Third Quarter Production of 24,280 Gold
Equivalent Ounces Including San Agustin Pre-commercial
Production
TORONTO, Nov. 2, 2017 /CNW/ - Argonaut Gold Inc. (TSX:
AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased
to announce its financial and operating results for the third
quarter ended September 30,
2017. The Company reports quarterly net income of
$0.4 million or earnings per share of
$0.00 derived from the sale of 22,609
gold equivalent ounces1 ("GEO" or "GEOs"), which
generated cash flow from operations before working capital changes
of $5.7 million. The Company
produced 24,280 GEOs during the third quarter, including
pre-commercial production from the San
Agustin mine of 2,932 GEOs. As the San Agustin project was in the pre-production
development stage as at September 30,
2017, the GEOs produced are excluded from the revenue,
sales, net income, adjusted net income (loss), cash flows from
operations, cash cost and all-in sustaining cost numbers presented
in this release. All dollar amounts are expressed in United States dollars, unless otherwise
specified (C$ refers to Canadian dollars).
CEO Commentary
Pete
Dougherty, President and CEO stated: "As expected and guided
throughout the year, the third quarter was to be our lowest
quarterly production primarily due to an approximately 45%
reduction in crushing capacity at our El
Castillo mine when we shut down and relocated the west
crusher to San Agustin. This crusher is now fully operational
at San Agustin, as evidenced by
the improvement in crushing rates month-over-month throughout the
quarter. With our production year-to-date, we are on track to
deliver full year production of between 122,000 and 130,000 GEOs.
I'm very pleased to see San
Agustin delivered on schedule, substantially under budget
and, more importantly, with no major safety or environmental
issues. As we look to the future, with approximately 60%
production growth from our existing Mexico operations by 2019 and the pending
announcement of the Magino feasbility study results, we provide not
only short-term upside but also longer-term growth
potential."
Key operating and financial statistics for the third quarter of
2017 are outlined in the following table:
(in millions except
for earnings per share)
|
3 months ended
September 30
|
Change
|
9 months ended
September 30
|
Change
|
|
2017
|
2016
|
2017
|
2016
|
Revenue
|
$28.7
|
$35.0
|
(18%)
|
$115.6
|
$109.5
|
6%
|
Gross
profit
|
$3.6
|
$6.9
|
(48%)
|
$23.1
|
$23.6
|
(2%)
|
Net income
|
$0.4
|
$0.2
|
100%
|
$18.7
|
$3.8
|
392%
|
Earnings per share –
basic
|
$0.00
|
$0.00
|
-
|
$0.11
|
$0.02
|
450%
|
Adjusted net income
(loss)2
|
($0.4)
|
$3.9
|
(110%)
|
$8.6
|
$8.8
|
(2%)
|
Adjusted earnings
(loss) per share – basic2
|
($0.00)
|
$0.02
|
(100%)
|
$0.05
|
$0.06
|
(17%)
|
Cash flow from
operating activities before changes in non-cash operating working
capital
|
$5.7
|
$8.4
|
(32%)
|
$34.2
|
$26.5
|
29%
|
Cash and cash
equivalents
|
$37.5
|
$50.4
|
(26%)
|
$37.5
|
$50.4
|
(26%)
|
GEOs loaded to the
pads1,5
|
64,486
|
57,765
|
12%
|
173,335
|
172,491
|
0%
|
GEOs projected
recoverable1,3,5
|
36,630
|
29,338
|
25%
|
100,772
|
89,319
|
13%
|
GEOs
produced1,4,5
|
24,280
|
26,332
|
(8%)
|
91,717
|
87,713
|
5%
|
GEOs
sold1,5
|
23,160
|
26,069
|
(11%)
|
93,080
|
87,311
|
7%
|
Average realized
sales price per gold ounce sold
|
$1,270
|
$1,344
|
(6%)
|
$1,250
|
$1,257
|
(1%)
|
Cash cost per gold
ounce sold2
|
$893
|
$896
|
0%
|
$798
|
$812
|
(2%)
|
All-in sustaining
cost per gold ounce sold2
|
$1,063
|
$1,054
|
1%
|
$931
|
$953
|
(2%)
|
1 GEOs are
based on a conversion ratio of 70:1 for silver to gold for 2017 and
65:1 for 2016. This is the referenced ratio for each year
throughout the press release.
