i-80 Gold (TSX: IAU) reported its fourth quarter and full year 2024 financial results late Monday evening. The results were headlined by declining revenue on both a quarterly and annual basis, despite the increase in the price of gold over the time period.
The fourth quarter saw i-80 record topline revenue of $23.2 million, which follows the sale of 9,053 ounces of gold at an average realized price of $2,560 an ounce. Revenue was down from $25.8 million in the prior year, while ounces sold fell from 14,331 ounces.
For the full fiscal year, revenue declined from $54.9 million to $50.3 million, following gold sales declining from 29,370 ounces to 21,527 ounces. The average realized gold price meanwhile improved from $1,956 to $2,332 an ounce on an annual basis.
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Fourth quarter net losses managed to improve on a year over year basis however, with i-80 posted a net loss of $17.7 million, or $0.04 per share, in the fourth quarter of 2024, versus a loss of $36.1 million, or $0.12 per share, in Q4 2023.
On an annual basis fortunes were reversed, with 2024 recording a net loss of $121.5 million, or $0.34 per share, versus 2023’s loss of $89.7 million, or $0.33 per share.
Cash flows used in operating activities came in at $9.2 million for the fourth quarter, and $82.5 million for the full fiscal year. i-80 ended the year with cash of $19.0 million.
The poor performance led i-80 to undertake a new development plan in the fourth quarter, which is said to focus on generating free cash flow. The revised plan calls for three underground mines and two open pit mines to be developed by the end of the decade, with the goal of exiting the decade with a production profile of 400,000 to 500,000 ounces of gold a year. To institute the plan, a recapitalization program was also undertaken to reschedule current debt obligations.
As part of that plan, a gold and silver prepay agreement was entered into with National Bank on Monday, which will saw the bank purchase 6,800 ounces of gold and 345,000 ounces of silver for delivery by September 30, 2024. Funding from this arrangement will be used to satisfy deliveries due to Orion Mine Finance as of March 31, 2025. The facility is said to have been secured by the FAD property.
Near term, production for 2025 is said to be between 30,000 and 40,000 ounces of gold, with production coming from two residual heap leach operations alongside the underground mine at Granite Creek. Growth expenditures meanwhile are expected to be between $40 to $50 million.
i-80 Gold last traded at $0.85 on the TSX.
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