Argonaut Gold announced their 3rd quarter financial results November 3rd. Highlights included:
- Revenue of $35.0 million from sales of 25,429 gold ounces at an average price of $1,344 per gold ounce and 41,660 silver ounces at an average price of $20 per silver ounce.
- Net income of $0.2 million and adjusted net income of $3.9 million (refer to Non-IFRS section).
- Cash flow from operations before changes in non-cash working capital and other items of $8.4 million.
- Net decrease in cash from June 30, 2016 of $3.7 million, while making capital investments of $10.1 million (on mineral properties, plant and equipment).
Argonaut currently has two properties in production: El Castillo and La Colorada, both in Mexico; in construction is San Augustin (Mexico), advanced exploration stage projects include the San Antonio project (Mexico), and the Magino Project in Ontario, Canada.
The Magino mine property is a past-producing underground gold mine located 40 kilometres northeast of Wawa, Ontario, and approximately 14 kilometres southeast of the town of Dubreuilville. The property consists of seven patented mining claims, four leased mining claims and 69 unpatented mining claims totaling 2,204.495 hectares. At the Magino Project, Argonaut continues to move forward. An infill drill program 10 to 12 metre centres continues in order to increase the confidence of investors during the potential payback period of the project. Geotechnical drilling program continues. Argonaut also continues moving ahead in permits.
In late May, Pete Dougherty, President and CEO stated: “We view drilling out the first phase of the projected pit a substantial de-risking of the Magino project. At the same time, we will move forward with permitting at Magino to further de-risk the project.”