|
2 Please
refer to the section below entitled "Non-IFRS Measures" for a
discussion of these Non-IFRS Measures.
|
3
Recoverable ounces - El Castillo expected recovery rates: ROM oxide
50%, crushed oxide 70%, ROM transition 40%, crushed transition 60%,
crushed sulphides argillic 30% and crushed sulphides silicic 17%;
San Agustin expected recovery rates: gold 66% and silver 16%; La
Colorada expected recovery rates: gold 60% and silver
30%.
|
4 Produced
ounces are calculated as ounces loaded to carbon.
|
5 The
three and nine months ended September 30, 2017, includes
pre-commercial production from San Agustin.
|
Third Quarter 2017 and Recent Company Highlights:
- Corporate
-
- Entered into zero cost collar Mexican peso ("MXN") to US dollar
("USD") contracts for $18 million to
be invested in future development capital in Mexico with downside protection of 17.5
MXN:1 USD and participation up to 21
MXN:1 USD from January 2018 to December
2018.
- El Castillo
-
- From December 31, 2016 to
July 1, 2017, increased
pit-constrained Measured and Indicated Mineral Resources from
approximately 486,000 to 751,000 contained gold ounces after
depletion (see press release dated September
21, 2017) consisting of approximately 77,000 ounces measured
within approximately 4.5 million tonnes at 0.54 g/t and 673,000
ounces indicated within approximately 59.5 million tonnes at 0.35
g/t.
- Third quarter production of 11,521 GEOs.
- Averaged nearly 45,000 tonnes per day mined.
- Placed 1.7 million tonnes of ore containing approximately
15,600 gold ounces on the leach pads.
- Initiated design improvements in the CR2 crusher to increase
capacity from 6,000 tonnes per day to 14,000 tonnes per day.
- Began construction of the Victoria heap leach pad.
- San Agustin
-
- Third quarter pre-commercial production of 2,932 GEOs.
- Achieved first gold pour on September
18, 2017.
- Achieved commercial production on October 1, 2017.
- Project delivered with a capital investment of approximately
$32 million, which is 25% under
budget from the initial capital estimate of $43 million.
- La Colorada
-
- From December 31, 2016 to
July 1, 2017, increased
pit-constrained Indicated Mineral Resources from approximately
560,000 and 9.9 million contained gold and silver ounces
respectively to approximately 586,000 and 9.9 million contained
gold and silver ounces respectively, after depletion (see press
release dated September 21, 2017)
within approximately 29.9 million tonnes grading 0.61 g/t gold and
10.3 g/t silver.
- Third quarter production of 9,827 GEOs.
- Averaged over 60,600 tonnes per day mined.
- Averaged over 12,300 tonnes per day through the crusher.
- Placed 1.3 million tonnes of mineralized material containing
approximately 21,000 gold ounces and 360,000 silver ounces on the
leach pads.
- Initiated construction of the Northeast Phase 2 leach pad.
- Magino
-
- Advanced feasibility study.
-
- Base case will be a 10,000 tonne per day plant with a scalable
design to 30,000 tonne per day should economics warrant such an
expansion in the future.
- Anticipate releasing study results during the fourth
quarter
- Advanced Environmental Assessment ("EA") process.
- Signed Collaborative Agreement with the Red Sky Métis
Independent Nation and continued to consult with and work towards
agreements with other Indigenous communities.
Financial Results – Third Quarter 2017
Revenue for the
three months ended September 30, 2017
was $28.7 million, a decrease from
$35.0 million for the three months
ended September 30, 2016.
During the third quarter of 2017, gold ounces sold totaled
22,206 at an average realized price per ounce of $1,270 (compared to 25,429 gold ounces sold at an
average realized price per ounce of $1,344 during the same period of 2016).
