Key operating and financial statistics for the three months and six months ended
3 Months Ended | 6 Months Ended | |||||
2021 | 2020 | Change | 2021 | 2020 | Change | |
Financial Data (in millions except for earnings per share) | ||||||
Revenue | 107% | 81% | ||||
Gross profit | 125% | 114% | ||||
Net income (loss) | ( | 383% | ( | 383% | ||
Earnings (loss) per share - basic | ( | 275% | ( | 268% | ||
Adjusted net income1 | 186% | 90% | ||||
Adjusted earnings per share – basic1 | 72% | 16% | ||||
Cash flow from operating activities before changes in non-cash operating working capital | 234% | 153% | ||||
Cash and cash equivalents | 231% | 231% | ||||
Gold Production and Cost Data | ||||||
GEOs loaded to the pads2 | 130,414 | 40,309 | 224% | 244,235 | 137,489 | 78% |
GEOs projected recoverable3 | 71,032 | 20,105 | 253% | 134,319 | 64,389 | 109% |
GEOs produced2,4 | 63,749 | 31,531 | 102% | 123,452 | 73,067 | 69% |
GEOs sold2 | 65,650 | 34,196 | 92% | 124,768 | 76,400 | 63% |
Average realized sales price | 6% | 9% | ||||
Cash cost per gold ounce sold1 | (1%) | 1% | ||||
All-in sustaining cost per gold ounce sold1 | 10% | 3% |
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 |
4 Produced ounces are calculated as ounces loaded to carbon. |
Second Quarter 2021 and Recent Company Highlights:
- Corporate
- Set a new record for quarterly GEO production – the third consecutive quarter of record quarterly production.
- Set a new record for quarterly revenue – the second consecutive quarter of record quarterly revenue.
- Social Responsibility
- Delivered monthly student scholarship in communities near the
El Castillo Complex . - Continued elementary student support with the
Homework Club program, which is part of the Community Development Program in communities near Cerro del Gallo. - Continued sanitization campaigns in the community near
La Colorada , which included the delivery of supplies to local business owners. - Sponsored the Color the Mucc race event hosted by the
Humboldt Chamber of Commerce , which helps fund community youth scholarships in the communities nearFlorida Canyon . El Castillo Complex - Second quarter production of 32,663 GEOs.
El Castillo production of 12,929 GEOs.San Agustin production of 19,734 GEOs.- Completed construction of Phase 4 leach pad expansion at
San Agustin on schedule and budget. La Colorada - Second quarter production of 17,288 GEOs.
- Reduction in cash cost per gold ounce sold of 48% compared to the second quarter of 2020 (see Non-IFRS Measures section).
- Discovered high-grade gold veins below the El Créston 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 (see press release dated
April 26 , 2021). Florida Canyon - Second quarter production of 13,798 GEOs.
- Reduction in cash cost per gold ounce sold of 24% from the previous quarter.
- Received Air Quality Permit modification.
- Completed the construction and installation of a new conveying and stacking system, which is expected to be ramped up to design capacity during the third quarter of 2021.
- Magino
- Construction
- Completed critical path 2021 logging activities;
- Initiated fish capture and relocation program in preparation for construction water treatment system commissioning;
- Completed reverse circulation (RC) grade control drilling program;
- Commenced open pit overburden stripping;
- Mobilized crushing and screening plants;
- Opened main office hub in
Dubreuilville, Ontario ; - Completed construction of 144-person onsite camp;
- Completed construction of a 458-person camp;
- Installed 12-metre communications tower, server and repeater;
- Mobilized the concrete batch plant;
- Commenced concrete mixing at the plant site;
- Completed mobilization and installation of fuel attendant trailer at fuel bay;
- Installed multiple sump systems at plant site and completed all high density polyethylene piping (HDPE) from plant site to historical tailings pond; and
- Received the majority of pre-production mining equipment onsite.
- Community & Permitting
- Held ground breaking ceremony with members of the Provincial and Municipal governments and local Indigenous communities.
