1 "Cash Flow" refers to "Cash flow from operating activities before changes in non-cash operating working capital and other items". |
2 GEOs are based on a conversation ratio of 80:1 for silver to gold for 2022 and 85:1 for 2021. 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 this press release. |
3 This is a Non-IFRS Measure. Please refer to the section entitled "Non-IFRS Measures" for a discussion of these Non-IFRS Measures. |
Key operating and financial statistics for the second quarter ended
3 Months Ended | 6 Months Ended | |||||
2022 | 2021 | Change | 2022 | 2021 | Change | |
Financial Data (in millions except for | ||||||
Revenue | (7 %) | (4 %) | ||||
Gross profit | (50 %) | (38 %) | ||||
Net income (loss) | (16 %) | (51 %) | ||||
Earnings (loss) per share - basic | (14 %) | (56 %) | ||||
Adjusted net income1 | (68 %) | (48 %) | ||||
Adjusted earnings per share – basic1 | (73 %) | (50 %) | ||||
Cash flow from operating activities | (41 %) | (28 %) | ||||
Cash and cash equivalents | (65 %) | (65 %) | ||||
Net cash | (102 %) | (102 %) | ||||
Gold Production and Cost Data | ||||||
GEOs loaded to the pads2 | 86,896 | 130,414 | (33 %) | 181,801 | 244,235 | (26 %) |
GEOs projected recoverable2,3 | 51,092 | 71,032 | (28 %) | 105,843 | 134,319 | (21 %) |
GEOs produced2,4 | 59,192 | 63,750 | (7 %) | 114,706 | 123,453 | (7 %) |
GEOs sold2 | 59,241 | 65,651 | (10 %) | 115,613 | 124,766 | (7 %) |
Average realized sales price | 4 % | 5 % | ||||
Cash cost per gold ounce sold1 | 42 % | 28 % | ||||
All-in sustaining cost per gold ounce | 23 % | 16 % |
1This is a Non-IFRS Measure. Please refer to the section below entitled "Non-IFRS Measures" for a discussion of these Non-IFRS Measures. |
2GEOs are based on a conversion ratio of 80:1 for silver to gold for 2022 and 85:1 for 2021. The silver to gold conversion ratio is based on the three-year trailing average silver to gold ratio. |
3Expected recoverable GEOs are based on the assumptions and parameters as set forth in the El Castillo Gold Mine Technical Report dated |
4Produced ounces are calculated as ounces loaded to carbon. |
- Corporate Highlights:
- GEO production of 59,192 GEOs.
- Cash flow before changes in working capital and other items of
$23.3 million . - Executed a binding commitment with a syndicate of lenders for a
$250 million debt facility, which is expected to close by the end of Q3 2022. Completed aC$195 million equity offering to fund the Magino construction project (see press release datedJuly 5 , 2022). - Entered into gold price protection through forward sales contracts at a price of
$1,860 /oz during the life of the term loan debt facility under the following terms: - Beginning Q3 2023, 25,000 gold ounces per quarter for the first six quarters; and
- 15,000 gold ounces per quarter for the remaining 10 quarters over the life of the term loan.
- Social and Environmental Responsibility
- Hosted Magino site tours including a visit from
Bishop Dowd and Father Asorgoe fromDubreuilville , andMaskwa Aviation , a joint venture partner of Missanabie Cree First Nation (MCFN). - Participated in regular monthly meetings with Indigenous groups to provide project and environmental updates for Magino. Argonaut also provided sponsorships and donations to Métis Nation of
Ontario and MCFN for their Annual General Meeting and Annual Gathering. - Provided community funding including sponsorships and donations for the
Wawa Music Festival ,Wawa Golf Club ,Wawa Public Library Summer Youth Program and Dubreuilville Magpie Walleye. - Hosted a course in Durango for local small suppliers and entrepreneurs to provide resources and training for requirements to work in
Mexico's mining industry. - Collaborated with Coordinación Estatal de Protección Civil Durango to host a children's course on safety in the community of San Jan del Rio.
