1 "Cash Flow" refers to "Cash flow from operating activities before changes in non-cash operating working capital and other items". |
The Company also reports that following the appointment of
Magino Project Schedule
The Magino construction project currently remains on schedule for first gold pour by
Magino Project Financing
Since
First Quarter 2022 Results
Key operating and financial statistics for the first quarter ended
3 Months Ended | |||
2022 | 2021 | Change | |
Financial Data (in millions except for | |||
Revenue | —% | ||
Gross profit | (21%) | ||
Net income (loss) | (79%) | ||
Earnings (loss) per share - basic | (78%) | ||
Adjusted net income1 | 17% | ||
Adjusted earnings per share – basic1 | 28% | ||
Cash flow from operating activities | (9%) | ||
Cash and cash equivalents | (27%) | ||
Net cash | (62%) | ||
Gold Production and Cost Data | |||
GEOs loaded to the pads2 | 94,905 | 113,821 | (17%) |
GEOs projected recoverable2,3 | 54,751 | 63,287 | (13%) |
GEOs produced2,4 | 55,516 | 59,704 | (7%) |
GEOs sold2 | 56,373 | 59,116 | (5%) |
Average realized sales price | 6% | ||
Cash cost per gold ounce sold1 | 15% | ||
All-in sustaining cost per gold ounce | 8% |
1This is a Non-IFRS Measure. Please refer to the section below entitled "Non-IFRS Measures" for a discussion of these Non-IFRS Measures. |
First Quarter 2022 and Recent Company Highlights:
- Corporate Highlights:
- GEO production of 55,516 GEOs.
- Cash flow before changes in working capital and other items of
$25.1 million . - Strengthened leadership with the appointment of
Larry Radford as President, CEO and Director effectiveMarch 21, 2022 . - Closed flow-through equity financing of
C$51.8 million , including full exercise of over-allotment option (see press release datedMarch 3 , 2022). - Entered into gold price protection through forward sales contracts for the remainder of the Magino construction phase with 7,500 gold ounces monthly between
April 2022 andMarch 2023 , for a total of 90,000 gold ounces, at$1,916 /oz. - Social and Environmental Responsibility
- Hosted meetings with the Mayors and Councillors of the communities of
Dubreuilville , Wawa andWhite River to discuss Magino's construction progress, project status and employment statistics. - Sponsored local events in the communities near Magino including
Wawa's Annual Ice Fishing Derby, theWawa Minor Hockey Association hockey tournament, TheAlzheimer's Society "Walk for Alzheimer's" and made donations to Journée de Femmes inDubreuilville for International Women's Day. - Hosted conferences at
La Colorada andEl Castillo for International Women's Day. - Delivered educational scholarships to students in the municipality of
La Colorada . - Hosted a mine tour of
Florida Canyon for students of theWinnemucca's Albert Lowry High School . - Partnered with Winnemucca County to ensure maintenance of the county access road to
Florida Canyon during inclement weather. El Castillo - Production of 11,611 GEOs at a cash cost per gold ounce sold of
$1,226 (This is a Non-IFRS Measure. Please see "Non-IFRS Measures" section). - Filed updated Technical Report on
February 14, 2022 . San Agustin - Production of 19,902 GEOs at a cash cost per gold ounce sold of
$945 (This is a Non-IFRS Measure. Please see "Non-IFRS Measures" section). - Filed updated Technical Report on
February 14, 2022 . La Colorada - Production of 13,783 GEOs at a cash cost per gold ounce sold of
$957 (This is a Non-IFRS Measure. Please see "Non-IFRS Measures" section). - Filed updated Technical Report on
February 14, 2022 . Florida Canyon - Production of 10,220 GEOs at a cash cost per gold ounce sold of
$1,654 (This is a Non-IFRS Measure. Please see "Non-IFRS Measures" section). - Magino
- Construction
- At
March 31, 2022 , the Magino construction project was estimated at approximately 50% complete and remains on schedule for first gold pour byMarch 31, 2023 . Recent major milestones included: - Completed process plant building steel erection and roof with wall cladding well advanced;
- Continued installation of the SAG mill rebar and formwork;
- Commenced pouring of concrete for leach tank pads;
- Installed cranes in building;
- Continued backfill in main carbon-in-pulp tank area and south end of process plant;
- Installation of conduit through the grinding area;
- Overburden removal and rock placement in the North, Northwest and Southwest embankments for the
Water Quality Control Pond ; - Continued construction of Tailings Management Facility; and
- Continued logging initiatives.
