Argonaut Gold Announces Second Quarter Financial and Operating Results

Ramp Up Underway at Magino Mine - On Track for Commercial Production in Q3

TORONTO, Aug. 11, 2023 /CNW/ - Argonaut Gold Inc. (TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") today reported financial and operating results for the three and six months ended June 30, 2023 (the "second quarter" or "Q2"), as well as a progress update for the Magino Mine. All dollar amounts are expressed in United States dollars, unless otherwise specified (CA$ refers to Canadian dollars).

"Argonaut delivered solid financial and operational results for the quarter, generating strong cash flows to help fund the completion of our newest mine, Magino. During the quarter, the Magino mill began ramping up, putting the mine on track for commercial production in the third quarter. We believe Magino could be one of the largest and lowest cost gold mines in Canada. To that end, during the third quarter, while commissioning the Magino mill, we are commencing a reserve development drilling program intended to increase reserves in combination with engineering studies to increase mill throughput. At the Florida Canyon Mine in Nevada, we are commencing a drill program during the third quarter as part of a proof-of-concept program on the sulphide material. We believe organic growth through mineral resource expansion will deliver significant value within the Company's asset base and lays the long-term foundation to grow our current production profile as we seek to become a low-cost, mid-tier North American gold producer," stated Richard Young, President and Chief Executive Officer of Argonaut Gold.

SECOND QUARTER HIGHLIGHTS

Financial Highlights

• Revenues of $83.1 million was 25% lower than $111.4 million from the second quarter of 2022, due to lower planned production from the Company's three Mexican mines, partially offset by higher production from Florida Canyon and includes $0.1 million of initial ounces sold from the Magino mine.
• Gross profit of $15.5 million was $4.3 million lower than $19.8 million from the second quarter of 2022, due to lower revenues from planned lower production.
• Generated cash flow from operating activities before changes in working capital and other items totalling $17.4 million, a reduction of 25% from Q2 2022 due to lower gross profit.
• Net income of $21.2 million, or $0.03 per basic and diluted share, compared to net income of $18.4 million, or $0.06 per share for Q2 2022, a 15% increase in net income.
• Adjusted net income¹ of $5.7 million, or $0.01 per basic share, compared to adjusted net income¹ of $7.3 million, or $0.02 per share from Q2 2022, a decrease of $1.6 million.
• Cash and cash equivalents of $71.8 million and net debt¹ of $151.6 million at June 30, 2023.
• Undrawn debt capacity of $20.0 million at quarter-end.
• On June 29, 2023, the Company obtained a waiver on certain financial covenants on its $250 million financing package (collectively referred to as the "Loan Facilities") for the ongoing development and construction of the Magino mine.
• Consolidated production of 43,492 GEOs, including the initial 3,295 ounces of gold from the Magino mine, was 27% lower compared to 59,190 GEOs from the second quarter of 2022, due to lower ore tonnes mined and processed at the Company's three Mexican operations.
• Cost of sales per ounce¹ of $1,590, cash cost¹ per ounce of $1,304 and AISC¹ per ounce of $1,594 were similar to the prior year period and largely in-line with 2023 full-year guidance. With the expectation of achieving commercial production at Magino in the third quarter of 2023, cost of sales per ounce¹, cash cost¹ per ounce, and AISC¹ per ounce are expected to be in-line with full year 2023 guidance.

"Production and per ounce costs are largely on plan for the first half of the year, placing the Company on track to meet its full year production and cost guidance targets set at the beginning of the year. We continue to ramp up the mill at Magino to steady-state and are expecting to achieve commercial production in the third quarter of this year. The plant has been running at or above nameplate throughput capacity when operating," stated Marc Leduc, Chief Operating Officer of Argonaut Gold.

