Argonaut Gold Announces Record Gold Production, Revenue
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Argonaut Gold Announces Record Gold Production, Revenue

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Karin Dilge By Karin Dilge | Journalist and Industry Analyst - Fri, 03/04/2022 - 16:32

Canadian company Argonaut Gold announced a record annual production of 244,156oz of AuEq, leading to a record annual revenue of US$437 million and the company’s best ever annual cash flow of US$125 million. Argonaut’s La Colorada mine, located in Sonora, played a significant part in these results.

“2021 was a solid year operationally, as we achieved record annual production, which led to record annual revenue and a record annual cash flow. We achieved more than our production guidance at La Colorada, near the top of production guidance at El Castillo and San Agustin and near the midpoint of our production guidance at Florida Canyon,” said Dan Symons, Vice President Corporate Development & Investor Relations, Argonaut Gold.

“On a consolidated basis, we achieved results near the mid-point of our cost guidance. At the Magino construction project, we continue to make good progress and remain on schedule. We anticipate having secured the required financing, primarily in the form of debt financing, by 2Q22 to fund the remainder of the Magino construction capital,” added Symons.

For 4Q21, the company reported production of 61,926oz AuEq, total revenue of US$102.9 million and a cash flow from operating activities of US$18.3 million. Argonaut furthermore recorded a net loss of US$37.3 million or loss per share of US$0.12 and an adjusted net income of US$10.2 million or adjusted earning per basic share of US$0.03. Moreover, the company acquired key mineral concessions surrounding the San Agustin mine for US$5.75 million, which  more than quadruples the mineral tenure in the San Agustin district.

Regarding the company’s production and cost guidance for 2022, Argonaut anticipates it will produce between 200,000 and 230,000oz AuEq, at a cash cost of between US$1,100 and US$1,190/oz of gold sold and an all-in sustaining cost (AISC) of between US$1,415 and US$1,525/oz of gold sold. The company furthermore anticipates that higher cash taxes will impact cash flow in 2022, particularly during the 1Q22 when most of the final tax payments for 2021 are made.

Besides its financial achievements, Argonaut also reported improvements in its social and environmental approach. For example, the company received a Mexican recognition as a Socially Responsible Company by the Mexican Center for Philanthropy (CEMEFI) for the tenth consecutive year. It also installed solar panels to power water well pumps for a school in a community near San Agustin and donated arts and crafts supplies to children near the El Castillo community.

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production. Its primary assets are the El Castillo and San Agustin mine, which together form the El Castillo Complex in Durango, the La Colorada mine in Sonora and the Florida Canyon mine in Nevada, US. The company also owns the construction stage Magino project, the advanced exploration stage Cerro del Gallo project and several other exploration stage projects, all of which are in North America.

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