- Filed updated Technical Report on
March 3, 2022 . - Exploration
- Continued to intersect high-grade gold mineralization below the planned Magino open pit including (see
February 14, 2022 press release): - 4.0m at 26.7 g/t Au, including 2.0m at 53.2 g/t Au
- 3.0m at 11.1 g/t Au, including 1.0m at 30.0 g/t Au
Financial Results – First Quarter 2022
Revenue for the first quarter of 2022 was
Net income for the first quarter of 2022 was
Adjusted net income for the first quarter of 2022 was
Cash flows from operating activities before changes in non-cash operating working capital and other items totaled
Operational Results – First Quarter 2022
During the first quarter of 2022, the Company achieved production of 55,516 GEOs at a cash cost per gold ounce sold of
FIRST QUARTER 2022 EL CASTILLO COMPLEX OPERATING STATISTICS
3 Months Ended | |||
2022 | 2021 | % Change | |
Mining (in 000s except waste/ore ratio) | |||
Tonnes ore | 1,511 | 2,404 | (37%) |
Tonnes ore | 2,817 | 2,870 | (2%) |
Tonnes ore | 4,328 | 5,274 | (18%) |
Tonnes waste | 2,927 | 3,137 | (7%) |
Tonnes waste | 1,927 | 1,774 | 9% |
Tonnes waste | 4,854 | 4,911 | (1%) |
Tonnes mined | 4,438 | 5,541 | (20%) |
Tonnes mined | 4,744 | 4,644 | 2% |
Tonnes mined | 9,182 | 10,185 | (10%) |
Tonnes per day | 50 | 62 | (20%) |
Tonnes per day | 53 | 52 | 2% |
Tonnes per day | 103 | 114 | (10%) |
Waste/ore ratio | 1.94 | 1.30 | 49% |
Waste/ore ratio | 0.68 | 0.62 | 10% |
Waste/ore ratio | 1.12 | 0.93 | 20% |
Leach Pads (in 000s) | |||
Tonnes direct to leach pads | 1,511 | 2,402 | (37%) |
Tonnes crushed to leach pads | 2,815 | 2,982 | (6%) |
Tonnes to leach pads | 4,326 | 5,384 | (20%) |
Production | |||
Gold grade loaded to leach pads | 0.29 | 0.29 | —% |
Gold grade loaded to leach pads | 0.29 | 0.27 | 7% |
Gold grade loaded to leach pads (g/t)1 | 0.29 | 0.28 | 4% |
Gold loaded to leach pads | 14,274 | 22,176 | (36%) |
Gold loaded to leach pads | 26,624 | 25,910 | 3% |
Gold loaded to leach pads (oz)2 | 40,898 | 48,086 | (15%) |
Projected recoverable GEOs loaded | 6,840 | 9,737 | (30%) |
Projected recoverable GEOs loaded | 18,295 | 18,889 | (3%) |
Projected recoverable GEOs loaded4 | 25,135 | 28,626 | (12%) |
Gold produced | 11,432 | 11,972 | (5%) |
Gold produced | 18,400 | 17,271 | 7% |
Gold produced (oz)2 | 29,832 | 29,243 | 2% |
Silver produced | 14,297 | 21,795 | (34%) |
Silver produced | 120,168 | 142,431 | (16%) |
Silver produced (oz)2,3 | 134,465 | 164,226 | (18%) |
GEOs produced | 11,611 | 12,228 | (5%) |
GEOs produced | 19,902 | 18,947 | 5% |
GEOs produced3 | 31,513 | 31,175 | 1% |
Gold sold | 13,569 | 13,602 | —% |
Gold sold | 17,203 | 16,666 | 3% |
Gold sold (oz)2 | 30,772 | 30,268 | 2% |
Silver sold | 14,900 | 21,118 | (29%) |
Silver sold | 123,478 | 128,921 | (4%) |
Silver sold (oz)2 | 138,378 | 150,039 | (8%) |
