TORONTO, May 4, 2021 /CNW/ - Argonaut Gold
Inc. (TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut")
is pleased to announce its financial and operating results for the
first quarter ended March 31,
2021. The Company reports record quarterly production of
59,704 gold equivalent ounces1 ("GEO" or "GEOs"), record
quarterly revenue of $105.3 million,
cash flow from operating activities before changes in operating
working capital of $27.7 million and
net income of $27.0 million or
earnings per share of $0.09.
All dollar amounts are expressed in United States dollars, unless otherwise
specified (C$ refers to Canadian dollars).
CEO Commentary
Pete
Dougherty, President and CEO stated: "It was our second
consecutive quarter of record quarterly production and
revenue. We demonstrated strong cash flow during the first
quarter, which underpins our strategy to harvest cash from the
existing operations, replace depleted ounces and invest in our
growth asset portfolio to transform Argonaut from a high-cost,
junior producer with short mine lives to a lower cost intermediate
producer with long mine lives. With the cash we are
generating, the recent announcement of an increase of Mineral
Reserves by 43% and Measured and Indicated Mineral Resources by 26%
year-over-year and the early progress of the Magino construction
project, we are delivering on all three phases."
___________________________
|
1 GEOs are based on a conversion
ratio of 85:1 for silver to gold for 2021 and 80:1 for 2020.
The silver to gold conversion ratio is based on the three-year
trailing average silver to gold price. These are the ratios
for each year throughout the press release.
|
Key operating and financial statistics for the three months
ended March 31, 2021 are outlined in
the following table:
|
3 months
ended March 31
|
Change
|
2021
|
2020
|
Financial Data (in
millions except for earnings per share)
|
|
|
|
Revenue
|
$105.3
|
$66.6
|
58%
|
Gross
profit
|
$27.6
|
$13.9
|
99%
|
Net income
(loss)
|
$27.0
|
($9.5)
|
382%
|
Earnings (loss) per
share – basic
|
$0.09
|
($0.05)
|
280%
|
Cash flow from
operating activities before changes in non-cash operating working
capital
|
$27.7
|
$14.8
|
88%
|
Cash and cash
equivalents
|
$227.3
|
$41.8
|
444%
|
Gold Production
and Cost Data
|
|
|
|
GEOs loaded to the
pads2
|
113,821
|
97,180
|
17%
|
GEOs projected
recoverable2,3
|
63,287
|
44,284
|
43%
|
GEOs
produced2,4
|
59,704
|
41,536
|
44%
|
GEOs
sold2
|
59,116
|
42,204
|
39%
|
Average realized
sales price
|
$1,761
|
$1,585
|
12%
|
Cash cost per gold
ounce sold1
|
$1,003
|
$967
|
4%
|
All-in sustaining
cost per gold ounce sold1
|
$1,313
|
$1,323
|
(1%)
|
1 Please
refer to the section below entitled "Non-IFRS Measures" for a
discussion of these Non-IFRS Measures.
|
2 GEOs are
based on a conversion ratio of 85:1 for silver to gold for 2021 and
80:1 for 2020. The silver to gold conversion ratio is based on the
three-year trailing average silver to gold ratio.
|
3 Expected
recoverable GEOs are based on the assumptions and parameters as set
forth in the El Castillo Complex Technical Report dated March 27,
2018, the La Colorada Gold/Silver Mine Technical Report dated March
27, 2018 and the Florida Canyon Technical Report dated July 8,
2020. In periods where the Company mines material not
specifically defined in a technical report (for example:
run-of-mine ore or low grade stockpile material), management uses
its best estimate of recovery based on the information
available.
|
4 Produced
ounces are calculated as ounces loaded to carbon.
|
First Quarter 2021 and Recent Company Highlights:
- Corporate Highlights:
-
- Set a new record for quarterly GEO production.
- Set a new record for quarterly revenue.
- Closed a C$26.5 million bought
deal of flow-through shares to fund qualifying development
expenditures at Magino.
- Completed a C$10.0 million
non-brokered private placement with Ausenco Engineering Canada
Inc.
- Strengthened the management team with the appointment of
Lowe J. Billingsley in the role of
Senior Vice President, Operations.
