i-80 Gold Corp. Q3 2026 Call and Webcast - I-80 GOLD CORP

Financial Performance:

• Q3 2026 total revenue increased driven by higher realized gold prices; Q3 production was ~11,700 oz (vs. 12,430 oz prior year) with sales of ~7,750 oz.
• YTD (9 months) production reached ~33,650 oz with sales of ~23,670 oz; net loss widened due to expensed pre-development costs and financing charges, partially offset by higher gross profit.
• Adjusted net loss increased YTD reflecting continued investment in pre-development, evaluation, and exploration activities.
• Cash balance stood at $411M at quarter-end; additional liquidity of ~$350M is available over the next 18 months via gold prepay, NSR, warrants, and stockpile facilities.
• Working inventory at third-party processors totaled ~9,000 oz (6,200 oz in process, 3,000 oz finished goods); unit mining costs were higher YoY due to labor turnover but expected to be on budget.

Guidance and Future Outlook:

• 2026 production guidance expected to fall in the lower half of the range (30,000–40,000 oz) due to oxide material leaching timing (Q4 placement yields Q1 2027 sales); operating costs expected at or below the low end of guidance.
• 2027 designated as a transition year to ramp up two underground mines and complete Lone Tree plant refurbishment; aims to grow from 40–50k oz producer to 150–200k oz producer starting in 2028.
• Long-term targets include 400,000–500,000 oz AuEq by early 2030s (with Mineral Point) and 500,000–600,000 oz annually by mid-2030s (with Granite Creek Open Pit).
• Cove Underground resequenced to late 2030s as future refractory feed source after Lone Tree commissioning.
• 2027 guidance update to include tons mined/processed, stockpile strategies, and production split between heap leaching, third-party processing, and the new Lone Tree facility.

Business Segments and Product Lines:

• Granite Creek Underground: Feasibility Study published with maiden reserves, 8.5-year mine life, and higher production rates; 900m development completed YTD; contractor workforce issues resolved; infill drilling targets resource conversion and expansion in South Pacific, Rangefront, and CX zones.
• Archimedes Underground: On track for first gold mine in Q4 2026; ~2,300m development in 9 months; oxide material identified in upper 426 zone confirmed for heap leaching on existing Ruby Hill pad; refractory ore stockpiling planned for 2027; mining ramp-up targets 1,500 tons/day by end of 2027.
• Lone Tree Plant: Refurbishment on schedule/on budget for first gold pour in Q4 2027; $430M capital estimate with 74% procurement awarded; civil work and mobilization underway; first gold pour delayed to Q4 2027 to allow for stockpile accumulation.
• Mineral Point Open Pit: 26,000m drilling completed for PFS; preliminary results suggest pit expansion potential (east/north); PFS expected in H2 2027.
• Granite Creek Open Pit: Pre-feasibility study planning initiated; technical site investigation expected Q1 2027; PFS expected H2 2026.
• Cove Underground: Feasibility study expected Q4 2026; permitting progressing.

Market and Competitive Landscape:

• Operating in Nevada, identified as a top global mining jurisdiction with established infrastructure and regulatory framework.
• Company focuses on expanding existing portfolio (Granite Creek, Archimedes, Lone Tree) to build a mid-tier producer, leveraging known assets rather than greenfield exploration.
• Regional labor market competition for underground mining workforce contributed to temporary contractor turnover but has been mitigated via retention incentives.

Risks and Challenges:

• Contractor labor availability and turnover impacted Q3 mining rates at Granite Creek, though workforce has stabilized.
• Third-party processing capacity constraints caused processing lag, increasing Q3 inventories.
• Capital expenditure timing mismatch: Cash outflows for Lone Tree refurbishment are expected to lag invoicing by ~4 months, extending payment timelines into 2028.
• Permitting and regulatory timelines for Mineral Point and Granite Creek Open Pit remain subject to EIS processes starting in 2027.
• Exploration upside is positive but requires further drilling to define boundaries and confirm oxide distribution for economic modeling.

Management Commentary and Tone:

• Tone remains confident and execution-focused; management highlights "clearly defined development plan" and "proven mine building experience."
• CEO Richard Young emphasized the strategic shift to a hub-and-spoke model to transform cash flow profiles and lower unit costs.
• Management expressed strong confidence in the balance sheet, stating an equity raise will not be required for 2027-2028 operations given current cash and debt facility options.
• Leadership noted that while PAs were conservative, current data suggests projects (Granite Creek, Archimedes, Mineral Point) may be larger than initially modeled.

Analyst Questions and Answers:

• Archimedes Mining Ramp-up: Confirmed mining starts with development ore; stockpiling refractory/sulfide ore for 2027; heap leach oxide mining targeting 1,500 tons/day by end-2027 (currently 700-800 tons/day).
• Capital Timing: Cash outflows for Lone Tree refurbishment will likely continue into 2028 due to invoice/payment delays; General Contractor to be awarded in December.
• Granite Creek Ventilation: Delayed main ventilation raise to late 2026/early 2027 does not impact mine plan or production flexibility; alternative surface access avoided in feasibility study.
• Oxide Grades: High oxide grades at Archimedes are real (confirmed by drilling/LECO testing); Granite Creek oxide potential is a "pleasant surprise" from drilling that requires further metallurgical definition.
• Stockpiling Strategy: Incentivized to stockpile ~200,000 tons of refractory/oxide material before Lone Tree commissioning to capture cost savings (reducing processing cost from ~$350/ton to ~$100/ton).
• Technical Study Delays: Mineral Point and Archimedes feasibility studies delayed to H2 2027 due to extended drilling campaigns (geotechnical work) and assay turnaround times.

Other Key Points:

• Transitioned to US GAAP accounting in 2024; pre-development costs are expensed until mineral reserves are declared, which will begin at Granite Creek in Q4 2026, shifting future costs to capitalization.
• Community engagement in Eureka continues regarding workforce housing and infrastructure to support project growth.
• Water management at Granite Creek improved with completion of second water treatment plant and new dewatering wells.
• Archimedes' oxide opportunity allows for low-cost production via heap leaching on existing Ruby Hill infrastructure, reducing reliance on the new plant for near-term cash flow.