(Kitco News) - Argonaut Gold (TSX: AR) announced Thursday that the company produced 45,939 gold equivalent ounces in Q3 2022, which is a decrease of 22% compared to Q3 2021 (58,777 ounces).
Argonaut said that year-to-date, its production results were in-line with expectations, adding that the company had a challenging third quarter at La Colorada and Florida Canyon mines that was mostly offset by the consistent performance of the El Castillo Complex.
The company also reported Q3 2022 revenue of $75.3 million (Q3 2021: $108.6 million), net loss of $1.3 million (Q3 2021: net income of $15 million), and adjusted net loss of $0.2 million (Q3 2021: adjusted net income of $17.2 million).
Argonaut noted it maintains its 2022 GEO production guidance and, primarily due to inflationary pressures on key consumable costs, is adjusting its cost guidance higher, with all-in sustaining costs expected to be within the range of $1,650 - $1,725 per gold ounce sold (previous guidance: $1,500 – $1,600 per ounce).
"We made significant progress on the completion and construction of the Magino project. We remain focused on the long-term strategic objective to generate increasing cash flow through low-cost production growth. Magino is a key driver of our future growth with a production potential of 142,000 ounces per year for the first five years of production at significantly lower life-of-mine cash costs3 of approximately $907 per ounce," stated President and CEO Larry Radford.
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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