RE:Results Pete Dougherty, President and CEO stated: "We've completed major milestones for the Company over the past few months with the Alio merger, the completion of the Schedule 2 process at Magino and the recent equity financing. The Company experienced a large cash increase of $23 million during the quarter amidst the two month shutdown of mining, crushing and stacking activities in Mexico due to COVID-19 restrictions. While production dipped during this shutdown period, we saw significant cash flow, as the heap leach pad inventory was reduced at minimal cost. We are in a position to deliver significant free cash flow through the remainder of the year, which bodes well for the execution of our transition strategy of developing our lower-cost, longer-life pipeline of growth assets. At $1,900 gold, we expect to generate between $49 million and $79 million of free cash flow during the second half of 2020."
Second Half 2020 FCF2 Guidance
Argonaut is well positioned to generate significant FCF2 in 2020. The Company's anticipated FCF2 is highly leveraged to the gold price. Between January 1, 2020 and June 30, 2020, Argonaut has generated approximately $29 million of FCF2. The table below outlines Argonaut's FCF2 leverage to the gold price during the second half of 2020, including the Florida Canyon mine following the merger with Alio Gold Inc. on July 1, 2020 (outside of a construction decision on a development stage project).