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i-80 Gold Corp. (IAUX)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $14.048M and loss per share was $0.10; higher sales and price lifted revenue YoY, but the quarter remained loss-making due to non-cash revaluation losses on gold prepay and silver purchase agreements as forward curves rose .
  • Granite Creek ramp-up progressed with improved dewatering and pump capacity; management reiterated steady-state output expected in H2 2025, and 2025 production guidance of 30–40K oz (20–30K oz from Granite Creek, ~10K oz from Ruby Hill and Lone Tree heap leach) .
  • Liquidity actions continued: Auramet $12M working capital prepay, National Bank prepay to term out March deliveries; cash ended Q1 at $13.5M (pro forma ~$25M including Auramet) .
  • Consensus coverage remains sparse; Q1 EPS missed a thin consensus (-$0.10 actual vs -$0.02 estimate, 1 estimate) while revenue consensus was unavailable; estimate adjustments likely needed to reflect the toll-milling timing lag and non-cash derivative impacts . Values retrieved from S&P Global*.
  • Near-term stock catalysts: execution on recapitalization (senior debt, royalty/non-core asset sale), permitting milestones (Archimedes state permits expected by end-Q2), and evidence of Granite Creek dewatering translating into sales as 120-day toll lag is digested .

What Went Well and What Went Wrong

What Went Well

  • Dewatering improvements at Granite Creek (greater pump availability/capacity) reduced mine interruptions; water levels are dropping, supporting H2 2025 steady-state ramp expectations .
    Quote: “We are making good progress in our dewatering efforts… These improvements should allow us to ramp-up to steady state of gold output in the second half of 2025.” — Richard Young, CEO .
  • Revenue growth YoY (+67%) driven by higher ounces and higher realized gold price ($2,825/oz); consolidated gold sales reached 4,952 oz vs 4,061 oz in Q1 2024 .
  • Strategic financing steps: Auramet $12M working capital facility closed, National Bank prepay arranged; management is actively pursuing senior debt and royalty/non-core asset sales to unlock project value .

What Went Wrong

  • Quarterly loss widened ($41.2M vs $19.7M YoY) primarily from non-cash revaluation losses tied to gold prepay and silver purchase agreements, and $8.2M interest expense; derivative losses driven by higher forward gold/silver prices .
  • Toll milling cash-conversion lag (~120 days) constrains reported production/sales cadence despite stockpiled sulfide tonnes (~26,613 t) and mining progress; management expects catch-up but currently forecasts full 120-day delay .
  • Balance sheet remains constrained: Q1 operating cash outflow of $22.7M, quarter-end cash $13.5M; management is deferring non-essential costs pending recapitalization .

Financial Results

MetricQ1 2024Q4 2024Q1 2025
Revenue ($USD Millions)$8.413 $23.228 $14.048
Loss per share ($/share)$(0.06) $(0.04) $(0.10)
Gross Profit ($USD Millions)$(0.296) $1.803 $2.906
Gross Profit Margin (%)(3.5%) 7.8% 20.7%
Gold ounces sold (oz)4,061 9,053 4,952

Segment/Asset breakdown (Q1 2025):

AssetRevenue ($USD Millions)Gold ounces sold (oz)Avg realized gold price ($/oz)
Lone Tree$3.963 1,394 $2,833
Ruby Hill$1.390 452 $2,971
Granite Creek$8.695 3,106 $2,799
Consolidated$14.048 4,952 $2,825

Key KPIs:

KPIQ1 2024Q4 2024Q1 2025
Cash flow used in operating activities ($USD Millions)$(25.223) $(9.223) $(22.701)
Cash and cash equivalents ($USD Millions)$13.090 $19.001 $13.475
Interest expense ($USD Millions)$8.036 $7.944 $8.204
Other income and expenses, net ($USD Millions)$4.839 $12.195 $(17.225)
Granite Creek sulfide stockpile (tonnes)N/A~13,000 ~26,613

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Gold production (Company-wide)FY 202530,000–40,000 oz 30,000–40,000 oz Maintained
Granite Creek productionFY 202520,000–30,000 oz 20,000–30,000 oz Maintained
Growth expendituresFY 2025$40–$50M $40–$50M Maintained
Granite Creek rampH2 2025Steady-state expected H2 2025 Steady-state expected H2 2025 Maintained
Archimedes Underground — state permitsQ2 2025By end 2024/early 2025 Expected by end Q2 2025 Slipped
Archimedes Underground — first ore~14 months post portalsLate-2026/early-2027 Late-2026/early-2027 Maintained
Autoclave refurbishment (Class III study)2025Feasibility/class III work in 2025 Feasibility/class III work by Q4’25/Q1’26 Clarified timeline

