Argonaut Gold reports record production and financial results in Q1 2021
(Kitco News) - Argonaut Gold (TSX: AR) today reported a record quarterly production of 59,704 gold equivalent ounces ("GEO"), record quarterly revenue of $105.3 million, cash flow from operating activities before changes in operating working capital of $27.7 million and net income of $27.0 million or earnings per share of $0.09.
During the first quarter of 2021, the company achieved record quarterly production of 59,704 GEOs at a cash cost per gold ounce sold of $1,003 and an all-in sustaining cost ("AISC") per gold ounce sold of $1,313, compared to 41,536 GEOs at a cash cost of $967 per gold ounce sold and an AISC per gold ounce sold of $1,323 during the first quarter of 2020.
The company said that higher GEO production is primarily related to the addition of the Florida Canyon mine and increased production at the San Agustin and La Colorada mines.
The company posted a record quarterly revenue of $105.3 million for the first quarter of 2021, an increase from $66.6 million from the first quarter of 2020. Net income for the first quarter of 2021 was $27.0 million or $0.09 per basic or diluted share compared to a net loss of $9.5 million or $0.05 loss per share for the same period in 2020.
Argonaut said it is on track to achieve its 2021 consolidated production, cost and capital guidance.
President and CEO Pete Dougherty commented, "It was our second consecutive quarter of record quarterly production and revenue. We demonstrated strong cash flow during the first quarter, which underpins our strategy to harvest cash from the existing operations, replace depleted ounces and invest in our growth asset portfolio to transform Argonaut from a high-cost, junior producer with short mine lives to a lower cost intermediate producer with long mine lives."
Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production. Its primary assets are the El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico, the La Colorada mine in Sonora, Mexico and the Florida Canyon mine in Nevada, USA. The Company also holds the construction stage Magino project, the advanced exploration stage Cerro del Gallo project and several other exploration stage projects, all of which are located in North America.