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:

Ryan Hanley, Mackie Research Capital (4/15/15)
"Argonaut Gold Inc.'s Q1/15 production of 43.3 Koz Au eq exceeded our 39.5 Koz Au eq forecast. . .El Castillo produced 24.8 Koz Au eq in Q1/15 (vs. our 23 Koz expectation), as the impact of a higher cyanide concentration resulted in higher recoveries than we had anticipated. . .at La Colorado, throughput averaged 12,661 tpd, with a record of over 14,800 tpd in March. . .the mine produced 18.4 Koz Au eq in the quarter vs. our 16.4 Koz, with strong quarterly throughput expected to continue through the year. . .Argonaut remains one of the most undervalued junior producers."

Mike Parkin, Desjardins Securities (4/15/15)
"This morning before market open, Argonaut Gold Inc. announced its Q1/15 production results, which beat both our and the Street's expectations, with gold equivalent production of 43,255 oz; this was 16% above the consensus estimate of 37,200 oz gold equivalent (three estimates) and 22% above our estimate of 35,354 oz gold equivalent. . .Q1/15 production represents ~31% of annual production guidance."

Ovais Habib, Scotia Capital (4/15/15)
"Argonaut Gold Inc. reported Q1/15 production of 43.3 Koz gold equivalent (41.8 Koz Au), ahead of our estimate of 36.2 Koz gold equivalent (34.7 Koz Au). . .we rate the company Sector Outperform with a CA$4.75 one-year target price."

Andrew Kaip, BMO Capital Markets (3/16/15)
"Argonaut Gold Inc. was able to build its cash balance by $6.9M in a depressed metal market. Guidance for 2015 remains at 135–145 Koz gold. . .the company is budgeting $37M in expansion capital in 2015. Argonaut exited 2014 with $51.4M in cash and equivalents."

Matthew Sheppard, Jacob Securities (3/16/15)
"Argonaut Gold Inc. reported Q4/14 operational and financial results. Production totaled 43.4 Koz gold at cash costs of $801/oz. Production was in-line with our expectations. . .the company has posted its San Agustin preliminary economic assessment. We’ve revisited our assumptions for San Agustin and adjusted forecast tonnage, grades, recoveries and unit costs to reflect its findings. Our cash flow per share estimates for Argonaut have increased on average by 4% from 2018 to 2021. We reiterate our Buy rating and CA$5.65 per share target."

Mike Parkin, Desjardins Securities (3/16/15)
"Argonaut Gold Inc. released its Q4/14 and 2014 financial results. . .and hosted a conference call. Overall, we view the earnings release as neutral. . .in the conference call presentation, the company projected a year-end 2015 cash balance of $50M at $1,250/oz gold vs. the $51.4M at year-end 2014. . .Argonaut reported cash costs of $801/oz for Q4/14 and $771/oz for 2014. . .the company had previously announced guidance of 135,000–145,00 oz Au eq (assumes a gold/silver ratio of 55:1) at total cash costs of $700–750/oz gold sold (net of by-products)."

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