- Social and Environmental Responsibility:
-
- Inauguration of the "Solar Farm" solar panel park located at
La Colorada, in collaboration with
the Mining Fund and the municipality of La Colorada, Sonora.
- Continue work on our education initiative, the "Assignment's
Club", which assists mothers with pre-school and elementary school
students doing at-home study in the communities near the Cerro del
Gallo project.
- Distribution of food baskets and scholarships in communities
neighbouring the El Castillo Complex.
- El Castillo Complex:
-
- Produced 31,175 GEOs representing a 9% increase compared to the
first quarter of 2020.
- Reduced cash cost per gold ounce sold to $916 or by 3% compared to the first quarter of
2020 (see "Non-IFRS Measures" section).
- La Colorada:
-
- Produced 16,516 GEOs representing a 27% increase compared to
the first quarter of 2020.
- Reduced cash cost per gold ounce sold to $765 or by 25% compared to the first quarter of
2020 (see "Non-IFRS Measures" section).
- Discovered high-grade gold veins below the El Crestón open pit
including 12.2 metres at 98.9 g/t Au and 30.3 g/t Ag and 21.3
metres at 44.6 g/t Au and 274.9 g/t Ag.
- Florida Canyon:
-
- Produced 12,013 GEOs representing a 6% increase compared to the
previous quarter.
- Received all regulatory approvals required for the
construction, installation and operation of a new conveying and
stacking system.
- Magino:
-
- Construction, Permitting & Community
-
- Executed a fixed-bid contract for a significant portion of the
Magino project initial capital.
- Completed a major permitting milestone with the Magino Closure
Plan filing.
- Executed an Indigenous community accommodation agreement with
Garden River First Nation.
- Initiated and advanced the construction project,
including:
-
- Logging;
- Early site works;
- Assembled and mobilized teams and set up camps;
- Began installation of construction offices;
- Ordered all long lead time equipment; and,
- Held a virtual Indigenous ceremony to bless the grounds of the
Magino site.
- Launched a monthly newsletter from the CEO to provide regular
updates on the Magino construction project, which is available
here:
https://www.argonautgold.com/English/assets/development/magino/default.aspx
- Exploration
-
- Continued to intersect high-grade gold mineralization below and
adjacent to the planned pit and identified multiple new high-grade
structures hosting multiple veins:
-
- South zone strike length extended to 1.5 kilometers and remains
open to the west and at depth.
- Cerro del Gallo:
-
- Advanced an updated permit application for the project.
Financial Results – First Quarter 2021
Record
quarterly revenue was $105.3 million
for the first quarter of 2021, an increase from $66.6 million from the first quarter of 2020.
During the first quarter of 2021, the Company sold 56,727
gold ounces at an average realized price per ounce of $1,761, compared to 40,169 gold ounces sold at an
average price per ounce of $1,585
during the same period of 2020. Gold ounces sold for the
first quarter of 2021 increased 41% compared to the same period in
2020, primarily due to the addition of the gold ounces sold from
the Florida Canyon mine and by increases in gold ounces sold at the
San Agustin and La Colorada mines. The addition of a
Merrill Crowe recovery plant during
the fourth quarter of 2020 at San
Agustin and higher grades and better than expected
recoveries at La Colorada led to
higher production and sales, partially offset by a decrease in gold
ounces sold at the El Castillo
mine as a result of a decrease in grade and changing from crushed
to run of mine material during the first quarter of 2020.
Income from continuing operations for the first quarter of 2021
was $27.8 million or $0.09 per basic or diluted share compared to a
loss from continuing operations of $9.5
million or $0.05 per share in
the first quarter of 2020. Loss from discontinued operations
for the first quarter of 2021 was $0.8
million as a result of the Ana Paula project being
classified as a held-for-sale asset as at March 31, 2021 and as a discontinued operation
for the three months ended March 31,
2021. Net income for the first quarter of 2021 was
$27.0 million or $0.09 per basic or diluted share compared to a
net loss of $9.5 million or
$0.05 loss per share for the same
period in 2020.
