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Argonaut Gold Inc.

TICKER: AR:TSX

Argonaut Gold Corp. is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo mine in Durango, Mexico; the La Colorada mine in Sonora, Mexico; the advanced exploration-stage San Antonio project in Mexico; and the recently acquired advanced exploration-stage Magino project in Ontario, Canada. The company has several other exploration-stage projects, all of which are located in North America.


The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.

Expert Comments:

Mike Parkin, Desjardins Securities (4/16/14) "We continue to see good value in the shares of Argonaut Gold Inc. . .the company continues to offer good value at current levels and has the potential to grow gold production by 35% by 2017 through the self-funded development of the San Agustin project, which we expect will be a source of several positive catalysts for the share price in H2/14."

Andrew Kaip, BMO Capital Markets (4/15/14) "At El Castillo, Argonaut Gold Inc.'s reports that mining is shifting from transitional ore to oxide, which should translate to better gold recovery in the medium term. The company has also added to its mining fleet, with capacity now at 87 Ktpd (up from 69 Ktpd). At La Colorada, Argonaut Gold Inc. has added a fifth cone crusher, resulting in a 25% increase in crushing capacity, and the company has completed a positive internal assessment for the reprocessing of old heap-leach material."

Jordan Roy-Byrne, The Daily Gold (4/6/14) "Argonaut Gold Inc. trades at a lofty valuation because of its proven management team, track record and its strong growth pipeline which is essentially unmatched among its peers. . . we can’t think of a gold producer that is better positioned for a resumption of the secular bull market."

Jordan Roy-Byrne, The Daily Gold (3/27/14) "Today we learned that Argonaut Gold Inc. will produce an economic study by the end of the year and a production decision comes with that. Capex and the construction period could be similar to La Colorada, which means San Agustin could be pouring gold and silver by the end of 2015 and Argonaut can easily fund the capex with its current cash. . .I do think the stock could start to move positively in the summer."

Mike Parkin, Desjardins Securities (3/27/14) "Argonaut Gold Inc. reported Q4/13 earnings this week, which were in line with consensus. . .we continue to assign a premium price:cash flow target valuation multiple, as we believe the company deserves a premium valuation given its strong operational track record and significant potential production growth."

more comments

Matthew Sheppard, Jacob Securities (3/26/14) "Argonaut Gold Inc. beat 2013 cash cost guidance and added significant resources at year-end. . .the company continues to work toward reaching construction at San Antonio and is aggressively drilling its recently acquired San Agustin property with a view to establishing a new resource and PEA by year end. . .we are revising our rating for Argonaut from Hold to Buy and are increasing our price target from CA$6.50 to CA$7.80."

Barry Allan, Mackie Research Capital (3/26/14) "Over the course of H1/14 we expect to see further results from Argonaut Gold Inc.'s exploration/resource expansion drilling at the recently acquired San Agustin project. . .results, combined with metallurgical test work, are expected to be utilized in the creation of an updated resource and PEA in H2/14. Additionally, an update is expected to be provided in Q3/14 on the San Antonio project. . .we reiterate our Buy recommendation."

Jeff Killeen, CIBC World Markets (3/26/14) "Argonaut Gold Inc.'s 2013 cash costs of $644/oz were within guidance of $630–660/oz. During Q4/13 quarter, the company generated operating cash flow (before working capital changes) of $9.3M."

The Gold Report Interview with Jeff Killeen (3/26/14) "Argonaut Gold Inc. has an attractive low-cost profile. It is increasing production as the La Colorada mine comes into full stride in Mexico in 2014." More >

Andrew Kaip, BMO Capital Markets (3/25/14) "Argonaut Gold Inc. reported headline Q4/13 net income of $14.7M. . .EPS came in at $0.02/share, above our research but in line with consensus. We attribute the EPS beat largely to lower-than-expected operating costs. . .the company continues to demonstrate tight cost controls in a weak metal price environment."

Adam Melnyk, Desjardins Securities (3/20/14) "By our estimates, Argonaut Gold Inc. has the potential to grow gold production by 49.6% by 2016. . .we are raising our target price to CA$7 (from CA$6.50). . .despite currently having a relatively low cash balance (~US$115M at year‐end 2013), we estimate the company can generate significant cash from operations and fully fund the development of the San Antonio and San Agustin gold projects."

Jordan Roy-Byrne, The Daily Gold (3/16/14) "Argonaut Gold Inc. has major growth potential from 2016-2017, but that is too distant for the market to care. . .we see the company as having excellent long-term potential and limited downside risk over the near term."

Andrew Kaip, BMO Capital Markets (2/25/14) "Argonaut Gold Inc. expects to produce 90–100 Koz gold from El Castillo and 45–50 Koz Au eq from La Colorada over 2014E. The company is currently advancing the San Antonio project through the permitting process and expects to provide an update in Q3/14E."

Jordan Roy-Byrne, The Daily Gold (2/9/14) "Argonaut Gold Inc.'s plan and goal are to build San Antonio in 2014-2015. . .with San Antonio, the company could be the premier growth story in the industry. . .San Antonio gives it a total of three development projects that all could be built within the next four years. Argonaut could go from ~140 Koz/year Au to potentially 550 Koz/year Au."

Mike Parkin, Desjardins Securities (1/21/14) "We continue to anticipate a strong operational year from Argonaut Gold Inc. and expect progress to be made on the project portfolio. We maintain our Buy (Above-Average Risk) rating."

Jeff Killeen, CIBC World Markets (1/21/14) "Argonaut Gold Inc. reported Q4/13 production of 28,648 oz Au eq, which included 27,865 oz gold and 47,759 oz silver. Full-year gold production reached 117,348 oz."

