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Argonaut Gold Announces First Quarter 2017 Operating and Financial Results
Mehrere Goldbarren.
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TORONTO, May 9, 2017
Production of 37,707 Gold Equivalent Ounces and Earnings per Share of $0.07
TORONTO, May 9, 2017 /CNW/ - 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, 2017. The Company reports quarterly net income of $12.0 million or earnings per share of $0.07, adjusted net income1 of $4.9 million or adjusted earnings per share1 of $0.03 and production of 37,707 gold equivalent ounces2 ("GEO" or "GEOs"). All dollar amounts are expressed in United States dollars, unless otherwise specified (C$ refers to Canadian dollars).
Key operating and financial statistics for the first quarter of 2017 are outlined in the following table:
| | | | |
| (in millions except for earning per share) | 3 months ended | Change | |
| 2017 | 2016 | ||
| Revenue | $44.5 | $35.3 | 26% |
| Gross profit | $10.1 | $8.9 | 13% |
| Net income | $12.0 | $4.3 | 179% |
| Earnings per share – basic | $0.07 | $0.03 | 133% |
| Adjusted net income1 | $4.9 | $1.8 | 172% |
| Adjusted earnings per share – basic1 | $0.03 | $0.01 | 200% |
| Cash flow from operating activities before changes in non-cash operating working capital | $14.9 | $9.0 | 66% |
| Cash and cash equivalents | $55.2 | $46.6 | 18% |
| GEOs loaded to the pads2 | 55,447 | 51,002 | 9% |
| GEOs projected recoverable2,3 | 32,712 | 27,856 | 17% |
| GEOs produced2,4 | 37,707 | 32,154 | 17% |
| GEOs sold2 | 36,173 | 30,012 | 21% |
| Average realized sales price | $1,228 | $1,181 | 4% |
| Cash cost per gold ounce sold1 | $751 | $757 | (1%) |
| All-in sustaining cost per gold ounce sold1 | $870 | $871 | 0% |
| | | ||
| 1 Please refer to the section below entitled "Non-IFRS Measures" for a discussion of these Non-IFRS Measures. | |||
| 2 Gold equivalent ounces ("GEO" or "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. | |||
| 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%; La Colorada expected recovery rates: gold 60% and silver 30%. | |||
| 4 Produced ounces are calculated as ounces loaded to carbon. | |||
First Quarter 2017 and Recent Company Highlights:
- Corporate Highlights
- Acquisition of San Juan ("Fresnillo") mineral concession adjacent to El Castillo, increasing the mineral concession footprint from 200 hectares to 620 hectares (see press release dated February 23, 2017).
- Successful C$45.0 million equity financing, including the over-allotment option, primarily allocated toward the Fresnillo mineral concession acquisition and subsequent infill drill program.
- Received Environmental Socially Responsible Company award at both El Castillo and La Colorada for the fifth consecutive year.
- El Castillo
- First quarter production of 22,226 GEOs.
- Initiated 21,000 metre drill program on recently acquired Fresnillo mineral concession.
- Disassembled and removed west crusher and overland conveyor systems for relocation to San Agustin.
- La Colorada
- First quarter production of 15,481 GEOs.
- Completed 5,139 metre drill program at the El Creston deposit that indicated potential for open pit expansion (see press release dated March 20, 2017).
- Continued stripping of El Creston pit.
- Completed construction of northeast leach pad phase three.
- San Agustin
- Completed detailed design work.
- Commenced construction of heap leach pad and was 65% complete at May 5, 2017.
- Received west crusher and overland conveyor systems from El Castillo and began reassembling.
- New secondary crushing equipment arriving and is being erected.
- At May 5, 2017, construction was 50% complete with $19.8 million spent or committed, which remains on schedule and budget.
- San Antonio
- Initiated legal process for review of recent permit decision (see press release dated December 16, 2016).
- Magino
- Filed Environmental Impact Statement and advanced Environmental Assessment process (federal and provincial).
- Advanced feasibility study.
- Advanced First Nations impact benefit agreements.