Growth Highlights

Magino Mine

• During the second quarter, commissioning activities at the Magino mine were well underway, with the introduction of ore into the crushing circuit mid-May and the grinding circuit approximately one week later.
• First gold pour was achieved mid-June.
• During the month of June, the Magino mine produced an initial 3,295 ounces and sold 72 ounces. Accordingly, the Company recognized $0.1 million of revenues and $0.1 million of cost of sales in the period related to these initial pre-commercial production gold ounces.
• As at June 30, 2023, the Company had incurred approximately $730 million (CA$947 million) of the $755 million (CA$980 million) estimated cost to completion ("EAC").
• Initial results during commissioning indicate that throughput targets in the crushing and grinding circuits should be easily achieved, and the team was focused on achieving design parameters by working through instrumentation, electrical, and communications issues that are common in the startup phase of a process plant of this size.
• Permits have been received to operate the process plant and tailings management facilities.
• Workforce buildup of the permanent operating team is nearing completion but sourcing the remaining labour remains a challenge in the current economic environment, however, vacant roles are being temporarily filled by contract personnel.

Florida Canyon Mine

• Exploration and development work focused on drilling within the oxide resource, tested a high-grade target in the West Sulfide Zone, and completed regional generative exploration work.
• In the West Sulfide Zone, the Company completed six diamond drill holes, for a total of 1,258 metres in three drill fences; these holes were part of the Company's proof-of-concept evaluation of the sulfide resources.

Mexico

• On August 4, 2023, the Company signed an agreement to acquire the necessary land to complete mining of the current reserve base at the San Agustin Mine. Subject to receipt of the necessary permit, expected later this year, mining is expected to continue into 2025.
• We continue to work towards optimizing the value of our Mexican assets and we are evaluating the full spectrum of alternatives for the portfolio.

Second Quarter Financial & Operating Highlights

		Three months ended June 30,			Six months ended June 30,
Financial Data		2023	2022	% Change	2023	2022	% Change
Revenues1	$000s	83,111	111,405	(25) %	152,078	217,207	(30) %
Cost of sales1	$000s	67,649	91,596	(26) %	139,159	175,735	(21) %
Gross profit	$000s	15,462	19,809	(22) %	12,919	41,472	(69) %
Net income	$000s	21,186	18,412	15 %	10,810	24,030	(55) %
Per basic share	$/share	0.03	0.06	(50) %	0.01	0.07	(86) %
Per diluted share	$/share	0.02	0.06	(67) %	0.01	0.07	(86) %
Adjusted net income2	$000s	5,685	7,265	(22) %	2,927	15,498	(81) %
Per basic share2	$/share	0.01	0.02	(50) %	0.00	0.05	(100) %
Operating cash flow before changes in working capital and other items	$000s	17,427	23,250	(25) %	27,911	48,398	(42) %
Operating cash flow	$000s	4,349	13,360	(67) %	(7,503)	17,395	N/A
Sustaining capital expenditures	$000s	6,221	12,194	(49) %	9,967	21,440	(54) %
Magino construction capital	$000s	99,672	94,695	5 %	173,232	184,190	(6) %
Cash and cash equivalents	$000s	71,799	75,816	(5) %	71,799	75,816	(5) %
Net debt2	$000s	(151,608)	(4,184)	3524 %	(151,608)	(4,184)	3524 %

1In the three and six months ended June 30, 2023, these balances include $0.1 million of revenues and $0.1 million of cost of sales related to the pre-commercial production phase of the Magino mine.

2This is a Non-IFRS Measure; please see "Non-IFRS Measures" section.

