Argonaut Gold (ARNGF) is one of our favorite junior gold and silver stocks. We profiled the company in our brand new book The Top 500 Gold and Silver Mining Stocks, and we included it in our list of our Top 100 stock picks. Here are three reasons why:
1) Already in production. Unlike a lot of small-cap gold mining stocks, Argonaut Gold’s already in production. When the company reported its Q4 earnings two weeks ago, we learned that Argonaut netted $26 million (
.30 per share) on revenue of $105 million in 2011. All told, the company sold 66,521 ounces of gold last year.
2) A growing gold resource. Argonaut Gold acquired Pediment Gold in January 2011. Along with new exploration results, that helped the company grow its gold resource from 2 million to 6.5 million ounces last year.
3) More production in 2012. After producing 66,521 ounces last year, Argonaut expects to produce anywhere from 88,000 to 97,000 ounces of gold in 2012 at cash costs between $625 and $650 an ounce. The bulk of that gold (75-80,000 ounces) should come from the company’s flagship El Castillo project. The La Colorada project (which was acquired from Pediment Gold) should yield 13-17,000 ounces of gold.
“The lowest cost ounces we will ever find are the ones that lie within the properties we already own,” Argonaut’s President Pete Dougherty said in a press release. “We remain committed to exploration as we look to grow the Company.”
Argonaut expects to spend as much $34 million in exploration and development this year. The bulk of that money will be spent at La Colorada, where the company should soon enter production.
TradingStocks.me has identified 99 more promising gold and silver mining stocks (and profiled another 400 companies) in our brand new book The Top 500 Gold and Silver Mining Stocks.
https://tradingstocks.me/2012/04/page/2/