- Argonaut Gold (AR) saw its sales decline in the fourth quarter as well as in the fiscal year as a whole
- For the fiscal year, the company sold gold 207,158 gold equivalent ounces, a 17-percent decline
- Revenue for the year fell to $388.3 million, an 11-percent decrease tied directly to a lower gold output
- The company realized a 5-percent increase in the average sale price for an ounce of gold, to $1,877
- Argonaut Gold is down 10 percent, trading at $0.50 at 10:52 a.m. ET
Argonaut Gold (AR) saw its sales decline in the fourth quarter as well as in the fiscal year as a whole.
The Nevada-based mineral exploration company released its fourth quarter and fiscal year financial results Monday.
For the fiscal year, the company sold 207,158 gold equivalent ounces, a 17-percent decline.
Revenue for the year fell to $388.3 million, an 11-percent decrease tied directly to lower gold output.
The company realized a 5-percent increase in the average sale price for an ounce of gold, to $1,877.
For the fourth quarter, the company produced 42,510 GEOs, representing a 31-percent decline.
Sales for the same time period amounted to 51,615 ounces for a nine-percent decline.
“Last year was a challenging year for the Company on two fronts. First, the increase in construction costs at the Magino project required a large capital raise, including debt, equity and the sale of a royalty. Second, the inflationary pressures had a significant impact on operating results of our low-grade heap leach operations, resulting in an impairment of our Mexican assets and Florida Canyon mine,” said Chief Financial Officer David Ponczoch.
Cash flow from operating activities fell significantly because of the decline in gold sales and higher costs.
“As part of the Company’s effort to focus on prioritizing core assets, we have sold and optioned two non-core Mexican assets and revised mine plans of our three operating mines in Mexico to focus on free cash flow generation. As a result, we suspended mining activities at our El Castillo mine at the end of last year, and we expect mining activities at San Agustin and La Colorada will temporarily pause by the end of this year until land access and permits are received to complete mining of the remaining reserves and resources,” said Chief Operating Officer Marc Leduc.
Argonaut Gold (TSX:AR) is down 10 percent, trading at $0.50 at 10:52 a.m. ET