Rahul Paul, Canaccord Genuity (1/20/14) "While Argonaut Gold Corp.'s Q4/13 production was lower than guidance and our expectations at La Colorada (delays opening up the pit) and El Castillo (processing of lower recovery transitional material), we view the issues as temporary and unlikely to impact our overall thesis. We maintain our Buy rating based on our view that the stock remains well positioned to outperform its peers over the next 12 months pending completion of the La Colorada ramp-up, potential receipt of permits at San Antonio and exploration upside potential from San Agustin."

Mike Parkin, Desjardins Securities (1/9/14) "By our estimates, Argonaut Gold Inc. has the potential to nearly triple its gold production to more than 390 Koz by 2020 through the development of three projects, two of which are fully financed. We expect the company's relatively low, all-in sustaining costs (Desjardins standard) to remain flat to slightly down over the next several years, driving growth in CFPS as the production base is expanded."

M Partners (12/31/13) "Argonaut Gold Inc. finalized the agreement to acquire the San Agustin project from Silver Standard Resources Inc. for $15M cash and $30M in Argonaut shares payable at closing, including further cash of $10M payable in six months and $20M in 18 months after signing the agreement. The project is located 10 km from Argonaut's El Castillo project in Durango, Mexico."

Mike Parkin, Desjardins Securities (12/20/13) "Overall, we see Argonaut Gold Inc.'s prefeasibility study for Magino as an excellent building block for the project. The study is based on only 40% of the Measured and Indicated resource, which, through a successful land acquisition agreement with Richmont Mines Inc., could result in a robust, long mine life gold project."

Barry Allan, Mackie Research Capital (12/20/13) "On Dec. 17, Argonaut Gold Inc. released the results of a prefeasibility study on the Magino project. . .over the first seven years, an average grade of 1.33 g/t is expected to yield 185 Koz/year. . .we retain our Buy recommendation."

Jeff Killeen, CIBC World Markets (12/19/13) "Argonaut Gold Inc. has released an updated resource/reserve estimate and a prefeasibility study (PFS) for the Magino development project. . .the smaller project will reduce capex and focus on higher grades, particularly in the first seven years of production. . .we think the Magino PFS is a step in the right direction for the company."

Christos Doulis, Stonecap Securities (12/19/13) "While notably smaller than originally envisioned, the prefeasibility study for Argonaut Gold Inc.'s Magino outlines a robust, high-grade project that is cash flow positive even in a weak metals price environment. With ~$125M in cash, the company has the financial flexibility to continue advancing its development projects; we are maintaining our Outperform rating."

Andrew Kaip, BMO Capital Markets (12/17/13) "Argonaut Gold Inc. released a prefeasibility study (PFS) for the Magino project in Ontario that outlines life-of-mine annual production of 127 Koz gold at US$693/oz over a 13-year life. The mine plan includes an accelerated mining schedule during years 1 to 7 followed by processing of low-grade stockpiles thereafter. . .the PFS provides base parameters on an initial development scenario for Magino that are broadly in line with BMO Research expectations."

Mike Parkin, Desjardins Securities (12/17/13) "Argonaut Gold Inc.'s Magino prefeasibility study proves positive to our estimates. . .highlights of the prefeasibility study include an after‐tax NPV of $199M (5% discount rate), an initial rate of return of 18%, payback of 4.2 years, initial capital costs of $356M and life of mine, 13.2 years."

Jordan Roy-Byrne, The Daily Gold (12/15/13) "Argonaut Gold Inc. is one of the strongest stocks over the past few years. Quietly, the shares have perked up relative to GDX over the past six weeks. . .we love the company long term and think it can rebound strongly."

Mike Parkin, Desjardins Securities (12/9/13) "We are initiating coverage of Argonaut Gold Inc. . .it has the potential to nearly triple its gold production to more than 340 Koz by 2018 through the development of three projects, two of which are fully financed. We expect Argonaut's relatively low all‐in sustaining cost profile to remain flat to down over the next several years, driving growth in cash flow per share as the production base is expanded. . .the company's management has a good track record of meeting or beating operating guidance, and it has a healthy balance sheet, strong production growth potential and stable cost structure."

Jordan Roy-Byrne, The Daily Gold (11/26/13) "We believe Argonaut Gold Inc. is one of the top five long-term plays in the growth-oriented producer space. . .the company, producing at a run rate of ~130K Au has the assets to nearly triple its production in the next two and a half years and to quadruple its production in less than four years."

Morning Coffee (11/14/13) "Shares of Argonaut Gold Inc. have moved higher following the company's Q3/13 results, which included quarterly EPS that came in higher than expected on lower cash costs. . .a prefeasibility study on Magino is expected by year-end 2013 and should be the first catalyst toward providing some clarity on project economics, in turn lowering the overall risk profile."

Jeff Killeen, CIBC World Markets (11/13/13) "With free cash flow generation in sight, continued low cash costs at its operating assets and a portfolio of development projects in favorable mining jurisdictions, we are increasing our price target for Argonaut Gold Inc. to CA$6 (from CA$5). As of November 12, we are also upgrading our rating for the company to Sector Perform from Sector Underperform."

Barry Allan, Mackie Research Capital (11/13/13) "We have left our $8.50 target on Argonaut Gold Inc. unchanged but have upgraded to a Buy recommendation given share price depreciation. . .we believe the company remains on track to reach annual guidance of 120–130 Koz."

Christos Doulis, Stonecap Securities (11/13/13) "Argonaut Gold Inc. is well positioned to benefit from its substantial 2013 capital programs at both El Castillo and La Colorada. With ~$125M in cash, the company has the financial flexibility to continue advancing its development projects while generating operating free cash flow even in the current weak gold price environment; we are maintaining our Outperform rating."

