Executive Summary / Key Takeaways

• Strategic Transformation Underway: i-80 Gold Corp. (IAUX) is executing an ambitious multi-asset development plan to become a mid-tier Nevada gold producer, targeting over 600,000 ounces annually by the early 2030s, underpinned by a pipeline of five high-grade projects.
• Autoclave as a Core Differentiator: The refurbishment of the Lone Tree Autoclave is a cornerstone of the strategy, projected to significantly enhance refractory gold recovery to approximately 92% and add an estimated $1,000 per ounce in value compared to toll milling.
• Strengthened Financial Position: A pivotal equity raise in Q2 2025 significantly bolstered liquidity, with cash and cash equivalents rising to $133.70 million, marking a major step in the company's recapitalization efforts to fund its extensive development plan.
• Phased Project Advancement: The development plan is phased, prioritizing the ramp-up of Granite Creek and the commencement of Archimedes underground, followed by Cove and Granite Creek open pit, before the large-scale Mineral Point project, aiming to manage capital intensity.
• Near-Term Production & Growth Spend: IAUX expects to extract between 30,000 and 40,000 ounces of gold in 2025, with growth expenditures of $40 million to $50 million focused on permitting, feasibility studies, and Archimedes development.

IAUX's Nevada Gold Ambition and Strategic Evolution

i-80 Gold Corp. (IAUX) is strategically positioning itself as a growth-oriented gold and silver mining company, deeply rooted in Nevada's prolific mining landscape. Since its incorporation in November 2020, the company has rapidly assembled a portfolio of wholly-owned principal assets, including the Granite Creek, Ruby Hill, Cove, and Lone Tree properties, all aimed at the exploration and extraction of precious metals. This foundational period, however, was not without its challenges, notably significant groundwater ingress at the Granite Creek underground project in 2024, which impacted initial mining rates and gold production.

In response to these operational learnings and a dynamic market, IAUX undertook a comprehensive strategic review in the third quarter of 2024. This led to the adoption of a new, multi-asset development plan designed to generate substantial free cash flow and advance its extensive project pipeline. The revised strategy prioritizes advanced-stage, high-grade gold projects—Granite Creek, Archimedes Underground (formerly Ruby Deeps and 426 Zone), and McCoy Cove—while accelerating the permitting and development of two large oxide open pit deposits at Granite Creek and Mineral Point. Concurrently, the company strategically deferred base metal exploration at Ruby Hill and the Gold Hill project, focusing capital and resources on projects with a clearer and shorter pathway to cash flow generation. The overarching strategy is to establish a "hub-and-spoke" model, with the Lone Tree Autoclave serving as a central processing facility for refractory ore from its various mines. This strategic pivot aims to transform IAUX into a mid-tier gold producer, targeting average annual production of 400,000 to 500,000 ounces by the early 2030s, with ambitions to exceed 600,000 ounces annually thereafter.

Technological Differentiators: The Lone Tree Autoclave's Strategic Imperative

A critical component of IAUX's long-term strategy and a significant technological differentiator is the refurbishment of its wholly-owned Lone Tree Autoclave processing facility. This facility is one of only three autoclave operations in Nevada, providing a strategic advantage in processing refractory gold material, which is prevalent in the company's high-grade underground deposits. The decision to prioritize this refurbishment was driven by its compelling economics and the limitations of existing toll milling agreements.

The tangible benefits of the Lone Tree Autoclave are substantial and quantifiable. It is expected to increase the payability on refractory material from a range of 55% to 60% up to approximately 92% recovery. This enhanced recovery translates directly into an estimated additional $1,000 per ounce versus relying on third-party toll milling, depending on the grades processed and the prevailing gold price. The refurbishment project, currently undergoing a feasibility-level Class 3 engineering study with industry leader Hatch Ltd., is estimated to have an all-in capital expenditure in the range of $350 million to $400 million. Management views this refurbishment as "highly achievable due to the low amount of construction hours, minimal long-lead equipment, and strong local contractors available in Northern Nevada." The stated goal is to complete the study by Q4 2025 and accelerate commissioning, potentially bringing it forward from the initially planned January 1, 2028, to 2027. For investors, the Lone Tree Autoclave is a cornerstone of IAUX's competitive moat, promising improved margins, lower processing costs, and a more robust financial performance by unlocking the full value of its underground mines.

