Gold production at Argonaut drops 22% in Q2
Due to government mandated production suspensions in Mexico, Q2 gold producution at Argonaut Gold declined 22% to 31,151 ounces compared to the previous quarter a year ago.
The company reported $23.4 million of free cash flow.
The company rung in a net loss of $7.7 million or loss per share of $0.04 and adjusted net income of $8.5 million or adjusted earnings per basic share of $0.05.
Argonaut Gold CEO, Pete Dougherty, said cash flow should increase.
"We've completed major milestones for the Company over the past few months with the Alio merger, the completion of the Schedule 2 process at Magino and the recent equity financing. The Company experienced a large cash increase of $23 million during the quarter amidst the two month shutdown of mining, crushing and stacking activities in Mexico due to COVID-19 restrictions," said Dougherty. "While production dipped during this shutdown period, we saw significant cash flow, as the heap leach pad inventory was reduced at minimal cost. "We are in a position to deliver significant free cash flow through the remainder of the year, which bodes well for the execution of our transition strategy of developing our lower-cost, longer-life pipeline of growth assets. At $1,900 gold, we expect to generate between $49 million and $79 million of free cash flow during the second half of 2020."