Production costs for the third quarter of 2017 were $20.3 million, a decrease from $23.6 million in the third quarter of 2016
primarily due to the decrease in gold ounces sold. Cash cost per
gold ounce sold (see Non-IFRS Measures section) was $893 in the third quarter of 2017, comparable to
$896 in the same period of 2016.
Depreciation, depletion and amortization ("DD&A") expense
included in cost of sales for the third quarter of 2017 totaled
$4.8 million, a slight increase from
$4.5 million in the third quarter of
2016, due to the increase in the average DD&A expense per ounce
in work-in-process inventory. As a result of the non-cash
impairment loss on non-current assets recorded during the year
ended December 31, 2015, the average
DD&A in work-in-process inventory decreased throughout 2016.
During 2017, the average DD&A in work-in-process inventory
began increasing as the effect of the non-cash impairment loss on
average DD&A lessened.
General and administrative expenses for the third quarter of
2017 were $2.7 million, comparable to
$2.6 million in the same period of
2016.
Gains on foreign exchange derivatives for the third quarter of
2017 were $0.2 million, an increase
from nil in the third quarter of 2016, due to gains on the
Company's zero-cost collar contracts on the MXN.
Other income for the third quarter of 2017 was $0.0 million, an increase from other expense of
$0.6 million in the third quarter of
2016, primarily due to differences in foreign currency translation
effects.
Income tax expense for the third quarter of 2017 was
$0.2 million compared to $3.2 million in the same period of 2016.
The decrease in income tax expense is primarily due to an
increase in the recognition of previously unrecognized Mexican
deferred tax assets.
Net income for the third quarter of 2017 was $0.4 million or $0.00 per basic share, an increase from
$0.2 million or $0.00 per basic share for the third quarter of
2016.
Financial Results – First Nine Months 2017
Revenue for
the nine months ended September 30,
2017 was $115.6 million, an
increase from $109.5 million for the
nine months ended September 30, 2016.
During the first nine months of 2017, gold ounces sold
totaled 90,129 at an average realized price per ounce of
$1,250 (compared to 84,962 gold
ounces sold at an average price per ounce of $1,257 during the same period of 2016).
Production costs for the nine months ended September 30, 2017 were $74.9 million, an increase from $71.6 million in the first nine months of 2016
primarily due to the increase in gold ounces sold. Cash cost per
gold ounce sold (see Non-IFRS Measures section) was $798 in the first nine months of 2017, comparable
to $812 in the same period of 2016.
DD&A expense included in cost of sales for the nine months
ended September 30, 2017 totaled
$17.6 million, a slight decrease from
$17.8 million in the nine months
ended September 30, 2016, due to the
decrease in the average DD&A expense per ounce in
work-in-process inventory for the period. Additionally, included in
cost of sales in the nine months ended September 30, 2016 is a non-cash impairment
reversal of $3.6 million related to
the net realizable value of work-in-process inventory at the
El Castillo mine, as a result of
an increase in the price of gold during 2016.
General and administrative expenses for the nine months ended
September 30, 2017 were $8.8 million, an increase from $7.7 million in the same period of 2016,
primarily due to employee transition costs.
Gains on foreign exchange derivatives during the first nine
months of 2017 were $2.6 million, an
increase from nil in the first nine months of 2016, due to gains on
the Company's zero-cost collar contracts on the MXN.
Other income for the nine months ended September 30, 2017 was $3.0 million, an increase from other expense of
$3.6 million in the same period of
2016, primarily due to differences in foreign currency translation
effects.
Income tax recovery for the nine months ended September 30, 2017 was $0.0 million compared to income tax expense of
$7.8 million in the same period of
2016. The change is primarily due to the foreign exchange
effects of the strengthening MXN on the calculation of deferred
taxes, partially offset by higher taxable income during the first
nine months of 2017.
Net income for the nine months ended September 30, 2017 was $18.7 million or $0.11 per basic share, an increase from
$3.8 million or $0.02 per basic share for the nine months ended
September 30, 2016.