Cash flow from operating activities before changes in non-cash
operating working capital for the first quarter of 2021 was
$27.7 million compared to
$14.8 million in the first quarter of
2020. The 88% increase is due to an 11% increase in the
average realized gold price, the increase in ounces sold due to the
addition of the Florida Canyon mine and the net increase in ounces
sold at the three mines in Mexico.
During the first quarter of 2021, cash increased by
$13.2 million due primarily to
$26.3 million of cash flows from
operations (including changes in non-cash operating capital and
other items), $19.5 million from
issuance of flow-through shares and $7.9
million from a private placement with Ausenco Engineering
Canada Inc., offset by $38.4 of
capital expenditures incurred, as compared to the first quarter of
2020 in which cash increased by $3.0
million due primarily to $18.6
million of cash flows from operations, partially offset by
$12.5 million of capital expenditures
incurred and the repayment of $3.0
million of debt.
Operating Results – First Quarter 2021
During the
first quarter of 2021, the Company achieved record quarterly
production of 59,704 GEOs at a cash cost per gold ounce sold of
$1,003 and an all-in sustaining cost
("AISC") per gold ounce sold of $1,313, compared to 41,536 GEOs at a cash cost of
$967 per gold ounce sold and an AISC
per gold ounce sold of $1,323 during
the first quarter of 2020 (see "Non-IFRS Measures" section). Higher
GEO production is primarily related to the addition of the Florida
Canyon mine and increased production at the San Agustin and La
Colorada mines. The addition of a Merrill Crowe recovery plant during the
fourth quarter of 2020 at San
Agustin and higher grades and better than expected
recoveries at La Colorada led to
higher production, partially offset by a decrease in GEOs produced
at the El Castillo mine as a
result of a decrease in grade and changing from crushed to run of
mine material during the first quarter of 2020.
Higher cash cost per gold ounce sold and AISC per gold ounce
sold was primarily due to the addition of the Florida Canyon mine,
which is currently Argonaut's highest cost operation.
FIRST QUARTER 2021 EL CASTILLO COMPLEX
OPERATING STATISTICS
|
3 Months Ended
March 31
|
|
2021
|
2020
|
%
Change
|
Mining (in 000s
except waste/ore ratio)
|
|
|
|
Tonnes ore El
Castillo
|
2,404
|
1,922
|
25%
|
Tonnes ore San
Agustin
|
2,870
|
2,709
|
6%
|
Tonnes
ore
|
5,274
|
4,631
|
14%
|
Tonnes waste El
Castillo
|
3,137
|
3,414
|
(8%)
|
Tonnes waste San
Agustin
|
1,774
|
1,869
|
(5%)
|
Tonnes
waste
|
4,911
|
5,283
|
(7%)
|
Tonnes mined El
Castillo
|
5,541
|
5,336
|
4%
|
Tonnes mined San
Agustin
|
4,644
|
4,578
|
1%
|
Tonnes
mined
|
10,185
|
9,914
|
3%
|
Tonnes per day El
Castillo
|
62
|
59
|
5%
|
Tonnes per day San
Agustin
|
52
|
50
|
4%
|
Tonnes per
day
|
114
|
109
|
5%
|
Waste/ore ratio El
Castillo
|
1.30
|
1.78
|
(27%)
|
Waste/ore ratio San
Agustin
|
0.62
|
0.69
|
(10%)
|
Waste/ore
ratio
|
0.93
|
1.14
|
(18%)
|
Leach Pads (in
000s)
|
|
|
|
Tonnes crushed East
to leach pads El Castillo
|
0
|
214
|
(100%)
|
Tonnes crushed West
to leach pads El Castillo
|
0
|
3
|
(100%)
|
Tonnes direct to
leach pads El Castillo
|
2,402
|
1,732
|
39%
|
Tonnes crushed to
leach pads San Agustin
|
2,982
|
2,733
|
9%
|
Tonnes to leach
pads
|
5,384
|
4,682
|
15%
|
Production
|