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2: Q3 2024)Previous Mentions (Q-1: Q4 2024)Current Period (Q1 2025)Trend
Recapitalization & financingTwo-step plan; deferral of Dec/Jan deliveries; ATM initiated National Bank prepay; Auramet facility in-progress Auramet $12M working capital closed; National Bank prepay executed; pursuing senior debt/royalty/non-core sales Advancing; execution underway
Granite Creek dewatering & rampWater ingress impacted mining; mitigation planned through 2025 Forecast steady-state in H2 2025 Pump capacity upgraded; water levels dropping; steady-state H2 2025 reiterated Improving operations
Toll milling agreements & lagNGM toll expired; renegotiation ongoing Working capital facility to bridge timing Toll lag ~120 days; may catch up during year; plan assumes full lag Visibility improved; timing still a headwind
Autoclave refurbishmentValue engineering; feasibility in 2025 Class III and feasibility required for senior debt Feasibility and Class III studies underway; completion Q4’25/Q1’26 On plan, lender-focused
Permitting milestonesRuby Hill/Archimedes permitting ongoing EIS planning at Cove mid-2025 Archimedes BLM decision record received; state permits expected Q2; Cove EIS in H2’25 Progressing
Macro gold price impactHigher average realized prices supporting revenue Forward curve increases drove derivative losses Forward curve increases again drove non-cash derivative losses Supportive price; accounting volatility

Management Commentary

  • Strategic message: “With preliminary economic assessments released for all five gold assets… after-tax NPV of approximately $1.6 billion at $2,175/oz… we’ve mapped out a credible and staged development plan.” — Richard Young .
  • Liquidity: “We finalized a $12 million working capital facility with Auramet… increasing our pro forma cash balance to approximately $25 million” — Richard Young .
  • Operational cadence: “Under that toll milling agreement… 120 days… we may start to catch up through the course of the year, but we are currently running our forecast assuming a full 120-day delay.” — Richard Young .
  • Organization: New COO, Paul Chawrun, emphasizes technical execution focus and site tours before detailed commentary .

Q&A Highlights

  • Revenue/sales timing: Management highlighted the ~120-day toll-milling lag; cash impact mitigated by Auramet prepay, but reported sales will reflect lag; potential catch-up later in the year remains uncertain (60–120 days) .
  • ATM program: Small Q1 proceeds were pre-Feb 8; ATM not reactivated post year-end GAAP transition; no plans to restart ATM .
  • New COO perspective: Early-stage observations; strong asset base; detailed operational comments expected after site reviews .

Estimates Context

  • EPS vs Consensus (Q1 2025): Actual $(0.10) vs Consensus $(0.02)* → bold miss owing to non-cash derivative losses and interest expense; coverage limited (1 estimate)* . Values retrieved from S&P Global*.
  • Revenue Consensus (Q1 2025): Unavailable/coverage limited; actual $14.048M . Values retrieved from S&P Global*.
  • Implications: Street models likely need to incorporate toll-milling lag on sales recognition and derivative mark-to-market sensitivity to forward curves, with limited near-term reduction in interest expense until refinancing is executed .
MetricQ1 2025
Primary EPS Consensus Mean ($/share)-0.02*
Primary EPS - # of Estimates1*
Revenue Consensus Mean ($USD Millions)N/A*

Values retrieved from S&P Global*.

Key Takeaways for Investors

  • Near-term print was noisy but operational progress is real: dewatering and development pace at Granite Creek are improving; watch H2 sales cadence as toll lag normalizes .
  • The quarter’s miss was driven by non-cash derivative losses and interest burden; hedge/stream accounting volatility can recur with rising gold/silver forward curves until refinancing terms are reset .
  • Liquidity runway strengthened via Auramet and National Bank arrangements; the critical next catalyst is senior debt/royalty/non-core sale execution to align capital structure with development plan timing .
  • 2025 guidance maintained (30–40K oz) with Granite Creek 20–30K oz; a bold sales catch-up would be contingent on smoother toll-mill processing and stockpile drawdown .
  • Permitting milestones (Archimedes state permits; Cove EIS initiation) underpin the multi-asset ramp; slippage at Archimedes state permits to Q2 remains modest vs prior commentary .
  • For trading: newsflow on financing execution and evidence of sales conversion from stockpiles (despite the 120-day lag) are likely to move the stock; macro gold price strength helps revenue but can worsen derivative marks near-term .
  • Medium-term thesis: five-asset plan with consolidated processing via autoclave supports scale; successful recapitalization could rerate shares toward portfolio NPV trajectories outlined in PEAs .
Notes: 
* Values retrieved from S&P Global.