TORONTO, May 12, 2026 /CNW/ - i-80 GOLD CORP. (NYSE: IAUX) (TSX: IAU) ("i-80 Gold" or the "Company") reports its financial and operating results, as well as development highlights, for the first quarter and three months ended March 31, 2026.
"i-80 Gold is off to a strong start in 2026, advancing our growth strategy to create a Nevada based mid-tier gold producer while completing a transformational recapitalization during the first quarter that fully funds our current development plan,(1) " stated Richard Young, President & CEO. "The financing packages executed in the first quarter significantly strengthen i-80 Gold's balance sheet and materially derisk execution of the development plan. Following the recapitalization, we approved a key construction decision related to the autoclave refurbishment, a cornerstone asset within our planned hub and spoke plan to develop our underground deposits within phase one of our development plan, which is targeting 150,000 to 200,000 ounces of gold beginning in 2028(1) . Further, we initiated the 2026 drill program, representing the largest program in the Company's history in terms of planned footage and budget, supporting resource and reserve development in preparation of pre-feasibility and feasibility studies. In parallel, the business delivered its highest quarterly gross profit to date, supported by higher gold output and a higher realized gold price. We also continued to attract quality talent across the Company and at the Board level, further strengthening our ability to execute on our business plan."
FIRST QUARTER FINANCIAL, OPERATING AND DEVELOPMENT HIGHLIGHTS
Three months ended March 31, 2026 compared to three months ended March 31, 2025
Unless otherwise stated, all amounts referred to herein are in U.S. dollars.
-- Revenue increased to $52.4 million, representing 10,590 ounces in gold
sold(2) at an average realized gold price(3) of $4,941 per ounce,
compared to $14.0 million represented by 4,952 ounces sold(2) at an
average realized gold price(3) of $2,825 per ounce in the prior year
period. The increase in revenue was primarily driven by higher gold sales
at Granite Creek as a result of the finalization of the third-party toll
processing agreement in March 2025 and a higher average realized gold
price(3).
-- Gross profit increased to $16.1 million from $2.9 million in the prior
year period due to increases in revenue.
-- Net loss increased to $78.6 million compared to $41.2 million in the
prior year period, due primarily to higher non-cash fair
value revaluations on derivative financial instruments of $48.4 million
driven by stronger metal prices. Additional non-cash losses on
extinguishment of the gold prepay agreement, convertible loan, and
convertible debentures of $7.1 million also contributed to lower net
earnings, as well as financing expenses incurred in the amount of $9.9
million. Higher pre-development, evaluation and exploration expenses were
incurred as the Company advances multiple projects within its development
plan, which were partially offset by higher gross profit. Upon
declaration of mineral reserves, certain pre-development, evaluation and
exploration expenditures currently expensed, will be capitalized.
-- Loss per share of $0.09 decreased from $0.10 loss per share in the prior
year period primarily due to an increase in the number of outstanding
common shares following the equity raise in May 2025.
-- Adjusted loss increased to $28.6 million compared to $23.6 million in the
prior year period due to increased spending on pre-development,
evaluation and exploration expenses, partially offset by higher gross
profit.
-- Cash used in operating activities increased to $45.1 million compared to
$22.7 million in the prior year period as a result of interest payments
made on the extinguishment of legacy debt of $25.7 million.
-- Cash and cash equivalents were $513.5 million as of March 31, 2026, an
increase of $450.3 million compared to December 31, 2025, primarily due
to the net proceeds received from the financing transactions to complete
the Company's recapitalization plan, offset by higher capital
expenditures compared to the prior year period driven by the commencement
of the Lone Tree Plant refurbishment project, as well as the settlement
of legacy debt obligations.
-- The Company closed several financing transactions for a total amount of
$787.5 million. Gross proceeds of $662.5 million and net proceeds of
$637.2 million were received on closing. These financing arrangements
completed the recapitalization plan ahead of the Company's mid-2026
target and established a fully funded development plan(1):
-- March 16, 2026: Completed a net smelter return royalty for $250
million (the "NSR Royalty") with Franco-Nevada U.S. Corporation
("Franco-Nevada") of which $225 million was received on closing,
an additional $25.0 million is expected to be made available to
advance Mineral Point, contingent upon satisfaction of specified
project conditions.
-- March 16, 2026: Entered into a gold prepayment facility with
National Bank of Canada ("NBC") and Macquarie Bank Limited
("Macquarie") for up to $250 million including a $100 million
accordion option subject to customary conditions and lender
approval (the "2026 Gold Prepay").
-- March 23, 2026: Completed an offering of 3.75% unsecured
convertible senior notes due 2031 in the aggregate amount of
$287.5 million (the "2026 Convertible Debentures").
-- Proceeds from the NSR Royalty were used to redeem the 2023
Convertible Debentures, Orion Gold Prepay, and the Orion
convertible loan in the amount of $165.0 million.
