I-80 Gold maintained its 40,000 to 50,000 ounce production outlook but said output will land in the lower half of the range, after worker turnover at its Granite Creek mine in Nevada slowed mining and delayed access to high grade ore. A processing change at the Archimedes project, placing oxide ore on the Ruby Hill leach pad instead of selling it to a third party, also shifts some gold into the first quarter of 2027, though the year end start of production mining at Archimedes and the refurbishment of the Lone Tree processing plant remain on schedule. Chief operating officer Paul Chawrun said the contractor workforce has been restored to previous staffing levels after an adjustment to the contractor compensation structure.
Third quarter production fell 6 percent from a year earlier to 11,685 ounces, while revenue edged higher to $32.7 million as stronger gold prices offset fewer ounces sold. The net loss widened to $48.4 million, or 6 cents a share, from $41.9 million a year earlier, as development and exploration spending rose. Cash stood at $411.4 million at September 30, down from $464.6 million three months earlier. Shares fell 2.9 percent to $1.88 in Toronto on Tuesday morning, valuing the company at about $1.6 billion Canadian.
Lone Tree remains the centre of the growth plan, with first gold targeted for the fourth quarter of 2027 after a refurbishment budgeted at about $430 million. Labour costs on the project are running 5 to 10 percent above initial estimates, though still within contingency, with about 44 percent of capital committed and 20 percent of contingency drawn. The refurbished plant would let I-80 process its own refractory ore and keep margin it now pays to third parties, underpinning the plan to lift annual output to 150,000 to 200,000 ounces from 2028.
The staffing problem predates the quarter. Granite Creek’s mining contractor had about 100 employees against a target of roughly 120 during an October analyst visit, amid strong competition for skilled workers in northern Nevada, and water management remains a second constraint, with deeper pumping wells and expanded treatment capacity expected to support the ramp. An Archimedes feasibility study and a Mineral Point prefeasibility study are now expected in the second half of 2027. National Bank Financial maintained an outperform rating, arguing development remains funded and on schedule despite the near term production weakness.