Archipelago Resources Share Discussion Threads

[stu31] 16/5/2024 00:15

Argonaut Gold Announces First Quarter Financial and Operating Results
15/05/2024 11:45pm

TORONTO, May 15, 2024 /CNW/ - Argonaut Gold Inc. (TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") today reported financial and operating results for the first quarter ended March 31, 2024. All dollar amounts are expressed in United States dollars, unless otherwise specified (CA$ refers to Canadian dollars). During the quarter, Argonaut entered into a definitive agreement (the "Agreement") whereby Alamos Gold Inc. ("Alamos") will acquire all of the issued and outstanding shares of Argonaut pursuant to a court approved plan of arrangement (the "Transaction"). As part of the Transaction, Alamos will acquire Argonaut's Magino mine and in which Argonaut's assets in the United States and Mexico will be spun out to its existing shareholders within a newly created junior gold producer ("SpinCo").

"At our flagship Magino Mine, ramp up of mining and milling activities during the first quarter of the year proceeded at a slower rate than planned. Mining rates were lower than planned due to low loader availability. However, mining rates are improving, as expected with a second PC3000 shovel commissioned in late April, which has resulted in mining rates of 65,000 tonnes per day during the first part of May. Mill throughput rates on a tonne per operating hour basis were largely in line with nameplate rates, however plant availability was low due to a number of significant unplanned downtime events. A specialist team was brought in to assist the mill maintenance team to make the necessary repairs and optimizations to the plant. That work is expected to be completed by the end of the second quarter, which should put the mill on track to achieve nameplate capacity in the second half of the year.

During the quarter, Florida Canyon delivered strong production while securing the required permits to construct Phase III of the South Heap Leach Pad which is expected to be completed in the third quarter 2024. The Company expects to publish a NI 43-101 Technical Report in the second quarter 2024 which incorporates the 2023 exploration results and updates to the operating plan.

The agreement with Alamos provides a unique opportunity to place Magino in the hands of a company with stronger financial capacity to complete the ramp up and optimization of Magino. Ultimately, this decision provides long-term upside potential for all stakeholders," stated Richard Young, President and CEO of Argonaut Gold.

The definitive agreement Argonaut entered into with Alamos resulted in a number of significant changes to the presentation of the financial statements and expenses. The statements reflect three major changes related to the Transaction.

The Company's Florida Canyon mine in the United States and the Company's assets in Mexico have been consolidated into one line item in the financial statements as assets/liabilities held for sale and discontinued operations;
The Company's debt facilities have been classified as current liabilities as under the loan agreements the full amount is due on a change of control; and
The Company recorded write downs on the carrying value of its property, plant, and equipment for the Magino mine and the Mexican operations to the expected proceeds under the Transaction or disposal;
In addition, the Company recognized Transaction expenses related to the refinancing and Transaction during the quarter.
Financial & Operating Highlights1


Three months ended

March 31,

Financial Data


2024

2023

% Change

Revenues

$000s

34,742

–

NM3

Cost of sales

$000s

44,003

–

NM

Gross loss

$000s

(9,261)

–

NM

Net loss

$000s

(390,661)

(10,376)

NM

• Continuing operations

$000s

(333,759)

(5,018)

NM

• Discontinued operations

$000s

(56,902)

(5,358)

NM

Loss per basic and diluted share

$000s

(0.36)

(0.01)

NM

• Continuing operations

$/share

(0.31)

0.00

NM

• Discontinued operations

$/share

(0.05)

(0.01)

NM

Adjusted net loss2

$000s

(30,131)

(5,055)

NM

Per basic share2

$/share

(0.03)

(0.01)

NM

Operating cash flow

$000s

(8,680)

(11,852)

(27) %

Operating cash flow before changes in working capital and other items2

$000s

(5,405)

(4,814)

12 %

Total sustaining capital expenditures

$000s

28,156

–

NM








March 31,

2024

December 31,

2023

% Change

Cash and cash equivalents

$000s

2,331

83,785

(97) %

Cash and cash equivalents in assets held for sale

$000s

26,495

–

NM

Net debt2

$000s

(186,545)

(128,736)

NM

_________________________

1 Income statement and cash flow items for the three months ended March 31, 2023 have been restated to reflect the effect of discontinued operations.