CEO Commentary
Pete Dougherty, President and CEO stated: "The production results during the first quarter were outstanding and speak to the success our team has made in improving operational efficiencies. I commend the team on its continued focus on safety, their commitment to the environment and improving our operations. The operations, construction and exploration teams are firing on all cylinders right now at El Castillo, La Colorada and San Agustin."
Financial Results – First Quarter 2017
Revenue for the three months ended March 31, 2017 was $44.5 million, an increase from $35.3 million for the three months ended March 31, 2016. During the first quarter of 2017, gold ounces sold totaled 34,962 at an average realized price per ounce of $1,228 (compared to 29,178 gold ounces sold at an average price per ounce of $1,181 during the same period of 2016).
Production costs for the first quarter of 2017 were $27.8 million, an increase from $22.9 million in the first quarter of 2016 primarily due to the increase in gold ounces sold. Cash cost per gold ounce sold (see Non-IFRS Measures section) was $751 in the first quarter of 2017, comparable to $757 in the same period of 2016.
General and administrative expenses for the first quarter of 2017 were $3.2 million, an increase from $2.3 million in the same period of 2016 primarily due to one-time employee transition costs.
Gains on foreign exchange derivatives for the first quarter of 2017 were $1.7 million, an increase from nil in the first quarter of 2016, due to gains on the Company's zero-cost collar contracts.
Other income for the first quarter of 2017 was $1.7 million, an increase from other expense of $1.2 million in the first quarter of 2016, primarily due to differences in foreign currency translation effects.
Income tax recovery for the first quarter of 2017 was $2.1 million compared to income tax expense of $0.9 million in the same period of 2016. The change is primarily due to the foreign exchange effects of the strengthening Mexican peso on the calculation of deferred taxes, partially offset by higher taxable income during the first quarter of 2017.
Net income for the first quarter of 2017 was $12.0 million or $0.07 per basic share, an increase from $4.3 million or $0.03 per share for the first quarter of 2016.
Adjusted net income for the first quarter of 2017 was $4.9 million or $0.03 per basic share, an increase from $1.8 million or $0.01 per basic share for the first quarter of 2016 primarily due to the increase of gold ounces sold (see Non-IFRS Measures section).
Operational Results – First Quarter 2017
The San Agustin project construction plan originally called for the west crusher at the El Castillo mine to be disassembled and relocated in early February 2017. The Company reviewed this plan and determined there would be no impact to the overall San Agustin construction schedule by delaying this relocation until early March 2017. As a result, crushed tonnes placed on the leach pad at El Castillo exceeded the original plan by approximately 132,000 tonnes. These additional tonnes, along with improved operating efficiencies at El Castillo and mineralized material grades at La Colorada that exceeded planned levels, led to strong first quarter production.
The Company planned and continues to expect that the first and fourth quarters of 2017 will contribute higher quarterly production than the second and third quarters. Relocation of the west crusher to San Agustin during the first quarter reduces overall crushing capacity at El Castillo in the second quarter by approximately 45%. The re-start, commissioning and ramp-up of the west crusher at San Agustin during the second quarter and third quarter will mean that crushing capacity is expected to be fully restored by the end of the third quarter.
Bill Zisch, Chief Operating Officer, commented: "By re-evaluating our plan and delaying the relocation of the west crusher from El Castillo to San Agustin, we saw placement of ore on the pad at El Castillo above the budget for the quarter. We initiated changes with our crusher maintenance program at El Castillo, which led to less downtime, and also made modifications to our blasting practices to increase rock fragmentation at both El Castillo and La Colorada, which aided crusher throughput. All of these improvements contributed to higher than budgeted throughput and ore placement during the quarter."
| FIRST QUARTER 2017 EL CASTILLO OPERATING STATISTICS | |||
| | |||
| 3 Months Ended March 31 | |||
| | 2017 | 2016 | % Change |
| Mining | | | |
| Tonnes ore (000s) | 2,467 | 2,747 Werbung Mehr Nachrichten zur Argonaut Gold Aktie kostenlos abonnieren
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