Competitive Landscape: A Niche Player in a Giant's Arena

IAUX operates within the highly competitive gold and silver mining industry, where it positions itself as a specialized, Nevada-focused player. While it lacks the global diversification and sheer scale of industry giants like Barrick Gold Corporation (GOLD) or Newmont Corporation (NEM), IAUX's concentrated asset base in Nevada offers distinct advantages in regional expertise and operational focus. This allows for potentially greater agility in site-specific innovations and streamlined decision-making compared to the more complex, multi-jurisdictional operations of its larger rivals.

However, IAUX's current financial performance, characterized by negative gross, operating, net, and EBITDA margins, reflects its development-stage status and lags significantly behind established producers. For instance, while IAUX's TTM Gross Profit Margin is -19.49%, larger competitors typically demonstrate robust positive margins. This disparity underscores the capital-intensive nature of bringing new mines online and the need for substantial upfront investment before realizing sustained profitability. The Lone Tree Autoclave, with its potential to deliver an additional $1,000 per ounce in value, represents a crucial technological moat, differentiating IAUX from competitors who may rely on less efficient third-party processing for refractory ore. This processing advantage is key to IAUX's strategy for achieving superior margins and competitive positioning in the long term. Despite its ambitious organic growth targets, IAUX's reliance on specific regions and commodity prices makes it more susceptible to market volatility than its more diversified peers. The high capital requirements and stringent regulatory approvals inherent in gold mining act as significant barriers to entry, which, while protecting IAUX from new entrants, also necessitate substantial investment for the company to maintain its competitive standing and execute its growth strategy. Broader industry trends, such as the increasing demand for energy driven by AI and data centers, could indirectly impact IAUX by raising operational costs, potentially affecting its profitability more acutely than larger, more diversified competitors.

Operational Momentum and Project Pipeline

IAUX's development plan is a carefully phased approach designed to bring its five core gold projects into production sequentially, building cash flow and expertise along the way.

Granite Creek Property: This underground project is currently ramping up, with mining volumes in Q2 2025 exceeding the prior year. The company has observed positive ore control reconciliation in mined zones, indicating more tons and better grades than modeled. Addressing persistent groundwater ingress remains a priority, with infrastructure upgrades, including two additional dewatering wells and an expanded water treatment facility, expected to be completed by the end of 2025. An infill drilling program in the South Pacific Zone commenced in June 2025, feeding into a feasibility study targeted for Q1 2026. Granite Creek Underground is expected to contribute 20,000 to 30,000 ounces to the company's 2025 production target.

Ruby Hill Property: This property hosts two key projects: Archimedes Underground and Mineral Point Open Pit. Surface infrastructure for Archimedes, slated as IAUX's second underground mine, is complete, with underground exploration drift development expected to begin in Q3 2025. Permitting for mining above the 5,100-foot level is nearing completion. Infill drilling for the upper zone is planned for Q4 2025, followed by the lower zone in Q1 2026, supporting a feasibility study targeted for Q1 2027. At Mineral Point, a drill program initiated in June 2025 is gathering data for permitting and technical reports, with this project holding the potential to become IAUX's largest gold-producing asset.

Cove Property: Expected to be IAUX's third underground mine, Cove is a high-grade project with grades exceeding 10 grams per ton. An infill drilling program was completed in Q1 2025, with an updated mineral resource estimate anticipated in Q3 2025 and a feasibility study targeted for Q1 2026. Permitting activities, including an Environmental Impact Statement (EIS), are underway, with final approvals expected by the end of 2027, followed by an 18-month construction period. Cove is projected to begin contributing to company-wide production in mid-2029.

Lone Tree Processing Facility: Beyond the autoclave refurbishment, the leaching of historic leach pads at Lone Tree continues to produce gold profitably. The Lone Tree open pit project, however, remains deferred for the foreseeable future due to various financial, technical, environmental, and social considerations.

This phased development strategy aims to achieve average annual gold production of 150,000 to 200,000 ounces in Phase One (by 2028), increasing to 300,000 to 400,000 ounces in Phase Two (by 2031) with the introduction of Cove and Granite Creek open pit, and ultimately exceeding 600,000 ounces in Phase Three (early 2030s) with Mineral Point.