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

3 References to "NM" are certain change percentages are not meaningful.





Three months ended

March 31,

Operating Data


2024

2023

% Change

Gold produced

oz

48,564

37,498

30 %

Continuing operations

oz

16,870

–

NM

Discontinued operations

oz

31,694

37,498

(15) %

Gold equivalent ounces ("GEOs") produced

oz

49,444

38,585

28 %

Continuing operations

oz

16,935

–

NM

Discontinued operations

oz

32,509

38,585

(16) %

Gold sold

oz

46,168

36,168

28 %

Continuing operations

oz

17,182

–

NM

Discontinued operations

oz

28,986

36,168

(20) %

Average realized price

$/oz sold

1,943

1,858

5 %

Cost of sales

$/oz sold

2,082

1,977

5 %

Cash cost2

$/oz sold

1,698

1,660

2 %

All-in sustaining costs2 ("AISC")

$/oz sold

2,799

1,920

46 %

FIRST QUARTER COMPANY HIGHLIGHTS
Financial Overview

The financial highlights, including revenue, cost of sales, and gross loss, relate to the Magino mine only, as the results for Florida Canyon and the Mexican mines have been reclassified as discontinued operations.
The Magino mine's revenue and costs of sales were below plan due to lower than expected production due to lower mill throughput and grades processed.
Net loss from continuing operations of $333.8 million was larger than the previous year period due to an impairment recorded for the Magino mine, higher income tax expense and higher net finance expense that was previously capitalized in the prior period and the recognition of a gross loss for Magino in the first quarter of 2024.
Other expense was also higher than the prior comparative period due to a higher loss on derivative instruments as well as transaction costs for re-financing arrangements and the Transaction.
Cash outflows from continuing operations was larger than the prior year period mainly due to changes in working capital. Operating activities before working capital and other items totalling $5.4 million was comparable to the prior year period amount.
Cash and cash equivalents including cash held in assets held for sale was $28.8 million and net debt was $186.5 million as at March 31, 2024.
Consolidated GEO production of 49,444 was 28% higher than the prior year three-month period due to the contribution of production at the Magino mine.
On March 27, 2024, the Company entered into a definitive agreement to sell all of the issued and outstanding shares of Argonaut to Alamos. Concurrently, Argonaut's assets in the United States and Mexico will be spun out to its existing shareholders as a newly created junior gold producer. As a result of the Transaction, the Florida Canyon mine in the United States and La Colorada mine, San Agustin mine, El Castillo mine, and Cerro del Gallo project in Mexico are accounted for as assets held for sale and discontinued operations.
On March 28, 2024, the Company obtained a waiver on certain financial covenants on its $250 million financing package (collectively referred to as the "Loan Facilities"). It was anticipated the Company would not be in compliance with certain financial covenants as at March 31, 2024 and accordingly the Company obtained the waiver to prevent a default event which could trigger the Loan Facilities becoming immediately due and payable. This waiver includes requirements for the Company to maintain a minimum cash balance of $20 million at all times until June 28, 2024 and for the Transaction to be completed by the same date. An unremediated breach of covenants can have an adverse impact on the Company's liquidity and solvency.
On April 4th, 2024, the Company closed a non-brokered private placement, pursuant to which Alamos subscribed (the "Private Placement") for 174,825,175 common shares of Argonaut (the "Acquired Shares"), representing approximately 13.8% of Argonaut's total outstanding common shares after giving effect to the Private Placement. The Acquired Shares were acquired at a price of CA$0.286 per share, for total gross proceeds to Argonaut of $37.0 million (CA$50 million).
Growth Highlights
Magino Mine

