Expert Comments Expert Comments:
Barry Allan, Mackie Research Capital (5/15/13) "At the end of Q1/13, the balance sheet of Argonaut Gold Inc. remained strong with working capital of $216.4M, of which $168.5M was cash. . .debt is a paltry $12.6M. . .overall, the company remains very healthy – strong balance sheet and good operating cash flow ($0.16/sh.). . .the company continues to offer good year-on-year growth and our recommendation is unchanged at a Buy."
Christos Doulis, Stonecap Securities (5/15/13) "Free cash flow at Argonaut Gold Inc. should be stronger in H2/13 as production ramps up at La Colorada and capex decreases. . .the company believes it can exit 2013 with between $185M and $195M in cash ($168.5M at the end of Q1.13). . .consolidated costs came in at $594/oz. Au, which was below even management's guidance of $630--$660/oz. Au. . .we are maintaining our Outperform rating."
Rahul Paul, Canaccord Genuity (5/15/13) "We reiterate our Buy rating on Argonaut Gold Inc. following the release of Q1/13 financials that highlighted cash costs ($594/oz. Au) well below our forecasts. . .the company remains a Canaccord Genuity Canadian Focus List pick based on attractive valuation in the context of one of the best fully funded growth profiles in the sector. . .we continue to view 2013 guidance as conservative and therefore potentially better-than-expected operating and financial results could drive share price outperformance in the next 12 months."
Chitmukulu Musonda, CIBC (5/15/13) "Argonaut Gold Inc. recently released full Q1/13 results. . .cash flow from operations nearly doubled to $0.13/sh., compared to Q1/12, driven by 35% higher sales from the flagship El Castillo mine. . .the ramp-up at its La Colorada mine appears to be progressing well, positioning the company to potentially meet the top end of guidance, which is 140 Koz Au. . .we maintain our Sector Perform rating."