GEOs sold | 13,755 | 13,851 | (1%) |
GEOs sold | 18,746 | 18,182 | 3% |
GEOs sold | 32,501 | 32,033 | 1% |
Cash cost per gold ounce sold | $ 1,226 | $ 1,049 | 17% |
Cash cost per gold ounce sold | $ 945 | $ 807 | 17% |
Cash cost per gold ounce sold5 | $ 1,069 | $ 916 | 17% |
1 "g/t" refers to grams per tonne. |
Summary of Production Results at the
During the first quarter of 2022, the
FIRST QUARTER 2022 LA COLORADA OPERATING STATISTICS
3 Months Ended | |||
2022 | 2021 | % Change | |
Mining (in 000s except for waste/ore ratio) | |||
Tonnes ore | 1,125 | 1,227 | (8%) |
Tonnes waste | 5,337 | 4,014 | 33% |
Tonnes mined | 6,462 | 5,241 | 23% |
Tonnes per day | 73 | 59 | 23% |
Waste/ore ratio | 4.74 | 3.27 | 45% |
Leach Pads (in 000s) | |||
Tonnes crushed to leach pads | 1,120 | 1,266 | (12%) |
Production | |||
Gold loaded to leach pads (g/t)1 | 0.45 | 0.54 | (17%) |
Gold loaded to leach pads (oz)2 | 16,284 | 22,091 | (26%) |
Projected recoverable GEOs loaded4 | 12,314 | 17,634 | (30%) |
Gold produced (oz)2,3 | 13,341 | 15,894 | (16%) |
Silver produced (oz)2,3 | 35,368 | 52,912 | (33%) |
GEOs produced3 | 13,783 | 16,516 | (17%) |
Gold sold (oz)2 | 13,080 | 13,630 | (4%) |
Silver sold (oz)2 | 35,285 | 44,438 | (21%) |
GEOs sold | 13,521 | 14,153 | (4%) |
Cash cost per gold ounce sold5 | $ 957 | $ 765 | 25% |
1 "g/t" refers to grams per tonne. |
Summary of Production Results at
During the first quarter of 2022, the
FIRST QUARTER 2022 FLORIDA CANYON OPERATING STATISTICS
3 Months Ended | |||
2022 | 2021 | % Change | |
Mining (in 000s except for waste/ore ratio) | |||
Tonnes ore | 2,186 | 2,203 | (1%) |
Tonnes waste | 2,813 | 3,228 | (13%) |
Tonnes mined | 4,999 | 5,431 | (8%) |
Tonnes per day | 54 | 58 | (8%) |
Waste/ore ratio | 1.29 | 1.47 | (12%) |
Leach Pads (in 000s) | |||
Tonnes direct to leach pads | 601 | 412 | 46% |
Tonnes crushed to leach pads | 1,684 | 1,795 | (6%) |
Production | |||
Gold grade loaded to leach pads (g/t)1 | 0.39 | 0.34 | 15% |
Gold loaded to leach pads (oz)2 | 28,370 | 23,915 | 19% |
Projected recoverable GEOs loaded4 | 17,302 | 17,027 | 2% |
Gold produced (oz)2,3 | 10,092 | 11,928 | (15%) |
Silver produced (oz)2,3 | 10,223 | 7,232 | 41% |
GEOs produced3 | 10,220 | 12,013 | (15%) |
Gold sold (oz)2 | 10,255 | 12,829 | (20%) |
Silver sold (oz)2 | 7,643 | 8,546 | (11%) |
GEOs sold | 10,351 | 12,930 | (20%) |
Cash cost per gold ounce sold5 | 13% |
1 "g/t" refers to grams per tonne. |
Summary of Production Results at
During the first quarter of 2022, the
Guidance and Outlook
Argonaut maintains its 2022 production and cost guidance as outlined in the table below. Due to the current inflationary environment, the Company will continue to monitor inputs to its cost profile and make adjustments to cost guidance if and when appropriate.