Andrew Kaip, BMO Capital Markets (11/12/13) "Argonaut Gold Inc. is a member of BMO's top 15 small-cap stock selections. . .the company reported headline Q3/13 net income of US$16.3M. After adjusting for stock-based compensation, a write-off of exploration properties and other one-time items, earnings per share (EPS) came in at US$0.05, above consensus at US$0.03 and BMO Research at US$0.01. BMO attributes the EPS beat to lower-than-forecast operating expenses."

Christos Doulis, Stonecap Securities (11/7/13) "On Nov. 5, Argonaut Gold Inc. announced the purchase of the San Agustin project, located 10 km from its El Castillo project in Durango, Mexico, from Silver Standard Resources Inc. . .we are pleased to see the company building out its pipeline of projects. . .we are maintaining our Outperform rating."

Andrew Kaip, BMO Capital Markets (11/6/13) "Argonaut Gold Inc. announced that it has signed an agreement to acquire the San Agustin project in Durango, Mexico from Silver Standard Resources Inc. San Agustin is located ~10km from Argonaut's flagship El Castillo mine. . .the metallurgical, grade and structural similarities of the two projects should facilitate strong technical synergies. The proximity of the projects should also allow for efficient management oversight."

Jordan Roy-Byrne, The Daily Gold (11/6/13) "Argonaut Gold Inc. announced it is buying the San Agustin project from Silver Standard Resources Inc. for a total of ~$75M. . .San Agustin, which is located 10km from El Castillo, hosts an Indicated resource of 1.6 Moz gold and 48 Moz silver and an Inferred resource of 1.06 Moz gold and 37 Moz silver. In addition, the oxide mineralization remains open in all directions and the exploration potential is considered excellent. . .San Agustin should be economic even at low silver prices."

Andrew Kaip, BMO Capital Markets (10/30/13) "BMO Research recently attended a site visit of the El Castillo and La Colorada mines in Mexico with senior management. . .the rollout of El Castillo continues to track well with integration of the overland conveyor to the west leach pad complete. The company's execution at El Castillo has solidified the flagship status of the mine and positioned it as a strong cash-flow generator in 2014E. . .La Colorada is expected to be operating at design capacity by the beginning of 2014E."

The Gold Report Interview with Jordan Roy-Byrne (10/28/13) "Some of the absolutely best companies are located in Mexico. . .one of the best is Argonaut Gold Inc. Argonaut has two growing mines in Mexico, La Colorada and El Castillo, and two strong development projects, San Antonio in Mexico and the recently acquired Magino project in Ontario. There could be permitting issues with San Antonio. It's not going to be a slam dunk, but if Argonaut can get that mine into production before the end of 2014, it will have a growth profile basically unmatched by anyone in the industry. In addition, Argonaut has ongoing cash flow, a very strong cash position of around $140M and one of the best management teams in the industry. . .Argonaut's relative strength has been very strong for the most part over the last year or two. In early July, its shares went from about $5 to more than $8, and I think we're going to see a similar move when the bear market ends in the next few months. Argonaut has the management, the capital and the projects to be a serious growth-oriented producer over the next three or four years. That's why I call it a long-term gift." More >

Christos Doulis, Stonecap Securities (10/17/13) "While Q3/13's production results were below our expectations, particularly the slower than expected ramp-up at La Colorada, we continue to believe Argonaut Gold Inc. is well positioned to benefit from its 2013 capital program at both operation's mines. In addition to its two operating assets, with ~$140M in cash and equivalents Argonaut has the financial flexibility to continue advancing its two development projects; we are maintaining our Outperform rating."

Michael Siperco, Macquarie Capital Markets (10/16/13) "Argonaut Gold Inc. has reported a rare miss on Q3/13 production. . .the miss versus our numbers was primarily due to the delay at La Colorada in ramping up production. . .the company is still defensive at these levels, with upside. . .despite the stumble in Q3/13, we recommend buying Argonaut for the optionality underpinned by +$50M in annual free cash flow from current operations."

Jordan Roy-Byrne, The Daily Gold (10/7/13) "Argonaut Gold Inc. remains a long-term core holding due to a strong pipeline, management track record, operational track record, financial strength and future growth potential. . .the company possesses all the ingredients of a leading growth-oriented producer. . .Argonaut is positioned to reach $20, $30 and $40 as the bull market is renewed in the coming quarters and years."

The Gold Report Interview with Barry Allan (9/4/13) "Argonaut Gold Inc. certainly has the operating history and the personnel in place. . .Argonaut tends to optimize and to be on the higher side of our expectations. That reflects the company's conservative approach to communicating production guidance. That's a good thing. The market will always give you kudos for achieving or exceeding expectations. If you continue to underperform your guidance, the markets will discount you. . .it continues to do its business well. It has an open issue related to permitting at San Antonio to resolve, but overall we anticipate more optimization of existing assets." More >

Alec Kodatsky, CIBC World Markets (8/15/13) "Argonaut Gold Inc. reported quarterly earnings that were roughly in line with our expectations with Q2/13 earnings per share coming in at $0.04/share versus our estimate of $0.05/share. . .during Q2/13, the company produced ~33.6 Koz gold, bringing H1/13 production to ~62.5 Koz. . .although Argonaut has a low-cost profile and all-in costs are expected to decline in 2014, we believe the stock is priced for perfection."

Barry Allan, Mackie Research Capital (8/14/13) "Argonaut Gold Inc.'s Q2/13 production of 33.6 Koz had been prereleased, ahead of our 29.5 Koz forecast and the 28.9 Koz produced in Q1/13 due to slightly higher grades and record tonnes crushed and loaded to the pad at El Castillo. . .at the end of Q2/13 the balance sheet remained strong with $197M in working capital, of which ~$140M was cash. . .overall Argonaut remains financially strong and should be able to "thrive" in a lower gold price environment given the company's lower cost structure."

