Argonaut Gold Inc.

Argonaut Gold Inc. 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, and the La Colorada mine in Sonora, Mexico. Advanced exploration stage projects include the San Antonio project in Baja California Sur, Mexico, and the Magino project in Ontario, Canada. The recently acquired San Agustín project is the primary exploration target for Argonaut in 2014. The company also has several exploration stage projects, all of which are located in North America.

Expert Comments:

Jeff Killeen, CIBC World Markets (9/21/15)
"Argonaut Gold Inc.'s Magino update indicates stronger economics. ..after the close September 17, Argonaut released an update for the Magino project that applies modified parameters to reflect the current environment. The update points to a stronger project with more favorable inputs such as fuel costs and F/X."

Mike Parkin, Desjardins Securities (9/18/15)
"Argonaut Gold Inc. reported a brief project prefeasibility study (PFS) update for the 100%-owned Magino open-pit gold project, updating the economics for some of the input variables. The last PFS. . .used less than 50% of the Measured and Indicated resource due to land boundary ownership limitations that have since been resolved but were not factored into this brief update. A detailed update will be given in late 2015. The internal rate of return of the project, according to management's estimates, has improved to 29% (from 18%). . .an NPV (5% discount rate) of $359M on an after-tax basis or $2.31/share."

Mike Parkin, Desjardins Securities (5/6/15)
"Argonaut Gold Inc. delivered the final $20M payment to Silver Standard Resources Inc. for the purchase of the San Agustin exploration project. The company finished Q1/15 with $64M in cash, an increase of $12.5M from year-end. . .Argonaut reported Q1/15 earnings yesterday and, on the back of previously announced strong production, reported a good increase in its cash balance."

Mike Parkin, Desjardins Securities (5/5/15)
"Argonaut Gold Inc. reported Q1/15 financial results that were in line with consensus on a cash flow per share basis. . .we were pleased to see the cash balance increased US$12.5M quarter over quarter to US$64M (we were looking for a cash balance of US$58M). . .overall on the operating front, we were pleased to see La Colorada increase its throughput rate to above 12 Ktpd, with a further increase to 14.8 Ktpd in March, which includes a 50% blend of reprocessed tailings."

Ryan Hanley, Mackie Research Capital (5/5/15)
"Argonaut Gold Inc. has released Q1/15 results, with production of 43.3 Koz Au eq having been prereleased versus our prior 39.5 Koz Au eq forecast. . .the company remains undervalued. . .it continues to maintain a good balance sheet. . .and minimal debt."

Ovais Habib, Scotia Capital (5/5/15)
"We continue to believe that Argonaut Gold Inc. is well funded for planned development and exploration activities in 2015 with $64M in cash as of Q1/15. . .we rate the company Sector Outperform with a CA$4.75 1-year target price."

More Expert Comments

Experts Following This Company

Barry Allan, Vice Chair of Mining Group, and Senior Mining Analyst – Mackie Research Capital
Sam Crittenden, Research Analyst – RBC Capital Markets
Ovais Habib, Analyst – Scotia Capital
Ryan Hanley – Mackie Research Capital
Andrew Kaip, Analyst – BMO Capital Markets
Jeff Killeen, Analyst – CIBC World Markets
Mike Parkin – Desjardins Securities
Matthew Sheppard, Equity Research Analyst – Jacob Securities

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