Unveiling Argonaut Gold’s Pre-Feasibility Analysis Argonaut Gold, on January 18, 2016, disclosed the outcomes of a pre-feasibility analysis for its wholly-owned Magino property in Ontario. The analysis revealed a substantial growth in reserves by 76%, a pre-tax IRR of 28%, a pre-tax NPV of US$610 million, an estimated annual gold yield of close to 300,000 ounces, and a payback duration of 2.6 years. These findings point towards a robust profitability and swift investment recovery for the property.
To refresh your memory, the stock price of Argonaut Gold witnessed a remarkable ascent from a low of CA$0.78 to a high of CA$4.45, marking a rise of +470.51% over a period of 7 months from January 19, 2016, to July 2016. Concurrently, the price of gold escalated from US$1,061 per ounce to US$1,375 per ounce, registering a growth of +29.59%. However, it’s noteworthy that even at its peak in July 2016, the price of gold was still 39.63% below its highest recorded price.
In conclusion, before the pre-feasibility analysis was released, the stock price had fallen to 0.78c. However, following the publication of the study, there was a significant surge in the stock price, with an increase of +470.51% to CA$4.45.
My forecast aligns closely with this view, implying that I anticipate turbulent swings in market price following the publication of updated technical reports.