Operational Results – Third Quarter 2017
The Company
anticipated and previously guided that the relocation of the west
crusher from El Castillo to
San Agustin would reduce crushing
capacity at El Castillo by
approximately 45%, which would contribute to the lowest quarterly
production in 2017 being during the third quarter. The
Company also budgeted for a seasonal reduction in operational
productivity and metal leaching during the third quarter due to
expected issues experienced in previous years during the rainy
season, which typically runs from mid-June to
mid-October. Costs and production were within the anticipated
ranges for the third quarter.
Bill Zisch, Chief Operating
Officer, commented: "We knew the production during the third
quarter would be the lowest of the year, as we temporarily reduced
our crushing capacity in order to relocate a crushing and stacking
system from El Castillo to San
Agustin. In addition, our third quarter plans anticipated
seasonal inefficiencies during the rainy season from July to
September. These provisions for lower productivity helped us
meet internal expectations this quarter. Looking forward, we
expect the fourth quarter will be our highest quarterly production
in 2017, primarily due to the ramp-up and normalization of
San Agustin operations. As a
result of the Company's performance to date, we are well positioned
to deliver within our production guidance range at between 122,000
to 130,000 GEOs."
THIRD QUARTER 2017
EL CASTILLO PIT OPERATING STATISTICS
|
|
|
|
3 Months Ended
Sept 30
|
9 Months
Ended Sept 30
|
|
2017
|
2016
|
Change
|
2017
|
2016
|
Change
|
Mining
|
|
|
|
|
|
|
Tonnes ore
(000s)
|
1,722
|
2,625
|
(34%)
|
6,200
|
8,146
|
(24%)
|
Tonnes waste
(000s)
|
2,411
|
3,804
|
(37%)
|
8,446
|
12,174
|
(31%)
|
Tonnes mined
(000s)
|
4,133
|
6,429
|
(36%)
|
14,646
|
20,320
|
(28%)
|
Tonnes per day
(000s)
|
45
|
70
|
(36%)
|
53
|
74
|
(28%)
|
Waste/ore
ratio
|
1.40
|
1.45
|
(3%)
|
1.36
|
1.49
|
(9%)
|
Heap Leach
Pads
|
|
|
|
|
|
|
Tonnes crushed East
(000s)
|
1,235
|
1,259
|
(2%)
|
3,891
|
3,886
|
0%
|
Tonnes crushed CR2
(000s)
|
499
|
251
|
99%
|
1,610
|
251
|
541%
|
Tonnes overland
conveyor (000s)
|
0
|
1,088
|
(100%)
|
769
|
3,895
|
(80%)
|
Production
|
|
|
|
|
|
|
Gold grade
(g/t)1
|
0.28
|
0.33
|
(15%)
|
0.36
|
0.33
|
9%
|
Gold loaded to leach
pads (oz)2
|
15,636
|
27,616
|
(43%)
|
72,596
|
86,097
|
(16%)
|
Projected recoverable
gold (oz)3
|
10,521
|
13,850
|
(24%)
|
45,339
|
44,386
|
2%
|
Gold produced
(oz)4
|
11,437
|
13,049
|
(12%)
|
50,449
|
45,603
|
11%
|
Gold sold
(oz)
|
12,268
|
12,892
|
(5%)
|
53,487
|
44,585
|
20%
|
Cash cost per gold
ounce sold5
|
947
|
936
|
1%
|
902
|
887
|
2%
|
1 "g/t"
refers to grams per tonne
|
2 "oz"
refers to troy ounce
|
3 Recovery
rates: ROM oxide 50%, crushed oxide 70%, ROM transition 40%,
crushed transition 60%, crushed sulphides argilic 30%, crushed
sulphides silicic 17%
|
4 Produced
ounces are calculated as ounces loaded to carbon
|
5
Please refer to the section below entitled "Non-IFRS Measures" for
a discussion of this Non-IFRS Measure
|
Summary of Production Results at El Castillo
As anticipated and budgeted
for, tonnes placed on the leach pads at El Castillo during the third quarter of 2017
were reduced by approximately 38% from the second quarter of 2017
and 23% from the third quarter of 2016 due to the relocation of the
west crusher to San Agustin. Mine ore grades that were
approximately 30% higher than plan during the second quarter
returned to near anticipated levels during the third quarter.
