Argonaut Gold Announces Fourth Quarter and Full Year Financial and Operating Results, Meets 2018 Production and Cost Guidance
Press Release
TORONTO, Feb. 19, 2019 – Argonaut Gold Inc. (TSX: AR) (the “Company”, “Argonaut Gold” or “Argonaut”) announces its financial and operating results for the fourth quarter and year ended December 31, 2018. The Company reports quarterly and full year net loss of $17.5 million and $7.6 million or loss per share of $0.10 and $0.04, respectively, adjusted net income1 of $2.5 million and $16.4 million and adjusted earnings per share1 of $0.01 and $0.09, respectively, derived from the sale of 42,328 and 155,480 gold equivalent ounces2 (“GEO” or “GEOs”), respectively, which generated cash flow from operations before working capital changes of $9.2 million and $58.1 million, respectively. During 2018, the Company achieved record quarterly and annual production of 51,658 and 165,117 GEOs, respectively. All dollar amounts are expressed in United States dollars unless otherwise specified.
CEO Commentary
Pete Dougherty, President and CEO stated: “We challenged ourselves early in 2017 to achieve an approximate 65% production growth target between 2017 and 2019. With our record fourth quarter in 2018 leading to a record year for the Company in terms of production, we are well on our way to achieving this objective. During 2018, we surpassed the significant milestone of over one million GEOs produced since Argonaut’s founding, a testament to our commitment to health and safety, our people, our communities and our environment. There are two items that highlight that we are conducting our business the right way: one, we received the Environmentally and Socially Responsible Company designation in Mexico for the seventh consecutive year; and two, we had our best annual safety performance in the Company’s history. We continued to de-risk and advance our development project portfolio. Our quarterly cash flows were impacted by timing of gold sales, as well as the previously disclosed Republic Metals Corporation bankruptcy filing. Our main focus as a Company during 2019 will be expanding the San Agustin mine’s crushing capacity and adding cash to the balance sheet through free cash flow generation by our operations while continuing to de-risk and advance our development assets.”
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