During the first quarter, the daily mining rates increased month over month from an average of 45,600 tonnes per day ("tpd") in the fourth quarter to 47,400 tpd in January, to 53,200 tpd in February and 54,600 tpd in March. Overall, material movement in the first quarter was 13% higher than the fourth quarter of 2023.
As expected, the increased mining and haulage rates can be attributed to further utilization of the fleet management system and the commissioning of four additional haul trucks.
With the second PC3000 shovel commissioned in the second quarter of 2024, daily mining rates are expected to increase to approximately 65,000 tpd by the second half of 2024.
Milled gold grade continues to improve, with the first quarter grade milled averaging 0.98 grams per tonne ("gpt"), 6% higher than the fourth quarter gold grade of 0.92 gpt. Monthly average gold grades were 0.99 gpt in January, 1.02 gpt in February, and 0.93 gpt in March.
Plant throughput averaged 5,132 tpd in January, 6,855 tpd in February, and 6,973 tpd in March for a first quarter average of 6,308 tpd. Note that tonnes milled per operating hour were largely in line with design rates in the quarter, the shortfall in mill throughput was attributed to lower-than-expected mill operating time.
Mill availability was impacted by unplanned downtime related to ball mill coupling failures, the premature wear and replacement of conveyor belts, and ball mill liner failures, as well as a fire within the rubber-lined chute.
Plant availability is expected to improve through the second quarter reflecting ongoing work to optimize the milling and crushing circuits, including replacement of the conveyor belts and mill liners with high quality components which was going through the first quarter, and into the second quarter.
This drove a significant increase in throughput rates in April to average 9,252 tonnes per day, the highest monthly average since commissioning in the second quarter of 2023.
During the three months ended March 31, 2024, the Magino mine produced 16,870 gold ounces and sold 17,182 gold ounces. Production was lower than expected in part due to lower-than-expected mill operating time and gold grade processed. April 2024 production improved to 8,370 GEOs, well above the monthly average of 5,600 GEOs in the first quarter.
The infill drill program to convert mineral resources to reserves and the mill expansion studies were paused as of the date of the Transaction. These activities are anticipated to resume in the third quarter.
Florida Canyon Mine

First quarter 2024 ounce production was marginally better than planned at 18,516 GEOs, continuing to build on 2023's strong performance.
All permits to construct Phase III of the South Heap Leach Pad have been received and construction has been ongoing since December 2023. The project is proceeding on time and budget and is expected to be completed in the third quarter of 2024.
Analysis and modelling work incorporating the 2023 exploration drilling is ongoing.
The Company expects to publish a NI 43-101 Technical Report in the second quarter 2024 which incorporates the 2023 exploration results and updates to the operating plan.
The NI 43-101 Technical Report is expected to include the results of the sulphide proof of concept drill program in 2023.
Full details of the Transaction will be included in a management information circular of Argonaut Gold that is expected to be mailed to Argonaut Gold shareholders on or about May 30, 2024 (the "Circular"). The proposed Transaction will be completed pursuant to a plan of arrangement completed under the Business Corporations Act (Ontario). The Transaction will require approval by 66 2/3% of the votes cast by the shareholders of Argonaut at a special meeting of Argonaut shareholders expected to be held in June 2024.

This press release should be read in conjunction with the Company's consolidated financial statements for the quarter ended March 31, 2024 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.

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.

"Cash cost per gold ounce sold" is a common financial performance measure in the gold mining industry but has no standard meaning under IFRS. The Company reports 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. This measure, 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. For the three months ended March 31, 2024 the Company reclassified regional general and administrative expenses in Mexico, and accretion expenses previously classified under the corporate group, to each individual mine group. Management believes this better attributes regional general and administrative expenses and accretion expenses and also improves comparability amongst our peer companies.

"Adjusted net loss" and "adjusted net loss 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), impairments (reversals) of mineral properties, plant and equipment, and other unusual or non-recurring items. Adjusted net loss 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 netted against the drawn debt, 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.

