Argonaut Gold Announces Third Quarter 2017 Operating and Financial Results

TORONTO, Nov. 2, 2017

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: