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Argonaut Gold reports record production in 2021, net income jumps 87%

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(Kitco News) - Argonaut Gold (TSX: AR) announced yesterday that in 2021, the company produced record 244,156 gold equivalent ounces ("GEO").

The company achieved above its production guidance at La Colorada, near the top of production guidance at El Castillo and San Agustin and near the mid-point of its production guidance at Florida Canyon.

Argonaut said it also achieved record annual revenue for 2021 of $436.9 million, an increase from $319.7 million in 2020.

The company’s net income for 2021 was $26.5 million or earnings of $0.09 per basic share, an increase from net income of $14.2 million or $0.06 per basic for 2020, representing an 87% increase in net income primarily as a result of increased GEO sold.

Adjusted net income for 2021 was $57.1 million or $0.19 per basic share, an increase from adjusted net income of $44.6 million or $0.19 per basic share for 2020, representing an 41% increase in adjusted net income primarily as a result of increased GEO sold.

The company also generated record cash flows from operating activities before changes in non-cash operating working capital and other items of $124.9 million during 2021, an increase from $95.0 million in 2020, primarily due to a 35% increase in GEO sold.

Argonaut anticipates it will produce between 200,000 and 230,000 GEO during 2022 at a cash cost of between $1,100 and $1,190 per gold ounce sold and an AISC of between $1,415 and $1,525 per gold ounce sold.

The company explained that lower GEO production and higher AISC in 2022 are primarily driven by lower expected GEO production at La Colorada due to a higher strip ratio and lower grade and recovery, as mining transitions from the El Crestón pit to the Veta Madre pit.

The company added it also anticipates higher cash taxes will impact cash flow in 2022, particularly during the first quarter of 2022 when most of the final tax payments for 2021 are made, as a result of Argonaut's highly profitable operations in 2021 combined with the exhaustion of net operating losses at its Mexican subsidiaries.

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.

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