Integra Resources (ITR.V, ITRG) has provided a production and operational update ahead of its Q2 quarterly reporting. During the second quarter, the company has produced just under 16,400 ounces of gold, which represents a 30% quarter-on-quarter increase versus the pretty weak first quarter of the year.
Even more important than seeing the Q2 production numbers is seeing the company reiterate its full-year production guidance. As ‘significantly more ore’ will be placed on the heap leach pad in the second half of the year, the production rate should continue to increase throughout the year, and Integra maintains is full-year production guidance of 70,000-75,000 ounces of gold. This means that in order to reach the lower end of this guidance, Integra needs to produce just under 41,000 ounces of gold in the second semester. Not only does this imply an average quarterly production of in excess of 20,000 ounces of gold in the current semester, it also implies a much stronger operating cash flow.
This should set the company up to hit the ground running in 2027, as the recently updated mine plan calls for a higher production at a lower cost in 2027 and 2028 versus 2026. And with a total of US$111M in cash on the balance sheet, Integra is in an excellent financial shape to complete all improvements at Florida Canyon. This should increase the cash flows in 2027 ceteris paribus, and allow the company to run up its cash position ahead of making a construction decision at DeLamar.
Disclosure: The author has a long position in Integra Resources. Integra is a sponsor of the website. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
