What we built up some years ago has now much higher value ! See how costs for building up a mine/ mill are jumping up in actual times. What Quartermain & Joe built up several years ago, would be much more expensive to build it up now. And it would take much more time now, due to delivery bottlenecks in general and Covid in specific.
You can not value our mine/mill etc with a book keepers mentality !
Do not give away our high value pearl "Pretium" at a much too low price ! Vote "No" when the stink offer from Newcrest comes to voting proceedures ! Newcrest is invited to build up its own new mine at some other place on planet earth...
Add to these mentioned present mine cost example of 800 mill the value of our reserves and resources (after the announced new evaluations in Q1, Q2 2022 !), And add the value of our Net Smelter Royalties on Snowfield where are more than 29 million ounces (!) measured and indicated gold + copper + silver...
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Argonaut Gold drops on capex overrun, CEO departs
Michael McCrae Tuesday December 14, 2021 12:15 Argonaut Gold (TSE:AR) announced today a 56% jump in capital costs for its wholly-owned Magino project in Ontario, Canada.
Estimated capital cost has leapt from $510 million, forecast 13 months ago, to $800 million.
Argonaut was down 22% to $2.43 a share as of 11:21 a.m. ET.
The company said that Pete Dougherty is no longer CEO and president effective immediately.
Inflation and COVID have impacted the project's costs.
"The company estimates impacts from cost increases, inflation and COVID-19 account for approximately 32% of the capital increase. Changes in scope account for approximately 28% of the capital increase and primarily relate to site development, the TMF and permanent power," wrote the company. "Approximately 20% of the increase in capital is related to increases in quantities, primarily in site development and project indirect areas."
The company said it looked at various scheduling options.
"Due to the initial challenges in civil works, primarily at the process facilities site, this area of the Project is currently behind schedule. Argonaut is able to recover the schedule in this area due to schedule compression where multiple trades will work in parallel; however, there is a cost associated with compressing the schedule. When the company examined the cost of schedule recovery compared to delaying the entire project, it was more economic to compress and recover the schedule than delay the overall Project. The company estimates 8% of the increase in capital for the project is due to schedule recovery to meet first gold pour by the end of March 2023."
Argonaut is anticipating a financing shortfall and will need to find funds.
"The company forecasts it will end 2021 with approximately US$230 million (~$290 million CAD) available between its cash and existing revolving credit facility. As well, Argonaut's existing consolidated operating portfolio is expected to generate positive cash flow throughout the remainder of the project at the current gold price. However, at the current gold price, the company expects there to be a funding shortfall to complete the Project. Therefore, Argonaut is conducting a review of its financing and strategic alternatives."
In the last quarter some gold miners warned of compressed margins due to inflation spikes, mostly due to oil and gas price hikes.
Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production. Its primary assets are the El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico, the La Colorada mine in Sonora, Mexico and the Florida Canyon mine in Nevada, USA.
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Newcrest, please build up your own mine at some other place on planet earth. Do not try to steal us our golden pearl Pretium, which was build up so great by Quartermain & Joe ! We shareholders will vote anyway "NO" to your stink price offer for Pretium...
PS: The said Magino mine in Canada from the article has roughly 2.2 mill ounces proven and probably reserves and 4.2 mill ounces measured and indicated ounces gold resources.