VANCOUVER (miningweekly.com) – Mexico-focused miner Argonaut Gold has reported better-than-planned results for the three months ended March 31, as a mine plan adjustment at the El Castillo operation pushed output above plan, while the company foresees additional production from the San Augustin project coming on line during the second half of the year.
During the quarter, the Toronto-based company has tripled adjusted earnings per share to $0.03, comfortably beating analyst forecasts for earnings of $0.01 a share.
Net earnings increased some 179% to $12-million, or $0.07 a share, derived from 26% year-on-year higher revenues at $44.5-million.
Argonaut produced 37 707 gold equivalent ounces (GEOs), up 17% over the comparable period a year earlier, and sold 21% more GEOs in the period at 36 173 oz.
Financials were boosted by a 4% rise in the average realised price of gold sold to $1 228/oz, while all-in sustaining costs (AISC) stayed flat over the same period of 2016 at $870/oz.
The San Agustin project construction plan originally called for the west crusher at the El Castillo mine to be disassembled and relocated in early February. However, the company reviewed this plan and determined there would be no impact to the overall San Agustin construction schedule by delaying this relocation until early March.
As a result, crushed tonnes placed on the leach pad at El Castillo exceeded the original plan by about 132 000 t. These additional tonnes, along with improved operating efficiencies at El Castillo and ore grades at La Colorada that exceeded planned levels, led to strong first quarter output.
For 2017, Argonaut expects to produce 115 000 GEO to 130 000 GEO, at AISC of between $910/oz and $960/oz sold.
Edited by: Creamer Media Reporter
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