THIRD QUARTER 2017
SAN AGUSTIN PIT PRE-COMMERCIAL PRODUCTION OPERATING
STATISTICS
|
|
|
Monthly Operating
Statistics
|
|
July
|
August
|
September
|
Mining
|
|
|
|
Mineralized material
tonnes (000s)
|
344
|
394
|
557
|
Tonnes waste
(000s)
|
100
|
63
|
140
|
Total tonnes
(000s)
|
444
|
457
|
697
|
Tonnes per day
(000s)
|
14
|
15
|
23
|
Waste/mineralized
material ratio
|
0.29
|
0.16
|
0.25
|
Heap Leach
Pads
|
|
|
|
Crushed mineralized
material tonnes to pad (000s)
|
306
|
418
|
503
|
Production
|
|
|
|
Gold grade
(g/t)1
|
0.38
|
0.40
|
0.47
|
Gold loaded to leach
pad (oz)2
|
3,775
|
5,338
|
7,597
|
Projected recoverable
GEOs loaded3
|
2,714
|
3,884
|
5,398
|
Gold produced
(oz)4
|
0
|
0
|
2,690
|
Silver produced
(oz)
|
0
|
0
|
16,935
|
GEOs
produced4
|
0
|
0
|
2,932
|
Gold sold
(oz)
|
0
|
0
|
520
|
Silver sold
(oz)
|
0
|
0
|
2,190
|
GEOs sold
|
0
|
0
|
551
|
1 "g/t"
refers to grams per tonne
|
2 "oz"
refers to troy ounce
|
3 San
Agustin expected recovery rates: gold 66% and silver 16%
|
4 Produced
ounces are calculated as ounces loaded to carbon
|
Summary of Operating Results at San
Agustin
The San
Agustin project represents the next leg of the Company's
growth. The Company envisions the San Agustin deposit to be a significant
contributor within the El Castillo
mining complex. The project is located approximately 10
kilometres from the nearby El
Castillo mine and will share much of the existing
infrastructure.
During the third quarter, the Company began commissioning and
ramp-up of the project. The first gold pour was achieved on
September 18, 2017 and commercial
production was achieved on October 1,
2017. Mining and crushing operations are exceeding ramp-up
projections, as de-bottlenecking of unit operations continued
through the quarter. During the month of September, the
crushing circuit averaged over 16,700 tonnes per day, which is name
plate capacity. Leaching and carbon plant operations were
commissioned the first week of September, and the Company is
working to increase leach pad irrigation and flow rates through the
plant.
The San Agustin project was
delivered for the capital investment of approximately $32 million, which was 25% under budget from the
initial capital estimate of $43
million.
