CA - Calibre Mining: Tracking Well Against FY2022 Guidance

Summary

• Calibre released its Q3 results earlier this month, reporting quarterly production of ~49,100 ounces, a 10% increase over the year-ago period.
• However, costs were up sharply due to the addition of the high-volume, low-grade Pan Mine, a minor write-down at Pan, and an unplanned outage at Libertad.
• The good news is that Calibre remains on track to deliver into guidance despite the tough quarter, though this has largely been overshadowed by perceived risk of operating in Nicaragua.
• While I see Calibre as one of the best operators in the sector with a simple and low-capex growth story, the perceived jurisdictional risk could weigh on its overdue re-rate, and it's tough to justify chasing the stock above US$0.62 after a 60% rally.

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