|
|
|
Gold grade loaded to
leach pads El Castillo (g/t)1
|
0.29
|
0.55
|
(47%)
|
Gold grade loaded to
leach pads San Agustin (g/t)1
|
0.27
|
0.36
|
(25%)
|
Gold grade loaded
to leach pads (g/t)1
|
0.28
|
0.44
|
(36%)
|
Gold loaded to leach
pads El Castillo (oz)2
|
22,176
|
34,471
|
(36%)
|
Gold loaded to leach
pads San Agustin (oz)2
|
25,910
|
31,255
|
(17%)
|
Gold loaded to
leach pads (oz)2
|
48,086
|
65,726
|
(27%)
|
Projected recoverable
GEOs loaded El Castillo4
|
9,737
|
13,072
|
(26%)
|
Projected recoverable
GEOs loaded San Agustin4
|
18,889
|
22,781
|
(17%)
|
Projected
recoverable GEOs loaded4
|
28,626
|
35,853
|
(20%)
|
Gold produced El
Castillo (oz)2,3
|
11,972
|
14,435
|
(17%)
|
Gold produced San
Agustin (oz)2,3
|
17,271
|
12,835
|
35%
|
Gold produced
(oz)2,3
|
29,243
|
27,270
|
7%
|
Silver produced El
Castillo (oz)2,3
|
21,795
|
23,545
|
(7%)
|
Silver produced San
Agustin (oz)2,3
|
142,431
|
75,504
|
89%
|
Silver produced
(oz)2,3
|
164,226
|
99,049
|
66%
|
GEOs produced El
Castillo3
|
12,228
|
14,729
|
(17%)
|
GEOs produced San
Agustin3
|
18,947
|
13,779
|
38%
|
GEOs
produced3
|
31,175
|
28,508
|
9%
|
Gold sold El Castillo
(oz)2
|
13,602
|
13,626
|
0%
|
Gold sold San Agustin
(oz)2
|
16,666
|
13,461
|
24%
|
Gold sold
(oz)2
|
30,268
|
27,087
|
11%
|
Silver sold El
Castillo (oz)2
|
21,118
|
23,545
|
(10%)
|
Silver sold San
Agustin (oz)2
|
128,921
|
85,137
|
51%
|
Silver sold
(oz)2
|
150,039
|
108,682
|
38%
|
GEOs sold El
Castillo
|
13,851
|
13,920
|
0%
|
GEOs sold San
Agustin
|
18,182
|
14,525
|
25%
|
GEOs
sold
|
32,033
|
28,445
|
13%
|
Cash cost per gold
ounce sold El Castillo5
|
$1,049
|
$1,099
|
(5%)
|
Cash cost per gold
ounce sold San Agustin5
|
$807
|
$782
|
3%
|
Cash cost per gold
ounce sold5
|
$916
|
$941
|
(3%)
|
1"g/t" is
grams per tonne.
|
2"oz"
means troy ounce.
|
3Produced ounces are calculated as
ounces loaded to carbon.
|
4Expected
recoverable GEOs are based on the assumptions and parameters as set
forth in the El Castillo Complex Technical Report dated March 27,
2018. In periods where the Company mines material not
specifically defined in a technical report (for example:
run-of-mine ore or low grade stockpile material), management uses
its best estimate of recovery based on the information
available.
|
5Please
refer to the section below entitled "Non-IFRS Measures" for a
discussion of this Non-IFRS Measure.
|
Summary of Production Results at the El Castillo
Complex – First Quarter 2021
During the first quarter of
2021, the El Castillo Complex produced 9% more GEOs at a cash cost
per gold ounce sold 3% less than during the first quarter of
2020. Higher GEO production was due to a 38% increase in
production at the San Agustin mine
offset by a 17% decrease in production at the El Castillo mine. Higher GEO production
at San Agustin was driven by a 9%
increase is crusher throughput and higher metal recoveries
associated with a Merrill Crowe
recovery plant that was installed during the fourth quarter of
2020. Lower GEO production at El
Castillo was primarily due to a 47% reduction in gold grades
loaded to the leach pads associated with anticipated recoveries
based on ore type and the change from crushed ore to run-of-mine
ore, which lowered unit costs and allowed for lower grade ore to
become economic. Cash cost per gold ounce sold was relatively
in line with the same period of 2020.