-- Completed approximately 7,000 meters of drilling, initiating the largest
12-month drill program in Company history. First quarter activities
included infill drilling at Upper Archimedes underground to enhance
mineral resource definition ahead of mining, resource definition drilling
at Granite Creek underground beyond a planned feasibility study, and
infill drilling at Mineral Point open pit to upgrade resource
classification for the planned pre-feasibility study.
-- Approved the construction decision to proceed with the Lone Tree Plant
refurbishment during the first quarter of 2026 with capital commitments
of $31.2 million at March 31, 2026, with approximately 50% of total
project capital expected to be committed by mid-2026.
-- Three-phase development plan remains on track with 2026 development
priorities, as well as full year production, operating and
pre-development evaluation, and exploration cost guidance for 2026.
-- Strengthened the Board with the appointment of three new directors who
bring highly relevant experience and proven track records in mining
operations, mineral processing, finance, and capital markets.
Three months endedMarch 31,
2026 2025
Revenue $000s 52,390 14,048
Gross profit $000s 16,078 2,906
Net loss $000s (78,601) (41,205)
Loss per share $/share (0.09) (0.10)
Adjusted loss(1) $000s (28,599) (23,596)
Adjusted loss per share(1) $/share (0.03) (0.05)
Cash flow used in operating activities $000s (45,080) (22,701)
Cash and cash equivalents $000s 513,506 13,475
Drilling meters 6,937 4,499
Gold produced oz 10,825 5,240
Gold ounces sold(1) oz 10,590 4,952
Average realized gold price(2) $/oz 4,941 2,825
Notes to table above:
(1) Gold ounces sold include attributable gold from
mineralized material sales at a payable factor of
57% in 2026 (2025 - 59%).
(2) This is a Non-GAAP Measure; please see "Non-GAAP
and Supplementary Financial Performance Measures"
section.
RECAPITALIZATION PLAN COMPLETE
Over the past 12 months, i-80 Gold executed on several financing initiatives that have led to the successful completion of its recapitalization plan. Most recently during the first quarter of 2026, the Company completed several key transactions including the NSR Royalty with Franco-Nevada for up to $250 million, the 2026 Gold Prepay with National Bank and Macquarie Bank for up to $250 million, and the issuance of the 2026 Convertible Debentures in the aggregate principal amount of $287.5 million. These financings completed the Company's broader recapitalization plan ahead of its mid-2026 target and align with the projected capital requirements and cash flows of the project development plan.
Overall, the recapitalization secured over $1 billion(4) in raised and available capital from early 2025 through the first quarter of 2026, materially strengthening the Company's balance sheet, providing funding certainty, and de-risking the development plan.
With the recapitalization complete, the Company believes it is now fully funded to advance Phase 1 and Phase 2 of the development plan. Phase 1 and Phase 2 currently include advancing three underground projects (Granite Creek, Archimedes and Cove) and one open pit oxide project (Granite Creek open pit), as well as the refurbishment and commissioning of the Company's centralized Lone Tree Plant. The anticipated increase in annual gold output from approximately 50,000 ounces in 2026 to a range of 300,000 to 400,000 ounces upon completion of Phase 2 is expected to generate sufficient operating cash flow to fund Phase 3, which currently includes the development of the Mineral Point open pit oxide project and an anticipated average annual gold output of 600,000 ounces.(1) The Company now has the financial flexibility to bring forward infill drilling, engineering, and technical studies in support of the pre-feasibility study and future permitting actions for Mineral Point ahead of Phase 3. With several feasibility and pre-feasibility studies currently in progress, the Company continues to identify opportunities to optimize the development schedule for Phase 2 and Phase 3.
Following the successful completion of the recapitalization plan, the Company has discontinued the sale process for its non-core FAD property.
UPCOMING CATALYSTS
Over the next 12 to 18 months, the Company is targeting to deliver the following key catalysts across its gold portfolio while also identifying opportunities to optimize the development schedule:
Technical Studies
-- Cove underground (Feasibility) -- Q2 2026 -- Granite Creek underground (Feasibility) -- Q2 2026 -- Archimedes underground (Feasibility) -- Late-Q1 2027 -- Mineral Point open pit (Pre-Feasibility) -- 2027 Timing under review -- Granite Creek open pit (Pre-Feasibility) -- Timing under review
Lone Tree Plant
-- Commence demolition -- Q2 2026 -- Commence construction -- H2 2026 -- Plant commissioning -- Q4 2027
Archimedes Underground
-- Initiate infill drilling of Lower Archimedes -- Q2 2026 -- First gold from Upper Archimedes -- Q4 2026
2026 Guidance
The Company remains on track to meet its 2026 guidance as originally published in its 2025 Year End Annual Report on Form 10K published on February 19, 2026.