"Operating cash flow before working capital and other items" is a non-IFRS measure as it involves adjustments to the operating cash flow metric defined by IFRS. The company presents operating cash flow that excludes certain working capital changes and other items such as income taxes and interest received, this helps investors to assess the performance of the Company's operations.

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

Magino Mine


Three months ended1

March 31,



2024

Gold sold

oz

17,182

Cost of sales

$000s

44,003

Cost of sales per gold ounce sold

$/oz

2,561

Production costs

$000s

32,725

Less silver sales

$000s

(91)

Cash Cost

$000s

32,634

Cash cost per gold ounce sold

$/oz

1,899




Cash Cost

$000s

32,634

Exploration

$000s

870

Accretion and other expenses

$000s

347

Sustaining capital expenditures

$000s

28,156

AISC

$000s

62,007

AISC per gold ounce sold

$/oz

3,609

1. Plant commissioning began in the second quarter of 2023

Florida Canyon Mine


Three months ended
March 31,



2024

2023

% Change

Gold sold

oz

16,864

12,233

38 %

Cost of sales

$000s

29,721

21,483

38 %

Cost of sales per gold ounce sold

$/oz

1,762

1,756

0 %

Production costs

$000s

25,612

18,655

37 %

Less silver sales

$000s

(443)

(197)

NM

Cash Cost

$000s

25,169

18,458

36 %

Cash cost per gold ounce sold

$/oz

1,492

1,509

(1) %






Cash Cost

$000s

25,169

18,458

36 %

Exploration expenses

$000s

390

–

NM

Accretion and other expenses

$000s

264

294

(10) %

Sustaining capital expenditures

$000s

15,403

3,491

NM

AISC

$000s

41,226

22,243

85 %

AISC per gold ounce sold

$/oz

2,445

1,818

34 %



La Colorada Mine


Three months ended
March 31,



2024

2023

% Change

Gold sold

oz

3,985

5,086

(22) %

Cost of sales

$000s

7,522

12,741

(41) %

Cost of sales per gold ounce sold

$/oz

1,888

2,505

(25) %

Production costs

$000s

7,522

11,539

(35) %

Less silver sales

$000s

(144)

(203)

(29) %

Cash Cost

$000s

7,378

11,336

(35) %

Cash cost per gold ounce sold

$/oz

1,851

2,229

(17) %






Cash Cost

$000s

7,378

11,336

(35) %

Exploration expenses

$000s

210

–

NM

Accretion and other expenses

$000s

66

65

NM

Sustaining capital expenditures

$000s

35

220

(84) %

AISC

$000s

7,689

11,621

(34) %

AISC per gold ounce sold

$/oz

1,929

2,285

(16) %



San Agustin Mine


Three months ended
March 31,



2024

2023

% Change

Gold sold

oz

6,007

11,491

(48) %

Cost of sales

$000s

11,962

22,748

(47) %

Cost of sales per gold ounce sold

$/oz

1,991

1,980

1 %

Production costs

$000s

10,979

19,126

(43) %

Less silver sales

$000s

(897)

(1,224)

(27) %

Cash Cost

$000s

10,082

17,902

(44) %

Cash cost per gold ounce sold

$/oz

1,678

1,558

8 %






Cash Cost

$000s

10,082

17,902

(44) %

Accretion and other expenses

$000s

236

59

NM

Sustaining capital expenditures

$000s

78

105

(26) %

AISC

$000s

10,396

18,066

(42) %

AISC per gold ounce sold

$/oz

1,731

1,572

10 %



El Castillo Mine


Three months ended
March 31,



2024

2023

% Change

Gold sold

oz

2,130

7,358

(71) %

Cost of sales

$000s

2,911

14,538

(80) %

Cost of sales per gold ounce sold

$/oz

1,367

1,976

(31) %

Production costs

$000s

3,135

12,455

(75) %

Less silver sales

$000s

(16)

