i-80 Gold (TSX: IAU) reported second quarter revenue of $24.3 million, down 13% from $27.8 million a year earlier and less than half the $52.4 million booked in the first quarter, as delays at a third-party processing facility kept much of the quarter’s output from reaching the market.
Gross profit still improved, rising to $8.6 million from $0.8 million a year ago, but the picture was heavier further down the statement. The net loss widened to $52.5 million, or 6 cents a share, from $30.2 million, or 5 cents. Stripping out non-cash items, the adjusted loss was $41.2 million, or 5 cents a share, against $26.5 million, or 4 cents, in the same quarter last year and an adjusted loss of 3 cents a share in the first quarter.
Cash used in operating activities climbed to $49.6 million from $11.3 million, while capital spending totalled $21.5 million, most of it directed at the Lone Tree plant. The company closed June with $464.6 million in cash, down $49.0 million over three months. That cushion is the product of the $787.5 million recapitalization completed in the first quarter, which paired a royalty sale with a gold prepay facility and convertible debentures.
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Production ran the other way. i-80 produced 11,098 ounces of gold in the quarter, up 165% from 4,178 ounces a year earlier and ahead of the 10,825 ounces poured in the first quarter, lifting first-half output to 21,964 ounces. Sales fell 36% to 5,335 ounces, again a result of those third-party processing issues.. More than 5,300 recoverable ounces were still sitting at the third-party processor at quarter end, a backlog that should convert to revenue once it clears.
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Realized pricing remained strong, averaging $4,522 an ounce, up 37% from $3,301 a year earlier though below the $4,941 achieved in the first quarter. At Granite Creek, first-half unit costs came in at $169 a tonne for mining, $293 for processing and $50 for site general and administrative expenses, each edging above first-quarter levels as the mine ramps up.
Management said it remains on track to meet full year production guidance of 30,000 to 40,000 ounces from Granite Creek plus roughly 10,000 ounces from Archimedes and residual heap leach material. Growth capital guidance of $150 million to $175 million was maintained, with underspending at Lone Tree and on exploration offsetting higher infrastructure costs at Archimedes.
“We delivered another solid quarter, with increased production from Granite Creek as the project continued to ramp up on plan, the advancement of Archimedes on schedule toward becoming our second underground mine, and the start of demolition at the Lone Tree Plant,” Chief Executive Officer Richard Young said.
The development timeline slipped in places. Feasibility studies for Granite Creek and Cove are now expected in the third quarter, having previously been guided to the second, and the Archimedes study moved to mid-2027 from late in the first quarter of that year, which the company attributed to contractor staffing.
First gold from Archimedes is still targeted for the fourth quarter of this year, with the Lone Tree plant’s first pour set for late 2027.
i-80 Gold last traded at $2.37 on the TSX.
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