- Initiated red spruce seedling grow program with Lakehead University Greenhouse;
- Participated in an Information Session with Métis Nation of Ontario Education and Training Branch;
- Participated in separate meetings with Missanabie Cree First Nation, Métis Nation of
Ontario andBatchewana First Nation to provide project and environmental updates; - Participated in a virtual presentation hosted by the Société Économique de l'
Ontario et Association Francophone du Nord Ouest de l'Ontario ; - Hosted a site tour with three members of the Environmental Stewardship for Michipicoten First Nation; and
- Assisted in community donations to support the Wawa hospital (
Lady Dunn Health Centre ) and theTown of Dubreuilville for training support. - Exploration
- Continued to have exploration success at targeting high-grade gold mineralization below and adjacent to the planned open pit, including 7.0 metres at 13.3 g/t Au and 8.0 metres at 7.7 g/t Au (see press release dated
July 8 , 2021). - Monthly newsletter
- Argonaut continues to issue a monthly newsletter to provide its stakeholders with regular Magino project updates. To receive monthly newsletters, please register your email at www.argonautgold.com or to view recently issued newsletters, please visit https://www.argonautgold.com/English/assets/development/magino/default.aspx
Financial Results – Second Quarter 2021
Record quarterly revenue was
Net income for the second quarter of 2021 was
Adjusted net incomeii for the second quarter of 2021 was
Cash flows from operating activities before changes in non-cash operating working capital totaled
Financial Results – First Half 2021
Revenue for the six months ended
Net income for the six months ended June 30, 2021 was
Adjusted net incomeii for the six months ended June 30, 2021 was
Cash flows from operating activities before changes in non-cash operating working capital totaled
Operational Results – Second Quarter 2021
During the second quarter 2021, the Company achieved record quarterly production of 63,749 GEOs at a cash cost of $876 per gold ounce sold and all-in sustaining cost ("AISC") of
SECOND QUARTER 2021 EL CASTILLO COMPLEX OPERATING STATISTICS
3 Months Ended | 6 Months Ended | |||||
2021 | 2020 | % | 2020 | 2019 | % | |
Mining (in 000s except waste/ore ratio) | ||||||
Tonnes ore | 2,496 | 902 | 177% | 4,900 | 2,824 | 74% |
Tonnes ore | 2,718 | 1,172 | 132% | 5,588 | 3,881 | 44% |
Tonnes ore | 5,214 | 2,074 | 151% | 10,488 | 6,705 | 56% |
Tonnes waste | 2,473 | 770 | 221% | 5,610 | 4,184 | 34% |
Tonnes waste | 1,738 | 584 | 198% | 3,512 | 2,453 | 43% |
Tonnes waste | 4,211 | 1,354 | 211% | 9,122 | 6,637 | 37% |
Tonnes mined | 4,969 | 1,672 | 197% | 10,510 | 7,008 | 50% |
Tonnes mined | 4,456 | 1,756 | 154% | 9,100 | 6,334 | 44% |
Tonnes mined | 9,425 | 3,428 | 175% | 19,610 | 13,342 | 47% |
Tonnes per day | 55 | 18 | 203% | 58 | 39 | 50% |
Tonnes per day | 49 | 19 | 158% | 51 | 35 | 44% |
Tonnes per day | 104 | 37 | 180% | 109 | 74 | 47% |
Waste/ore ratio | 0.99 | 0.85 | 16% | 1.14 | 1.48 | (23%) |
Waste/ore ratio | 0.64 | 0.50 | 28% | 0.63 | 0.63 | — |
Waste/ore ratio | 0.82 | 0.68 | 21% | 0.89 | 1.06 | (16)% |
Leach Pads (in 000s) | ||||||
Tonnes crushed to East leach pads | 0 | 64 | (100%) | 0 | 278 | (100%) |
Tonnes crushed to West leach pads | 0 | 0 | — | 0 | 3 | (100%) |
Tonnes direct to leach pads | 2,488 | 903 | 176% | 4,890 | 2,635 | 86% |
Tonnes crushed to leach pads | 2,962 | 1,191 | 149% | 5,944 | 3,924 | 51% |
Tonnes to leach pads | 5,450 | 2,158 | 153% | 10,835 | 6,840 | 58% |
Production | ||||||
Gold grade loaded to leach pads | 0.25 | 0.43 | (42%) | 0.27 | 0.51 | (47%) |
Gold grade loaded to leach pads | 0.32 | 0.33 | (3%) | 0.29 | 0.35 | (17%) |
Gold loaded to leach pads (g/t)1 | 0.29 | 0.37 | (22%) | 0.28 | 0.42 | (33%) |
Gold loaded to leach pads | 19,973 | 13,386 | 49% | 42,149 | 47,857 | (12%) |
Gold loaded to leach pads | 30,280 | 12,609 | 140% | 56,190 | 43,864 | 28% |
Gold loaded to leach pads (oz)2 | 50,253 | 25,995 | 93% | 98,339 | 91,721 | 7% |
