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, 2013. All dollar amounts are expressed in United States dollars
unless otherwise specified.
----------------------------------------------------------------------------
2nd Quarter 6 months
------------------ ------------------
2013 2012 Change 2013 2012 Change
----------------------------------------------------------------------------
Financials (000s)
----------------------------------------------------------------------------
Revenue $44,930 $37,544 up 20% $88,010 $61,897 up 42%
----------------------------------------------------------------------------
Net income $6,494 $11,314 down 43% $18,109 $18,574 down 3%
----------------------------------------------------------------------------
Income per share -
basic $0.04 $0.12 down 67% $0.12 $0.20 down 40%
----------------------------------------------------------------------------
Cash flow from
operating
activities before
changes in non-cash
operating working
capital and other
items $16,756 $16,406 up 2% $36,107 $24,547 up 47%
----------------------------------------------------------------------------
Cash and cash
equivalents $139,752 $21,443 up 552% $139,752 $21,443 up 552%
----------------------------------------------------------------------------
Gold production and cost:
----------------------------------------------------------------------------
Gold ozs. loaded to
the pad 42,965 45,393 down 5% 82,751 89,562 down 8%
----------------------------------------------------------------------------
Gold ozs. produced 33,586 24,123 up 39% 62,493 45,007 up 39%
----------------------------------------------------------------------------
Gold ozs. sold 31,756 23,247 up 37% 57,197 37,745 up 52%
----------------------------------------------------------------------------
Average realized
sales price $1,388 $1,600 down 13% $1,492 $1,630 down 8%
----------------------------------------------------------------------------
Cash cost per gold
oz sold $643 $620 up 4% $621 $627 down 1%
----------------------------------------------------------------------------
SECOND QUARTER 2013 & RECENT HIGHLIGHTS
-- Capital expenditures of $31.1 million on mineral properties, plant and
equipment
-- El Castillo operations:
-- Record tonnes crushed and loaded to the east pad
-- West Side Pad 8 loading continues with ongoing construction during
2013
-- Overland conveying construction initiated with completion and
operation expected in the third quarter
-- La Colorada operations:
-- Pre-stripping continues at the La Colorada pit
-- New crushing system has been installed and is expected to be
complete and operational in the third quarter of 2013
-- San Antonio and Magino permitting process continues
-- Subsequent to quarter-end, the Company acquired the rights to a 3% net
smelter royalty on certain La Colorada mining concessions for $3.6
million. This royalty was assessed at $10.3 million in the economic
analysis in the La Colorada Project National Instrument 43-101
Preliminary Economic Assessment dated December 30, 2011.
CEO Commentary
Pete Dougherty, President and CEO of Argonaut Gold, stated "This was a
tremendous quarter and first half of the year for the Company. New production
highs were achieved while implementing new capital expansion programs. The
majority of capital expenditures at El Castillo and La Colorada have been
incurred in the first half of the year. El Castillo pad construction will
continue through the year and construction of the overland conveyor is expected
to be completed and operational by the end of the third quarter. The La Colorada
crusher has been installed and is in the commissioning stages. Cash costs at El
Castillo have been relatively constant since inception in spite of inflationary
pressures. The 2013 capital expenditure projects is aimed at reducing operating
costs and providing production growth at both mines."
The Company is on track to meet production guidance established at the beginning
of the year. Company guidance is maintained for 120,000 to 140,000 ounces of
gold production at a cash cost per gold ounce sold of $630 to $660 (cash cost
per gold ounce sold is a non-IFRS measure, see note below).
Financial Results - Second Quarter 2013
During the second quarter of 2013, revenue was $44.9 million from gold sales of
31,756 ounces, compared to $37.5 million from gold sales of 23,247 ounces in the
second quarter of 2012. Cash cost per gold ounce sold in the quarter was $643,
compared to $620 in the same period of the prior year.
During the second quarter of 2013, gross profit was $16.9 million, compared to
$18.2 million in the second quarter of 2012. During the quarter, profit from
operations was $12.8 million, compared to $15.9 million in the same period of
the prior year. Net income for the period was $6.5 million, or $0.04 per basic
share, versus $11.3 million, or $0.12 per basic share, in the second quarter of
2012.
