TSX:AR
Corporate
Presentation
April 2021
FORWARD LOOKING INFORMATION
Readers of this presentation are encouraged to read the "Risk Factors" as more fully described in the Company's filings with the Canadian Securities
Administrators, including its Annual Information Form for the year ended December 31, 2019, available on SEDAR at www.sedar.com. The following, while not exhaustive, are important Risk Factors to consider: Commodity Price Volatility; Uncertainty of Exploration and Development; Uncertainty in the Estimation of Mineral Reserves and Mineral Resources; Permitting Risk; Mineral and Surface Rights; Financing Requirements; The Revolving Credit Facility may present certain risks to the Corporation; Operational Risks; The Corporation may not achieve its Production Estimates; Increase in Production Costs; Uncertainty Relating to Mineral Resources; Environmental Risks and Hazards; Fluctuations in Operating Results can cause Common Share Price Decline; Local Legal, Political and Economic Factors; Changes in Climate Conditions; Unsettled First Nations Rights; Governmental Regulation of the Mining Industry; Foreign Subsidiaries; Operations in Mexico; Use of Ejido Owned Land; Competition for Explorations, Development and Operation Rights; Foreign Currency Exchange Rate Fluctuation; Title to Properties; Safety and Security; Infrastructure; Community Relations; Contractors; Labour and Employment Matters; Work Stoppages or Labour Disputes; Attracting and Retaining Talented Personnel; Contract Renegotiation; Construction and Start-up of New Mines; Volatility of Market for Common Shares; Foreign Private Issuer Status; Internal Control over Financial Reporting; Acquisitions and Integration; Risk Management; Insurance and Uninsured Risks; Dilution Risk;
Asset Impairment Charges; Write-downs and Impairments; Exchange Controls; Possible Conflicts of Interest of Directors and Officers of the Corporation; Enforcement of Civil Liabilities in the United States; Cybersecurity Risks; Security and Privacy Breaches; Recent Global Financial Conditions; and Foreign Corrupt Practices and Anti-Bribery Legislation.
This presentation includes certain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical facts, included in this MD&A that address activities, events, or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of the Company's business, operations, plans and other such matters are forward-looking information. When used in this presentation, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking information. This information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking information. Examples of such forward-looking information include statements pertaining to, without limitation, the future price of gold and silver, the estimation of the mineral reserves and resources, the realization of mineral reserve and resource estimates, the timing and amount of estimated future production at the El Castillo mining complex and La Colorada mine, costs of production (including cash cost per ounce of gold sold, see "Non-IFRS Measures" section), expected capital expenditures, costs and timing of development of new deposits, success of exploration activities, permitting requirements, currency fluctuations, the ability to take advantage of forward sales agreements profitably, the ability to recover property potentially impaired by third party insolvency proceedings, requirements for additional capital, government regulation of mining operations, environmental risks and hazards, title disputes or claims and limitations on insurance coverage.
Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, or intended. There can be no assurance that such information will prove to be accurate as actual results may differ materially
from those anticipated. Many factors are beyond the Company's ability to predict or control. Readers of this presentation are cautioned not to put undue reliance on forward-looking information due to its inherent uncertainty. Argonaut disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as and when required by applicable securities laws. This forward-looking information should not be relied upon as representing management's views as of any date subsequent to the date of this presentation.
References to dollars or "$" are to U.S. dollars unless specified otherwise.
TSX:AR Corporate Presentation APRIL 2021 | ARGONAUT GOLD | 2 |
North American Focused Intermediate Producer
PRODUCING MINE
DEVELOPMENT PROJECT
MAGINO
Ontario, Canada
FLORIDA
CANYON Mine
Nevada, USA
ARGONAUT | |||
Reno Office | EL CASTILLO COMPLEX | ||
Durango, Mexico | |||
EL CASTILLO Mine | |||
LA COLORADA Mine | SAN AGUSTIN Mine | ||
Sonora, Mexico |
CERRO DEL GALLO
Guanajuato, Mexico
HISTORICAL
PRODUCTION:
1.4M GEOS1
at $790 Cash Cost2
CASH AT DEC. 31/20
$214M
DEBT AT DEC. 31/20
$58M
EXISTING REVOLVER
CREDIT FACILITY:
$125M
-
GEOs are based on the three-year trailing average silver to gold ratio.
2 Please refer to section on slide 24 entitled "Non-IFRS Measures" for a discussion of these Non-IFRS Measures.
TSX:AR Corporate Presentation APRIL 2021 | ARGONAUT GOLD | 3 |
Three Year Snapshot
2019A | 2020A | 2021E | ||
GEO(1) production | 186,615 | 203,483(3) | 210k - 250k | PRODUCTION |
rising | ||||
Cash costs(2) $ per oz | $1,041 | $936 | 950 - 1,050 | |
Au | COSTS | |||
relatively flat | ||||
AISC(2) $ per oz Au | $1,299 | $1,244 | 1,250 - 1,350 | |
Cash Flow Activities | CASH FLOW | |||
from Operating | $73.8M | $95.0M | $90M - $140M(4) | |
Activities | rising |
before changes in non-cash operating working capital
-
GEOs are based on a conversion ratio of 85:1 for silver to gold for 2021, 80:1 for 2020 and 75:1 for 2019. The silver to gold ratio is based on the three-year trailing average silver to gold ratio.
2 Please refer to section on slide 23 entitled "Non-IFRS Measures" for a discussion of these Non-IFRS Measures.
3 Florida Canyon production during Q1 2020 and Q2 2020 was under Alio Gold Inc. prior to the closing of the merger between Alio Gold Inc. and Argonaut on July 1, 2020. 2020 GEO production combined full year 2020 production from the El Castillo, San Agustin, La Colorada and Florida Canyon.
4 Assumes $1,700 per ounce gold.
TSX:AR Corporate Presentation APRIL 2021 | ARGONAUT GOLD | 4 |
Argonaut's Vision & Strategy
Transitioning our production and cost profile:
High-Cost Producer | Low-Cost Intermediate Producer |
150k - 200k oz | 300k - 500k oz | |
per year | per year | |
SUSTAINABLE GROWTH & REPLACEMENT
of ounces
Generating cash flow | Favourable gold price | De-risking our |
to finance growth | environment | development |
project pipeline |
TSX:AR Corporate Presentation APRIL 2021 | ARGONAUT GOLD | 5 |
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Argonaut Gold Inc. published this content on 21 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 April 2021 00:03:06 UTC.