Executive Summary / Key Takeaways

• I-80 Gold is executing a new, staged development plan to transform its high-quality Nevada asset portfolio into a mid-tier gold producer targeting 400,000-500,000 ounces annually by the early 2030s.
• The company's strategy leverages its significant resource base and key infrastructure, including the Lone Tree Autoclave, a critical asset for processing refractory gold ores prevalent in Nevada.
• Recent operational focus includes ramping up the Granite Creek Underground mine (targeting 20,000-30,000 oz Au in 2025) and advancing permitting/development at Archimedes and Cove, supported by positive preliminary economic assessments demonstrating significant project value ($1.6B NPV at $2,175/oz Au).
• A critical near-term focus is the recapitalization plan to strengthen the balance sheet and fund growth expenditures ($40M-$50M in 2025), with recent steps including debt deferrals, a new prepay arrangement, and a working capital facility ($12M Auramet facility).
• While facing liquidity constraints and operational challenges like water ingress at Granite Creek, the company believes its brownfield projects, technical expertise, and strategic asset base position it for value creation, aiming to minimize dilution through debt financing.

The Nevada Gold Rush: I-80 Gold's Strategic Foundation

I-80 Gold Corp. (NYSE: IAUX) is a Nevada-focused gold and silver mining company positioning itself to become a significant mid-tier producer in one of the world's most prolific gold regions. Established in late 2020, the company rapidly assembled a portfolio of high-quality assets, strategically located along Nevada's Battle Mountain-Eureka and Getchell gold trends. This deliberate consolidation of past-producing mines and advanced-stage development projects forms the bedrock of I-80's ambition.

The company's strategic vision centers on a "hub-and-spoke" model, leveraging key processing infrastructure to unlock value from its diverse deposits. Central to this strategy is the Lone Tree property, particularly its permitted autoclave facility. This asset is a critical differentiator in the Nevada landscape, where a significant portion of gold mineralization is refractory – meaning the gold is encapsulated within sulfide minerals and requires specialized processing, like autoclaving, to achieve high recovery rates. With only a limited number of operational autoclaves in the state, I-80's ownership of this facility provides a potential competitive moat, enabling the economic processing of refractory ores from its various satellite deposits, including Granite Creek, Ruby Hill (Archimedes), and Cove. The planned refurbishment of the Lone Tree Autoclave, supported by a feasibility study expected in Q4 2025, is a cornerstone of the long-term plan, targeting completion by December 31, 2027, to allow for processing material from the company's underground mines. Until then, the company utilizes third-party processing agreements for refractory material, alongside heap leaching and ore sales for oxide material.

This strategic assembly and infrastructure focus underpin I-80's new development plan, announced in late 2024. Following a comprehensive review, the company shifted its focus to prioritize five key gold projects: the Granite Creek Underground and Open Pit, the Ruby Hill Complex's Archimedes Underground and Mineral Point Open Pit, and the Cove Underground. This plan aims to accelerate the path to free cash flow generation and build a sustainable production profile, while deferring earlier-stage or higher-risk projects, such as certain base metal targets at Ruby Hill and the Lone Tree open pit, until the balance sheet is stronger.

Operational Momentum and Near-Term Hurdles

Operational execution under the new plan is underway, though not without challenges. The Granite Creek Underground project, the first asset to enter redevelopment, is currently in a ramp-up phase. In Q1 2025, the operation mined 30,519 tonnes of oxide and sulfide material, a significant increase from 12,702 tonnes in Q1 2024, reflecting improved productivity and development pace. Revenue from Granite Creek surged to $8.70 million in Q1 2025 from $3.20 million in the prior-year period, driven by higher ounces sold and a favorable average realized gold price of $2,799 per ounce for Granite Creek gold.

However, the ramp-up has been impacted by higher-than-anticipated water ingress, which negatively affected productivity and development rates in 2024. Management has implemented dewatering system upgrades and is utilizing a predictive groundwater model, reporting that water levels are dropping and ingress rates are anticipated to decrease. Additional dewatering infrastructure upgrades are planned for 2025. Despite these efforts, the company does not expect Granite Creek to generate free cash flow until late 2025 or early 2026. The 2025 outlook for Granite Creek Underground is set at 20,000 to 30,000 ounces of gold extraction, contributing to a total company-wide target of 30,000 to 40,000 ounces, with the remainder coming from residual heap leaching at Ruby Hill and Lone Tree (approximately 10,000 ounces combined).

Progress is also being made on other key development assets. At Ruby Hill, the company received the Decision Record from the BLM in March 2025 for commencing underground portals at Archimedes, with associated state permits expected in Q2 2025. Surface construction is ongoing, and underground construction is slated to begin in Q3 2025, targeting first production from Archimedes Underground in late 2026 or early 2027. Permitting for the high-grade Cove Underground project remains on track for anticipated approvals by the end of 2027, with an infill drill program completed in Q1 2025 to support a feasibility study expected later in 2025.

Financial Landscape and the Recapitalization Imperative

I-80's financial performance in Q1 2025 reflects a company in a significant development phase, consuming capital while ramping up initial production. Revenue increased substantially to $14.0 million from $8.4 million in Q1 2024, primarily due to higher gold ounces sold (4,952 oz vs. 4,061 oz) and a higher average realized gold price ($2,825/oz vs. $2,063/oz). Cost of sales also rose to $10.8 million from $8.3 million, reflecting increased production volumes. Pre-development, evaluation, and exploration expenses increased to $9.5 million from $7.3 million, driven by drilling at Cove and preparatory work at Ruby Hill.

The company reported a net loss of $41.2 million in Q1 2025, compared to a $19.7 million loss in Q1 2024. A significant driver of the larger loss was non-cash losses totaling $15.7 million from the revaluation of gold prepay and silver purchase agreement derivatives, stemming from increases in forward gold and silver prices.

