i-80 Gold (IAUX) Q3 2026 earnings review
i-80 Gold hits plant milestones, but stockpiling delays cash sales
i-80 Gold, a Nevada gold miner rebuilding its underground mines and processing plant, is producing more gold than it can turn into cash. Third-quarter revenue edged up 2% to $33 million only because higher gold prices offset a 17% drop in ounces sold. Chief executive Richard Young published the first formal gold reserves at Granite Creek and kept the Lone Tree plant rebuild on track for late 2027, while heavy drilling widened the net loss excluding one-offs to $48 million.
| Gold produced | 11,685 oz -6.0% from a year ago (+5.3% from Q2) |
|---|---|
| Gold sold | 7,744 oz 10,300 oz held in inventory and processing |
| Net loss, excluding one-offs | $48.2M $34.3M loss a year ago |
| 2026 production outlook | Lowered steered to lower half of 40,000–50,000 oz |
⚖️ Verdict: ⚪ Neutral
The story is unchanged because construction milestones at Lone Tree and Granite Creek balanced out ongoing processing bottlenecks and labour pressures. The good news: declaring 556,500 ounces of reserves at Granite Creek validates the mine plan and lets the company capitalize future tunnel costs. One caution: the miner steered 2026 gold production to the lower half of its plan and will stockpile sulfide ore throughout 2027 rather than pay an outside processor, delaying cash inflows until Lone Tree opens.
The question now is whether the $411 million cash balance can cover both the Lone Tree rebuild and a year of stockpiling unpaid ore in 2027. Either existing cash and current credit lines bridge the gap to 2028, or the miner must draw uncommitted debt and new stockpile loans. The 2027 capital budget and financing terms in the full-year report will settle it.
🐂 Bull Case
Granite Creek Study Declares Reserves and Cuts Expenses
i-80 Gold is a Nevada gold miner rebuilding its underground mines. In September chief executive Richard Young said that "Granite Creek underground announced maiden mineral reserves", which means engineers confirmed how much gold the company can profitably extract. The engineering report, called a feasibility study, established 556,500 ounces of gold reserves grading 7.87 grams per tonne and an 8.5-year mine life.
The reserve grade is lower than earlier preliminary estimates, but infill drilling closed gaps in the rock and increased the total gold resource by 229% to 859,500 ounces. Because the mine now has formal reserves, the miner will record future qualifying tunnel building costs as long-term assets on its balance sheet rather than immediate expenses, which will narrow reported losses.
What to watch: Granite Creek pre-development expense in the fourth quarter. A sharp drop from this quarter's $5.5 million will show how much spending moves off the income statement.
Lone Tree Plant and Archimedes Stay on Schedule
The company's plan to produce 150,000 to 200,000 ounces of gold a year in 2028 depends on building its Archimedes underground mine and rebuilding its Lone Tree processing plant. Both projects hit their third-quarter targets. Workers finished bulk demolition at Lone Tree and awarded 74% of equipment and service packages by value, keeping the plant on track to pour its first gold in late 2027.
At Archimedes, crews dug 760 meters of underground tunnels during the quarter and finished the first ventilation shaft. The Nevada miner remains on schedule to mine its first gold there before the end of 2026. Labour costs at Lone Tree are running 5% to 10% above initial estimates, but the $430 million budget has absorbed the increase using 20% of its contingency fund.
What to watch: the general contractor award at Lone Tree and first gold mined at Archimedes in the fourth quarter. Hitting both keeps the late-2027 plant startup on track.
Higher Gold Prices Lifted Gross Profit
Rising market prices for gold carried the income statement while mine shipments lagged. The miner sold 7,744 ounces of gold in the third quarter, down 17.3% from 9,368 ounces a year earlier. However, its average realized gold price — the price it received per ounce sold — jumped 23.4% to $4,211 per ounce.
Because the higher selling price outweighed the drop in volume, total revenue rose 2.2% to $32.7 million. Gross profit climbed from $3.1 million to $5.0 million, lifting gross margin by 5.4 percentage points to 15.1%. That price cushion helps fund surface work, though royalty and gold prepayment deals from earlier this year will cap some price gains starting in 2028.
What to watch: average realized gold price and gross profit in the fourth quarter. If gold prices hold above $4,200 per ounce, gross profit will rise as stockpiled ore clears.
🐻 Bear Case
Outside Processing Delays Hold Back Gold Sales
Until the Lone Tree plant opens at the end of 2027, i-80 Gold must send its refractory sulfide ore — rock that requires high heat and pressure to release gold — to an outside processor. That arrangement is holding back sales. The company produced 11,685 ounces of gold this quarter but sold only 7,744 ounces because settlements lagged.
- Gold held at the outside processor: over 6,200 recoverable ounces, up from 5,300 ounces in Q2
- Additional gold held in inventory: about 4,100 ounces, up from 1,800 ounces in Q2
- Total unsold gold stock: about 10,300 ounces, a build of 3,200 ounces this quarter by our math
The company also said "Gold production is expected to be in the lower half of the guidance range" for 2026. It chose to leach new Archimedes oxide ore — rock that yields gold using a simpler chemical wash on outdoor pads — on its own pad rather than selling it, which will "delay recording production from the fourth quarter of 2026 to the first quarter of 2027". In 2027 it plans to stockpile sulfide ore for Lone Tree instead of paying the outside processor, which will hold back revenue next year before improving margins in 2028.
What to watch: how much of the 6,200 ounces at the outside facility turns into sales in the fourth quarter. The company expects over half to clear by year-end.