2022 GEO Production and Cost Guidance
Q1 2022 (Actual) | Full Year 2022 Guidance | ||
GEO production | In 000s | 55,516 | 200 – 230 |
Cash costs1 | $ per oz Au | 1,153 | 1,100 – 1,190 |
AISC1 | $ per oz Au | 1,430 | 1,415 – 1,525 |
1This is a Non-IFRS Measure. Please see "Non-IFRS Measures" section. |
As Argonaut is currently advancing financing and strategic alternatives to fund the remainder of the Magino construction project, it intends to provide full year 2022 capital guidance after financing is in place. The largest component of the projected 2022 capital spend will be the Magino construction project where Argonaut forecasts it will invest approximately
Argonaut Gold First Quarter 2022 Operational and Financial Results Conference Call and Webcast:
The Company will host a conference call and webcast to discuss its first quarter ended
Q1 2022 Conference Call Information | |
Toll Free ( | 1-888-664-6392 |
International: | 1-416-764-8659 |
Conference ID: | 00692888 |
Webcast: | www.argonautgold.com |
Q1 2022 Conference Call Replay | |
Toll Free Replay Call ( | 1-888-390-0541 |
International Replay Call: | 1-416-764-8677 |
Replay Entry Code: | 692888# |
The conference call and replay will be available from
Non-IFRS Measures
The Company has included certain non-IFRS measures including "Cash cost per gold ounce sold", "All-in sustaining cost per gold ounce sold", "Adjusted net income", "Adjusted earnings per share – basic" and "Net cash" 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 less silver sales divided by gold ounces sold. All-in sustaining cost per gold ounce sold is equal to production costs less silver sales plus general and administrative, exploration, accretion and other expenses and sustaining capital expenditures divided by gold ounces sold. Adjusted net income is equal to net income less foreign exchange impacts on deferred income taxes, foreign exchange (gains) losses, non-cash impairment write down (reversal) of work-in-process inventory, non-cash impairment write down (reversal) of mineral, properties, plant and equipment, unrealized (gains) losses on derivatives and care and maintenance expenses. Adjusted earnings per share – basic is equal to adjusted net income divided by the basic weighted average number of common shares outstanding. Net cash is calculated as the sum of the cash and cash equivalents balance net of debt as at the statement of financial position date. 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.
The following table provides a reconciliation of production costs per the financial statements to cash cost per gold ounce sold:
Three months ended | ||
2022 | 2021 | |
Production costs, as reported ($000s) | $ 16,995 | $ 14,830 |
Less silver sales ($000s) | 363 | 565 |
Net cost of sales ($000s) | $ 16,632 | $ 14,265 |
Gold ounces sold | 13,569 | 13,602 |
Cash cost per gold ounce sold | $ 1,226 | $ 1,049 |
Three months ended | ||
2022 | 2021 | |
Production costs, as reported ($000s) | $ 19,260 | $ 16,884 |
Less silver sales ($000s) | 3,000 | 3,432 |
Net cost of sales ($000s) | $ 16,260 | $ 13,452 |
Gold ounces sold | 17,203 | 16,666 |
Cash cost per gold ounce sold | $ 945 | $ 807 |
Three months ended | ||
2022 | 2021 | |
Production costs, as reported ($000s) | $ 13,381 | $ 11,596 |
Less silver sales ($000s) | 858 | 1,167 |
Net cost of sales ($000s) | $ 12,523 | $ 10,429 |
Gold ounces sold | 13,080 | 13,630 |
Cash cost per gold ounce sold | $ 957 | $ 765 |
Three months ended | ||
2022 | 2021 | |
Production costs, as reported ($000s) | $ 17,153 | $ 18,986 |
Less silver sales ($000s) | 187 | 227 |
Net cost of sales ($000s) | $ 16,966 | $ 18,759 |
Gold ounces sold | 10,255 | 12,829 |
