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Argonaut Gold Inc T.AR

Alternate Symbol(s):  T.AR.DB.U | ARNGF

Argonaut Gold Inc. is a gold producer with a portfolio of operations in North America. The Company’s operating mines include Florida Canyon, Magino, La Colorada and San Agustin. The Florida Canyon Gold Mine area is situated in northwestern Nevada within the Basin and Range physiographic province. The Magino mine property is a past producing underground gold mine located 40 kilometers (km) northeast of Wawa, Ontario, approximately 14 kilometers 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. The past producing La Colorada gold-silver mine property is located approximately 40 km southeast of Hermosillo, Sonora State, Mexico. The San Agustin property consists of four mineral claims totaling 1,065 ha and is located in the northern San Lucas de Ocampo Mining District.


TSX:AR - Post by User

Comment by ARGONAUTGOLDon Mar 08, 2024 7:56pm
166 Views
Post# 35923923

RE:RE:RE:RE:RE:RE:RE:Anyone else guessing $50 million at .25 cents coming soon?

RE:RE:RE:RE:RE:RE:RE:Anyone else guessing $50 million at .25 cents coming soon? Your numbers are pretty close to mine: US$137,216,000 = US$44,866,000 (cash and equivalents balance) + US$29,450,000 (NSR royalty) + US$62,900,000 (Equity finance). The equity finance was CAD$85 million. I think you have not included gross profits from operations and then deducted CapEx, which may not present an accurate depiction of the balance sheet. I would suggest emphasizing gross profits as well, as the CapEx will decrease substantially. What I prefer doing is calculating AISC as cost per tonne plus royalties and then including CapEx as an additional expense to see how feasible their operations actually are.The AISC excluding CapEx is US$1,628.48 per ounce. The higher costs per tonne at Magino are expected to decrease as contractors are replaced by company employees. The high CapEx and OpEx costs won’t linger forever. The company’s gross profit margin is respectable. Your assumption is valid. I believe the operations are viable but the company requires liquidity to match their cash flows and to construct the expansion. The company may soon also liquidate their Mexican assets which will bolster up their balance sheet. 
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