Financial Data and Key Metrics Changes - In 2025, the company achieved consolidated gold output of just under 32,000 ounces, meeting production guidance, with inventory buildup impacting higher production levels [2][3] - Gold sales for the year increased to approximately 28,200 ounces, compared to 21,500 ounces in the prior year, with total revenue from gold sales rising to approximately $95 million from $50 million [22][23] - The company reported a net loss of just under $200 million or $0.10 per share, while adjusted loss was $123 million, compared to $111 million in the prior year [24] Business Line Data and Key Metrics Changes - At Granite Creek, mining activities ramped up, resulting in over 41,000 tons of high-grade mineralized material mined in the fourth quarter, including approximately 15,000 tons of high-grade oxide material at a grade of 11.19 grams per ton gold [6][7] - The company began construction of Archimedes, the second underground mine, with underground development advancing ahead of expectations, reaching approximately 680 meters by year-end [11] - The Cove project has seen significant advances in geological understanding, with a feasibility study nearly complete, although additional work is required [14][15] Market Data and Key Metrics Changes - The company secured a financing package of up to $500 million, including a $250 million royalty from Franco-Nevada and a gold prepayment facility with National Bank of Canada and Macquarie [26][27] - The recapitalization plan is expected to fully fund phase one and phase two of the development plan, increasing annual production to approximately 300,000-400,000 ounces of gold from less than 50,000 ounces currently [30] Company Strategy and Development Direction - The company aims to create a mid-tier gold producer, focusing on advancing its development plan and recapitalizing its balance sheet [2][3] - The refurbishment of the Lone Tree process plant is central to the company's hub and spoke strategy, designed to process material from its three underground mines [16][17] - The company plans to publish feasibility studies for its three high-grade underground projects and a pre-feasibility study for the Mineral Point project within the next 12-18 months [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operational improvements at Granite Creek and the potential for expansion at the Mineral Point project, emphasizing the importance of accelerating development [11][44] - The company is focused on moving its valuation closer to net asset value (NAV) as it continues to execute its development plan [32] Other Important Information - The company achieved an improved safety performance target, finishing the year with a total recordable incident rate (TRIR) of 0.62, including an incident-free fourth quarter [4] - The company plans a $10 million exploration drill program in 2026 to test high-potential targets and further delineate resources [10] Q&A Session Summary Question: Can you elaborate on the $400 million+ CapEx for the Lone Tree autoclave project? - The autoclave vessel needs rebricking, and the CIL circuit tanks need replacement, along with upgrades to the filtration system and instrumentation, leading to the total cost of $430 million [35][37] Question: Did you consider other engineering firms for the project? - The project has been worked on for approximately four years, and Hatch, which built the facility in the 1990s, was chosen for its expertise [38][39] Question: With the pre-development work at Mineral Point moved forward, does this allow for earlier value realization? - Accelerating development at Mineral Point is seen as beneficial, with the potential for increased resource and reserve base through the planned drilling program [43][44] Question: How should one model production and capture margin upside? - The sulfide toll milling charge is about $275-$280 per ton, which is significantly higher than internal processing costs, and detailed cost structures will be available after the tech report is completed [45][46]