Liquidity remains a critical focus. Cash and cash equivalents stood at $13.5 million at March 31, 2025, down from $19.0 million at year-end 2024, primarily due to cash used in operating activities ($22.7 million in Q1 2025).

Total liabilities increased to $341.0 million at March 31, 2025, from $315.0 million at December 31, 2024, influenced by the derivative revaluations and increased long-term debt from finance charges.

Recognizing the need for additional capital to fund its development plan and address current obligations, I-80 initiated a recapitalization plan. The first phase involved successfully deferring and settling gold and silver deliveries due to Orion in late 2024 and early 2025 through a new $31.0 million prepay arrangement with National Bank of Canada, funded in April 2025. Furthermore, the company finalized a $12.0 million working capital facility with Auramet in April 2025, boosting the pro forma cash balance to approximately $25 million. The second phase of the recapitalization, aimed for completion by June 30, 2026, involves discussions for a senior lending facility, royalty sales (including on Mineral Point and potentially the Autoclave), and non-core asset sales (like the FAD property). A key enabler for securing senior debt is the completion of feasibility studies for three gold projects and the Lone Tree Autoclave refurbishment study by Q4 2025/Q1 2026.

Competitive Landscape and Positioning

Operating in Nevada places I-80 Gold in direct competition with some of the world's largest gold producers, including Barrick Gold (GOLD), Newmont Corporation (NEM), Kinross Gold (KGC), and Agnico Eagle Mines (AEM), as well as other regional players. These larger competitors benefit from significant scale, diversified global portfolios, and robust financial resources, often leading to lower operating costs per ounce and greater resilience to market fluctuations. For example, while IAUX's Q1 2025 revenue growth was strong at 67% year-over-year, its absolute revenue ($14.0M) and cash position ($13.5M) are dwarfed by the billions generated and held by majors like Barrick and Newmont. IAUX's TTM Gross Profit Margin of -34.58% and Net Profit Margin of -262.70% highlight its current pre-production financial profile, starkly contrasting with the positive margins of established producers (e.g., NEM's 2024 Gross Margin of 35%, KGC's 36%, AEM's 44%).

Despite its smaller scale and current financial constraints, I-80 aims to carve out its niche and compete effectively through several key advantages. Its focus on high-grade deposits in Nevada, such as Granite Creek and Cove (with grades often exceeding 10 g/t), offers the potential for strong project economics, as highlighted by the positive PEAs. The combined NPV(5%) of $1.6 billion at $2,175/oz Au for its five projects underscores the significant embedded value. The ownership of the Lone Tree Autoclave provides a strategic processing advantage for refractory ores, a common challenge in Nevada that limits many competitors without access to such facilities. This asset is crucial for the hub-and-spoke strategy, enabling I-80 to process complex ores from multiple sites efficiently once refurbished.

However, I-80 faces disadvantages, including higher operating costs per ounce compared to larger, more efficient producers due to its smaller scale and development-stage operations. Its limited diversification increases exposure to regional risks. The current liquidity situation and dependence on external financing also represent significant vulnerabilities compared to better-capitalized competitors. While I-80's technical team is focused on optimizing operations and advancing studies, larger competitors possess greater resources for R&D and adopting advanced mining technologies, potentially widening the efficiency gap over time. The company's strategy to advance permitting and feasibility studies is a direct response to the need to de-risk projects and attract the necessary capital to bridge this gap and compete on a larger scale in the future.

Outlook and Path Forward

I-80 Gold's outlook is centered on executing its defined development plan and successfully recapitalizing the business. The 2025 production guidance of 30,000 to 40,000 gold ounces, primarily from Granite Creek's ramp-up and residual heap leaching, represents a step towards its larger production goals. The expectation for Granite Creek to reach steady-state production in the second half of 2025 is critical for improving operational cash flow, though the water challenge remains a factor to monitor.

The planned growth expenditures of $40 million to $50 million in 2025 are strategically allocated to advancing permitting (top priority), completing feasibility studies, and developing Archimedes Underground. These investments are designed to de-risk the project pipeline and support the crucial second phase of the recapitalization plan. The completion of feasibility studies for key projects and the Lone Tree Autoclave by Q4 2025/Q1 2026 is a significant milestone that will inform financing decisions and provide greater clarity on the capital requirements and economic potential of the projects.

Management is confident that the combination of its high-quality Nevada assets, the strategic advantage of the Lone Tree Autoclave, a clear development roadmap, and successful recapitalization efforts will enable I-80 Gold to evolve into a mid-tier gold producer targeting 400,000 to 500,000 ounces annually by the early 2030s.

Conclusion

I-80 Gold is at a pivotal juncture, transitioning from an explorer and asset assembler to a developer and aspiring producer. The company possesses a compelling portfolio of high-grade gold assets in a favorable jurisdiction, underpinned by the strategic advantage of the Lone Tree Autoclave for processing refractory ores. The new development plan provides a clear, staged pathway towards becoming a mid-tier producer, supported by positive preliminary economic assessments that highlight the significant intrinsic value of its projects.

However, the path forward is contingent on successfully navigating its current liquidity constraints and executing the recapitalization plan. While recent financing steps have provided near-term flexibility, securing the larger funding required for full project development remains critical and is tied to the timely completion of feasibility studies and permitting. Investors should closely monitor the progress at Granite Creek, particularly the resolution of water issues and the ramp-up to steady-state production, as well as the company's ability to secure favorable long-term financing. The potential to unlock value from its high-grade deposits and leverage its processing infrastructure positions I-80 Gold with significant upside potential, provided it can effectively manage operational challenges and strengthen its balance sheet to fund its ambitious Nevada vision.