FIRST QUARTER 2021 LA COLORADA OPERATING STATISTICS
|
3 Months Ended
March 31
|
|
2021
|
2020
|
%
Change
|
Mining (in 000s
except for waste/ore ratio)
|
|
|
|
Tonnes ore
|
1,227
|
947
|
30%
|
Tonnes
waste
|
4,014
|
4,683
|
(14%)
|
Total
tonnes
|
5,241
|
5,630
|
(7%)
|
Tonnes per
day
|
59
|
62
|
(5%)
|
Waste/ore
ratio
|
3.27
|
4.95
|
(34%)
|
Leach Pads (in
000s)
|
|
|
|
Tonnes crushed to
leach pads
|
1,266
|
966
|
31%
|
Production
|
|
|
|
Gold grade loaded to
leach pads (g/t)1
|
0.54
|
0.35
|
54%
|
Gold loaded to leach
pads (oz)2
|
22,091
|
11,022
|
100%
|
Projected recoverable
GEOs loaded4
|
17,634
|
8,431
|
109%
|
Gold produced
(oz)2,3
|
15,894
|
12,349
|
29%
|
Silver produced
(oz)2,3
|
52,912
|
54,315
|
(3%)
|
GEOs
produced3
|
16,516
|
13,028
|
27%
|
Gold sold
(oz)2
|
13,630
|
13,082
|
4%
|
Silver sold
(oz)2
|
44,438
|
54,198
|
(18%)
|
GEOs sold
|
14,153
|
13,759
|
3%
|
Cash cost per gold
ounce sold5
|
$765
|
$1,021
|
(25%)
|
1 "g/t" refers to grams per
tonne.
|
2 "oz"
refers to troy ounce.
|
3 Produced
ounces are calculated as ounces loaded to carbon.
|
4 Expected recoverable GEOs are based
on the assumptions and parameters as set forth in the La Colorada
Gold/Silver Mine Technical Report dated March 27, 2018. In
periods where the Company mines material not specifically defined
in a technical report (for example: run-of-mine ore or low grade
stockpile material), management uses its best estimate of recovery
based on the information available.
|
5 Please refer to the section
below entitled "Non-IFRS Measures" for a discussion of this
Non-IFRS Measure.
|
Summary of Production Results at La Colorada – First Quarter 2021
During
the first quarter of 2021, the La
Colorada mine produced 27% more GEOs at a cash cost per gold
ounce sold 25% less than during the first quarter of 2020.
Higher GEO production was primarily due to a 54% increase in gold
grade and a 31% increase in crusher throughput. Lower cash
cost per gold ounce sold was primarily due to the increase in gold
grade and a 34% reduction in strip ratio.
FIRST QUARTER 2021 FLORIDA CANYON OPERATING
STATISTICS
|
3 Months
Ended
March 31
|
|
2021
|
Mining (in 000s
except for waste/ore ratio)
|
|
Tonnes ore
|
2,203
|
Tonnes
waste
|
3,228
|
Total
tonnes
|
5,431
|
Tonnes per
day
|
58
|
Waste/ore
ratio
|
1.47
|
Leach Pads (in
000s)
|
|
Tonnes crushed to
leach pads
|
1,795
|
Tonnes direct to
leach pads
|
412
|
Production
|
|
Gold grade loaded to
leach pads (g/t)1
|
0.34
|
Gold loaded to leach
pads (oz)2
|
23,915
|
Projected recoverable
GEOs loaded4
|
17,027
|
Gold produced
(oz)2,3
|
11,928
|
Silver produced
(oz)2,3
|
7,232
|
GEOs
produced3
|
12,013
|
Gold sold
(oz)2
|
12,829
|
Silver sold
(oz)2
|
8,535
|
GEOs sold
|
12,930
|
Cash cost per gold
ounce sold5
|
$1,462
|
1 "g/t"
refers to grams per tonne.
|
2 "oz"
refers to troy ounce.
|
3 Produced
ounces are calculated as ounces loaded to carbon.
|
4 Expected recoverable GEOs are based
on the assumptions and parameters as set forth in the Florida
Canyon Mine Technical Report dated July 8, 2020. In periods
where the Company mines material not specifically defined in a
technical report (for example: run-of-mine ore or low grade
stockpile material), management uses its best estimate of recovery
based on the information available.
|
5 Please refer to the section
below entitled "Non-IFRS Measures" for a discussion of this
Non-IFRS Measure.
|
Summary of Production Results at Florida
Canyon
As Argonaut did not own nor operate the Florida
Canyon mine during the first quarter of 2020, it is not making
comparisons to a previous period. Florida Canyon produced
12,013 GEOs at a cash cost of $1,462
per gold ounce sold during the first quarter of 2021 (see "Non-IFRS
Measures" section).
