Argonaut Gold Announces Second Quarter 2018 Operating and Financial Results

by pmnationtalk on August 10, 201848 Views

Production of 38,441 Gold Equivalent Ounces

Toronto, Ontario – (August 9, 2018) Argonaut Gold Inc. (TSX: AR) (the “Company”, “Argonaut Gold” or “Argonaut”) is pleased to announce its financial and operating results for the second quarter ended June 30, 2018.  The Company reports a quarterly cash flow from operating activities before changes in operating working capital of $17.0 million, net income of $0.4 million or earnings per share of $0.00, adjusted net income[1] of $7.0 million or adjusted earnings per share1 of $0.04, net cash1 increase of $1.5 million and production of 38,441 gold equivalent ounces[2] (“GEO” or “GEOs”).  All dollar amounts are expressed in United States dollars, unless otherwise specified (C$ refers to Canadian dollars).

CEO Commentary

Pete Dougherty, President and CEO stated: “As previously reported, we went several weeks without blasting material at our La Colorada mine.  I commend the team for its ability to adjust the mine plan temporarily and maintain our 12,000 tonnes per day operation without sacrificing the long term mine plan.  Although the use of low-grade stockpiles will ultimately lead to lower 2018 production at La Colorada, with the continued outperformance at our new San Agustin mine, we remain comfortable with our consolidated annual production and cost guidance of between 165,000 and 180,000 GEOs at cash costs between $700 and $800 per gold ounce sold1.”

Key operating and financial statistics for the second quarter of 2018 are outlined in the following table:

3 Months Ended June 30 6 Months Ended June 30
2018 2017 Change 2018 2017 Change
Financial Data (in millions except for earning per share)
Revenue $50.2 $42.5 18% $103.1 $87.0 19%
Gross profit $14.0 $9.5 47% $31.4 $19.5 61%
Net income $0.4 $6.2 (94%) $12.6 $18.2 (31%)
Earnings per share – basic $0.00 $0.04 (100%) $0.07 $0.11 (36%)
Adjusted net income1 $7.0 $4.1 71% $14.9 $9.0 66%
Adjusted earnings per share – basic1 $0.04 $0.02 100% $0.08 $0.05 60%
Cash flow from operating activities before changes in non-cash operating working capital $17.0 $13.5 26% $38.1 $28.4 34%
Cash and cash equivalents $22.7 $53.8 (58%) $22.7 $53.8 (58%)
Net cash1 $14.7 $53.8 (73%) $14.7 $53.8 (73%)
Gold Production and Cost Data
GEOs loaded to the pads2 74,728 53,402 40% 155,647 108,849 43%
GEOs projected recoverable2, [3] 39,777 31,430 27% 84,169 64,142 31%
GEOs produced2, [4] 38,441 29,730 29% 79,294 67,437 18%
GEOs sold2 38,858 33,747 15% 78,904 69,920 13%
Average realized sales price $1,295 $1,260 3% $1,313 $1,244 6%
Cash cost per gold ounce sold1 $704 $785 (10%) $677 $767 (12%)
All-in sustaining cost per gold ounce sold1 $832 $906 (8%) $806 $887 (9%)

Read More: http://www.argonautgold.com/news_events/news/news_release/index.php?content_id=393

NT4

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