Argonaut Gold Announces First Quarter 2018 Operating and Financial Results
Press Release
Production of 40,853 Gold Equivalent Ounces, Net Cash1 Increases $7.2 million and Earnings per Share of $0.07
Toronto, Ontario – (April 30, 2018) Argonaut Gold Inc. (TSX: AR) (the “Company”, “Argonaut Gold” or “Argonaut”) is pleased to announce its financial and operating results for the first quarter ended March 31, 2018. The Company reports a quarterly net cash1 increase of $7.2 million, cash flow from operating activities before changes in operating working capital of $21.0 million, net income of $12.2 million or earnings per share of $0.07, adjusted net income [1] of $7.9 million or adjusted earnings per share1 of $0.04 and production of 40,853 gold equivalent ounces [2] (“GEO” or “GEOs”). All dollar amounts are expressed in United States dollars, unless otherwise specified (C$ refers to Canadian dollars).
CEO Commentary
Pete Dougherty, President and CEO stated: “We made significant investments during 2017 and 2018 is about harvesting those investments and adding cash to our balance sheet through strong free cash flow. During the first quarter, we added $7.2 million in net cash1 to our balance sheet. We expect to continue to generate strong free cash flow, particularly during the second half of 2018, as we see the benefits of the throughput enhancements made at El Castillo and ramping up San Agustin production. Our primary objectives this year are to build cash on the balance sheet, continue to ramp up production, execute on our 65% growth program from 2017 to 2019 and de-risk our development assets. As our first quarter data shows, we are off to a strong start on all fronts.”
Key operating and financial statistics for the first quarter of 2018 are outlined in the following table:
| 3 months ended March 31 | Change | ||
| 2018 | 2017 | ||
| Financial Data (in millions except for earning per share) | |||
| Revenue | $52.9 | $44.5 | 19% |
| Gross profit | $17.4 | $10.1 | 72% |
| Net income | $12.2 | $12.0 | 2% |
| Earnings per share – basic | $0.07 | $0.07 | 0% |
| Adjusted net income1 | $7.9 | $4.9 | 61% |
| Adjusted earnings per share – basic1 | $0.04 | $0.03 | 33% |
| Cash flow from operating activities before changes in non-cash operating working capital | $21.0 | $14.9 | 41% |
| Cash and cash equivalents | $21.3 | $55.2 | (61%) |
| Net cash1 | $13.3 | $54.7 | (76%) |
| Gold Production and Cost Data | |||
| GEOs loaded to the pads2 | 80,919 | 55,447 | 46% |
| GEOs projected recoverable2, [3] | 46,111 | 32,712 | 41% |
| GEOs produced2, [4] | 40,853 | 37,707 | 8% |
| GEOs sold2 | 40,046 | 36,173 | 11% |
| Average realized sales price | $1,330 | $1,228 | 8% |
| Cash cost per gold ounce sold1 | $650 | $751 | (13%) |
| All-in sustaining cost per gold ounce sold1 | $781 | $870 | (10%) |
Read More: http://www.argonautgold.com/news_events/news/news_release/index.php?content_id=386
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