Argonaut Gold’s Strategic Shift: Exiting Mexican Operations The president has simply made a suggestion. However, I would propose that the suggestion is somewhat meaningless for the company. According to CEO Richard Young, the company has received numerous offers for both its Mexican assets and individual assets. The implication is that the Mexican assets are likely to be sold by the end of Q1 2024. However, the company is not in dire need of funds. The CEO has expressed that it could take several years before these assets are fully monetized. The intention is to provide the purchasing team with the opportunity to invest and advance these assets without burdening their balance sheet or share price.
Moreover, CEO Richard Young recently announced that Argonaut Gold will not be producing anything in Mexico in 2024. The company’s guidance for 2024 will include production from the Magino and Florida Canyon assets.
Additionally, considering that Mexico is one of the world’s largest producers of various minerals, including 3.9 million ounces of gold in 2022, there’s an important point to consider. Approximately 70% of Mexico’s gold production is attributed to open-pit mining. If open-pit mining were to be banned, it could cause a major shock in supply, potentially leading to a significant increase in gold prices. This situation could ultimately benefit the company in the long run.
Lastly, the La Colorada Gold Mine, operated by Argonaut Gold, has been transformed into a tourist attraction in Mexico. Mexico’s tourism industry for 2022 brought in US$35 billion.