- Installed a new chlorinator for a main pipeline in
La Colorada to provide improved water quality for the community. La Colorada Mine has been included into a pilot plan to be implemented by theUnited Nations ("UN")Economic Commission for Europe's Center of Excellence of the Extractive and Energies Sectors to align our sector to the UN standards and methodologies in coordination with theFederal Ministry of Economy .- Hosted the health campaigns in the Cerro del Gallo communities of San Antón de las Minas and
Las Lozas . - Sponsored a local softball team in
Winnemucca, Nevada . El Castillo - Production of 12,178 GEOs at a cash cost per gold ounce sold of
$1,513 (This is a Non-IFRS Measure. Please see "Non-IFRS Measures" section). San Agustin - Production of 19,135 GEOs at a cash cost per gold ounce sold of
$1,009 (This is a Non-IFRS Measure. Please see "Non-IFRS Measures" section). La Colorada - Production of 13,390 GEOs at a cash cost per gold ounce sold of
$1,003 (This is a Non-IFRS Measure. Please see "Non-IFRS Measures" section). Florida Canyon - Production of 14,489 GEOs at a cash cost per gold ounce sold of
$1,585 (This is a Non-IFRS Measure. Please see "Non-IFRS Measures" section). - Magino
- Construction
- At
June 30, 2022 , the Magino construction project was estimated at approximately 54.8% complete. In Argonaut received a delay claim from Ausenco (process facility EPC contractor) that the substantial completion milestone will be delayed by 23 days due to the province-wide strike of several trades, including crane operators and carpenters, lasting 23 days. The actual impact of this delay claim on project completion has not yet been assessed. To date, this delay claim has neither been accepted nor captured in a definitive schedule, the estimated first gold pour has not yet been determined; however, indications are that first gold is expected to be delayed fromMarch 2023 toApril 2023 . - At
June 30, 2022 , of theC$920 million estimated cost to completion,C$510.1 million andC$688.1 million had been spent and committed at the Magino construction project. Recent major milestones included: - Completed process plant building roof and wall cladding;
- Completed primary steel for gravity tower in the process plant;
- Completed baffle installation and structural steel for carbon in pulp tanks;
- Completed crusher foundation concrete;
- Completed upgrade of the access road to the air monitoring station;
- Completed installation of the building heaters;
- Continued hydro vac cleaning for liner placement at the
Water Quality Control Pond ; - Completed hydro seeding at the Fish
Habitat Compensation Area ; commissioning has commenced; - Completed construction of the bat hibernaculum;
- Continued construction of the Tailings Management Facility; and
- Continued surface water, groundwater and effluent sampling and monitoring.
- For recent highlights and photos of the Magino project, visit the Company's website at: https://www.argonautgold.com/English/assets/development/magino/default.aspx
Revenue for the second quarter of 2022 was
Net income for the second quarter of 2022 was
Adjusted net income for the second quarter of 2022 was
Cash flows from operating activities before changes in non-cash operating working capital and other items totaled
Revenue for the six months ended
Net income for the first half of 2022 was
Adjusted net income for the first half of 2022 was
Cash flows from operating activities before changes in non-cash operating working capital and other items totaled