 

		Three months ended June 30,			Six months ended June 30,
Operating Data		2023	2022	%	2023	2022	%
Gold produced1	oz	42,482	57,409	(26) %	79,980	110,674	(28) %
Gold equivalent ounces ("GEOs") produced1,2	oz	43,492	59,190	(27) %	82,077	114,706	(28) %
Gold sold1	oz	42,546	57,343	(26) %	78,714	111,450	(29) %
Average realized price	$/oz	1,903	1,884	1 %	1,883	1,879	— %
Cost of sales3	$/oz	1,590	1,597	— %	1,768	1,577	12 %
Cash cost3	$/oz	1,304	1,248	4 %	1,467	1,200	22 %
All-in sustaining costs3 ("AISC")	$/oz	1,594	1,553	3 %	1,756	1,492	18 %

1In the three and six months ended June 30, 2022, 3,295 gold ounces were produced and 72 gold ounces were sold from the pre-commercial production phase of the Magino mine.

2Based on a silver to gold ratio of 80:1 in 2023 and 2022.

3This is a Non-IFRS Measure; please see "Non-IFRS Measures" section.

2023 Outlook Analysis

Production and per ounce costs are largely on plan for the first half of the year, placing the Company on track to meet its full year production and cost guidance targets set at the beginning of the year. The Magino mine achieved first gold pour in mid-June, 2023, approximately 30 days behind schedule. The Magino mine is currently ramping up to commercial production, which is expected in the third quarter. Production is expected to increase and consolidated cost of sales per ounce¹, cash cost per ounce¹, and AISC¹ per ounce are expected to decline once the Magino mine reaches commercial production.

The only significant change in guidance relates to exploration costs which are expected to be approximately $10 million higher than planned due to exploration and reserve development programs underway at the Magino and Florida Canyon mines.

Consolidated 2023 production and cost guidance remains unchanged at 200,000 to 230,000 GEOs and an all-in sustaining cost of $1,625 – $1,725 per ounce.

This press release should be read in conjunction with the Company's unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2023 and associated Management's Discussion and Analysis ("MD&A") for the same period, which are available on the Company's website at www.argonautgold.com, in the "Investors" section under "Financial Filings", and under the Company's issuer profile on SEDAR+ at www.sedarplus.ca.

1This is a Non-IFRS Measure; please see "Non-IFRS Measures" section.

Conference Call and Webcast

Management will host a live conference call and webcast to discuss second quarter highlights with a question-and-answer session as follows:

Date & Time:	Friday, August 11, 2023 at 10:00 a.m. ET
Telephone:	Toll Free (North America) 1-888-664-6392 International 1-416-764-8659
Conference ID:	75372315
Webcast:	app.webinar.net/QVYnxO0MOXB
Presentation:	Available for download at www.argonautgold.com.
Conference Call Replay
Telephone:	Toll Free Replay (North America) 1-888-390-0541 International Replay 1-416-764-8677
Entry Code:	372315 #

 

The conference call replay will be available from 12:00 p.m. ET on August 18, 2023 until 11:59 p.m. ET on August, 2023.

 

Endnotes
1.	Based on a silver to gold ratio of 80:1 in 2023 and 2022.
2.	This is a Non-IFRS Measure; please see "Non-IFRS Measures" section below.

Non-IFRS Measures

The Company provides certain non-IFRS measures as supplementary information that management believes may be useful to investors to explain the Company's financial results.

"Cost of sales per ounce sold" and "Cash cost per ounce sold" are common financial performance measures in the gold mining industry but have no standard meaning under IFRS. The Company reports cost of sales and cash cost per ounce on a sales basis. We believe that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures, along with sales, are considered to be key indicators of a Company's ability to generate operating profits and cash flow from its mining operations.

Cash cost figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard is considered the accepted standard of reporting cash cost of production in North America. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of other companies.

The World Gold Council definition of AISC seeks to extend the definition of cash cost by adding corporate, and site general and administrative costs, reclamation and remediation costs (including accretion and amortization), exploration and study costs (capital and expensed), capitalized stripping costs and sustaining capital expenditures and represents the total costs of producing gold from current operations. AISC excludes income tax payments, interest costs, costs related to business acquisitions and items needed to normalize profits. Consequently, this measure is not representative of all of the Company's cash expenditures. In addition, the calculation of AISC does not include depreciation expense as it does not reflect the impact of expenditures incurred in prior periods. Therefore, it is not indicative of the Company's overall profitability.

