Integra needs production jump to hit gold target

Integra Resources (TSXV: ITR; NYSE-A: ITRG) needs fourth-quarter gold production to rise at least 32% from the previous three months to meet its annual target, even after reporting a second quarterly increase in output at its Florida Canyon mine in Nevada.

The operation, about 72 km southwest of Winnemucca, produced 17,652 oz. in the third quarter, taking nine-month output to 46,666 ounces. Meeting the production guidance that was on Thursday left unchanged at 70,000 to 75,000 oz. requires another 23,334 to 28,334 oz. before year-end, a 32% to 61% quarterly increase.

“Mining rates are expected to remain elevated this quarter as we focus on annual production guidance,” President and CEO George Salamis said Thursday in a release.

Florida Canyon is Integra’s only operating mine and a source of funding for its development pipeline, including the main DeLamar project in Idaho. The production target tests whether spending on equipment, waste removal and leach pads can turn higher mining rates into more saleable gold.

Integra’s Toronto-listed shares traded down 1.9% at $3.12 in afternoon trading Friday, having touched $2.80 and $6.60 over the past year. The company has a market capitalization of $632.7 million (US$451.9 million).

Improving trend

Higher second-half output was already part of the plan. In February, Integra forecast about 45% of annual production in the first six months. In August, management said increased ore placement had built an inventory of recoverable gold expected to support stronger production through year-end.

Third-quarter production rose 8% from the preceding quarter, while ore mined increased 21% to 5.35 million tonnes and ore placed on leach pads climbed 25% to 5.21 million tonnes. The processed grade improved to 0.25 gram gold per tonne from 0.23 gram.

Reported gold recovery fell to 52.5% from 57.8% in the second quarter. Integra attributed the decline to increased placement of uncrushed ore, which has lower expected recovery than crushed material. The company said it is monitoring and refining the blend as mining rates increase.

Thursday’s operations update doesn’t quantify how much fourth-quarter production is expected from gold already on the pads, new ore placement or changes in recovery. It also doesn’t give a fourth-quarter production forecast.

Work to remove waste above the Central Pit remains a priority, with improved access to higher-grade ore expected next year. Investment at Florida Canyon will continue into 2027 at a lower rate, Salamis said.

Cost test

Integra reported a preliminary cash balance of US$119.5 million at Sept. 30, compared with US$111.1 million three months earlier. The increase doesn’t establish how much cash the mine generated after investment; full quarterly financial results are slated for release on Nov. 11.

Integra documents show annual mine-site all-in sustaining cost guidance of US$3,300 to US$3,500 per oz. sold. That forecast, increased earlier this year, provides another test of whether higher output can spread spending over more ounces.

The company is also advancing DeLamar through permitting toward a construction decision in the second half of 2027, while completing economic studies and work ahead of permitting at Nevada North.