Andrew Kaip, BMO Capital Markets (8/13/13) "Argonaut Gold Inc. shows consistent execution and the prospect of moving toward increasing cash flow generation as production increases and capex declines through H2/13. . .we base our Outperform rating on strong execution and growth that is largely funded through internal resources."

Christos Doulis, Stonecap Securities (8/13/13) "Argonaut Gold Inc. is entering the second half of 2013 well positioned to benefit from its substantial 2013 capital program at both El Castillo and La Colorada. In addition to its two operating assets, with ~$140M in cash and equivalents the company has the financial flexibility to continue advancing its two development projects; we are maintaining our Outperform rating."

Craig Stanley, Stifel Nicolaus (8/6/13) "Recapping previously announced Q2/13 production results from Argonaut Gold Inc., at El Castillo production was 28,075 oz at 0.39 g/t Au. . .at La Colorada production was 5,511 oz. . .an updated preliminary economic assessment (PEA) for the Magino project near Waw, Ontario, is expected Q3/13. . .the Canadian Environmental Assessment Agency issued a press release to request public comments regarding whether a federal environmental assessment is required for the project. The release notes an anticipated mine life of seven to eight years and mill size of 12,500–15,000 tpd. . .if the PEA numbers are close to these guidelines, then this could positively impact our valuation for Magino."

The Gold Report Interview with Ron Struthers (7/29/13) "Argonaut Gold Inc. has not been beaten down nearly as much because its costs are quite low at around $600/oz. The company has two producing mines and produced 93 Koz last year. It is projected to increase to 120–140 Koz this year. Argonaut has two advanced projects under economic assessment, two more mines that could come onstream down the road. It should be able to fund all this internally because it is sitting on $168M in cash and has no debt. Argonaut could be a stock that could continue to outperform in the market going ahead. It's quite a good growth story." More >

Barry Allan, Mackie Research Capital (7/22/13) "We thought it would be important to stress test our models and take a look at our coverage list in a much harsher environment, in this case using a long-term gold price of $1,000/oz and long-term silver price of $18/oz. . .in the junior space, Argonaut Gold Inc. continues to look attractive with steady low-cost production and relatively low levels of capex allowing the company to continue to generate good levels of cash flow, even at $1,000/oz. This remains based on the Magino project remaining shelved and no significant development plans brought forward."

Andrew Kaip, BMO Capital Markets (7/15/13) "Argonaut Gold Inc. announced Q2/13 production results of 33.6 Koz gold, 11% above our estimate of 30.1 Koz. Production results were driven by a strong performance at the Castillo mine that produced 28.1 Koz gold, or ~20% above our estimate at 23.9 Koz. . .the better-than-expected production will largely offset the earnings effect of the Q2 gold price decline. . .the company is rated Outperform."

Craig Stanley, Stifel Nicolaus (7/15/13) "Argonaut Gold Inc. had record production of 33,586 oz gold in Q2/13. . .Argonaut announced Q2/13 gold production results this morning 14% ahead of our expectations. . .production at the El Castillo mine was 44% higher on a year-over-year basis and 18% higher than our expectation; production at La Colorada was 20% higher on a year-over-year basis and 4% lower than our estimates. Note that La Colorada started commissioning at the beginning of 2012 and is still ramping up to full production; management expects that second half of the year will see greater production at La Colorada."

Jordan Roy-Byrne, The Daily Gold (7/14/13) "Given its track record, reputation, strong cash position and strong growth prospects, we think it's reasonable that Argonaut Gold Inc.'s valuation range has increased. . .the company's biggest growth will come from Magino which, based on current work (subject to change) would add 190 Koz/year Au."

Jordan Roy-Byrne, The Daily Gold (7/7/13) "Argonaut Gold Inc. is extremely well funded. . .the company is extremely well capitalized and I have complete confidence in it achieving its objectives."

Christos Doulis, Stonecap Securities (7/5/13) "We expect production of ~23 Koz Au from Argonaut Gold Inc.'s El Castillo and production of approximately 3 Koz Au from La Colorada, for total Q2/13 production of ~26 Koz Au. . .production is expected to increase in the second half of 2013 as production at El Castillo continues to ramp up and mining of fresh ore commences at La Colorada. "

Jordan Roy-Byrne, The Daily Gold (5/30/13) "Argonaut Gold Inc. was our top pick from 2011–2012 and the company exceeded our expectations in operational and financial terms. It is an extremely well run company that has performed well during the cyclical bear market until very recently. . .thanks to the crash in gold, Argonaut is once again, a compelling value. . .it remains a long-term core holding due to a strong pipeline, management track record, operational track record, financial strength and future growth potential. . .Argonaut, which consistently under promises and over-delivers, is guiding for 2013 production of 120–140 Koz Au."

Craig Stanley, Stifel Nicolaus (5/22/13) "We are initiating coverage of Argonaut Gold Inc. with a Buy rating on the shares and a 12-month target price of $8/share. . .management has successfully restarted El Castillo, with production at a steady state of 90–100 Koz/yr; La Colorada is transitioning from reprocessing run-of-mine stockpiles to freshly mined ore. Combined we estimate the company will produce 129 Koz in 2013 at cash costs of $650/oz. . .Argonaut is well funded with $168.5M in cash at March 31, 2013."

Chitmukulu Musonda, CIBC World Markets (5/15/13) "Argonaut Gold Inc. recently released full Q1/13 results. . .cash flow from operations nearly doubled to $0.13/share compared to Q1/12, driven by 35% higher sales from the flagship El Castillo mine. . .the ramp-up at its La Colorada mine appears to be progressing well, positioning the company to potentially meet the top end of guidance, which is 140 Koz gold. . .we maintain our Sector Perform rating."