"Adjusted net income" and "adjusted net income per basic share" exclude a number of temporary or one-time items, which management believes not to be reflective of the underlying operations of the Company, including the impacts of: unrealized losses (gains) on derivatives, non-operating income, foreign exchange losses (gains), impacts of foreign exchange on deferred income taxes, inventory impairments (reversals), mineral properties, plant and equipment impairments (reversals), and other unusual or non-recurring items. Adjusted net (loss) income per basic share is calculated using the weighted average number of shares outstanding under the basic calculation of earnings per share as determined under IFRS.

"Net debt" is calculated as the sum of the cash and cash equivalents balance net of debt as at the statement of financial position date. "Net debt" calculation includes unamortized transaction costs, but excludes Convertible Debentures and equipment loans which are currently included in total debt, in order to show the nominal undiscounted debt. This measure has no standard meaning under IFRS and other companies may calculate this measure differently.

1.     The following tables provide reconciliations of production costs per the financial statements to cost of sales per ounce, cash cost per ounce, and AISC per ounce for each mine:

Magino Mine		Three months ended June 30,	Six months ended June 30,
		2023	2023
Gold sold	oz	72	72
Cost of sales	$000s	82	82
Cost of sales per ounce sold	$/oz	1,139	1,139
Production costs	$000s	80	80
Cash Cost	$000s	80	80
Cash cost per ounce sold	$/oz	1,111	1,111
Cash Cost	$000s	80	80
AISC	$000s	80	80
AISC per gold ounce sold	$/oz	1,111	1,111

 

Florida Canyon Mine		Three months ended June 30,			Six months ended June 30,
		2023	2022	% Change	2023	2022	% Change
Gold sold	oz	18,518	13,902	33 %	30,751	24,157	27 %
Cost of sales	$000s	28,993	25,458	14 %	50,476	44,658	13 %
Cost of sales per ounce sold	$/oz	1,566	1,831	(14) %	1,641	1,849	(11) %
Production costs	$000s	24,599	22,235	11 %	43,254	39,388	10 %
Less silver sales	$000s	(376)	(193)	95 %	(573)	(380)	51 %
Cash Cost	$000s	24,223	22,042	10 %	42,681	39,008	9 %
Cash cost per ounce sold	$/oz	1,308	1,586	(18) %	1,388	1,615	(14) %
Cash Cost	$000s	24,223	22,042	10 %	42,681	39,008	9 %
Exploration expenses	$000s	823	–	N/A	823	–	N/A
Sustaining capital expenditures	$000s	5,735	6,644	(14) %	9,226	10,567	(13) %
AISC	$000s	30,781	28,686	7 %	52,730	49,575	6 %
AISC per gold ounce sold	$/oz	1,662	2,063	(19) %	1,715	2,052	(16) %

 

La Colorada Mine		Three months ended June 30,			Six months ended June 30,
		2023	2022	% Change	2023	2022	% Change
Gold sold	oz	5,680	13,322	(57) %	10,766	26,402	(59) %
Cost of sales	$000s	8,095	17,090	(53) %	20,836	33,937	(39) %
Cost of sales per ounce sold	$/oz	1,425	1,283	11 %	1,935	1,285	51 %
Production costs	$000s	6,282	14,212	(56) %	17,821	27,593	(35) %
Less silver sales	$000s	(265)	(850)	(69) %	(468)	(1,708)	(73) %
Cash Cost	$000s	6,017	13,362	(55) %	17,353	25,885	(33) %
Cash cost per ounce sold	$/oz	1,059	1,003	6 %	1,612	980	64 %
Cash Cost	$000s	6,017	13,362	(55) %	17,353	25,885	(33) %
General and administrative expenses	$000s	455	304	50 %	764	614	24 %
Accretion and other expenses	$000s	61	61	— %	122	194	(37) %
Sustaining capital expenditures	$000s	377	5,089	(93) %	536	6,213	(91) %
AISC	$000s	6,910	18,816	(63) %	18,775	32,906	(43) %
AISC per gold ounce sold	$/oz	1,217	1,412	(14) %	1,744	1,246	40 %