(127)

(87) %

Cash Cost

$000s

3,119

12,328

(75) %

Cash cost per gold ounce sold

$/oz

1,464

1,675

(13) %






Cash Cost

$000s

3,119

12,328

(75) %

Accretion and other expenses

$000s

326

133

NM

AISC

$000s

3,445

12,461

(72) %

AISC per gold ounce sold

$/oz

1,617

1,694

(5) %



All Mines


Three months ended
March 31,



2024

2023

% Change

Gold sold

oz

46,168

36,168

28 %

Cost of sales1

$000s

96,119

71,510

34 %

Cost of sales per gold ounce sold

$/oz

2,082

1,977

5 %

Production costs1

$000s

79,972

61,775

29 %

Less silver sales1

$000s

(1,591)

(1,751)

(9) %

Cash Cost

$000s

78,381

60,024

31 %

Cash cost per gold ounce sold

$/oz

1,698

1,660

2 %






Cash Cost

$000s

78,381

60,024

31 %

Corporate general and administrative expenses

$000s

2,422

3,269

(26) %

Regional general and administrative expenses

$000s

784

309

NM

Share-based compensation expense

$000s

1,146

421

NM

Exploration expenses

$000s

1,471

1,020

44 %

Accretion and other expenses

$000s

1,239

551

NM

Sustaining capital expenditures

$000s

43,765

3,861

NM

AISC

$000s

129,208

69,455

86 %

AISC per gold ounce sold

$/oz

2,799

1,920

46 %

1. For the three months ended March 31, 2024, results of discontinued operations included in cost of sales were $53.7 million and production cost is $47.2 million (three months ended March 31, 2023 cost of sales were $71.5 million, production cost were $61.8 million)

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



Three months ended
March 31,



2024

2023

% Change

Net loss

$000s

(390,661)

(10,376)

NM

Loss from discontinued operations

$000s

56,902

5,358

NM

Unrealized gains on derivatives

$000s

—

(229)

(100) %

Net foreign exchange (gains) losses

$000s

(1,863)

662

NM

Impact of foreign exchange on deferred income taxes

$000s

—

(295)

(100) %

Tax recovery on recognition of deferred tax assets

$000s

11,601

—

NM

Inventory impairment

$000s

5,099


NM

Impairment of mineral properties, plant and equipment

$000s

287,818

—

NM

Transaction costs

$000s

3,858

—

NM

Tax effect

$000s

(2,885)

(175)

NM

Adjusted net loss

$000s

(30,131)

(5,055)

NM

Weighted average number of common shares outstanding

000s shares

1,091,525

838,396

30 %

Adjusted net loss per basic share

$/share

(0.03)

(0.01)

200 %

Adjusted net loss for the three months ended March 31, 2024 and 2023 has been restated to reflect the reclassification of discontinued operation.

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



March 31,
2024

December 31,
2023

Cash and cash equivalents

$000s

2,331

83,785

Cash and cash equivalents - assets held for sale

$000s

26,496

—

Total cash and cash equivalents

$000s

28,827

83,785

Loan Facilities - Term Loan

$000s

(185,329)

(183,275)

Loan Facilities - Revolving Credit Facility

$000s

(30,042)

(29,245)

Net debt

$000s

(186,544)

(128,735)

4. A reconciliation of operating cash flow before working capital and other items:



Three months ended

March 31,



2024

2023

Net cash provided by operating activities

$000s

(8,680)

(11,852)

Less:




Net cash provided by (used in) in operating activities of discontinued operations

$000s

8,011

(3,704)

Changes in working capital

$000s

(11,674)

(3,799)

Income taxes paid

$000s

—

(39)

Interest received

$000s

388

504

Operating cash flow before changes in working capital and other items

$000s

(5,405)

(4,814)

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release includes certain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of the Company's business, operations, plans and other such matters are considered forward-looking information.