Rahul Paul, Canaccord Genuity (5/15/13) "We reiterate our Buy rating on Argonaut Gold Inc. following the release of Q1/13 financials that highlighted cash costs ($594/oz. Au) well below our forecasts. . .the company remains a Canaccord Genuity Canadian Focus List pick based on attractive valuation in the context of one of the best fully funded growth profiles in the sector. . .we continue to view 2013 guidance as conservative and therefore potentially better-than-expected operating and financial results could drive share price outperformance in the next 12 months."

Christos Doulis, Stonecap Securities (5/15/13) "Free cash flow at Argonaut Gold Inc. should be stronger in H2/13 as production ramps up at La Colorada and capex decreases. . .the company believes it can exit 2013 with between $185M and $195M in cash ($168.5M at the end of Q1.13). . .consolidated costs came in at $594/oz. Au, which was below even management's guidance of $630--$660/oz. Au. . .we are maintaining our Outperform rating."

Barry Allan, Mackie Research Capital (5/15/13) "At the end of Q1/13, the balance sheet of Argonaut Gold Inc. remained strong with working capital of $216.4M, of which $168.5M was cash. . .debt is a paltry $12.6M. . .overall, the company remains very healthy – strong balance sheet and good operating cash flow ($0.16/sh.). . .the company continues to offer good year-on-year growth and our recommendation is unchanged at a Buy."

Andrew Kaip, BMO Capital Markets (5/14/13) "Argonaut Gold Inc. reported headline Q1/13 net income of US$11.6M. . .after adjusting for stock-based compensation, EPS came in at US$0.08, in line with consensus, but ahead of BMO Research at US$0.05. BMO Research attributes the EPS beat largely to lower operating costs. . .in a strongly inflationary environment, the company continues to tightly control operating costs; it has further opportunity to improve costs over H2/13, having assumed El Castillo mining operations from the contractor in mid-March. . .Argonaut is rated Outperform with a CA$12 target price."

Jordan Roy-Byrne, The Daily Gold (5/11/13) "Argonaut Gold Inc., now at $6.55 and a $975M market cap, is as intriguing as it was in 2011-2012 when it was our top pick. . .because of the warrants and Magino acquisition, the share structure went from roughly 90M to 150M shares. We were cautious with the stock at $9–$10; below $7, this is an incredible long-term value. . .Magino should take the company to an annual rate of 350 Koz Au by the end of 2016—that is 224% production growth in less than four years."

Jordan Roy-Byrne, The Daily Gold (5/3/13) "I prefer producers that already have an asset in production and some cash flow. That derisks the situation. Then I like to look for companies that have potential to be serious growth producers. . .obviously, that means a company like Argonaut Gold Corp."

Christos Doulis, Stonecap Securities (4/22/13) "Our analysis indicates that at $1,400/oz gold, Argonaut Gold Inc. generates free cash flow every year from 2013 to 2015. . .furthermore, the company has a full treasury with ~$190M cash at the end of 2012, and no debt. . .Argonaut is very well positioned to weather a period of low precious metals prices."

Christos Doulis, Stonecap Securities (4/17/13) "We continue to believe that Argonaut Gold Inc. remains on track to make 2013 a pivotal year and that the current share price represents an attractive entry point. We are maintaining our Outperform rating and $10.75 price target."

Michael Siperco, Macquarie Capital Markets (4/16/13) "Argonaut Gold Inc. reported Q1/13 production results that were below our estimates, but still on track to meet back-half weighted full-year guidance of 120–140 Koz. . .the miss vs. our numbers is a non-issue in the context of recent gold price volatility. . .Argonaut is one of our top defensive picks in a lower gold price environment. Low-cost existing operations, minimal ongoing capex, a large cash balance and development optionality are all positives. . .we recommend investors buy the stock both for downside protection in a $1200/oz gold price scenario, and for the potential upside from growth at San Antonio and Magino should gold rebound."

Andrew Kaip, BMO Capital Markets (4/16/13) "Argonaut Gold Inc. reported that it has begun leaching ore on the West 8 pad at El Castillo and that the company has taken over all mining activities from the contractor. Argonaut expects to complete construction of the west side stacking system by the end of Q3/13."

Rahul Paul, Canaccord Genuity (4/16/13) "We reiterate our Buy rating on Argonaut Gold Inc. following the release of better-than-expected Q1/13 production results. . .the company also announced an initial NI 43-101 Inferred resource of 110,145 oz Au and 701,908 oz Ag for the Veta Madre deposit at La Colorada (6.7 Mt grading 0.51 g/t Au and 3.25 g/t Ag)."

Rahul Paul, Canaccord Genuity (4/16/13) "Argonaut Gold Inc. remains a Canaccord Genuity Canadian Focus List pick based on attractive valuation in the context of one of the best, fully funded growth profiles in the sector, in our view. With a proven management team at the helm and expected continued strong operational momentum over the next 12 months, we see substantial re-rating potential on execution on the ramp-ups at El Castillo and La Colorada, in addition to the advancement of San Antonio and Magino."

The Gold Report Interview with Christos Doulis (3/29/13) "Argonaut Gold Inc. operates a couple of mines in Mexico right now and is in the process of trying to build a third over the next year or so. It's been a big success story. . .it's got strong management and has really delivered into the expectations that it set. While Argonaut has been experiencing margin pressure, it has done a very good job of keeping costs tight and has generated a very good return from operations. It's a company I've recently gone bullish on again. . .the next asset to enter the production queue, San Antonio in Baja Sur California, is a Mexican asset as well. When I moved my rating to Buy at $8/share, one of the things I told clients was even if you strip out the Prodigy acquisition, the stock still is worth $8/share. You get what you pay for. If Prodigy works out, the stock should be worth more than $10/share." More >

Morning Coffee (3/27/13) "Argonaut Gold Inc. release positive Q4/12 results that saw the company earn $0.19/share, compared to consensus estimates of $0.14; revenue for the quarter came in at $52.3M versus estimates of $51.2M. In terms of production the company loaded 48,174 oz gold onto its leach pads and produced 25,805 oz, which was an increase of 31% over that of Q4/11."

