Argonaut Gold Delivers Stable 3Q22 Results

Canadian company Argonaut Gold reported its 3Q22 operating and financial results, highlighting that despite facing challenges at its Mexican asset La Colorada, production reached expectations. In addition, the company expects that the new infill drilling programs will lead to better results in the coming quarters.

For 3Q22, the company reported production of 45,939 gold equivalent oz, a total revenue of US$75.3 million and a cash flow from operating activities of US$13.6 million. Argonaut furthermore recorded a net loss of US$1.3 million and an adjusted net income of US$0.2 million.

The company explained that there were fewer sales during the quarter due to timing issues. Additionally, Argonaut explained that the La Colorada and Florida Canyon mines experienced multiple issues during the quarter such as the block model performance and heavier-than-usual seasonal rains, especially at La Colorada. These challenges were primarily offset by the continued performance of the El Castillo Complex.

Argonaut anticipates it will produce between 200,000 and 230,000oz AuEq in 2022, 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. Argonaut said that while it is maintaining its 2022 production outlook, it is further tightening its cost guidance as inflation will drive up costs for key consumables.

The company also reported its main ESG achievements at its Mexican assets. At La Colorada, the company completed the Summer Argonauta 2022 course, which offered dance, singing and environmental responsibility classes to young people from the host community. In El Castillo, the company's closure plan was approved by the ejidos. In addition, the company explained that the CFE power line in San Agustín was put into operation, significantly reducing the project’s diesel consumption.

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production. Its primary assets are the El Castillo and San Agustin mines, which together form the El Castillo Complex in Durango, the La Colorada mine in Sonora and the Florida Canyon mine in Nevada, the 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.