When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe(s)", "potential", or statements that certain events or conditions "may", "should" or "will" occur, and similar expressions are intended to identify forward-looking information. This information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Examples of such forward-looking information include statements pertaining to, without limitation, information or statements with respect to the Company's ability to continue as a going concern, satisfying ongoing covenants under the Loan Facilities, the anticipated receipt of applicable court and regulatory approvals for, and completion of, the transaction pursuant to which Alamos Gold Inc. will acquire all of the issued and outstanding shares of Argonaut pursuant to a court-approved plan of arrangement, results of independent engineer technical reviews, the availability and change in terms of financing, the possibility of cost overruns and unanticipated costs and expenses, the ability of the Magino mine to be one of the largest and lowest cost gold mines, the winding down of the Mexican mines, the impact of inflation on costs of exploration, development and production, risk of employee and/or contractor strike actions, the future price of gold and silver, the estimation of the Mineral Reserves and Resources, the realization of Mineral Reserve and Resource estimates, the timing and amount of estimated future production at the Magino mine, Florida Canyon mine, La Colorada mine, San Agustin mine and El Castillo mine, mine closure plans for the La Colorada mine and El Castillo mine, costs of production (including cash cost per gold ounce sold), expected capital expenditures, costs and timing of development of new deposits, success of exploration activities, permitting requirements, currency fluctuations, the ability to take advantage of forward sales agreements profitably, the ability to recover property potentially impaired by third party insolvency proceedings, requirements for additional capital, government regulation of mining operations, environmental risks and hazards, title disputes or claims, limitations on insurance coverage, the use of proceeds from financings, the potential sale of the Company's non-core Mexican assets, and the timing and ability to refinance the existing Term Loan.

Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, or intended. There can be no assurance that such information will prove to be accurate as actual results may differ materially from those anticipated. Many factors are beyond the Company's ability to predict or control.

Readers of this press release are cautioned not to put undue reliance on forward-looking information due to its inherent uncertainty. Argonaut disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as and when required by applicable securities laws. This forward-looking information should not be relied upon as representing management's views as of any date subsequent to the date of this press release.

TECHNICAL INFORMATION AND QUALIFIED PERSONS
The technical information contained in this document has been prepared under the supervision of, and has been reviewed and approved by Mr. Owen Nicholls, CPG, Argonaut's Vice President of Exploration and Mr. Marc Leduc, P.Eng., Chief Operating Officer; both are qualified persons as defined by 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 Mine

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

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)

Mineral Resources referenced herein are not Mineral Reserves and do not have demonstrated economic viability. Mineral Resource estimates do not account for mineability, selectivity, mining loss, and dilution. The Mineral Resource estimates include Inferred Mineral Resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is also no certainty that these Inferred Mineral Resources will be converted to Measured and Indicated categories through further drilling, or into Mineral Reserves, once economic considerations are applied.

ABOUT ARGONAUT GOLD
Argonaut Gold is a Canadian-based gold producer with a portfolio of operations in North America. Focused on becoming a low-cost, mid-tier gold producer, Argonaut's flagship asset, the Magino Mine, located in Ontario Canada, is expected to become Argonaut's largest and lowest cost mine.

On March 27, 2024, the Company announced the sale of the Company to Alamos Gold Inc. Concurrent with this transaction, Argonaut's assets in the United States and Mexico will be spun out to its existing shareholders as a newly created junior gold producer ("SpinCo"). SpinCo will own the Florida Canyon mine in the United States, as well as the El Castillo Complex, the La Colorada operation, and the Cerro del Gallo project, located in Mexico. The shareholder vote is expected to take place in June 2024.

Argonaut trades on the TSX under the ticker symbol "AR".