Rahul Paul, Canaccord Genuity (3/26/13) "We maintain our Buy rating on Argonaut Gold Inc. following the release of Q4/12 results which were better than expected. . .the company remains a Canaccord Genuity Canadian Focus List pick based on attractive valuation in the context of one of the best, fully funded growth profiles in the sector. . .with a proven management team at the helm and expected continued strong operational momentum over the next 12 months, we see substantial rerating potential on execution on the ramp-ups at El Castillo and La Colorada, in addition to the advancement of San Antonio and Magino."

Andrew Kaip, BMO Capital Markets (3/26/13) "Argonaut Gold Inc. reported headline Q4/12 net income of US$19.1M. After adjusting for stock-based compensation and other non-cash items, EPS came in at US$0.16, ahead of BMO Research and consensus at US$0.13. We attribute the EPS beat largely to lower operating costs. . .co-product cash costs were reported as US$597/oz, well below guidance of US$625–$650/oz. . .in a strongly inflationary environment, Argonaut Gold continues to tightly control operating costs. . .the company is rated Outperform with a CA$13 target price."

The Gold Report Interview with Jordan Roy-Byrne (3/25/13) "Argonaut Gold Inc. is a very strong model and one we've been very positive on for several years now. . . Argonaut's has done a really good job managing [its assets]. . . I chalk it up to having [a] management team with enough experience in this industry to know how to control costs. They're thinking ahead. They're thinking about what could potentially affect costs next year and the year after. For example, last year Argonaut sensed a cyanide shortage in Mexico and was able to secure cyanide for the next several years. Now the cyanide price is more expensive." More >

Henk Krasenberg, European Gold Centre (3/11/13) "A new prefeasibility report is expected to be issued by midyear. Argonaut Gold Inc. management has set a production target of 300–500 Koz/year as its longer-term target and I am confident they will make it happen."

The Gold Report Interview with Alka Singh (3/1/13) "Argonaut Gold Inc.'s management team is one of the best in the gold sector because they have delivered. They are also frugal and don't overspend. They have always delivered and that has to do with under-promising and over-delivering consistently." More >

Christos Doulis, Stonecap Securities (2/26/13) "Argonaut Gold Inc. provided 2013 guidance. . .highlights include total 2013 production of 120–140 Koz Au at cash costs of $630–660/oz. . .the company also outlined its 2013 capex and exploration budget, which totaled $57–75M, compared to our previous estimate of $111M. . .we continue to believe that 2013 is a pivotal year for Argonaut and that the current share price represents an attractive entry point. . .we are maintaining our Outperform rating."

Michael Siperco, Macquarie Capital Markets (2/25/13) "With the stock of Argonaut Gold Inc. trading at current levels, investors are paying only for El Castillo and La Colorada plus the cash on the balance sheet. . .they are getting the development assets for free. . .between cash on hand and $371M in forecast cash flow over the next three years, the company could develop both San Antonio and Magino from internal sources only. . .with potential production of ~500 Koz/year in 2017+ without debt or dilution, we recommend investors buy Argonaut. . .and reiterate our Outperform rating."

Andrew Mikitchook, GMP Securities (2/25/13) "Argonaut Gold Inc. released its FY/13 guidance, which was in line with our expectations. . .infill drilling at the Magino project shows long (30–40m) continuous intercepts of above-resource grades, which should bode well for conversion of inferred ounces to Measured & Inferred, and Measured & Inferred to 2P with the prefeasibility study later in 2013. . .additionally, a new mineralized zone has been intercepted that should warrant continued exploration drilling. . .we maintain our Buy recommendation."

Rahul Paul, Canaccord Genuity (2/25/13) "We maintain our Buy rating on Argonaut Gold Inc. following the release of detailed 2013 guidance. . .it remains a Focus List pick based on attractive valuation in the context of one of the best, fully-funded growth profiles in the sector. . .we see substantial rerating potential on execution on the ramp-ups at El Cantillo and La Colorada, in addition to the advancement of the San Antonio and Magino projects."

Ovais Habib, Scotia Capital (2/25/13) "Argonaut Gold Inc. released 2013 guidance and an exploration update for its 100%-owned Magino gold project in Ontario, Canada . . .newly provided plan and section views of the deposit reinforce our view that the company will focus on a smaller, higher-grade portion of the global resource. . .we rate Argonaut as Sector Outperform. . .2013 guidance is set at 120–140 Koz of gold with cash costs expected between $630–660/oz."

The Gold Report Interview with Henk Krasenberg (2/22/13) "Argonaut Gold Inc. is digesting the recent takeover of the Magino mine in Ontario, which upon coming to production can double its current output. Argonaut Gold just had warrants converted, and has over $117M in the treasury, so it is well financed. . .Argonaut has more than Magino—such as San Antonio, El Castillo and La Colorado. It is undertaking to define the potential of the Magino because it would like to see the mine happen first—the company just acquired it. It would like to find out whether it is as big as the former management said it was. Do not underestimate Argonaut's management; it is a pretty serious and determined team. I like the team and I think it will succeed in reaching its goal." More >

Christos Doulis, Stonecap Securities (2/20/13) "We are increasing our rating on Argonaut Gold Inc. to Outperform and believe that the recent share price weakness represents an attractive entry point for investors. . .at Tuesday's closing price of $7.98, there is now a projected return of 42% to our target price of $11.35. . .given management's credibility, track record of execution and pipeline of projects (which can likely be fully funded from existing cash and cash from operations) that can transform the company into an ~500 Koz per annum Au producer (over the next few years), we believe a premium CFPS multiple is warranted."

