Post by
Tim2Agami on Jul 18, 2024 10:35pm
Rearview mirror
And looking ahead ("guidance".... LOL) as stated in 2023 for 2024
https://q4live.s22.clientfiles.s3-website-us-east-1.amazonaws.com/115151820/files/doc_financials/2023/q4/Argonaut-Gold-Inc-MDA-Q4-2023-FINAL.pdf
But who is to believe anything this posse of brigands said before and will say now?
During the three months ended December 31, 2023, the Florida Canyon mine produced 17,780 GEOs which was an increase of 36% over the prior year period.
The increase in gold ounces produced was primarily due to the change in operating strategy to increase ROM ore placed directly on the leach pad as well as higher gold grades.
The higher ROM ore in 2023 was accomplished by lowering the cutoff grade to facilitate an increase in ore processed and gold produced compared to the prior year period.
Cost of sales per gold ounce sold decreased by 27%, cash cost per ounce decreased by 31%, and AISC per ounce decreased by 28% primarily due to the 31% increase in GEOs sold and partially offset by higher depletion when compared to the prior year period.
During the twelve months ended December 31, 2023, the Florida Canyon mine produced 71,161 GEOs an increase of 43% over the prior year. The increase in gold ounces produced was primarily due to the change in operating strategy.
Cost of sales per ounce sold during the twelve months ended December 31, 2023 decreased by 19%, cash cost per ounce decreased by 22%, and AISC per ounce decreased by 24% primarily due to the increase in gold production, partially offset by increases in unit production cost compared to the prior year.
Capital expenditures at the Florida Canyon mine for the three and twelve months ended December 31, 2023, were $3.5 million and $17.3 million, respectively, largely related to leases of mining equipment.
Florida Canyon exceeded the top end of its production guidance range by approximately 9% due to an increase in ore placed on the leach pad in 2023. The mine’s cost of sales, cash cost and AISC per ounce sold and capital expenditures were also lower than the guidance range for 2023.
Total tonnes mined for Florida Canyon in 2024 are expected to be in line with tonnes mined in 2023, with decreased placed ounces on the leach pad due to higher waste tonnage being mined. As a result of the model reconciliation strategy anticipated in 2024, grade is expected to be marginally lower than grade achieved in 2023.
Production costs are expected to increase by approximately 10 - 15% compared to the prior year, resulting in higher unit costs. Cost of sales per gold ounce sold are expected to be $1,850 - $1,950 for 2024. Cash costs are expected to be between 15% and 25% higher than last year due to higher production costs,
AISC per gold ounce sold are expected to be between 40% and 50% higher than last year due to higher production costs and increased capital expenditures.
Capital expenditures for the year are expected to be between $71.0 - $74.5 million. These expenditures predominantly relate to sustaining capital expenditures for the leach pad construction and pumping expansion.
Additionally, construction capital includes the installation of a new carbon in column plant.
During 2023, Florida Canyon completed an updated life-of-mine plan resulting in an impairment reversal of $24.0 million recorded to mineral properties, plant and equipment in the current year.
The Company is currently constructing an expansion of the south heap leach pad to be completed during 2024.
2023 2024
GEOs production oz 71,161 63,000 – 70,000
Cost of sales $/oz 1,622 1,850 – 1,950
Cash cost $/oz 1,368 1,575 – 1,675
AISC $/oz 1,654 2,350 – 2,450