Mining News
Argonaut 1Q Adjusted Profit Rises From Year Ago
(Kitco News) - Argonaut Gold Inc. (TSX: AR) says its adjusted first-quarter profit rose as output and the gold price climbed but costs fell. First-quarter net income was $12.2 million, or 7 cents per basic, in line with $12 million, also 7 cents, in the first quarter of 2017. However, excluding special items, the rise in adjusted income was more pronounced, as this climbed to $7.9 million, or 4 cents, from $4.9 million, or 3 cents, a year ago. Argonaut says this was mainly due to the recognition of previously unrecognized Mexican deferred tax assets in the first quarter of 2017, which reduced deferred tax expense. The company produced 40,853 gold-equivalent ounces at an all-in sustaining cost of $781 per gold ounce, compared to 37,707 ounces at AISC of $870 a year ago. The average realized gold price rose to $1,330 from $1,228. “We made significant investments during 2017, and 2018 is about harvesting those investments and adding cash to our balance sheet through strong free cash flow,” says Pete Dougherty, president and chief executive officer. “During the first quarter, we added $7.2 million in net cash to our balance sheet.”
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