Argonaut has identified potentially significant operating cost
savings once it can eliminate the re-handle on the back end of the
secondary crushing by switching to a conveying and stacking system
to transport crushed ore to the leach pads. All necessary
regulatory approvals, including a modification to the existing Air
Quality permit, to allow for the construction, installation and
operation of a new conveying and stacking system have been received
(see press release dated April 28,
2021). The equipment associated with the conveying and
stacking system has been ordered and/or procured, and it is
estimated that the new system will be operational and ramped up to
design capacity during the third quarter of 2021. The capital
associated with the convey and stack project was included in
Argonaut's 2021 capital guidance (see press release dated
January 19,
2021).
Pete Dougherty commented: "All
three mines in Mexico are meeting
or exceeding our expectations to start the year and delivered
strong first quarter results, leading to record quarterly
production and revenue. We still have work to do to optimize
Florida Canyon and have a plan in place to do so now that the minor
modification to our Air Quality permit has been approved, which
will allow for the installation of a conveying and stacking
system. We believe this will significantly reduce operating
costs at Florida Canyon once it is installed and ramped up to
design specifications, and we expect to achieve this during the
third quarter of 2021. On a consolidated basis, we are on
track to meet our 2021 production, cost and capital guidance after
a solid first quarter."
Magino Construction Update
Site preparation and early site earthworks are well underway,
and the Magino construction project continues to advance on
schedule. Regular updates to the Magino construction project
progress are available here:
https://www.argonautgold.com/English/assets/development/magino/default.aspx
Recent milestones include:
- Logging completed and commenced scaling of hardwood and hauling
of softwood to local mills for processing and making firewood
available to local dealers;
- Initiated red spruce seedling grow program with Lakehead University Greenhouse;
- Fish capture and relocation program initiated with biologists
in preparation for construction water treat system
commissioning;
- Obtained draft Permit to Take Water in support of spring
construction works;
- Plant site stripping/excavation is 90% complete;
- Prep for plant footprint underway – includes drilling and
blasting;
- Pre-production reverse circulation (RC) grade control drilling
commenced;
- Main haul road to the open pit is established;
- Open pit overburden stripping is ongoing with production
drilling commencing;
- Crushing plant mobilized in a temporary set-up;
- Screening plant mobilized;
- Main office hub in Dubreuilville,
Ontario is online and operational;
- Completion of 144-person onsite camp modules 1 and 2, including
a large kitchen;
- Installed hydrophones at Goudreau Lake; and
- Installed 12 metre communications tower, server and
repeater.
Upcoming milestones:
- Commencing plant site pad blasting and continuing pad
development;
- Commencing open pit production drilling and blasting;
- Continuing onsite haul road construction to tailing management
facility (TMF) from open pit mine area;
- Completion of modules for the onsite 144-person camp and
commence pad construction for the 458-person camp at the old mill
site in Dubreuilville,
Ontario;
- Testing and taking I.T. and communications servers and towers
online;
- Ongoing RC grade control drilling program;
- Ordering of concrete aggregate; and
- Ausenco leadership team mobilizing on-site.
It is anticipated that the pace of capital spend will increase
late second quarter 2021 or early third quarter 2021 as the
following activities take place:
- Mining commences in support of construction and
pre-stripping;
- Process plant construction commences; and
- TMF construction commences.
An overview of the Magino construction project timeline through
2023 is provide below:
The Magino construction project is tracking on schedule.
Argonaut is currently reviewing all inputs including potential cost
inflation, impacts of foreign currency exchange rates and changes
in scope related to the initial capital estimate. While this
review is ongoing, based on the best available information to date,
the Company believes the initial capital remains within 15% of the
previous guided estimate of between C$480
million and C$510
million.
Outlook
Argonaut is on track to achieve its 2021 consolidated
production, cost and capital guidance. The table below
outlines the first quarter of 2021 actuals compared to full year
2021 guidance:
|
First Quarter
2021
|
Full Year 2021
Guidance
|
GEO
production
|
59,704
|
210,000 –
250,000
|
Cash cost per gold
ounce sold1
|
$1,003
|
$950 –
$1,050
|
AISC per gold ounce
sold1
|
$1,313
|
$1,250 –
$1,350
|
Capital (including
exploration and excluding Magino construction
capital)2
|
$12.3
million
|
$75 million – $85
million
|
Magino construction
capital2
|
$26.1
million
|
$180 million – $190
million
|
1 See
"Non-IFRS Measures" section.
|
2
Assumes exchanges rates of MXN:USD of 20:1 and CAD:USD of
1.3:1.
|
Argonaut Gold First Quarter 2021 Financial and Operating
Results Conference Call & Webcast
The Company will host
a conference call and webcast on May 5,
2021 at 9:00 am EDT to discuss
the first quarter 2021 financial and operating results.
First Quarter 2021 Conference Call Information for
May 5, 2021:
Toll Free (North
America):
|
1-888-231-8191
|
International:
|
1-647-427-7450
|
Conference
ID:
|
2067781
|
Webcast:
|
www.argonautgold.com
|
First Quarter 2021 Conference Call Replay:
Toll Free Replay Call
(North America):
|
1-855-859-2056
|
International Replay
Call:
|
1-416-849-0833
|
Passcode:
|
2067781
|
The conference call
replay will be available from 12:00 pm EDT on May 5, 2021 to 11:59
pm EST May 12, 2021.
|
Non-IFRS Measures
The Company has included certain
non-IFRS measures including "Cash cost per gold ounce sold" and
"All-in sustaining cost per gold ounce sold" in this press release
to supplement its financial statements which are presented in
accordance with International Financial Reporting Standards
("IFRS"). Cash cost per gold ounce sold is equal to
production costs plus the total impact of impairment write downs
related to work-in-process inventory less silver sales divided by
gold ounces sold. AISC per gold ounce sold is equal to
production costs plus the total impact of impairment write downs
related to work-in-process inventory less silver sales plus general
and administrative, exploration, accretion and other expenses and
sustaining capital expenditures divided by gold ounces sold.
The Company believes that these measures provide investors
with an alternative view to evaluate the performance of the
Company. Non-IFRS measures do not have any standardized
meaning prescribed under IFRS. Therefore they may not be
comparable to similar measures employed by other companies.
The data is intended to provide additional information and
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS.
Please see the management's discussion and analysis ("MD&A")
for full disclosure on non-IFRS measures.
This press release should be read in conjunction with the
Company's audited consolidated financial statements for the three
months ended March 31, 2021 and
associated MD&A, for the same period, which are available from
the Company's website, www.argonautgold.com, in the "Investors"
section under "Financial Reports", and under the Company's profile
on SEDAR at www.sedar.com.
Cautionary Note Regarding Forward-looking
Statements
This press release contains certain
"forward-looking statements" and "forward-looking information"
under applicable Canadian securities laws concerning the business,
operations and financial performance and condition of Argonaut Gold
Inc. ("Argonaut" or "Argonaut Gold"). Forward-looking statements
and forward-looking information include, but are not limited to
statements with respect to the realization of mineral reserve
estimates; the timing and amount of estimated future production;
costs of production; estimated production and mine life of the
various mineral projects of Argonaut; timing of approval for
modifications to existing permits; permitting and legal processes
in relation to mining permitting and approval; the benefits of the
development potential of the properties of Argonaut; the future
price of gold, copper, and silver; the estimation of mineral
reserves and resources; success of exploration activities; and
currency exchange rate fluctuations. Except for statements of
historical fact relating to Argonaut, certain information contained
herein constitutes forward-looking statements. Forward-looking
statements are frequently characterized by words such as "plan,"
"expect," "project," "intend," "believe," "anticipate", "estimate"
and other similar words, or statements that certain events or
conditions "may", "should" or "will" occur. Forward-looking
statements are based on the opinions and estimates of management at
the date the statements are made, and are based on a number of
assumptions and subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
Many of these assumptions are based on factors and events that are
not within the control of Argonaut and there is no assurance they
will prove to be correct.
