Integra Resources: Nevada Gold Mine Delivers 70–75K Ounces with Strong Cash Flow

Integra Resources Exceeds Production Targets at Florida Canyon While Advancing DeLamar Project

Integra Resources is establishing itself as a significant player in the Great Basin gold mining region, transitioning successfully from developer to producer with operations that are exceeding initial financial projections. The company’s flagship Florida Canyon mine in Nevada is now producing 70,000-75,000 ounces of gold annually, maintaining total production costs between $1,800-$1,900 per ounce.

All-in sustaining costs currently run higher at $2,450-$2,550 per ounce, reflecting substantial capital reinvestment in a property that suffered from a decade of underinvestment before Integra’s acquisition. Despite these elevated costs, the company has maintained a strong financial position, with a $63 million treasury supporting its ambitious $55 million reinvestment program.

“We’ve been in production now for just over two quarters and we put out our guidance earlier this year which was 70 to 75,000 ounces a year,” noted company President and CEO George Salamis. “It’s an asset that’s been unloved for 10 years, so there’s a lot of money to reinvest. There’s a lot of catching up to do with pre-stripping, pad building, and new equipment purchases.”

The company’s strategic recruitment efforts have strengthened its operational capabilities, with the notable addition of Chief Operating Officer Clifford Lafleur from Silvercrest Metals. Lafleur brings valuable experience from Silvercrest’s Las Chispas operation and previous roles at Torex Gold. This targeted talent acquisition extends beyond the COO position, with several other Silvercrest alumni joining Integra in key roles, including Sean Deissner in finance and Dale Kerner in permitting.

This concentration of proven mining talent suggests Integra is positioning itself to replicate Silvercrest’s operational excellence model across its asset portfolio. Lafleur’s immediate priorities center on fundamental mining efficiency improvements across people, processes, and equipment, while working with the site team to extend mine life and optimize operational efficiencies.

Looking beyond Florida Canyon’s current six-year mine life, management has outlined multiple pathways for extending production. Higher gold prices create immediate reserve expansion opportunities, as the previous reserve estimate utilized a conservative $1,750 gold price assumption. Additionally, stockpiled material that was previously uneconomical at lower gold prices now represents potential near-term production upside.

“We got into this acquisition with the view that if it generated $20 to $30 million free cash flow, that was good enough. Now, it’s doing much more than that,” Salamis explained, highlighting the operational leverage provided by the current gold price environment.

While Florida Canyon generates immediate cash flow, Integra’s DeLamar project in Idaho represents the company’s primary development asset. The project has undergone significant design modifications since its preliminary feasibility study, with the company opting for a simplified approach that eliminates sulfide processing in favor of an all-oxide, heap leach operation.

“We’ve taken out the plant. So, no sulfides, all oxides, heap leach. Simplified that aspect of the project for permitting capital outlay and getting it into operation sooner,” explained Salamis. This streamlined approach reduces both capital requirements and permitting complexity while accelerating the development timeline.

Management estimates a two-year permitting process for DeLamar beginning in January, with the final feasibility study expected by the end of this year. The company believes it will benefit from what they characterize as “the most permissive federal administration in decades” for mining development, positioning DeLamar as one of the more advanced projects in the federal regulatory queue.

In the current gold market environment, Integra has implemented a prudent risk management approach, maintaining hedging positions with put options at $2,750. This provides downside protection while allowing participation in potential gold price upside – a strategic consideration during this critical infrastructure development phase.

Regarding potential mergers and acquisitions, Integra remains selective, focusing on North American Great Basin assets that could complement Florida Canyon operations. However, management acknowledges the valuation challenges in the current market.

“Having paid such a modest price for Florida Canyon for a large reserve base and a pretty decent mine life, now we have to look at things that are 3, 5, 10 times more expensive and getting our heads wrapped around, ‘has the gold price really risen that quickly to justify that’,” Salamis observed.

The company’s capital allocation strategy prioritizes operational excellence through infrastructure investment while maintaining financial flexibility for strategic opportunities. The current reinvestment phase, expected to continue for another 6-9 months, positions the operation for sustained performance improvements and margin expansion as infrastructure upgrades are completed.

Integra’s positioning within the Great Basin provides access to North America’s premier gold mining jurisdiction with established infrastructure and a favorable operating environment. The company’s strategic focus on this region helps mitigate many of the jurisdictional risks affecting international operators while benefiting from the supportive regulatory environment for domestic mineral production.

With a 10-million-ounce resource base across its Nevada operations, Integra Resources represents a compelling mid-tier gold producer with multiple value catalysts on the horizon, including mine life extensions, simplified project development, and the financial flexibility to pursue strategic growth opportunities in a favorable gold price environment.