Christos Doulis, Stonecap Securities (1/18/13) "Argonaut Gold Inc. provided its Q4/12 operating results and 2013 guidance for El Castillo. . .highlights include record Q4/12 production of 32 Koz Au, handily beating guidance of 25–27Koz. . .El Castillo production of 25.8 Koz, ahead of guidance of 22–23 Koz. . .total production in 2012 was 108 Koz, significantly beating guidance of 88–97 Koz and revised guidance of 101–103 Koz. . .the company expects 2013 production to increase by 5–10% at El Castillo. . .and we believe this is conservative guidance."

Rahul Paul, Canaccord Genuity (1/18/13) "We maintain our Buy rating on Argonaut Gold Inc. following the release of Q4/12 and 2012 production results that were ahead of guidance and our estimates. . .the [management] team's operational track record has been excellent in 2012, highlighted by production results that beat the high end of revised estimates (even after raising guidance twice last year). . .the company remains a Canaccord Genuity Focus List pick based on attractive valuation in the context of one of the best, fully funded growth profiles in the sector."

Craig West, GMP Securities (1/17/13) "Another record quarter for Argonaut Gold Inc. is good news for; while we had expected a strong quarter out of El Castillo, production of 25.8 Koz beat our expectations by over 3 Koz. . .the company's share price continues to outperform. . .given the markets appetite for lower-risk and strong cash generation, we expect interest in names like Argonaut, with simple, open-pit, heap-leach operations, low capital, low all-in costs, will continue."

Henk Krasenberg, Goldview (1/15/13) "Argonaut Gold Inc. is looking to make further progress in attaining their production target of 300 Koz to 500 Koz in the next few years. . .the expanding El Castillo and La Colorada mines will be joined in Mexico from the advanced San Antonio project and the recently acquired Magino mine in Ontario. . .at the end of 2012, the company strengthened its balance sheet further through the exercise of warrants that brought in $115M."

Rahul Paul, Canaccord Genuity (12/12/12) "We reiterate our Buy rating on Argonaut Gold Inc. following the close of the Prodigy Gold Inc. acquisition, which sets the stage for further growth beyond El Castillo, La Colorada and San Antonio. . .with a proven management team at the helm and expected strong operational momentum over the next 12 months we see strong re-rating potential. . .management has indicated the likelihood of a smaller-scale operation at Magino based on a smaller but higher-grade mineable resource. . .this may be the right decision since a smaller operation should best facilitate cost control and management of development risks."

Andrew Kaip, BMO Capital Markets (12/12/12) "We are resuming coverage of Argonaut Gold Inc. following the completion of its acquisition of Prodigy Gold Inc. . .the acquisition of Prodigy is forecast to increase Argonaut's production by ~240% from current levels to 390 Koz gold equivalent by 2017E. . .we are maintaining an Outperform rating for the company and increasing the price target to $13 (from $11 previously) based on Argonaut's safe jurisdictional composition, track record of execution and future growth."

Ovais Habib, Scotia Capital (12/10/12) "Argonaut Gold Inc. announced that the Supreme Court of British Columbia has granted the final order approving the transaction whereby the company will acquire all the outstanding shares of Prodigy Gold Inc. . .the acquisition is primarily for the Magino project in Ontario, which hosts an Indicated resource of 6.25 Moz at a grade of 0.87 g/t Au. . .the 2011 PEA outlined a 20 Ktpd operation producing 250 Koz Au/year at an average head grade of 1.15 g/t Au. . .our conservative conceptual development scenario for the Magino project at this preliminary stage is compelling."

Barry Allan, Mackie Research Capital (11/15/12) "Argonaut Gold Inc.'s Q3/12 production of 31.1 Koz (prereleased) was above our initial forecast of 24.8 Koz, and operating costs of $577/oz was better than the $608/oz we had expected. Overall, the company is well on the way to beating initial guidance for 2012—a rare feature with the gold mining industry. . .good financial results were also driven by high sales volume; gold sales in Q3/12 were 42.5 Koz, 11.4 Koz more than what was produced. . .EPS of $0.29 was well above the $0.26 we forecasted, and cash flow of $0.39/share handily beat the $0.30/share we expected. . .our estimates were well above street consensus, meaning Q3/12 was a pleasant but unexpected surprise."

Christos Doulis, Stonecap Securities (11/15/12) "Argonaut Gold Inc. has delivered another solid quarter of operating and financial results and continues to build cash. With the final major permit received for La Colorada the path is now clear to begin full production in 2013. . .we are increasing our price target to $11.35 from $11.05."

Craig West, GMP Securities (11/14/12) "Argonaut Gold Inc.'s Q3/12 gold production of 31 Koz was up significantly from 24.1 Koz in Q2/12. . .the company's share price continues to outperform, driven by steady operating performance and demonstrated low-capital growth. Given the markets appetite for lower-risk and strong cash generation, we expect interest in names like Argonaut, with simple open-pit, heap-leach operations and low-capital, low all-in costs, will continue."

Ovais Habib, Scotia Capital (11/14/12) "Argonaut Gold Inc.'s solid performance in Q3/12 was due to higher production and significantly higher-than-expected gold sales of 42,534 oz. . .the final blasting permit required for the phase 2 mining expansion at La Colorada has been received and full-scale mining is expected to begin in Q1/13. We expect Argonaut to produce ~102,079 oz gold at $602/oz in 2012, within the production guidance of 101–103 Koz. . .and rate the company Sector Outperform."

Rahul Paul, Canaccord Genuity (11/14/12) "We reiterate our Buy rating on Argonaut Gold Inc. following the announcement of Q3/12 financial results that were better than expected, primarily due to lower cash costs. . .consolidated cash costs of $577/oz were below our estimate (and Q2/12 levels) of $620/oz. . .production guidance for 2012 remains unchanged at 101–103 Koz, with full-year cash costs budgeted at $625–650/oz."