Factors that could cause actual results to vary materially from
results anticipated by such forward-looking statements include
variations in ore grade or recovery rates, changes in market
conditions, risks relating to the availability and timeliness of
permitting and governmental approvals; risks relating to
international operations, fluctuating metal prices and currency
exchange rates, changes in project parameters, the possibility of
project cost overruns or unanticipated costs and expenses, labour
disputes and other risks of the mining industry, failure of plant,
equipment or processes to operate as anticipated.
These factors are discussed in greater detail in Argonaut's most
recent Annual Information Form and in the most recent Management's
Discussion and Analysis filed on SEDAR, which also provide
additional general assumptions in connection with these statements.
Argonaut cautions that the foregoing list of important factors is
not exhaustive. Investors and others who base themselves on
forward-looking statements should carefully consider the above
factors as well as the uncertainties they represent and the risk
they entail. Argonaut believes that the expectations reflected in
those forward-looking statements are reasonable, but no assurance
can be given that these expectations will prove to be correct and
such forward-looking statements included in this press release
should not be unduly relied upon. These statements speak only as of
the date of this press release.
Although Argonaut has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results
not to be anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Argonaut
undertakes no obligation to update forward-looking statements if
circumstances or management's estimates or opinions should change
except as required by applicable securities laws. The reader is
cautioned not to place undue reliance on forward-looking
statements. Statements concerning mineral reserve and resource
estimates may also be deemed to constitute forward-looking
statements to the extent they involve estimates of the
mineralization that will be encountered if the property is
developed. Comparative market information is as of a date prior to
the date of this document.
Qualified Person, Technical Information and Mineral
Properties Reports
Technical information included in this
release was supervised and approved by Brian Arkell, Argonaut's Vice President,
Exploration and a Qualified Person under NI 43-101. For
further information on the Company's material properties, please
see the reports as listed below on the Company's website or on
www.sedar.com:
El Castillo
Complex
|
NI 43-101 Technical
Report on Resources and Reserves, El Castillo Complex, Durango,
Mexico dated March 27, 2018 (effective date of March 7,
2018)
|
La Colorada
Mine
|
NI 43-101 Technical
Report on Resources and Reserves, La Colorada Gold/Silver Mine,
Hermosillo, Mexico dated March 27, 2018 (effective date of December
8, 2017)
|
Florida Canyon
Gold Mine
|
NI 43-101 Technical
Report on Mineral Resource and Mineral Reserve Florida Canyon Gold
Mine Pershing County, Nevada, USA dated July 8, 2020 (effective
date June 1, 2020)
|
Magino Gold
Project
|
Feasibility Study
Technical Report on the Magino Project, Ontario, Canada dated
December 21, 2017 (effective date November 8, 2017)
|
Cerro del Gallo
Project
|
Pre-Feasibility Study
Technical Report on the Cerro del Gallo Project, Guanajuato, Mexico
dated January 31, 2020 (effective date of October 24,
2019)
|
About Argonaut Gold
Argonaut Gold is a Canadian gold company engaged in exploration,
mine development and production. Its primary assets are the
El Castillo mine and San Agustin mine, which together form the El
Castillo Complex in Durango,
Mexico, the La Colorada
mine in Sonora, Mexico and the
Florida Canyon mine in Nevada,
USA. The Company also holds the construction stage Magino
project, the advanced exploration stage Cerro del Gallo project and
several other exploration stage projects, all of which are located
in North America.
For more information, contact:
Argonaut Gold Inc.
Dan Symons
Vice President, Corporate Development & Investor Relations
Phone: 416-915-3107
Email: dan.symons@argonautgold.com
Source: Argonaut Gold Inc.
SOURCE Argonaut Gold Inc.