 

San Agustin Mine		Three months ended June 30,			Six months ended June 30,
		2023	2022	% Change	2023	2022	% Change
Gold sold	oz	12,774	18,656	(32) %	24,265	35,859	(32) %
Cost of sales	$000s	21,933	27,041	(19) %	44,681	51,822	(14) %
Cost of sales per ounce sold	$/oz	1,717	1,449	18 %	1,841	1,445	27 %
Production costs	$000s	19,126	20,899	(8) %	38,252	40,159	(5) %
Less silver sales	$000s	(1,415)	(2,083)	(32) %	(2,639)	(5,083)	(48) %
Cash Cost	$000s	17,711	18,816	(6) %	35,613	35,076	2 %
Cash cost per ounce sold	$/oz	1,386	1,009	37 %	1,468	978	50 %
Cash Cost	$000s	17,711	18,816	(6) %	35,613	35,076	2 %
General and administrative expenses	$000s	997	745	34 %	1,682	1,412	19 %
Accretion and other expenses	$000s	9	8	13 %	18	17	6 %
Sustaining capital expenditures	$000s	109	138	(21) %	205	608	(66) %
AISC	$000s	18,826	19,707	(4) %	37,518	37,113	1 %
AISC per gold ounce sold	$/oz	1,474	1,056	40 %	1,546	1,035	49 %

 

El Castillo Mine		Three months ended June 30,			Six months ended June 30,
		2023	2022	% Change	2023	2022	% Change
Gold sold	oz	5,502	11,463	(52) %	12,860	25,032	(49) %
Cost of sales	$000s	8,546	22,007	(61) %	23,084	45,318	(49) %
Cost of sales per ounce sold	$/oz	1,553	1,920	(19) %	1,795	1,810	(1) %
Production costs	$000s	7,521	17,584	(57) %	19,976	34,398	(42) %
Less silver sales	$000s	(76)	(251)	(70) %	(203)	(614)	(67) %
Cash Cost	$000s	7,445	17,333	(57) %	19,773	33,784	(41) %
Cash cost per ounce sold	$/oz	1,353	1,512	(11) %	1,538	1,350	14 %
Cash Cost	$000s	7,445	17,333	(57) %	19,773	33,784	(41) %
Accretion and other expenses	$000s	–	1	(100) %	–	3	(100) %
Sustaining capital expenditures	$000s	–	323	(100) %	–	4,052	(100) %
AISC	$000s	7,445	17,657	(58) %	19,773	37,839	(48) %
AISC per gold ounce sold	$/oz	1,353	1,540	(12) %	1,538	1,512	2 %

 

All Mines		Three months ended June 30,			Six months ended June 30,
		2023	2022	% Change	2023	2022	% Change
Gold sold	oz	42,546	57,343	(26) %	78,714	111,450	(29) %
Cost of sales	$000s	67,649	91,596	(26) %	139,159	175,735	(21) %
Cost of sales per ounce sold	$/oz	1,590	1,597	– %	1,768	1,577	12 %
Production costs	$000s	57,608	74,930	(23) %	119,383	141,538	(16) %
Less silver sales	$000s	(2,132)	(3,377)	(37) %	(3,883)	(7,785)	(50) %
Cash Cost	$000s	55,476	71,553	(22) %	115,500	133,753	(14) %
Cash cost per ounce sold	$/oz	1,304	1,248	4 %	1,467	1,200	22 %
Cash Cost	$000s	55,476	71,553	(22) %	115,500	133,753	(14) %
Mine site general and administrative expenses	$000s	1,452	1,051	38 %	2,446	2,028	21 %
Corporate general and administrative expenses	$000s	2,541	2,802	(9) %	6,105	5,678	8 %
Share-based compensation expense	$000s	664	718	(8) %	1,079	1,886	(43) %
Exploration expenses	$000s	823	425	94 %	1,843	792	133 %
Accretion and other expenses	$000s	70	70	— %	140	214	(35) %
Corporate accretion and others	$000s	572	220	160 %	1,168	439	166 %
Sustaining capital expenditures	$000s	6,221	12,194	(49) %	9,967	21,440	(54) %
AISC	$000s	67,819	89,033	(24) %	138,248	166,230	(17) %
AISC per gold ounce sold	$/oz	1,594	1,553	3 %	1,756	1,492	18 %

