ARGONAUTGOLD wrote: G & A expenses for LOM and net debt aren't paid out in one payment on one specific date. Take G & A expenses and divide by LOM. I believe there is a 5-6 year payback period on the net debt so we'll divide US$150,000,000 by 5. The total annual G & A expenses and total annual net debt payback equals US$42,000,000 per year. Like I said before though at 20,000 tpd, 1.43 g/t and a 92% recovery rate. We include a conservative future estimated production from our other mines. US$42,000,000 is only ~26% of total earnings.
2023 Magino reserve expansion program started up in the beginning of Q 3. The company insinuates subsequent to the completion of the program we should see a substantial increase in reserves which will support an increase in process capacity from 10,000 tpd to a range of 15,000 tpd - 20,000 tpd. Lets not forget due to an 'overdesign' of the process plant plus an additional pebble crusher the plant can already handle processing 13,000 tpd. Processing an additional 2,000 tpd - 7,000 tpd will not cost the company anything significant. The company potentially increase average g/t by (.13). I'm presuming when the company drills for the reserve expansion program they will also conduct infill drilling and release the results together.
Here is an email from Argonaut Gold investors relations. This was sent before the company was anticipating processing 15,000 - 20,000 tpd. Which let me remind you is only a +2,000 tpd - +7,000 tpd upgrade because of the pebble crusher and over design of the process plant(+30% production rate increase from current rate of 10,000 tpd). This email was also sent before the company anticipated increasing the average g/t of the mine by .13 to 1.43 g/t.
"From: Investor Relations
Sent: Thursday, April 27, 2023 9:56 PM
To:
Subject: RE: Dilution at .59 ;
Today we announced a Canadian flow through equity raise in the amount of CA$15M to fund a portion of our planned reserve development and exploration program at Magino.
The majority of the spend is to convert resources to reserves within the open pit with an expectation that about half of our resource base outside of reserves will be converted to reserves over time, which would potentially result in an open pit reserve of 4M oz. Expansion of our reserve base will increase annual production of approximately 225k oz per year life of mine, with higher production in the early years.
In addition, a portion of the funds CA$5M will be used to test deeper underground high-grade targets similar to our neighbor, and the balance used to test a number of open pit targets along strike to the west of the current deposit.
I trust the above provides clarity for our plan to build a top-tier gold mine in Canada.
Joanna Longo |Investor Relations| Argonaut Gold | 416 575 6965".
I'm very optimistic about Argonaut Gold's future and am truly impressed with the work that has been done to build the Magino billion dollar flagship mine.
The company is proposing producing 80k oz at the Magino mine in less then 6 months(end of Q4 2023). Why is this interesting? Shows Magino mine has the potential to produce 300k oz annually.
https://s22.q4cdn.com/115151820/files/doc_presentations/2023/09/denver-presentation-final.pdf https://s22.q4cdn.com/115151820/files/doc_presentations/2023/09/ar-analyst-site-tour-final.pdf