i-80 Gold Corp. Reports Q1 Earnings Miss, Revenue Falls Short

i-80 Gold Corp. reported Q1 2024 earnings, missing analyst estimates with revenue of $25.84 million and an EPS of ($0.07). The company's principal assets include gold properties and projects in Nevada, with institutional ownership at 61.31%.

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i-80 Gold Corp. Reports Q1 Earnings Miss, Revenue Falls Short

i-80 Gold Corp. Reports Q1 Earnings Miss, Revenue Falls Short

i-80 Gold Corp. (NYSEAMERICAN: IAUX) reported its earnings results for the first quarter of 2024 on Tuesday, falling short of analyst expectations. The Nevada-based mining company, which explores for and produces gold, silver, and polymetallic deposits, reported revenue of $25.84 million, missing the analyst estimate of $807.00 million by 8.66%.

Why this matters: The earnings miss and revenue shortfall of i-80 Gold Corp. can have a ripple effect on the mining industry as a whole, potentially impacting investor confidence and the overall market sentiment. Moreover, the company's struggles to meet analyst expectations may lead to a reevaluation of its business strategy and operations, which could have broader implications for the industry.

For the quarter, i-80 Gold Corp. reported an EPS of ($0.07), missing analysts' consensus estimates of ($0.04) by $0.03. The company had a negative trailing twelve-month return on equity of 20.98% and a negative net margin of 118.74%.

i-80 Gold Corp.'s principal assets include the McCoy-Cove gold properties, the Granite Creek gold project, the Lone Tree project, and the Ruby Hill mine, all located in Nevada. The company was incorporated in 2020 and is headquartered in Reno.

As of April 30th, there was short interest totaling 23,520,000 shares, an increase of 5.4% from the April 15th total of 22,320,000 shares. The short-interest ratio is currently 7.5 days, with approximately 10.1% of the shares of the stock being short sold. Institutions hold 61.31% of i-80 Gold's stock, which can be a signal of strong market trust in the company.

Looking ahead, earnings for i-80 Gold are expected to grow by 111.11% in the coming year, from $0.18 to $0.38 per share. The company's P/E ratio is currently -5.13, indicating negative earnings that cannot be compared to companies with positive earnings. However, i-80 Gold's P/B Ratio of 0.83 may suggest the company could be undervalued with respect to its assets and liabilities.

Despite the earnings miss, i-80 Gold Corp. remains focused on advancing its key gold projects in Nevada. The company will need to work on improving its margins and profitability in the coming quarters to meet analyst expectations and deliver value to shareholders. The high level of institutional ownership demonstrates market confidence, but the increasing short interest may reflect near-term challenges for the mining firm.