I-80 Gold (TSX: IAU; NYSE: IAUX) expects annual production in the lower half of its forecast range after worker turnover slowed mining in Nevada, even as the company’s next underground operation approaches a year-end start. The stock dropped.
Toronto-based i-80 maintained its 40,000–50,000 oz. outlook but flagged delayed access to high-grade ore at Granite Creek and a processing change that shifts some gold from the Archimedes mine into early 2027. Production mining at Archimedes and the refurbishment of the Lone Tree processing plant remain on schedule, i-80 said in its quarterly update Monday.
“The contractor workforce has since been restored to previous staffing levels to support planned mining rates following an adjustment to contractor compensation structure,” chief operating officer Paul Chawrun said in the release.
The setbacks highlight the operating demands behind i-80’s plan to lift annual gold output to 150,000–200,000 oz. starting in 2028. Its Lone Tree restart would allow the company to process its own refractory ore, which requires treatment to release gold trapped in sulphide minerals, and retain more of the margin now paid to third parties.
I-80 shares fell 5.2% to $1.83 Tuesday morning in Toronto, valuing the company at about C$1.6 billion ($1.1 billion). They’ve traded between $1.25 and $3.04 in the past year.
Cash and growth
I-80’s third-quarter net loss widened to $48.4 million, or 6¢ a share, from $41.9 million, or 5¢, as development and exploration expenses increased, according to Monday’s statement.
Quarterly output fell 6% from a year earlier to 11,685 oz., while revenue edged higher to $32.7 million as stronger gold prices offset fewer ounces sold.
I-80 had cash and cash equivalents of $411.4 million as of Sept. 30, down from $464.6 million three months earlier. National Bank Financial calculated potential liquidity of roughly $620 million including a conditional $100-million expansion of the gold-prepayment arrangement and about $109 million from the exercise of warrants whose exercise prices were below the share price.
National Bank Financial mining analyst Don DeMarco maintained his outperform rating and C$4 target in a note Monday evening. Despite the near-term production weakness, development remained funded and on schedule, he said.
Lone Tree spending
Lone Tree remains the central investment in i-80’s growth plan. First gold is targeted for the fourth quarter of 2027 following a refurbishment budgeted at about $430 million.
Labour costs are running 5%–10% above initial estimates, though they remain within the project contingency. About 44% of capital has been committed and 20% of contingency drawn, according to DeMarco. The contingency draw compares with roughly 10% cited in a development update last month, he noted.
Payments on Lone Tree contracts are being made four to five months after commitments, against an originally assumed 30 days, moving expenditure into 2027, DeMarco said.
Mineral Point
Beyond Lone Tree, i-80 has moved Mineral Point ahead of the Granite Creek open pit and Cove underground project in its development sequence. The change concentrates spending on its largest growth project while reserving Cove as a later source of processing-plant feed.
An Archimedes feasibility study and Mineral Point prefeasibility study are now expected in the second half of 2027, a modest shift from the previous mid-year targets, DeMarco noted.
“In our view, continued execution at Granite Creek, Archimedes and Lone Tree can progressively de-risk the development pipeline and narrow the gap between asset value and market valuation,” he said.
Labour and water
Staffing was already a concern last month during an analyst visit. Granite Creek’s mining contractor had about 100 employees against a target of roughly 120 amid strong competition for skilled workers in northern Nevada, SCP Resource Finance said in an Oct. 26 note.
The mine had enough working areas to support higher output, but labour availability and the speed of the mining cycle were the constraints, SCP said. Water management remained another challenge, with deeper pumping wells and expanded treatment capacity expected to help the ramp-up.
While Granite Creek’s September feasibility study established initial gold reserves and a larger resource, it also raised projected life-of-mine all-in sustaining costs 42% from the previous assessment to $2,273 per ounce.
At Archimedes, placing oxide ore on the existing Ruby Hill leach pad instead of selling it to a third party is expected to defer recognition of some production until the first quarter of 2027. That distinction leaves the year-end mining start intact while delaying some reported gold output.
