I-80 Gold targets over 600,000 oz annual gold production by 2032 as recapitalization advances

Earnings Call Insights: i-80 Gold Corp. (IAUX) Q2 2025

MANAGEMENT VIEW

* Richard Young, President and CEO, described the second quarter as pivotal, highlighting a completed equity raise as "a major step in our recapitalization plan, strengthening our balance sheet, improving liquidity and positioning the company to advance the development plan we announced last November." He outlined that the financing will enable advancement of technical studies, underground development, infill drill programs, and permitting across all five gold projects.
* Young announced the appointment of Paul Chawrun as Chief Operating Officer, noting his "decades of operating experience and deep technical knowledge, a perfect fit for the technical work ahead."
* Young emphasized the company's three-phase build-up plan, targeting "over 600,000 ounces of gold by the early 2030s," with initial production rising to a target of 150,000–200,000 ounces by 2028, then to 300,000–400,000 ounces by 2030, and reaching beyond 600,000 ounces annually by 2032 with the addition of Mineral Point.
* Paul Chawrun, COO, stated, "We have a significant resource base with 6.5 million ounces of measured and indicated gold resources and 7.5 million ounces of inferred resources... approximately 100 million ounces of silver in each of the 2 categories."
* Chawrun reported Granite Creek underground mining volumes ahead of the prior year, with "approximately 24,000 tons of oxide mineralized material at a gold grade of 11.4 grams per tonne and approximately 11,200 tons of sulfide material at a gold grade of 7.4 grams per ton" mined in the quarter.
* Ryan Snow, CFO, stated, "Gold sales totaled approximately 8,400 ounces for the quarter, which was an increase over the prior year period. Total revenue from gold sales increased to approximately $28 million for the quarter, driven by higher ounces sold and a higher average realized gold price of $3,301 per ounce."
* Snow reported a net loss of ($0.05) per share, attributing it to the ramp-up and development stage, and noted the cash position was approximately $134 million at the end of the quarter after the equity financing.

OUTLOOK

* The company reaffirmed guidance to extract between 30,000 and 40,000 ounces of gold in 2025, including 20,000 to 30,000 ounces from Granite Creek and about 10,000 ounces from heap leach pads. Management stated, "Company-wide, we expect to extract between 30,000 to 40,000 ounces of gold in 2025, in line with guidance."
* Young projected a transformative period ahead: "We expect the next 12 to 18 months to be transformative for the company. I think it's going to be a game changer for our shareholders."
* The company anticipates completing the Lone Tree autoclave feasibility study in Q1 2026, progressing on Cove and Archimedes feasibility studies, and achieving steady-state production at its first mine.

FINANCIAL RESULTS

* Gold sales for the quarter were approximately 8,400 ounces, with total revenue from gold sales increasing to approximately $28 million, attributed to higher ounces sold and a higher average realized gold price of $3,301 per ounce.
* The company recorded a net loss of ($0.05) per share for the quarter due to ramp-up and development stage costs.
* Cash position at quarter-end was approximately $134 million, with a significant increase from the previous quarter after a $186 million equity offering and private placement.
* Growth spend for 2025 is targeted at $40 million to $50 million, with $90 million allocated through mid-2026 across five gold projects and the Lone Tree facility. A new senior debt facility in the range of $350 million to $400 million is expected by mid-2026.

Q&A

* Justin Chan, SCP: Asked about tonnage, grade trends for the rest of the year, and sulfide ore processing schedule. Paul Chawrun replied, "Our ore tons have not been affected by the water. It's really about development for 2026 and beyond... there's nothing affecting that in the shorter term through to the rest of the year."
* Chan followed up on dewatering progress and oxide occurrences. Chawrun explained, "We're able to manage the water now... we are continually improving that and getting a better handle on actually dealing with it on a day-to-day operations."
* Chan asked about sulfide ore processing guidance. Ryan Snow answered, "On the sulfide processing agreement, the terms... give our partner up to 120 days... we've seen faster turnaround times than that thus far, and we're planning on approximately 90 days."
* Don DeMarco, National Bank: Asked about production outlook and liquidity. Young confirmed, "We would expect total production for the year between 30,000 and 40,000 ounces."
* DeMarco queried recapitalization sufficiency. Snow said, "With the equity we raised earlier this year and this potential debt facility of $350 million to $400 million, that we'd be well positioned to advance both the recapitalization of the balance sheet and taking out the existing liabilities and advancing our development plan."
* Harrison Reynolds, RBC: Asked about autoclave refurbishment CapEx. Chawrun stated, "We're in the range of $350 million to $400 million and that's all in. We're going to have the final numbers in about a couple of months."

SENTIMENT ANALYSIS

* Analysts maintained a positive to slightly positive tone, commending progress and seeking details on execution and timelines. Questions focused on operational continuity, dewatering, sulfide processing, and financial strategy, indicating cautious optimism.
* Management’s tone was confident and forward-looking in prepared remarks, emphasizing the company's "unique organic growth story" and "transformative" period ahead. In Q&A, responses were direct, with statements such as "We feel confident that we're well on track to meeting that 30,000 to 40,000 ounces of gold sales and revenue for the year."
* Compared to the previous quarter, the current call reflected higher management confidence, supported by the recent equity raise and strengthened balance sheet. Analysts’ tone shifted from cautious inquiries about liquidity and operational risks in Q1 to more detailed questions about operational execution and milestones in Q2.

QUARTER-OVER-QUARTER COMPARISON

* Guidance language remains consistent, but management now projects greater confidence in executing the development plan, supported by a stronger cash position and completed financing.
* Strategic focus shifted from immediate recapitalization needs in Q1 to executing development milestones and scaling production in Q2.
* Key production and sales metrics showed increases, with gold sales rising to approximately 8,400 ounces and revenues to $28 million in Q2, compared to 5,000 ounces and $14 million in Q1.
* Analysts in Q2 focused more on project execution timelines and funding sufficiency, while Q1 questions centered on liquidity and basic project ramp-up.
* Management sentiment evolved from cautious optimism in Q1 to a more assertive and confident outlook in Q2, emphasizing the company’s positioning for long-term growth.

RISKS AND CONCERNS

* Management cited water ingress and dewatering at Granite Creek as ongoing challenges, stating mitigation efforts include installing additional surface dewatering wells and expanding the water treatment facility.
* The company highlighted the need to finalize technical studies and permitting for multiple projects, noting that feasibility and engineering studies are underway to address lender requirements and support funding.
* Liquidity and financing risks are being addressed through the recent equity raise, potential debt facility, and asset sale initiatives.
* Analysts raised concerns about the timeline for dewatering, sulfide processing, and recapitalization sufficiency, with management outlining steps to address each.

FINAL TAKEAWAY

Management emphasized that i-80 Gold's strengthened balance sheet, significant resource base, and clear multi-phase development strategy position the company for transformative growth. The recent equity raise, operational progress, and advancing technical milestones are expected to underpin the transition toward becoming a leading Nevada-focused mid-tier gold producer, with a targeted production scale of over 600,000 ounces annually by 2032.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/iaux/earnings/transcripts]

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