Projected recoverable GEOs loaded | 10,859 | 5,547 | 96% | 20,596 | 18,619 | 11% |
Projected recoverable GEOs loaded | 21,454 | 8,951 | 140% | 40,342 | 31,732 | 27% |
Projected recoverable GEOs loaded4 | 32,313 | 14,498 | 123% | 60,939 | 50,351 | 21% |
Gold produced | 12,723 | 9,151 | 39% | 24,695 | 23,586 | 5% |
Gold produced | 18,105 | 13,403 | 35% | 35,376 | 26,238 | 35% |
Gold produced (oz)2,3 | 30,828 | 22,554 | 37% | 60,071 | 49,824 | 21% |
Silver produced | 17,445 | 19,547 | (11%) | 39,240 | 43,092 | (9%) |
Silver produced | 138,470 | 69,242 | 100% | 280,901 | 144,746 | 94% |
Silver produced (oz)2,3 | 155,915 | 88,789 | 76% | 320,141 | 187,838 | 70% |
GEOs produced | 12,929 | 9,394 | 38% | 25,157 | 24,123 | 4% |
GEOs produced | 19,734 | 14,268 | 38% | 38,681 | 28,047 | 38% |
GEOs produced3 | 32,662 | 23,662 | 38% | 63,837 | 52,170 | 22% |
Gold sold | 12,614 | 11,008 | 15% | 26,216 | 24,634 | 6% |
Gold sold | 18,829 | 14,293 | 32% | 35,495 | 27,754 | 28% |
Gold sold (oz)2 | 31,443 | 25,301 | 24% | 61,711 | 52,388 | 18% |
Silver sold | 19,093 | 19,547 | (2%) | 40,211 | 43,092 | (7%) |
Silver sold | 144,867 | 71,042 | 104% | 273,788 | 156,179 | 75% |
Silver sold (oz)2 | 163,960 | 90,589 | 81% | 313,999 | 199,271 | 58% |
GEOs sold | 12,838 | 11,253 | 14% | 26,689 | 25,173 | 6% |
GEOs sold | 20,534 | 15,181 | 35% | 38,716 | 29,706 | 30% |
GEOs sold | 33,372 | 26,434 | 26% | 65,405 | 54,879 | 19% |
Cash cost per gold ounce sold | 29% | 9% | ||||
Cash cost per gold ounce sold | 6% | 5% | ||||
Cash cost per gold ounce sold5 | 15% | 6% |
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 |
5Please refer to the section below entitled "Non-IFRS Measures" for a discussion of this Non-IFRS Measure. |
Summary of Production Results at the
During the second quarter of 2021, the
SECOND QUARTER 2021 LA COLORADA OPERATING STATISTICS
3 Months Ended | 6 Months Ended | |||||
2021 | 2020 | % | 2020 | 2019 | % | |
Mining (in 000s except for waste/ore ratio) | ||||||
Tonnes ore | 1,150 | 506 | 127% | 2,377 | 1,453 | 64% |
Tonnes waste | 2,173 | 1,737 | 25% | 6,187 | 6,420 | (4%) |
Tonnes mined | 3,323 | 2,243 | 48% | 8,564 | 7,873 | 9% |
Tonnes per day | 37 | 25 | 46% | 48 | 43 | 11% |
Waste/ore ratio | 1.89 | 3.43 | (45%) | 2.60 | 4.42 | (41%) |
Leach Pads (in 000s) | ||||||
Tonnes crushed to leach pads | 1,247 | 518 | 141% | 2,513 | 1,484 | 69% |
Production | ||||||
Gold loaded to leach pads (g/t)1 | 0.76 | 0.42 | 81% | 0.65 | 0.38 | 71% |
Gold loaded to leach pads (oz)2 | 30,320 | 7,048 | 330% | 52,411 | 18,070 | 190% |
Projected recoverable GEOs loaded4 | 24,101 | 5,607 | 330% | 41,735 | 14,038 | 197% |
Gold produced (oz)2,3 | 16,721 | 7,537 | 122% | 32,615 | 19,886 | 64% |
Silver produced (oz)2,3 | 48,145 | 26,554 | 81% | 101,057 | 80,869 | 25% |
GEOs produced3 | 17,288 | 7,869 | 120% | 33,804 | 20,897 | 62% |
Gold sold (oz)2 | 16,721 | 7,406 | 126% | 31,329 | 20,488 | 53% |
Silver sold (oz)2 | 53,153 | 28,410 | 87% | 97,591 | 82,608 | 18% |
GEOs sold | 18,324 | 7,762 | 136% | 32,477 | 21,521 | 51% |
Cash cost per gold ounce sold5 | (48%) | (37%) |
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 |
5 Please refer to the section below entitled "Non-IFRS Measures" for a discussion of this Non-IFRS Measure. |
Summary of Production Results at
During the second quarter of 2021, the
SECOND QUARTER 2021 FLORIDA CANYON OPERATING STATISTICS
3 Months Ended | 6 Months Ended | |
Mining (in 000s except for waste/ore ratio) | ||
Tonnes ore | 2,496 | 4,699 |
Tonnes waste | 3,194 | 6,422 |
Tonnes mined | 5,690 | 11,121 |
Tonnes per day | 61 | 60 |
Waste/ore ratio | 1.28 | 1.37 |
Leach Pads (in 000s) | ||
Tonnes crushed to leach pads | 1,796 | 3,591 |
Tonnes direct to leach pads | 711 | 1,123 |
Production | ||
Gold grade loaded to leach pads (g/t)1 | 0.31 | 0.32 |
Gold loaded to leach pads (oz)2 | 25,313 | 49,228 |
Projected recoverable GEOs loaded4 | 14,619 | 31,646 |
Gold produced (oz)2,3 | 13,726 | 25,654 |
Silver produced (oz)2,3 | 6,117 | 13,349 |
GEOs produced3 | 13,798 | 25,811 |