THIRD QUARTER 2017
LA COLORADA MINE OPERATING STATISTICS
|
|
|
|
3 Months Ended
Sept 30
|
9 Months Ended
Sept 30
|
|
2017
|
2016
|
Change
|
2017
|
2016
|
Change
|
Mining
|
|
|
|
|
|
|
Mineralized material
tonnes (000s)
|
1,093
|
1,063
|
3%
|
3,383
|
3,415
|
(1%)
|
Tonnes waste
(000s)
|
4,491
|
4,160
|
8%
|
14,455
|
11,495
|
26%
|
Total tonnes
(000s)
|
5,584
|
5,223
|
7%
|
17,838
|
14,910
|
20%
|
Tonnes per day
(000s)
|
61
|
57
|
7%
|
65
|
54
|
20%
|
Waste/mineralized
material ratio
|
4.11
|
3.91
|
5%
|
4.27
|
3.37
|
27%
|
Tonnes rehandled
(000s)
|
0
|
0
|
-
|
29
|
50
|
(42%)
|
Heap Leach
Pads
|
|
|
|
|
|
|
Crushed mineralized
material tonnes to pad (000s)
|
1,138
|
1,098
|
4%
|
3,357
|
3,527
|
(5%)
|
Mineralized material
tonnes direct to pad (000s)
|
164
|
180
|
(9%)
|
290
|
180
|
61%
|
Production
|
|
|
|
|
|
|
Gold grade
(g/t)1
|
0.50
|
0.52
|
(4%)
|
0.56
|
0.53
|
6%
|
Gold loaded to leach
pad (oz)2
|
20,954
|
21,474
|
(2%)
|
65,620
|
63,381
|
4%
|
Projected recoverable
GEOs loaded3
|
14,113
|
15,488
|
(9%)
|
42,642
|
44,933
|
(5%)
|
Gold produced
(oz)4
|
9,518
|
12,610
|
(25%)
|
36,017
|
39,786
|
(9%)
|
Silver produced
(oz)
|
21,669
|
35,863
|
(40%)
|
135,469
|
124,052
|
9%
|
GEOs
produced4
|
9,827
|
13,161
|
(25%)
|
37,952
|
41,694
|
(9%)
|
Gold sold
(oz)
|
9,938
|
12,537
|
(21%)
|
36,642
|
40,377
|
(9%)
|
Silver sold
(oz)
|
22,336
|
34,358
|
(35%)
|
141,098
|
125,671
|
12%
|
GEOs sold
|
10,257
|
13,065
|
(21%)
|
38,658
|
42,310
|
(9%)
|
Cash cost per gold
ounce sold
|
827
|
855
|
(3%)
|
646
|
730
|
(12%)
|
1 "g/t"
refers to grams per tonne
|
2 "oz"
refers to troy ounce
|
3 Recovery
rates: gold 60% and silver 30%
|
4 Produced
ounces are calculated as ounces loaded to carbon
|
5
Please refer to the section below entitled "Non-IFRS Measures" for
a discussion of this Non-IFRS Measure
|
Summary of Production Results at La Colorada
An extended leach period
associated with the presence of coarse gold in localized higher
grade zones in the bottom of the Gran Central/La Colorada pit has contributed to lower than
planned overall recoveries. The remaining tonnage with the
Gran Central/La Colorada pit is
expected to be mined out during the first quarter of 2018.
Mining will then shift to the El Creston pit.
Magino
The Company has selected a 10,000 tonne per day
processing facility for the pending feasibility study, which will
show a significantly reduced capital requirement from the 30,000
tonne per day project presented in the January 2016 pre-feasibility study and provides
the Company with a scalable project that can funded on a
stand-alone basis. The project is designed to allow future
expansion should economics warrant such a decision. A 30,000
tonne per day scenario is also being evaluated and will be detailed
in the Other Relevant Data section of the National
Instrument 43-101 ("NI 43-101") Technical Report. The Company
expects to announce the results of the feasibility study in the
fourth quarter 2017 and file the Technical Report within 45 days of
announcement.
During the third quarter, the Canadian Environmental Assessment
Agency completed its conformity review of the previously submitted
Environmental Impact Statement and held Indigenous and public
sessions as part of the EA process. Also during the third
quarter, the Company executed a Collaborative Agreement with the
Red Sky Métis Independent Nation.
Argonaut Gold Third Quarter Operational and Financial Results
Conference Call and Webcast:
The Company will host a conference call and webcast to discuss
its third quarter operating and financial results at 8:30 am EDT on Friday,
November 3, 2017.
Q3 Conference Call
Information
|
|
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Toll Free (North
America):
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1-888-231-8191
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International:
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1-647-427-7450
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Conference
ID:
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99810145
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Webcast:
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www.argonautgold.com
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Q3 Conference Call
Replay:
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Toll Free Replay Call
(North America):
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1-855-859-2056
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International Replay
Call:
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1-416-849-0833
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The conference call replay will be available from 11:30 am EDT on November
3, 2017 until 11:59 pm EST on
November 10, 2017.
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
(loss)" and "Adjusted earnings (loss) 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 expenses,
exploration expenses, accretion of reclamation provision and
sustaining capital expenditures divided by gold ounces sold.