The Gold Report Interview with Christos Doulis (11/9/12) "I like Argonaut Gold Inc.'s story. The company produces from heap-leach mines in Mexico. It has just done an acquisition in Ontario that is a bit of a change for the company. I have covered Argonaut with an Outperform rating for quite some time, but I have recently changed to a Sector Perform. Argonaut is a great company. Valuation is the question. Argonaut is trading at a very high multiple of next year's cash flow because it has two mines in production with two more coming soon. Based on next year's cash flow the company is fairly priced at around $11/share. With the stock trading at around $10.50/share, it's hard for me to get very excited. However, that is based on my long-term gold price of $1,350/oz. If you believe we are in an environment where we're going to see $1,700/oz as the long-term gold price, Argonaut has upside from here. That value is unlocked by building out the pipeline of new mines giving Argonaut a high torque to the gold price.

Argonaut's current production is approximately 100 Koz per year. Production can grow to 200+ Koz annually among its three key assets—San Antonio, La Colorada and El Castillo. If Argonaut can successfully develop the Magino project from Prodigy Gold Inc., it will produce 400–500 Koz annually. That growth from 100 Koz to 500 Koz is the story that makes this an exciting company. It has one of the greatest exposures to growth in gold production in a junior miner today. . .Argonaut has paper that's priced at the high end of the range relative to near-term cash flow. That implies it may still be in acquisition mode. While this latest acquisition gives Argonaut all the horses in the stable to get to 400–500 Koz of production, its long-term goal, there's nothing to say it couldn't move the goal post and target becoming a 1 Moz producer." More >

The Gold Report Interview with Jay Taylor (11/7/12) "Bravada Gold Corp. recently signed a deal with Argonaut Gold Inc. Argonaut has to spend $7.5M on the project to earn an option to buy gold equivalent resource there, paying $30/oz for that resource and leaving a 1% net smelter royalty for Bravada. . .Argonaut is a proven, smaller midtier producer that could make it happen." More >

Barry Allan, Mackie Research Capital (10/29/12) "Argonaut Gold Inc. hosted a couple of site visits in Mexico. . .we do note that operations continue to perform smoothly and efficiently. . .crushing at El Castillo has now reached just shy of the 17 Ktpd level (equating to ~6 Mt/year). . .we expect that the company will continue to stack ~1 Mt/month ore. . .La Colorada continues to process run-of-mine material, with about three months of production left before mining is scheduled to commence (Q1/13)."

Ovais Habib, Scotia Capital (10/26/12) "We visited Argonaut Gold Inc.'s El Castillo as well as La Colorada projects. . .we were impressed by the work completed to date at La Colorada, both the commissioning of the adsorption desorption recovery plant as well as the progress of pad construction. . .operations at El Castillo are running smoothly with pad 8 construction in progress, which is expected to add 39 Mt of capacity, taking total pad capacity to 69 Mt. . .we rate the company Outperform."

Rahul Paul, Canaccord Genuity (10/26/12) "We visited Argonaut's La Colorada mine in Sonora state and El Castillo mine in Durango state, Mexico. . .we believe that the company remains on track to deliver on expectations, and came away from the tour with a positive impression of its operational abilities. . .Argonaut Gold remains a Focus List pick based on attractive valuation considering a superior low-cost production growth profile, a proven management team and expected strong operational momentum over the next 12 months."

Rob Davies, PI Financial (10/17/12) "Argonaut Gold Inc.'s growth attributes are far better than the mining industry in all of the metrics that we track. High quarterly EPS momentum for the most recent and next quarter are primarily responsible for the company's high rank based on selected growth criteria. . .Argonaut is a high gross margin company. . .stock should be bought at current levels."

Michael Siperco, Macquarie Capital Markets (10/16/12) "Argonaut Gold Inc. has entered into an agreement to acquire Prodigy Gold Inc. and its Magino gold project, located in northeastern Ontario. . .this transaction is potentially company-changing for Argonaut, giving it a long-term growth profit that would exceed its target of 300–500 Koz of annual gold production at a reasonable cost. . .we are upgrading the company to Outperform. . .we believe the acquisition of Prodigy Gold is a good diversification/growth move for Argonaut and gives the stock more room to run heading into a potential rerating once execution at Magino becomes visible."

Rahul Paul, Canaccord Genuity (10/16/12) "We reiterate our Buy rating on Argonaut Gold Inc. following the announcement of: 1) record Q3/12 production results that were materially ahead of guidance and our estimates, 2) increased 2012 production guidance at both El Castillo and La Colorada and 3) a potentially accretive acquisition of Prodigy Gold Inc., which in our view should materially enhance the company's growth pipeline and facilitate rerating as an intermediate producer. Argonaut remains a Focus List pick."

Christos Doulis, Stonecap Securities (10/16/12) "On October 15, Argonaut Gold Inc. announced a proposed merger with Prodigy Gold Inc. . .the proposed acquisition of Prodigy provides Argonaut with the potential to reach ~500 Koz Au production. . .Argonaut continues to offer investors both current cash flow and excellent exposure to gold through its robust growth profile. . .and a stellar Q3/12 has set the stage for a stronger 2012 and beyond."

Morning Coffee (10/16/12) "Argonaut Gold Inc. agreed to buy Prodigy Gold Inc. for $320.3M to add a project in Ontario. The acquisition and development of Prodigy's Magino gold project will help Argonaut meet its annual production target of 300–500 Koz gold. . .the terms of the transaction have been unanimously approved by both companies' boards of directors. . .Yesterday, Argonaut also announced record Q3/12 gold production of 31,074 oz and increased its 2012 production guidance to 101–103 Koz from 88–97 Koz."

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