Cash cost per gold ounce sold | $ 1,654 | $ 1,462 |
All Mines | Three months ended | |
2022 | 2021 | |
Production costs, as reported ($000s) | $ 66,789 | $ 62,295 |
Less silver sales ($000s) | 4,408 | 5,391 |
Net cost of sales ($000s) | $ 62,381 | $ 56,904 |
Gold ounces sold | 54,107 | 56,727 |
Cash cost per gold ounce sold | $ 1,153 | $ 1,003 |
AISC includes net cost of sales at the Company's mining operations, which forms the basis of the Company's cash cost per gold ounce sold. Additionally, the Company includes general and administrative, exploration, accretion and other expenses, and sustaining capital expenditures. Sustaining capital expenditures exclude all expenditures at the Company's pre-production, development stage, and advanced exploration stage projects and certain expenditures at the Company's operating sites that are deemed expansionary in nature.
The following table provides a reconciliation of AISC per gold ounce sold to the consolidated financial statements:
Three months ended | ||
2022 | 2021 | |
Net cost of sales ($000s) | $ 62,381 | $ 56,904 |
General and administrative expenses ($000s) | 5,021 | 4,766 |
Exploration expenses ($000s) | 367 | 621 |
Accretion and other expenses ($000s) | 3,295 | 2,679 |
Sustaining capital expenditures ($000s) | 6,313 | 9,808 |
AISC ($000s) | $ 77,377 | $ 74,778 |
Gold ounces sold | 54,107 | 56,727 |
AISC per gold ounce sold | $ 1,430 | $ 1,318 |
Adjusted net income and adjusted earnings per share - basic exclude a number of temporary or one-time items described in the following table, which provides a reconciliation of adjusted net income to the consolidated financial statements:
Three months ended | ||
2022 | 2021 | |
Net income, as reported ($000s) | $ 5,618 | $ 27,007 |
Unrealized losses (gains) on derivatives ($000s) | 1,465 | (19,780) |
Impact of foreign exchange on deferred income taxes ($000s) | (718) | 1,207 |
Sale of marketable securities ($000s) | 534 | — |
Proceeds from legal proceeding ($000s) | 498 | — |
Reversal of inventory write-down, net of tax ($000s) | (119) | (1,409) |
Foreign exchange losses (gains), net of tax ($000s) | 955 | (22) |
Adjusted net income ($000s) | $ 8,233 | $ 7,003 |
Weighted average number of common shares outstanding, as reported | 311,052,835 | 299,490,756 |
Adjusted earnings per share - basic | $ 0.03 | $ 0.02 |
Net cash is calculated as the sum of the cash and cash equivalents balance net of debt as at the statement of financial position date. The net debt calculation excludes the convertible debentures and lease liabilities, due to the nature of the obligations, in order to show the nominal undiscounted debt.
A reconciliation of net cash is provided below:
|
| |
Cash and cash equivalents ($000s) | $ 166,078 | $ 199,235 |
Debt ($000s) | (80,000) | (80,000) |
Net cash ($000s) | $ 86,078 | $ 119,235 |
This press release should be read in conjunction with the Company's unaudited interim condensed consolidated financial statements for the three months ended
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
Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include the availability and changing terms of financing, variations in ore grade or recovery rates, changes in market conditions, changes in inflation, 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, the impact of COVID-19 and the impact and effectiveness of governmental responses to COVID-19, 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
| |
NI 43-101 Technical Report on Mineral Resource and | |
NI 43-101 Technical Report Mineral Resource and Mineral Reserve Update dated | |
Pre-Feasibility Study Technical Report on the |
About
SOURCE
© Canada Newswire, source