Adjusted net income (loss) is equal to net income less foreign
exchange impacts on deferred income taxes, foreign exchange (gains)
losses, reversal of non-cash impairment write down related to the
net realizable value of the work-in-process inventory and
unrecognized (recognition of previously unrecognized) Mexican
deferred tax assets. Adjusted earnings (loss) per share – basic is
equal to adjusted net income (loss) divided by the basic weighted
average number of common shares outstanding. The Company believes
that these measures provide investors with an improved ability 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 consolidated financial statements for the three
and nine months ended September 30,
2017 and associated MD&A, for the same period, which are
available from the Company's website, www.argonautgold.com, in the
"Investors" section under "Financial Filings", and under the
Company's profile on SEDAR at www.sedar.com.
Creating Value Beyond Gold
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 Argonaut Gold
Inc. ("Argonaut" or "Argonaut Gold"). Forward-looking statements
and forward-looking information include, but are not limited to,
statements with respect to estimated production and mine life of
the various mineral projects of Argonaut; the ability to obtain
permits for operations; synergies; the realization of mineral
reserve estimates; the timing and amount of estimated future
production; costs of production; and financial impact of
completed acquisitions; the benefits of the development potential
of the properties of Argonaut; the future price of gold, copper,
and silver; the estimation of mineral reserves and resources;
success of exploration activities; and currency exchange rate
fluctuations. Except for statements of historical fact relating to
Argonaut, certain information contained herein constitutes
forward-looking statements. Forward-looking statements are
frequently characterized by words such as "plan," "expect,"
"project," "intend," "believe," "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may", "should" or "will" occur. Forward-looking statements are
based on the opinions and estimates of management at the date the
statements are made, and are based on a number of assumptions and
subject to a variety of risks and uncertainties and other factors
that could cause actual events or results to differ materially from
those projected in the forward-looking statements. Many of these
assumptions are based on factors and events that are not within the
control of Argonaut and there is no assurance they will prove to be
correct.
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 parametres, 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 MD&A
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 Thomas Burkhart, a Qualified Person under NI
43-101. For further information on the Company's material
properties, please see the reports as listed below on the Company's
website or on www.sedar.com:
El Castillo
Mine
|
NI 43-101 Technical
Report on Resources and Reserves, Argonaut Gold Inc., El Castillo
Mine, Durango State, Mexico dated February 24, 2011 (effective date
of November 6, 2010)
|
La Colorada
Mine
|
NI 43-101 Preliminary
Economic Assessment La Colorada Project, Sonora, Mexico dated
December 30, 2011 (effective date of October 15, 2011)
|
San Agustin
Project
|
NI 43-101 Technical
Report and Preliminary Economic Assessment San Agustin Heap Leach
Project, Durango, Mexico dated June 10, 2016 (effective date of
Resources April 29, 2016)
|
Magino Gold
Project
|
Preliminary
Feasibility Study Technical Report on the Magino Project, Wawa,
Ontario, Canada dated February 22, 2016 (effective date January 18,
2016)
|
San Antonio Gold
Project
|
NI 43-101 Technical
Report on Resources, San Antonio Project, Baja California Sur,
Mexico dated October 10, 2012 (effective date of September 1,
2012)
|
About Argonaut Gold
Argonaut Gold is a Canadian gold company engaged in exploration,
mine development and production activities. Its primary
assets are the production stage El
Castillo mine and San
Agustin mine, which together form the El Castillo Complex in
Durango, Mexico and the production
stage La Colorada mine in
Sonora, Mexico. Advanced
exploration stage projects include the San Antonio project in Baja California Sur, Mexico, and the Magino
project in Ontario, Canada.
The Company also has several exploration stage projects, all of
which are located in North
America.
_____________________________________
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1 GEOs are
based on a conversion ratio of 70:1 for silver to gold for 2017 and
65:1 for 2016. This is the referenced ratio for each year
throughout the press release.
|
SOURCE Argonaut Gold Ltd.