Cash and cash equivalents was $139.8 million at June 30, 2013. Capital
expenditures in the second quarter were $31.1 million, primarily as a result of
infrastructure improvements at the El Castillo and La Colorada mines.
Financial Results - Six months ended June 30, 2013
During the six months ended June 30, 2013, revenue was $88.0 million from gold
sales of 57,197 ounces, compared to $61.9 million from gold sales of 37,745
ounces in the first half of 2012. Cash cost per gold ounce sold in the six
months ended June 30, 2013 was $621, compared to $627 in the same period of the
prior year.
During the first half of 2013, gross profit was $37.8 million, compared to $30.5
million in the first half of 2012. During the six months ended June 30, 2013,
profit from operations was $30.0 million, compared to $25.6 million in the same
period of the prior year. Net income for the period was $18.1 million, or $0.12
per basic share, versus $18.6 million, or $0.20 per basic share, in the six
months ended June 30, 2012.
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 June 30, 2013 and associated management's discussion and analysis
("MD&A"), 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.
El CASTILLO OPERATING STATISTICS
3 Months Ended June 30 6 Months Ended June 30
% %
2013 2012 Change 2013 2012 Change
----------------------------------------------------------------------------
Mining (Tonnes)
Tonnes ore 3,277,688 2,506,756 up 31% 6,450,460 5,557,283 up 16%
Tonnes waste 3,417,585 2,530,645 up 35% 6,431,190 5,445,042 up 18%
Tonnes mined 6,695,273 5,037,401 up 33% 12,881,650 11,002,325 up 17%
Waste / Ore
ratio 1.04 1.01 up 3% 1.00 0.98 up 2%
Heap Leach Pad
(Tonnes)
Tonnes ore
direct to
leach pad 1,710,134 1,533,188 up 12% 3,439,530 3,717,080 down 7%
Tonnes crushed 1,564,681 1,164,340 up 34% 2,996,367 2,002,718 up 50%
Production
Gold grade
(g/t) 0.38 0.41 down 7% 0.37 0.38 down 3%
Gold loaded to
leach pad (oz) 40,169 35,220 up 14% 76,192 70,503 up 8%
Gold produced
(oz) 28,075 19,533 up 44% 51,200 37,332 up 37%
Gold ounces
sold 26,705 17,949 up 49% 46,214 32,447 up 42%
Silver ounces
sold 8,940 2,410 up 271% 17,627 3,820 up 361%
Cash cost per
gold ounce
sold $691 $632 up 9% $695 $635 up 9%
(1) "g/t" is grams per tonne
(2) "oz" means troy ounce
Summary of Production Results at El Castillo
Total tonnes mined in the second quarter 2013 were up 33 percent, compared to
the second quarter of 2012. Record crushed tonnes were achieved again with 1.6
million tonnes during the second quarter, representing a 34 percent increase
over the second quarter of 2012. The total ounces loaded to the leach pad were
40,169 in the second quarter of 2013, a 14 percent increase over the second
quarter of 2012. The stripping ratio of waste to ore remained relatively
consistent between periods.
The 2013 production guidance is expected to be between 90,000-100,000 ounces
with a cash cost between $700 and $725 per gold ounce sold.