During the second quarter of 2022, the Company achieved production of 59,192 GEOs at a cash cost per gold ounce sold of
3 Months Ended | 6 Months Ended | |||||
2022 | 2021 | Change | 2022 | 2021 | Change | |
Mining (in 000s except | ||||||
Tonnes ore | 1,471 | 2,496 | (41 %) | 2,982 | 4,900 | (39 %) |
Tonnes ore | 2,954 | 2,718 | 9 % | 5,771 | 5,588 | 3 % |
Tonnes ore | 4,425 | 5,214 | (15 %) | 8,753 | 10,488 | (17 %) |
Tonnes waste | 2,804 | 2,473 | 13 % | 5,732 | 5,610 | 2 % |
Tonnes waste | 1,978 | 1,738 | 14 % | 3,905 | 3,512 | 11 % |
Tonnes waste | 4,782 | 4,211 | 14 % | 9,637 | 9,122 | 6 % |
Tonnes mined | 4,275 | 4,969 | (14 %) | 8,714 | 10,510 | (17 %) |
Tonnes mined | 4,932 | 4,456 | 11 % | 9,676 | 9,100 | 6 % |
Tonnes mined | 9,207 | 9,425 | (2 %) | 18,390 | 19,610 | (6 %) |
Tonnes per day | 47 | 55 | (14 %) | 48 | 58 | (17 %) |
Tonnes per day | 54 | 49 | 11 % | 54 | 51 | 6 % |
Tonnes per day | 101 | 104 | (2 %) | 102 | 109 | (6 %) |
Waste/ore ratio | 1.91 | 0.99 | 93 % | 1.92 | 1.14 | 68 % |
Waste/ore ratio | 0.67 | 0.64 | 5 % | 0.68 | 0.63 | 8 % |
Waste/ore ratio | 1.08 | 0.81 | 34 % | 1.10 | 0.87 | 27 % |
Leach Pads (in 000s) | ||||||
Tonnes direct to leach pads El | 1,471 | 2,488 | (41 %) | 2,982 | 4,890 | (39 %) |
Tonnes crushed to leach pads | 2,949 | 2,962 | — % | 5,764 | 5,944 | (3 %) |
Tonnes to leach pads | 4,420 | 5,450 | (19 %) | 8,746 | 10,834 | (19 %) |
Production | ||||||
Gold grade loaded to leach pads | 0.30 | 0.25 | 20 % | 0.30 | 0.27 | 11 % |
Gold grade loaded to leach pads | 0.29 | 0.32 | (9 %) | 0.29 | 0.29 | — % |
Gold grade loaded to leach pads | 0.29 | 0.28 | 4 % | 0.29 | 0.28 | 4 % |
Gold loaded to leach pads El | 14,330 | 19,973 | (28 %) | 28,604 | 42,149 | (32 %) |
Gold loaded to leach pads San | 27,412 | 30,280 | (9 %) | 54,036 | 56,190 | (4 %) |
Gold loaded to leach pads (oz)2 | 41,742 | 50,253 | (17 %) | 82,640 | 98,339 | (16 %) |
Projected recoverable GEOs | 7,337 | 10,859 | (32 %) | 14,177 | 20,596 | (31 %) |
Projected recoverable GEOs | 18,958 | 21,454 | (12 %) | 37,254 | 40,342 | (8 %) |
Projected recoverable GEOs | 26,295 | 32,313 | (19 %) | 51,431 | 60,938 | (16 %) |
Gold produced | 12,047 | 12,723 | (5 %) | 23,478 | 24,695 | (5 %) |
Gold produced | 18,033 | 18,105 | — % | 36,433 | 35,376 | 3 % |
Gold produced (oz)2 | 30,080 | 30,828 | (2 %) | 59,911 | 60,071 | — % |
Silver produced | 10,407 | 17,445 | (40 %) | 24,704 | 39,240 | (37 %) |
Silver produced | 88,160 | 138,470 | (36 %) | 208,328 | 280,901 | (26 %) |
Silver produced (oz)2,3 | 98,567 | 155,915 | (37 %) | 233,032 | 320,141 | (27 %) |
GEOs produced | 12,178 | 12,928 | (6 %) | 23,787 | 25,156 | (5 %) |
GEOs produced | 19,135 | 19,734 | (3 %) | 39,037 | 38,681 | 1 % |
GEOs produced3 | 31,313 | 32,662 | (4 %) | 62,824 | 63,837 | (2 %) |
Gold sold | 11,463 | 12,614 | (9 %) | 25,032 | 26,216 | (5 %) |
Gold sold | 18,656 | 18,829 | (1 %) | 35,859 | 35,495 | 1 % |
Gold sold (oz)2 | 30,119 | 31,443 | (4 %) | 60,891 | 61,711 | (1 %) |
Silver sold | 11,296 | 19,094 | (41 %) | 26,196 | 40,212 | (35 %) |
Silver sold | 93,420 | 144,867 | (36 %) | 216,898 | 273,788 | (21 %) |
Silver sold (oz)2 | 104,716 | 163,961 | (36 %) | 243,094 | 314,000 | (23 %) |
GEOs sold | 11,603 | 12,839 | (10 %) | 25,359 | 26,689 | (5 %) |
GEOs sold | 19,824 | 20,534 | (3 %) | 38,570 | 38,716 | — % |
GEOs sold | 31,427 | 33,372 | (6 %) | 63,929 | 65,405 | (2 %) |
Cash cost per gold ounce sold El | $ 1,513 | $ 1,109 | 36 % | $ 1,357 | $ 1,077 | 26 % |