OPERATIONAL AND FINANCIAL OVERVIEW
Three months ended
March 31,
(in thousands of USD) 2026 2025
Revenue 52,390 14,048
Cost of sales (35,829) (10,766)
Depletion, depreciation and amortization (483) (376)
Gross profit 16,078 2,906
Expenses
Pre-development, evaluation and exploration 25,699 9,545
General and administrative 7,632 4,990
Property maintenance 4,565 4,147
Loss from operations (21,818) (15,776)
Other income and expenses, net (42,279) (17,225)
Interest expense (6,184) (8,204)
Loss on loan extinguishment (7,110) --
Loss before income taxes (77,391) (41,205)
Current tax expense (1,210) --
Net loss (78,601) (41,205)
Paul Chawrun, Chief Operating Officer, commented: "We are very pleased with the development progress achieved during the first quarter at our two underground projects. At Granite Creek, progress on the main decline and waste development remains on plan, and gold output has reached a steady operating rate, while water ingress continues to be effectively managed with existing infrastructure. Commissioning of a second, larger water treatment plant is on track for next month, which is expected to further simplify day-to-day operations for the long term. At Archimedes, both the development ramp and exploration drift are advancing ahead of plan, supported by favorable ground conditions and strong execution by our team and contractors. This work remains a priority to support infill drilling and technical work for the feasibility study, targeting for completion late in the first quarter of 2027, pending the potential expansion of the current drill program.
Drill results released in the first quarter at both Granite Creek South Pacific Zone and Upper Archimedes at Ruby Hill continued to return consistent and positive results, highlighting high-grade intercepts, continuity of mineralization, and further expansion potential at both deposits. At Mineral Point, we initiated a significant drill program to support a pre-feasibility study anticipated for completion in 2027.
The Lone Tree Plant refurbishment timeline and costs remain on track. We look forward to commencing demolition and site early works activities this quarter with the mobilization of Hatch's construction team, while in parallel, procurement and detailed engineering remain on track for first gold pour in December 2027."
Granite Creek Property
The Granite Creek property includes the Granite Creek underground project, a fully permitted, constructed and operating mine, and the Granite Creek open pit oxide deposit adjacent to the underground project. Granite Creek underground is the Company's first brownfield project to be redeveloped and is currently ramping up towards steady-state gold output.
Granite Creek Property Three months ended
March 31,
Operational Statistics 2026 2025
Oxide mineralized material mined tonnes 11,713 15,876
Sulfide mineralized material mined tonnes 19,714 14,643
Total oxide and sulfide mineralized material
mined tonnes 31,427 30,519
Oxide mineralized material mined grade g/t 8.86 11.89
Sulfide mineralized material mined grade g/t 6.16 8.31
Low-grade mineralized material mined(1) tonnes 13,037 22,845
Low-grade mineralized material grade(1) g/t 2.85 2.78
Waste mined tonnes 40,357 27,462
Total material mined tonnes 84,821 80,826
Processed mineralized material - sulfide tonnes 26,405 --
Processed mineralized material - leach tonnes 5,827 33,838
Total processed mineralized material tonnes 32,232 33,838
Gold produced(2) oz 8,857 2,544
Gold sold(2) oz 8,767 3,106
Underground mine development (pre-development) meters 387 154
Drilling meters 1,925 --
Financial Statistics 2026 2025
Mining cost (total mineralized material and
waste) $/t 161 169
Processing cost (processed mineralized material) $/t 283 29
Site general and administrative ("G&A") (total
mineralized
material mined(3) ) $/t 45 31
Royalties $000s 2,602 505
Capital expenditure $000s 4,808 378
Pre-development, evaluation and exploration
expenses $000s 11,398 3,770
Notes to table above:
(1) Low-grade mineralized material extracted as part
of the mining process that is below cut-off grade
but incrementally economic.
(2) Gold ounces sold include attributable gold from
mineralized material sales at a payable factor of
57% in 2026 (2025 - 59%).
(3) Total mineralized material mined consists of sulfide,
oxide, and low-grade mineralized material.
Granite Creek Underground
Mining & Processing
Mineralized material mined at Granite Creek underground is processed as follows: (i) sulfide mineralized material is processed at a third-party processing facility and subject to a toll milling agreement entered into in March 2025, (ii) high-grade oxide mineralized material is subject to an ore sales agreement, (iii) low-grade oxide mineralized material shipped as part of the ore sales agreement beginning in the first quarter of 2026, and (iv) residual leaching of low-grade oxide material previously placed on a segregated section of the Company's Lone Tree heap leach facility.
Mining activities at Granite Creek for the three months ended March 31, 2026 were impacted by a main surface electrical substation transformer fire that occurred in January 2026, resulting in a loss of power to the underground operations. Temporary diesel generators were installed shortly after the incident to allow for mining operations to resume with minimal impact to the mine plan, and permanent replacement infrastructure was installed in mid-March.
Throughout the quarter, waste development in the main decline and access ramps continued to progress according to the mine plan, despite limited access in January and early February due to the loss of power incident. For the remainder of the quarter, decline advance rates exceeded plan, and from the second quarter onwards, the development rate is expected to be sufficiently ahead of the mine workings to allow for the efficient extraction of the mineralized material for the foreseeable future.
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