Gold sold (oz)2 | 13,954 | 26,884 |
Silver sold (oz)2 | 8,217 | 16,752 |
GEOs sold | 13,954 | 26,884 |
Cash cost per gold ounce sold5 |
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 |
5 Please refer to the section below entitled "Non-IFRS Measures" for a discussion of this Non-IFRS Measure. |
Summary of Production Results at
As Argonaut did not own nor operate the
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 were received during the second quarter of 2021 (see press release dated
Outlook
Argonaut is on track to achieve its 2021 consolidated production, cost and capital guidance. The table below outlines the first half of 2021 production and cost actuals compared to full year 2021 guidance:
2021 PRODUCTION AND COST GUIDANCE
First Half 2021 Actuals | Full Year 2021 Guidance | |
GEO production | 123,452 | 210,000 – 250,000 |
Cash cost per gold ounce sold1 | ||
AISC per gold ounce sold1 |
1 Please refer to the section below entitled "Non-IFRS Measures" for a discussion of this Non-IFRS Measure. |
The Magino construction project is tracking on schedule. During the three and six months ended
While the Magino construction project remains on schedule, Argonaut is currently reviewing the impacts of COVID-19, foreign currency exchange rates, contingencies, potential adjustments to the development plans and cost inflation to certain inputs related to the initial capital estimate (excluding ramp-up capital) which it believes will likely exceed the 15% last disclosed in the press release dated
Argonaut is currently working to optimize its life-of-mine plans. Following this work, the Company anticipates publishing updated National Instrument ("NI") 43-101 Technical Reports for the the
Argonaut also believes there is a potential opportunity to reduce the near term sustaining capital requirement at its
Full year 2021 capital guidance has not changed. However, Argonaut now expects to invest approximately an additional
Updated 2021 Capital Guidance
First Half 2021 Accruals | Original Full Year 2021 Guidance | Updated Full Year 2021 Guidance | |
Capital (including exploration and excluding Magino construction capital)1 | |||
Magino construction capital1 |
1 Assumes exchanges rates of MXN:USD of 20:1 and CAD:USD of 1.25:1. |
Argonaut Gold Second Quarter 2021 Operational and Financial Results Conference Call and Webcast:
Q2 Conference Call Information
Toll Free ( | 1-888-664-6392 |
International: | 1-416-764-8659 |
Conference ID: | 82285249 |
Webcast: | www.argonautgold.com |
Q2 Conference Call Replay:
Toll Free Replay Call ( | 1-888-390-0541 |
International Replay Call: | 1-416-764-8677 |
Replay Entry Code: | 285249# |
The conference call 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", and "Adjusted earnings per share – basic" 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, unrealized (gains) losses on commodity 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. 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 unaudited interim condensed consolidated financial statements for the three and six 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 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
NI 43-101 Technical Report on Resources and Reserves, | |
NI 43-101 Technical Report on Resources and Reserves, | |
NI 43-101 Technical Report on Mineral Resource and Mineral Reserve Florida Canyon Gold Mine | |
Feasibility Study Technical Report on the | |
Pre-Feasibility Study Technical Report on the |
About
For more information, contact:
Vice President, Corporate Development & Investor Relations
Phone: 416-915-3107
Email: dan.symons@argonautgold.com
Source:
i GEOs are based on a conversation ratio of 85:1 for silver to gold for 2021 and 80:1 for 2020. The silver to gold conversation ratio is based on the three-year trailing average silver to gold ratios. These are the referenced ratios for each year throughout the press release. |
ii Please refer to the section entitled "Non-IFRS Measures" for a discussion of these Non-IFRS Measures. |
SOURCE
© Canada Newswire, source