Cash cost per gold ounce sold | $ 1,009 | $ 801 | 26 % | $ 978 | $ 804 | 22 % |
Cash cost per gold ounce sold5 | $ 1,201 | $ 916 | 31 % | $ 1,134 | $ 916 | 24 % |
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 El Castillo Gold Mine Technical Report dated |
5 Please refer to the section below entitled "Non-IFRS Measures" for a discussion of this Non-IFRS Measure. |
During the second quarter of 2022, the
3 Months Ended | 6 Months Ended | |||||
2022 | 2021 | Change | 2022 | 2021 | Change | |
Mining (in 000s except for | ||||||
Tonnes ore | 976 | 1,150 | (15 %) | 2,101 | 2,377 | (12 %) |
Tonnes waste | 5,711 | 2,173 | 163 % | 11,048 | 6,187 | 79 % |
Tonnes mined | 6,687 | 3,323 | 101 % | 13,149 | 8,564 | 54 % |
Tonnes per day | 73 | 37 | 101 % | 73 | 48 | 54 % |
Waste/ore ratio | 5.85 | 1.89 | 210 % | 5.26 | 2.6 | 102 % |
Leach Pads (in 000s) | ||||||
Tonnes crushed to leach pads | 1,063 | 1,247 | (15 %) | 2,183 | 2,513 | (13 %) |
Production | ||||||
Gold loaded to leach pads (g/t)1 | 0.44 | 0.76 | (42 %) | 0.44 | 0.65 | (32 %) |
Gold loaded to leach pads (oz)2 | 14,902 | 30,320 | (51 %) | 31,186 | 52,411 | (40 %) |
Projected recoverable GEOs | 11,573 | 24,101 | (52 %) | 23,887 | 41,735 | (43 %) |
Gold produced (oz)2,3 | 12,950 | 16,721 | (23 %) | 26,291 | 32,615 | (19 %) |
Silver produced (oz)2,3 | 35,191 | 48,145 | (27 %) | 70,559 | 101,057 | (30 %) |
GEOs produced3 | 13,390 | 17,288 | (23 %) | 27,173 | 33,804 | (20 %) |
Gold sold (oz)2 | 13,322 | 17,699 | (25 %) | 26,402 | 31,329 | (16 %) |
Silver sold (oz)2 | 38,194 | 53,153 | (28 %) | 73,479 | 97,591 | (25 %) |
GEOs sold | 13,799 | 18,324 | (25 %) | 27,320 | 32,477 | (16 %) |
Cash cost per gold ounce sold5 | $ 1,003 | $ 608 | 65 % | $ 980 | $ 676 | 45 % |
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. |
During the second quarter of 2022, the
3 Months Ended | 6 Months Ended | |||||
2022 | 2021 | % Change | 2022 | 2021 | Change | |
Mining (in 000s except for | ||||||
Tonnes ore | 1,984 | 2,496 | (21 %) | 4,170 | 4,699 | (11 %) |
Tonnes waste | 3,985 | 3,194 | 25 % | 6,798 | 6,422 | 6 % |
Tonnes mined | 5,969 | 5,690 | 5 % | 10,968 | 11,121 | (1 %) |
Tonnes per day | 64 | 61 | 5 % | 59 | 60 | (1 %) |
Waste/ore ratio | 2.01 | 1.28 | 57 % | 1.63 | 1.37 | 19 % |
Leach Pads (in 000s) | ||||||
Tonnes direct to leach pads | 160 | 711 | (78 %) | 761 | 1,123 | (32 %) |
Tonnes crushed to leach pads | 1,836 | 1,796 | 2 % | 3,520 | 3,591 | (2 %) |
Production | ||||||
Gold grade loaded to leach pads | 0.33 | 0.31 | 6 % | 0.36 | 0.32 | 13 % |
Gold loaded to leach pads (oz)2 | 20,976 | 25,313 | (17 %) | 49,346 | 49,228 | — % |
Projected recoverable GEOs | 13,224 | 14,619 | (10 %) | 30,526 | 31,646 | (4 %) |
Gold produced (oz)2,3 | 14,380 | 13,726 | 5 % | 24,472 | 25,654 | (5 %) |
Silver produced (oz)2,3 | 8,733 | 6,117 | 43 % | 18,956 | 13,349 | 42 % |
GEOs produced3 | 14,489 | 13,798 | 5 % | 24,709 | 25,811 | (4 %) |
Gold sold (oz)2 | 13,903 | 13,858 | — % | 24,157 | 26,687 | (9 %) |
Silver sold (oz)2 | 8,889 | 8,217 | 8 % | 16,532 | 16,752 | (1 %) |
GEOs sold | 14,015 | 13,954 | — % | 24,364 | 26,884 | (9 %) |
Cash cost per gold ounce sold5 | 43 % | 26 % |
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. |
During the second quarter of 2022, the
Argonaut maintains its 2022 GEO production guidance and, primarily due to inflationary pressures on key consumable costs, is adjusting its cost guidance higher as outlined in the table below.