Financial Performance and Liquidity: A Recapitalization Underway

IAUX's financial performance in the first half of 2025 reflects its transition and significant recapitalization efforts. For the three months ended June 30, 2025, revenue surged to $27.80 million, a substantial increase from $7.20 million in the prior-year period. This growth was primarily driven by higher gold ounces sold and a higher average realized gold price of $3,301 per ounce. The company reported a net loss of $30.22 million, or $0.05 per share, an improvement from a $0.11 per share loss in Q2 2024, largely attributable to a $13.10 million increase in gross profit. Cost of sales also increased to $26.50 million, influenced by higher gold ounces sold, though partially offset by a lower inventory write-down of $3.10 million compared to $8.80 million in the prior year. This write-down was mainly due to increased processing costs for sulfide material under new toll milling agreements.

A pivotal moment for IAUX's liquidity occurred in Q2 2025 with a significant equity raise. In May 2025, the company completed a bought deal public offering, issuing 345.80 million units for gross proceeds of $172.90 million (net proceeds of $162.70 million), alongside a concurrent private placement of 25.20 million units for gross proceeds of $12.60 million (net proceeds of $12.50 million). These financings, coupled with potential additional proceeds of approximately $130 million from warrant exercises, dramatically improved the company's cash position, which rose to $133.70 million as of June 30, 2025, from $19 million at December 31, 2024.

The recapitalization plan extends beyond this equity raise. IAUX aims to secure a new senior debt facility in the range of $350 million to $400 million by mid-2026. This facility is intended to fund development plans beyond 2026, address existing liabilities, and fully finance the Lone Tree autoclave refurbishment.

The company estimates total capital requirements of approximately $800 million to execute its development plan through the end of the decade, with a goal to "over raise" to $900 million to $950 million to ensure financial strength and accelerate activities. Additional liquidity is being pursued through the potential sale of the non-core FAD property, estimated at $50 million to $100 million, and a royalty sale on Mineral Point, potentially yielding around $100 million. For 2025, growth expenditures are projected to be between $40 million and $50 million, focusing on permitting, feasibility studies, and Archimedes development, with over $90 million allocated through mid-2026 for all five gold projects and the Lone Tree facility.

While the company acknowledges material uncertainties regarding its ability to continue as a going concern due to current operating losses and the need for additional financing, management is confident in its ability to restructure existing debt and secure new capital, emphasizing that debt-to-equity conversion is not a preferred option.

Risks and Challenges

Despite its ambitious growth strategy and recent financial strengthening, IAUX faces several pertinent risks. The company's revenue and profitability remain highly dependent on volatile gold and silver prices. Operational challenges, such as the persistent groundwater ingress at Granite Creek, could continue to impact production and costs, although management is actively implementing mitigation measures. The ability to secure the targeted $350 million to $400 million senior debt facility by mid-2026 is crucial for long-term development, and any delays or unfavorable terms could impede the execution of the multi-asset plan. Furthermore, existing debt agreements contain covenants that limit financial flexibility, with non-compliance potentially leading to accelerated repayment obligations. The transition to US GAAP also means that certain pre-development costs are now expensed rather than capitalized, impacting reported profitability during the development phase.

Conclusion

i-80 Gold Corp. is in the midst of a transformative period, striving to evolve into a significant mid-tier gold producer in Nevada. The company's strategic pivot, centered on a phased development of its high-grade gold projects and the critical refurbishment of the Lone Tree Autoclave, lays a clear path for substantial organic growth and enhanced profitability. The recent equity raise has provided crucial liquidity, bolstering the balance sheet and enabling the advancement of key technical studies and initial project development.

While IAUX operates in a competitive landscape dominated by larger, more diversified players, its focused regional expertise and the strategic advantage offered by the Lone Tree Autoclave provide a unique competitive edge in processing refractory ore. The ambitious production targets and the disciplined approach to recapitalization underscore management's commitment to unlocking the inherent value of its asset portfolio. Investors should closely monitor the progress of the autoclave refurbishment, the securing of the senior debt facility, and the operational ramp-up of Granite Creek and Archimedes. Despite the inherent risks associated with commodity price volatility and the capital-intensive nature of mining development, IAUX's strategic vision, technological differentiator, and phased execution plan present a compelling long-term investment thesis for those seeking exposure to a growth-oriented gold producer in a premier mining jurisdiction.