AR:TSX

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:

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."

Andrew Kaip, BMO Capital Markets (5/5/15)
"Argonaut Gold reported headline and adjusted Q1/15 earnings per share of $0.01. . .below our expectations due to higher-than-expected operating costs. The company is expecting to achieve some cost reductions at El Castillo through higher production rates. . .positively, Argonaut was able to build its cash balance (for a second consecutive quarter) by $12.6M. Free cash flow generation of $15.9M highlights a strong operational quarter for the company."

Mike Parkin, Desjardins Securities (4/28/15)
"After speaking with Argonaut Gold Inc. management following the strong Q1/15 operating results, we made some adjustments. . .at El Castillo, we are forecasting annual production of 88.6 Koz. . .with cash costs averaging $804/oz, the high end of company guidance of $750–800/oz. . .La Colorada posted very strong Q1/15 operating results that beat our estimate by 43%, giving us greater confidence that the mine may reach its operating potential and maintain the increased gold output. . .we are forecasting annual production of 57.8 Koz Au eq. . .above the 50–55 Koz Au eq production guidance range. . .with annual cash costs averaging $630/oz."

More Expert Comments

Experts Commenting on 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
Jordan Roy-Byrne, Editor/CMT The Daily Gold
Matthew Sheppard, Equity Research Analyst – Jacob Securities
Michael Siperco, Analyst, Mining Equity Research – Macquarie Capital Markets
Ron Struthers, Editor Struthers Resource Stock Report, Elcora Resources Corp.

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Argonaut Gold Inc. Content