 

2.     Adjusted net income and adjusted net income per basic share exclude a number of temporary or one-time items detailed in the following table:

		Three months ended June 30,			Six months ended June 30,
		2023	2022	% Change	2023	2022	% Change
Net income	$000s	21,186	18,412	15 %	10,810	24,030	(55) %
Unrealized gain on derivatives	$000s	(4,892)	(13,525)	(64) %	(5,121)	(12,060)	(58) %
Other non-operating expense, net of tax	$000s	–	1,653	(100) %	–	2,151	(100) %
Foreign exchange (gain) loss, net of tax	$000s	(7,912)	870	N/A	(5,536)	1,825	N/A
Impact of foreign exchange on deferred income taxes	$000s	(242)	(137)	77 %	(537)	(855)	(37) %
Inventory (reversal) impairment, net of tax	$000s	(2,455)	(8)	30588 %	3,606	(127)	N/A
Sale of marketable securities	$000s	–	–	N/A	–	534	(100) %
Reversal of mineral properties, plant and equipment, net of tax	$000s	–	–	N/A	(295)	–	N/A
Adjusted net income	$000s	5,685	7,265	(22) %	2,927	15,498	(81) %
Weighted average number of common shares outstanding	000s shares	864,464	332,787	160 %	843,879	325,417	159 %
Adjusted net income per basic share	$/share	0.01	0.02	(50) %	0.00	0.05	(100) %

 

3.     A reconciliation of net debt is detailed in the following table:

		June 30, 2023	December 31,  2022
Cash and cash equivalents	$000s	71,799	73,254
Debt	$000s	(274,809)	(127,793)
Convertible Debentures	$000s	49,730	48,404
Magino mine equipment loan	$000s	1,672	1,807
Net debt	$000s	(151,608)	(4,328)

Cautionary Note Regarding Forward-Looking Statements

Certain information contained or incorporated by reference in this press release, including any information as to our strategy, projects or future financial or operating performance, constitutes "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may", "should" or "will" occur.  This press release contains forward-looking statements and forward-looking information including, but not limited to: Magino achieving commercial production in Q3 2023, Magino becoming one of the largest and lowest cost Canadian gold mines, the likelihood of success of the Magino reserve development drilling program to increase reserves, the likelihood of the engineering studies to increase mill throughput, organic growth through mineral resource expansion delivering significant value, the Company becoming a low-cost, mid-tier North American gold producer, the Company achieving its full year 2023 production and cost guidance, the Magino mill achieving crushing and grinding circuit throughput targets, completion of mining the current reserve base at San Agustin, optimizing the value of the Mexican assets, Magino production increasing, Magino costs including consolidated cost of sales per ounce, cash cost per ounce, and all-in sustaining cost per ounce decreasing, and the exploration cost being greater than original guidance.