[stu31] 28/12/2023 00:33

Operational Update at Argonaut’s Magino Mine

TORONTO, Ontario - (December 18, 2023) Argonaut Gold Inc. (TSX: AR) (the “Company”;,
“Argonaut Gold” or “Argonaut̶1;) is pleased to announce the Company’s flagship mine, the Magino Mine, located in Ontario Canada, is nearing gold production rates shown in its current National Instrument 43-101 Technical Report following implementation of several key technical and operational improvements.
Increased Mill Head Grade
As previously announced by Argonaut, the Magino Mine began producing gold in June of this yearand achieved commercial production effective November 1, 2023. During the early commissioning period, the Magino Mine faced challenges as it transitioned into a steady feed of higher grade ore, in-line with the Magino Technical Report. Following the implementation of improved mining practices in late October, the operations have delivered a consistent increase in feed grade to the mill, which have averaged at or above the life of mine reserve grade. The improvements at the Magino Mine include greater ore selectivity and more effective dilution control and are intended to align the operational results with the Magino Technical Report.
Technical and Operational Improvements
During November, the Company planned and executed a test campaign at the mine site using OREPro3D on a test block of high-grade ore. The software program created a test block including ore tonnes and grade, before and after blasting, that was then flitch mined and batch tested through the mill. The average estimated grade of the test block was 1.53 grams per tonne, including external dilution, while 1.50 grams per tonne was received at the mill, demonstrating that strong grade control practices are working well.
"Implementing the right technology is expected to be instrumental to our success. We believe that OREPro3D will play a pivotal role in providing precise data for blast movement," said Marc Leduc, Chief Operating Officer of Argonaut Gold. “Based on the excellent results of this test campaign, the Mine is currently installing the software and carrying out training, which should be completed by the end of the year. We are also in the process of implementing a high precision GPS fleet
management system in our 4 principle loading tools, anticipated to be completed by year end, which is also expected to further enhance grade control, mining efficiency and minimize dilution of ore delivered to the mill.”
In addition to investments in the GPS fleet management system to improve mining selectivity by enabling more precise identification of ore and waste blocks to operators, given the Magino ore body is not visually controlled, the Company is also working to improve mining productivity by optimizing the payload capacity of the current truck fleet. The Company expects these changes will result in increased haulage capacity.
While these improved mining and reconciliation results from this recent test block are based on a limited operational phase and scope, the Company expects implementation of these technical and operational enhancements will afford the Company a significantly greater ability to mine more accurately and selectively, thereby increasing the predictability of grades from the mine to the mill
on a go forward basis.
Investment in Exploration and Expansion
A portion of the Company’s recent equity offering is dedicated to sustaining an ongoing infill drill program which the Company intends to use to support resource and reserve updates, as appropriate. The results from phase one of this program are expected to be released in March of 2024, with a further report anticipated in the third quarter of 2024.
The Company has engaged Lycopodium Limited, an international engineering firm, to complete a plant optimization and expansion study towards the goal of increasing throughput. The capital cost to complete the optimization work is not expected to be material and should, if supported by the study, largely be completed by the end of 2024. The overall objective of the optimization and expansion study is to increase plant throughput to between 17,500 to 20,000 tonnes per day. The Company hopes this work will support an expansion study forming part of an updated technical
report for the Magino Mine by the end of third quarter of 2024.
“The goal is to build Magino into a 200,000 to 250,000 ounce per year gold mine. Through the year, we have strengthened our team, processes, and technology, all of which are critical tobuilding Magino into a large, low-cost, long-life gold mine,” stated Richard Young, President and Chief Executive Officer of Argonaut Gold.

About Argonaut Gold
Argonaut Gold is a Canadian-based gold producer with a portfolio of operations in North America. Focused on becoming a low-cost, mid-tier gold producer, the Company's flagship asset, Magino Mine, is expected to become Argonaut's largest and lowest cost mine. The Company is pursuing potential for re-development and additional growth at the Florida Canyon Mine in Nevada, USA.
Together, the Magino and Florida Canyon mines are the Company's cornerstone assets that will drive Argonaut through this pivotal growth stage. The Company also has two additional operating mines in Mexico, the La Colorada Mine in Sonora and the San Agustin Mine in Durango. Argonaut Gold trades on the Toronto Stock Exchange (TSX) under the ticker symbol "AR"

