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i-80 Gold Corp., currently trading at $0.53 per share and operating with a market capitalization of $249 million, has entered into a material definitive agreement with the National Bank of Canada (OTC:NTIOF) for a prepay arrangement involving gold and silver, according to a recent 8-K filing with the SEC. InvestingPro analysis indicates the company faces significant financial challenges, with a weak overall financial health score and negative EBITDA of -$82.8 million in the last twelve months. Under the terms of the deal, dated March 31, 2025, National Bank purchased approximately 6,800 ounces of gold and 345,000 ounces of silver for delivery by September 30, 2025. The proceeds from this transaction were utilized to fulfill outstanding obligations to Orion Mine Finance.
The agreement with National Bank is secured by i-80 Gold Corp.’s FAD property in Nevada, ensuring the delivery of the precious metals. This strategic move comes as part of the company’s recapitalization plan and follows a series of amendments to previous agreements with Orion Mine Finance. With a current ratio of 0.57 and total debt of $192 million, InvestingPro data reveals the company’s short-term obligations exceed its liquid assets, highlighting the importance of this refinancing effort. These amendments included deferring gold and silver deliveries that were due in late 2024 and early 2025, which have now been settled as of March 31, 2025.
In addition to the prepay arrangement, i-80 Gold Corp. has issued five million common share purchase warrants to Orion as part of the Waiver Agreements. These warrants have a term of four years with an exercise price of C$1.01 per share. Furthermore, the company has agreed to an offtake agreement with Orion that will take effect in December 2028, following the expiration of a similar agreement with Deterra Royalties Limited.
The company has met the ongoing conditions of the Waiver Agreements, which include maintaining minimum cash requirements and providing additional security against its Ruby Hill and Granite Creek projects. The Orion Convertible Loan’s expiry has also been extended to June 30, 2026. According to InvestingPro, the company’s stock has experienced significant volatility, declining over 60% in the past year, though analysts anticipate sales growth in the current year. Get access to 14 additional ProTips and comprehensive analysis in the Pro Research Report, helping you make more informed investment decisions.
The new financial arrangements and fulfillment of previous commitments are indicative of i-80 Gold Corp.’s efforts to manage its financial obligations while continuing its mining operations. The company is listed on both the NYSE American LLC under the ticker IAUX and The Toronto Stock Exchange under the ticker IAU. The full details of the agreement are available in the exhibit attached to the SEC filing, which serves as the source for this information.
In other recent news, i-80 Gold Corp. reported fourth-quarter results that did not meet analyst expectations as it continues to increase production at its Granite Creek underground mine in Nevada. The company reported a loss of $0.04 per share, missing the anticipated $0.01 loss. Revenue for the quarter was $23.2 million, falling short of the consensus estimate of $37.7 million. The production at Granite Creek was affected by increased groundwater ingress, impacting productivity and development rates. In response, i-80 Gold has expanded its pumping capacity and reconfigured its dewatering system to address this issue. CEO Richard Young noted that the company has established a new development plan and is working on updated Preliminary Economic Assessments for its five gold projects. Looking ahead, i-80 Gold expects to produce between 30,000 to 40,000 ounces of gold in 2025, with a significant portion coming from Granite Creek. The company aims to become a mid-tier producer with an annual production goal of 400,000 to 500,000 ounces by the end of the decade.
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