RE:Consolidation Let this be clear, the conjecture pertaining to the hypothetical corportate action is a narrative that was formed on a billboard and not a statement from the company Argonaut Gold.
The choice to sell off assets in Mexico is a tactical decision with the goal of reducing AISC and increasing working capital. This approach will boost the company’s liquidity, equipping them with the resources to explore new investment opportunities or settle existing debts. The reserves in Mexico, comprising 2.2Moz of gold and 91Moz of silver, are valued at an estimated market price of about US$6.4B. If we can secure about 2% (roughly US$129M) of this total value, the proceeds from the sale should suffice to cover the costs of expansion construction.
Magino’s mining operations are progressing well with increased daily mining rates and gold grades, mill optimization and expansion studies underway, and an infill drill program in progress to convert Mineral Resources to Mineral Reserves, all aimed at enhancing productivity and profitability. In Q4'23, production was 61,523 GEOs, up 14% from Q3'23, thanks to the commissioning of the Magino Mine. The company finished the year off with US$83.3 million in cash and equivalents and the outstanding balance of the term loan decreased from US$223.933 to US$218, therfore the book value of Argonaut should'va increase to US$893 million.
In my view, the stock’s low price presents investors with the potential to gain significant returns from relatively minor shifts in price. This, I believe, is an enticing proposition for investors, rather than a deterrent. The stock has demonstrated several promising trading opportunities with price swings of approximately 40% or more.
Regarding your final remark, it’s entirely speculative, contributing to the narrative in an effort to rationalize another user’s speculation, thus it doesn’t foster productive dialogue.