i-80 Gold (TSX: IAU) is the latest name to report their second quarter financial results, posting topline revenue of $27.8 million, which was a 287.5% improvement over the $7.2 million in revenue recorded in the year ago period. The figure follows gold sales of 8,400 ounces at an average price of $3,301 per ounce.
That however is where the good news ends from a financial perspective, with cost of sales growing from $19.4 million to $26.5 million, which after depletion and amortization led to a gross profit of just $798,000. However that compares to a gross loss of $12.3 million in the year ago period. With further expenses of $19.5 million, i-80 posted a loss from operations of $18.8 million, as compared to $31.3 million in the second quarter of 2024.
Overall, the company posted a net loss of $30.2 million, or $0.05 per share, in the second quarter, as compared to a loss of $41.0 million, or $0.11 per share last year. Cash flow used in operating activities declined from $24.6 million to $11.3 million on a year over year basis.
Cash and cash equivalents meanwhile totaled out at $133.7 million, which is up from $13.5 million as of the start of the second quarter. However the company raised $185.5 million in gross proceeds during Q2 through financing initiatives, demonstrating the rate of burn i-80 is experiencing.
A total of $92.0 million is expected to be allocated to construction activities through to mid 2026, with that spending to occur across five gold projects. The company is said to be in discussion with several parties to secure further funding to pursue the current development plan.
Operationally, gold production during the quarter came predominantly from Granite Creek, which produced 5,981 ounces of gold as compared to 1,809 ounces in the year ago period. Lone Tree meanwhile saw 1,754 ounces of gold sold from the leach pads over the course of the quarter, and 665 ounces of gold were sold from Ruby Hill. Costing across all production was not provided.
In terms of development, development of the Archimedes Underground is expected to begin in the third quarter, followed by infill drilling in the fourth quarter of 2025. Feasibility studies for all five projects are expected to begin being released in Q4 2025 beginning with Lone Tree, with those reports expected to be delivered through to Q1 2027.
i-80 Gold last traded at $0.79 on the TSX.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