LA COLORADA OPERATING STATISTICS
3 Months Ended June 30 6 Months Ended June 30
2013 2012 % Change 2013 2012 % Change
----------------------------------------------------------------------------
Mining (Tonnes)
Tonnes ore 341,782 - up 100% 898,419 - up 100%
Tonnes waste 3,801,660 - up 100% 7,600,285 - up 100%
Tonnes mined 4,143,442 - up 100% 8,498,704 - up 100%
Waste / ore ratio 11.12 - up 100% 8.46 - up 100%
Tonnes moved 4,143,442 840,241 up 393% 8,498,704 1,518,551 up 460%
Heap Leach Pad
(Tonnes)
Crushed ore
tonnes to pad 312,466 743,533 down 58% 715,014 1,423,929 down 50%
Production
Gold grade (g/t) 0.28 0.43 down 35% 0.29 0.42 down 31%
Gold loaded to
leach pad (oz) 2,796 10,173 down 73% 6,559 19,059 down 66%
Gold produced
(oz) 5,511 4,590 up 20% 11,293 7,675 up 47%
Gold ounces sold 5,051 5,298 down 5% 10,983 5,298 up 107%
Silver produced
(oz) 45,318 25,796 up 76% 90,197 42,978 up 110%
Silver ounces
sold 27,801 9,748 up 185% 82,070 9,748 up 742%
Cash Cost per
ounce sold $391 $578 down 32% $309 $578 down 47%
(1) "g/t" is grams per tonne
(2) "oz" means troy ounce
Summary of Production Results at La Colorada
2013 production to date has exceeded initial forecasts as re-leaching of the old
heap leach material pad has continued. Ore tonnes processed and grades are
expected to increase in the second half of the year as the pit is opened to
higher grade ore during the third quarter. During the third quarter we also
anticipate the crusher to be completed and operational.
The 2013 production guidance is between 30,000-40,000 ounces, back loaded to the
second half of the year, with a cash cost, net of by-product credits, between
$450 and $475 per gold ounce sold.
Expansion Projects for 2013
The Company plans on investing $80 million on capital expenditures and
exploration initiatives in 2013. Major capital expenditures in 2013 are expected
to include approximately $30 million at El Castillo, $22 million at La Colorada,
$10 million at Magino (excluding exploration) and $4 million at San Antonio.
Exploration expenditures in 2013 are expected to amount to $10 million.
Additionally, the Company will incur $4 million for the purchased rights to a
royalty on certain La Colorada mining concessions.
The Company will be hosting a conference call and webcast to discuss the second
quarter financial results on August 13, 2013 at 8:30 a.m. ET (5:30 a.m. PT).
Q2 Conference Call Information:
Toll Free (North America): 1-866-223-7781
International: 1-416-340-8018
Webcast: http://www.argonautgold.com/
Q2 Conference Call Replay:
The conference call replay will be available from 10:30 a.m. ET on August
13, 2013 until August 20, 2013.
Toll Free Replay Call (North America): 1-800-408-3053
International Replay Call: 1-905-694-9451
Passcode: 7979249
Non-IFRS Measures
The Company included the non-IFRS measure "Cash cost per gold ounce sold" 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. The Company believes that this measure provides 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 MD&A for full disclosure on non-IFRS
measures.
Technical Information and Mineral Properties Reports
For further information on the Company's 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 November 6, 2010
----------------------------------------------------------------------------
La Colorada Mine NI 43-101 Preliminary Economic Assessment La
Colorada Project, Sonora, Mexico dated December
30, 2011
----------------------------------------------------------------------------
Magino Gold Project NI 43-101 Technical Report and Mineral Resource
Estimate on the Magino Gold Project, Ontario,
Toronto, Canada dated October 4, 2012
----------------------------------------------------------------------------
San Antonio Gold Project NI 43-101 Technical Report and Mineral Resource
Estimate on the San Antonio Gold Project, Baja
California Sur, Mexico dated October 10, 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 in Durango, Mexico and the La Colorada Mine in Sonora,
Mexico, the advanced exploration stage San Antonio project in Baja California
Sur, Mexico, the advanced exploration stage Magino project in Ontario, Canada
and several exploration stage projects, all of which are located in North
America.
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 proposed transaction and the business, operations and financial
performance and condition of Argonaut Gold Inc. ("Argonaut"). 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; synergies 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; the realization of mineral reserve estimates;
the timing and amount of estimated future production; costs of production;
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" 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 changes in market
conditions, variations in ore grade or recovery rates, 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.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101
nichole.cowles@argonautgold.com
www.argonautgold.com
Argonaut Gold (TSX:AR)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Argonaut Gold (TSX:AR)
Historical Stock Chart
Von Jul 2023 bis Jul 2024
