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(Kitco News) - Argonaut Gold (TSX: AR) announced on Friday that the company produced 42,482 ounces of gold in Q2 2023, down 26% from Q2 2022 (57,409 ounces).
The company said that cost of sales per ounce of $1,590, cash cost per ounce of $1,304 and all-in sustaining cost (AISC) per ounce of $1,594 were similar to the prior year period and largely in-line with 2023 full-year guidance.
Argonaut added that production and per ounce costs were “largely on plan” for the first half of the year, “placing the company on track to meet our full year production and cost guidance targets set at the beginning of the year.”
The company said Q2 2023 revenues of $83.1 million were 25% lower than $111.4 million from the second quarter of 2022, due to lower planned production from the company's three Mexican mines.
Gross profit of $15.5 million was $4.3 million lower than $19.8 million from the second quarter of 2022, due to lower revenues from planned lower production, it added.
Argonaut also reported net income of $21.2 million, or $0.03 per basic and diluted share, compared to net income of $18.4 million, or $0.06 per share for Q2 2022, a 15% increase.
The company’s consolidated 2023 production and cost guidance remains unchanged at 200,000 to 230,000 gold equivalent ounces and an all-in sustaining cost of $1,625 – $1,725 per ounce.
Importantly, the company said that during the second quarter, commissioning activities at the Magino mine were well underway, with the introduction of ore into the crushing circuit mid-May and the grinding circuit approximately one week later. First gold pour was achieved mid-June.
“We continue to ramp up the mill at Magino to steady-state and are expecting to achieve commercial production in the third quarter of this year. The plant has been running at or above nameplate throughput capacity when operating," the company said.
Argonaut Gold is a Canadian gold company with a portfolio of operations and multi-stage assets in North America. The company is in the final stages of construction at its Magino project, located in Ontario, Canada. Magino is expected to achieve commercial production in the third quarter of 2023 and become Argonaut's largest and lowest cost mine.
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