H1 2022 (Actual) | Original Full Year | Revised Full Year | ||
GEO production | In 000s | 114,706 | 200 – 230 | 200 – 230 |
Cash costs1 | $ per oz Au | 1,202 | 1,100 – 1,190 | 1,200 – 1,300 |
AISC1 | $ per oz Au | 1,453 | 1,415 – 1,525 | 1,500 – 1,600 |
1This is a Non-IFRS Measure. Please see "Non-IFRS Measures" section. |
Following the Magino construction, equity raise and Committed Credit Facilities, Argonaut is providing 2022 capital guidance. Through
| Magino |
| Exploration | Consolidated | ||||
Capital | 1 | 3-5 | 3-4 | 17 - 20 | 400 - 423 | 1-2 | 11-12 | 436 - 467 |
Stripping | 3 | 12-13 | 2-3 | 17 - 19 | ||||
Total | 4 | 3-5 | 15 - 17 | 19 - 23 | 400 - 423 | 1-2 | 11-12 | 453 - 486 |
1Assumes exchange rates of MXN:USD of 20:1 and CAD:USD of 1.25:1. |
Argonaut advises that
The Company will host a conference call and webcast to discuss its second quarter ended
Q2 2022 Conference Call Information
Toll Free ( | 1-888-664-6392 |
International: | 1-416-764-8659 |
Conference ID: | 90653330 |
Webcast: | www.argonautgold.com |
Q2 2022 Conference Call Replay
Toll Free Replay Call ( | 1-888-390-0541 |
International Replay Call: | 1-416-764-8677 |
Replay Entry Code: | 653330# |
The conference call and replay will be available from
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 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. 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 | Six months ended | |||
2022 | 2021 | 2022 | 2021 | |
Production costs, as reported ($000s) | $ 17,597 | $ 14,492 | $ 34,592 | $ 29,321 |
Less silver sales ($000s) | 251 | 509 | 614 | 1,074 |
Net cost of sales ($000s) | $ 17,346 | $ 13,983 | $ 33,978 | $ 28,247 |
Gold ounces sold | 11,463 | 12,614 | 25,032 | 26,216 |
Cash cost per gold ounce sold | $ 1,513 | $ 1,109 | $ 1,357 | $ 1,077 |
Three months ended | Six months ended | |||
2022 | 2021 | 2022 | 2021 | |
Production costs, as reported ($000s) | $ 20,899 | $ 18,969 | $ 40,159 | $ 35,853 |
Less silver sales ($000s) | 2,083 | 3,891 | 5,083 | 7,323 |
Net cost of sales ($000s) | $ 18,816 | $ 15,078 | $ 35,076 | $ 28,530 |
Gold ounces sold | 18,656 | 18,829 | 35,859 | 35,495 |
Cash cost per gold ounce sold | $ 1,009 | $ 801 | $ 978 | $ 804 |
Three months ended | Six months ended | |||
2022 | 2021 | 2022 | 2021 | |
Production costs, as reported ($000s) | $ 14,212 | $ 12,176 | $ 27,593 | $ 23,772 |
Less silver sales ($000s) | 850 | 1,419 | 1,708 | 2,586 |
Net cost of sales ($000s) | $ 13,362 | $ 10,757 | $ 25,885 | $ 21,186 |
Gold ounces sold | 13,322 | 17,699 | 26,402 | 31,329 |
Cash cost per gold ounce sold | $ 1,003 | $ 608 | $ 980 | $ 676 |
Three months ended | Six months ended | |||
2022 | 2021 | 2022 | 2021 | |
Production costs, as reported ($000s) | $ 22,235 | $ 15,604 | $ 39,388 | $ 34,590 |
Less silver sales ($000s) | 193 | 219 | 380 | 446 |
Net cost of sales ($000s) | $ 22,042 | $ 15,385 | $ 39,008 | $ 34,144 |
Gold ounces sold | 13,903 | 13,858 | 24,157 | 26,687 |