Forward-looking statements are based on a number of assumptions, opinions and estimates, including estimates and assumptions in regards to the factors listed below that, while considered reasonable by the Company as at the date of this press release based on management's experience and assessment of current conditions and anticipated developments, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Many of these assumptions are based on factors and events that are not within the control of Argonaut and there is no assurance they will prove to be correct. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: risks associated with construction and start up of new mines, various operational risks associated mines at difference stages of their lifecycles; the impact of inflation on costs of exploration, development and production; the impact of COVID-19 and other human health concerns and the effectiveness of government responses to COVID-19 and other human health concerns; risks and uncertainties associated with operations in an emerging market; risk associated with safety and security of people and assets in emerging markets; commodity price volatility; foreign exchange rate fluctuations; the ability of the Company to achieve the conditions precedent for draws on the loan facilities; the availability of undrawn debt under the loan facilities; risks associated with independent engineer technical review and impacts on availability and/or timing of access to loan facilities; the availability of and changes in terms of financing; the ability of the Magino project to become one of the largest and lowest cost gold mines in Canada; the ability of the Company to complete the drill programs in line with public guidance (if at all); the realization of mineral reserve estimates; risks associated with the winding down of Mexican mines; risks associated with achieving estimated production and mine life of the various mineral projects of the Company; risks of employee and/or contractor strike actions; risks associated with the Company's ability to recruit, retain and maintain workforce necessary to achieve its objectives; timing of approval for remaining permits or modifications to existing permits; risks associated with achieving the benefits of the development potential of the properties of the Company; risks associated with the future price of gold; risks associated with the estimation of mineral reserves and resources and the possibility that future exploration results may not be consistent with Company's expectations and that resources may not be converted into reserves. 

These factors are discussed in greater detail in the Argonaut's most recent Annual Information Form dated March 31, 2023, and in the most recent Management's Discussion and Analysis for the three and six months ended June 30, 2023, both filed under the Company's issuer profile on SEDAR+. Argonaut cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. 

Forward-looking statements included in this press release speak only as of the date of this press release. Although Argonaut has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Argonaut undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws.

Qualified Persons, Technical Information and Mineral Properties Reports

The technical information contained in this press release has been prepared under the supervision of, and has been reviewed and approved by Mr. Brian Arkell, Argonaut's Vice President of Exploration and Mine Technical Services and Marc Leduc, Chief Operating Officer; both are Qualified Persons as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). For further information on the Company's material properties, please see the reports as listed below on the Company's website www.argonautgold.com or on www.sedarplus.ca.

Magino Gold Project	Magino Gold Project, Ontario, Canada, NI 43-101 Technical Report, Mineral Resource and Mineral Reserve Update dated March 3, 2022 (effective date of February 14, 2022)
Florida Canyon Gold Mine	NI 43-101 Technical Report on Mineral Resource and Mineral Reserve Florida Canyon Gold Mine, Pershing County, Nevada, USA dated July 8, 2020 and with an effective date of June 1, 2020
La Colorada Gold/Silver Mine	La Colorada Gold/Silver Mine, Sonora, Mexico, NI 43-101 Technical Report dated February 14, 2022 (effective date of October 1, 2021)
San Agustin Gold/Silver Mine	San Agustin Gold/Silver Mine, Durango, Mexico, NI 43-101 Technical Report dated February 14, 2022 (effective date of August 1, 2021)

About Argonaut Gold

Argonaut Gold is a Canadian gold company with a portfolio of operations and multi-stage assets in North America. Focused on becoming a low-cost mid-tier gold producer, the Company is in the final stages of construction at its Magino Project, located in Ontario, Canada. Magino is expected to achieve commercial production in the third quarter of 2023 and become Argonaut's largest and lowest cost mine. The commissioning of Magino will be the first step in transforming the Company as it enters a pivotal growth stage. The Company also has three operating mines including the Florida Canyon mine in Nevada, USA, where it is pursuing additional growth, La Colorada mine in Sonora, Mexico and San Agustin mine in Durango, Mexico. Argonaut Gold trades on the Toronto Stock Exchange (TSX) under the ticker symbol "AR".

SOURCE Argonaut Gold Inc.

Copyright 2023 Canada NewsWire