Worker Turnover and Study Delays Hit Operations
Competition for underground miners in Nevada hurt the flagship Granite Creek mine this quarter. Operations chief Paul Chawrun said high contractor turnover "resulted in reduced material movement and delayed access to high-grade headings". Total rock mined at Granite Creek fell 13.3% from a year ago to 84,474 tonnes, and the gold grade of mined sulfide rock dropped from 10.65 to 9.09 grams per tonne.
The miner restored staffing "following an adjustment to contractor compensation structure", which pushed Granite Creek's mining cost up 40.3% from a year ago to $188 per tonne. Separately, technical study schedules slipped again: the Cove feasibility study moved from the third quarter to the fourth quarter, its fourth delay, and the Archimedes and Mineral Point studies shifted from mid-2027 to the second half of 2027.
What to watch: Granite Creek mining cost per tonne and total tonnes mined in the fourth quarter. Higher tonnage and stable unit costs would prove the new pay structure worked.
Heavy Drilling Spend Widened the Loss and Cash Burn
Advancing five projects at once is draining cash before the Lone Tree plant build reaches peak spending. Pre-development, evaluation and exploration expenses — the cost of drilling and digging early tunnels before reserves are proven — rose 66.3% from a year ago to $33.4 million. That expense line equalled 101.9% of revenue, up 39.3 percentage points from 62.7% a year ago by our math.
Because of that Ruby Hill drilling and tunnel work, the net loss excluding one-offs widened from $34.3 million to $48.2 million, and operating cash burn more than doubled from $15.2 million to $32.5 million. The company has $411.4 million in cash and plans to stockpile ore in 2027. Covering that cash gap requires up to $350 million of extra financing, most of which still needs lender approval or warrant exercises.
What to watch: progress on the proposed ore stockpile financing facility and corporate credit line in early 2027. Securing those lines will fund the 2027 stockpiling plan without running cash low.
👓 Other Themes
Mineral Point Moves Ahead of Cove in the Plan
On October 14 the gold developer reordered its long-term project pipeline "to better align plant feed and processing capacity, and optimize capital allocation". It made the Mineral Point open-pit mine its next major build after the initial hub-and-spoke platform, pushing the Cove underground mine and Granite Creek open pit later. Because Granite Creek and Archimedes show potential to expand, Cove is not needed until their output declines.
💲 Other KPIs
Cash on hand fell by $53.2 million from the second quarter's $464.6 million, after peaking at $513.5 million in the first quarter following the company's refinancing. Operating cash outflows of $32.5 million and capital expenditures of $15.0 million for the Lone Tree plant rebuild drove the decrease.
Surface and underground drilling accelerated in the third quarter, bringing the nine-month total to 62,000 meters after only 6,937 meters in the first quarter. Seven drill rigs operated at the Mineral Point open pit to complete 25,865 meters, after new rigs arrived to fix earlier contractor shortages.
The basic share count rose 6.2% from 815.6 million a year ago and edged up from 861.1 million in the second quarter. The year-over-year increase reflects shares issued during the refinancing and equity raises over the past year.
🔮 Guidance
Cut. The company steered full-year gold output to the lower half of its 40,000 to 50,000 ounce target, while Granite Creek stays within its 30,000 to 40,000 ounce range. By our math, the 42,500 ounce middle of that lower half leaves about 8,850 ounces for the fourth quarter, down from 11,685 ounces in the third quarter. Leaching Archimedes oxide ore on-site delays fourth-quarter ounces into early 2027.
Cut. Cash spending on the Lone Tree plant rebuild will finish 2026 below the original range. The miner still expects to commit nearly all refurbishment capital by year-end, but invoices are taking "between four to five months" to arrive and get paid rather than the 30 days originally assumed. That timing gap shifts the cash outflow into 2027 without changing the construction schedule.
Cut. The Nevada producer now expects operating costs at the low end of its full-year range. Lower total gold production and a higher share of oxide ore at Granite Creek, which costs less to process than sulfide rock, reduced expected spending. By our math, hitting the $110 million low end at Granite Creek after $60.7 million in the first nine months leaves up to $49.3 million for the fourth quarter.
Unchanged. i-80 Gold kept exploration spending below its initial 2026 plan because drill rig and crew shortages slowed work earlier in the year, though rigs arrived in the third quarter. Sustaining capital, total growth capital and pre-development expense are all tracking to the low end of their ranges, helped by capitalizing Granite Creek tunnel costs after the September reserve report.
❓ Key Questions
How much cash will stockpiling ore tie up in 2027?
The company plans to stockpile high-grade sulfide ore from Granite Creek and Archimedes throughout 2027 rather than using the outside processor. Management did not disclose how many ounces it will hold back or how much working capital that inventory build will consume.
What are the terms of the proposed stockpile financing facility?
Lenders under the 2026 gold prepayment deal approved a new ore stockpile financing facility, and the company is discussing a corporate credit line. Investors need to know the size, interest cost and conditions of both facilities before 2027 stockpiling begins.
Why did the Cove feasibility study slip a fourth time?
The Cove underground study moved from the third quarter to the fourth quarter of 2026, following three earlier delays. While Cove now sits later in the construction sequence, the release gave no technical reason why the engineering report was not finished on time.
How much Lone Tree cash spending shifts into 2027?
A four-to-five-month lag between committing capital and paying invoices pushed 2026 Lone Tree capital expenditures below the $140 million to $160 million plan. Management has not stated the exact 2026 cash figure or the updated quarterly cash bill for 2027.