Cash cost per gold ounce sold | $ 1,585 | $ 1,110 | $ 1,615 | $ 1,279 |
All Mines | Three months ended | Six months ended | ||
2022 | 2021 | 2022 | 2021 | |
Production costs, as reported ($000s) | $ 74,943 | $ 61,241 | $ 141,732 | $ 123,536 |
Less silver sales ($000s) | 3,377 | 6,038 | 7,785 | 11,429 |
Net cost of sales ($000s) | $ 71,566 | $ 55,203 | $ 133,947 | $ 112,107 |
Gold ounces sold | 57,344 | 63,000 | 111,450 | 119,727 |
Cash cost per gold ounce sold | $ 1,248 | $ 876 | $ 1,202 | $ 936 |
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 | Six months ended | |||
2022 | 2021 | 2022 | 2021 | |
Net cost of sales ($000s) | $ 71,566 | $ 55,203 | $ 133,947 | $ 112,107 |
General and administrative expenses ($000s) | 4,571 | 3,705 | 9,592 | 8,471 |
Exploration expenses ($000s) | 425 | 1,070 | 792 | 1,691 |
Accretion and other expenses ($000s) | 3,385 | 2,927 | 6,680 | 5,606 |
Sustaining capital expenditures ($000s) | 4,589 | 12,886 | 10,902 | 22,694 |
AISC ($000s) | $ 84,536 | $ 75,791 | $ 161,913 | $ 150,569 |
Gold ounces sold | 57,344 | 63,000 | 111,450 | 119,727 |
AISC per gold ounce sold | $ 1,474 | $ 1,203 | $ 1,453 | $ 1,258 |
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 | Six months ended | |||
2022 | 2021 | 2022 | 2021 | |
Net income, as reported ($000s) | $ 18,412 | $ 21,778 | $ 24,030 | $ 48,785 |
Unrealized (gain) loss on derivatives ($000s) | (13,525) | 5,335 | (12,060) | (14,445) |
Other non-operating expense (income), net of tax | 1,653 | (3,644) | 2,151 | (3,644) |
Foreign exchange loss, net of tax ($000s) | 870 | 547 | 1,825 | 525 |
Impact of foreign exchange on deferred income | (137) | (1,445) | (855) | (239) |
Inventory (reversal) write-down, net of tax ($000s) | (8) | 152 | (127) | (1,257) |
Loss on sale of marketable securities ($000s) | — | — | 534 | — |
Adjusted net income ($000s) | $ 7,265 | $ 22,723 | $ 15,498 | $ 29,725 |
Weighted average number of common shares | 332,786,743 | 310,318,903 | 325,416,876 | 304,934,741 |
Adjusted earnings per share - basic | $ 0.02 | $ 0.07 | $ 0.05 | $ 0.10 |
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:
| 2022 |
| |
Cash and cash equivalents ($000s) | $ 75,816 | $ 166,078 | $ 199,235 |
Debt ($000s) | (80,000) | (80,000) | (80,000) |
Net (debt) cash ($000s) | $ (4,184) | $ 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 and six months ended
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.
Technical information included in this release was supervised and approved by
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NI 43-101 Technical Report on Mineral Resource and Mineral Reserve Florida Canyon Gold Mine | |
| NI 43-101 Technical Report Mineral Resource and Mineral Reserve Update dated |
| Pre-Feasibility Study Technical Report on the |
For more information, contact:
Investor Relations
Phone: 416-575-6965
Email: info@argonautgold.com
SOURCE
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