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Argonaut Gold Announces First Quarter 2015 Revenue of $51.0 M;
Cash Balance Builds to $64.0 M
May 5, 2015
GEO Production Increases by 40% Year over Year
Toronto, Ontario - (May 5, 2015) Argonaut Gold Inc. (TSX: AR) (the “Company”, “Argonaut Gold” or “Argonaut”) is pleased to announce its financial and operating results for the first quarter ended March 31, 2015. All dollar amounts are expressed in United States dollars unless otherwise specified.
| |
1st Quarter |
Change |
| 2015 |
2014 |
| Financial Data (in millions except earnings per share) |
| Revenue |
$51.0 |
$39.1 |
↑30% |
| Gross profit |
$6.8 |
$8.0 |
↓15% |
| Net income |
$1.5 |
$2.8 |
↓46% |
| Earnings per share - basic |
$0.01 |
$0.02 |
↓50% |
| Cash flow from operating activities before changes in non-cash operating working capital and other items |
$16.8 |
$12.9 |
↑30% |
| Cash and cash equivalents |
$64.0 |
$59.7 |
↑ 7% |
| Gold Production and Cost Data |
| GEOs loaded to the pads1 |
54,254 |
52,605 |
↑ 3% |
| GEOs projected recoverable ounces1,2 |
31,634 |
29,325 |
↑ 8% |
| GEOs produced ounces1 |
43,255 |
30,963 |
↑ 40% |
| GEOs ounces sold1 |
42,418 |
30,165 |
↑ 41% |
| Average realized sales price per gold ounce |
$1,211 |
$1,304 |
↓7% |
| Cash cost per gold ounce sold3 |
$735 |
$731 |
↑1% |
| All-in sustaining cost per gold ounce sold3 |
$883 |
$976 |
↓10% |
1 Gold equivalent ounces (“GEO” or “GEOs”) are based on a conversion ratio of 55:1 for silver to gold and is the referenced ratio throughout this release.
2 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%; La Colorada expected recovery rates: gold 60% and silver 30%.
3 Refer to section Non-IFRS Measures.
FIRST QUARTER 2015 FINANCIAL HIGHLIGHTS:
- Revenue of $51.0 million from sales of 42,418 GEOs at an average price of $1,211 per gold ounce.
- Net income of $1.5 million, the foreign exchange effects of the weakening Mexican peso impacted income tax expense via an increase in deferred tax expense of $1.2 million.
- Cash flow from operations before changes in non-cash working capital and other items of $16.8 million.
- Capital investments of $11.1 million (mineral properties, plant and equipment) during the quarter.
2015 Company Highlights:
- Corporate Highlights:
- Cash balance grows to $64.0 million.
- The La Colorada mine was selected as Mexico’s best company for Corporate Social Responsibility in the small mines category.
- Production:
- Production of 43,255 GEOs, a 40% improvement over the first quarter of 2014.
- Overall cash cost of $735 per gold ounce sold (refer to Non-IFRS Measures section).
- All-in sustaining cost of $883 per gold ounce sold (refer to Non-IFRS Measures section).
- El Castillo
- Quarterly production of 24,845 GEOs.
- During the quarter, 30,556 contained gold ounces loaded on the leach pads.
- Over 74,000 tonnes per day mined and 2.8 million ore tonnes placed on the heap leach pads during the quarter.
- Advance Capital Projects:
- West valley pad between pad 8 and pads 1-7 (90% complete)
- East pad 3B (35% complete).
- La Colorada
- Record quarterly production of 17,169 gold ounces and 68,261 silver ounces, for 18,410 GEOs.
- During the quarter, 18,208 contained gold ounces and 301,975 contained silver ounces loaded on the leach pads.
- Average crusher throughput for the quarter of 12,661 tonnes per day.
- Record throughput of more than 14,800 tonnes per day in March; this included processing nearly a 50/50 blend from the historic heap leach pad 6 and fresh ore from the La Colorada/Gran Central pit.
- Advanced capital projects:
- Phase I of new pad 6 completed.
- Pad 9A ground cleared.
- Installation of phase I of overland conveyor 80% complete.
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