[stu31] 28/12/2023 00:25

Argonaut Gold Closes Previously Announced C$85 Million Bought Deal Public Offering

Toronto, Ontario – (December 12, 2023) Argonaut Gold Inc. (TSX: AR) (the "Company", "Argonaut Gold"or "Argonaut") is pleased to announce it has closed its previously announced public offering (the "Offering") of 223,685,000 common shares of the Company (the "Offered Shares") at a price of C$0.38per Offered Share for gross proceeds to the Company of C$85,000,300, including the exercise in full of the
underwriters' over-allotment option. The Offering was completed on a "bought deal" basis by a syndicate of underwriters co-led by Cormark Securities Inc., BMO Capital Markets and Scotia Capital Inc., and including RBC Dominion Securities Inc., Canaccord Genuity Corp., Desjardins Securities Inc., Paradigm Capital Inc. and Laurentian Bank Securities Inc.
The net proceeds of the Offering will be used to fund developmet and optimization of the Company's Magino and Florida Canyon mines and for general working capital purposes.

[stu31] 28/12/2023 00:23

864.5m+224m shares in issue. (10/23) m FD. Market Cap C$389m (£229m) at 45c
Cash C$45m+85m Debt C$230m+C$58m debenture (9/23) 43% GMT + Libra + Franco Nevada
Hedge 2023-7 375k@$1834 Placing 38c

website:

Argonaut Gold is a Canadian-based gold producer with a portfolio of operations in North America. Focused on becoming a low-cost, mid-tier gold producer, the Company's newest gold mine, Magino is expected to become Argonaut's largest and lowest cost mine. Commercial production at Magino is the first step in transforming the Company as it enters a pivotal growth stage. The Company also has three additional operating mines including the Florida Canyon mine in Nevada, USA, where it is pursuing potential for redevelopment and additional growth, La Colorada mine in Sonora, Mexico and San Agustin mine in Durango, Mexico.

Since its 2009 inception, Argonaut’s Mexico operations have been the cornerstone of production. Going forward, majority of gold production will come from the Company’s operations in Canada and the U.S. as it enters a new stage of growth centered on free cash flow.

In addition, the Company has several exploration projects in North America, including the advanced-stage Cerro del Gallo project.

Magino & Florida Canyon have 5.7 Moz of Measured & Indicated Resources and 3.0 Moz of Inferred Resources* and growing
Majority of production to come from these two operations going forward
MAGINO MINE 2024E First Full Year Production: 148,000GEOs Cash Cost/oz:$868

[cpap man] 19/8/2020 08:00

From the main EML thread ref: IG Index / share dealing



sportbilly197619 Aug '20 - 08:48 - 3045 of 3048

1airbag,

have a look at IG - £3 comm per trade and never had an issue in executing one

edit - so long as youre not using a Mac, they have a Level 2 download too for iirc around £7 a month

cpap man19 Aug '20 - 08:51 - 3046 of 3048

And if you have a Mac?

sportbilly197619 Aug '20 - 08:57 - 3048 of 3048

cpap,

hxxps://www.ig.com/uk/help-and-support/platforms/l2-dealer/can-i-use-l2-dealer-on-mac


'fraid not

[cpap man] 30/4/2020 14:06

Star fund manager Terry Smith has warned income investors reeling from huge dividend cuts amid the coronavirus crisis that worst is to come.

Shell (RDSB) has delivered the latest and most significant blow to UK income investors in cutting its dividend for the first time since World War Two.

Financial administration company Link has forecast that dividends from the UK stock market could halve this year as company revenues have plunged, with large portions of the global economy grinding to a halt under lockdowns imposed to contain the spread of the coronavirus pandemic. Banks have cancelled payouts under pressure from the Bank of England, which has praised the ‘prudent decision’ by a number of insurers to shelve payouts.

Writing in the Financial Times, Citywire AAA-rated fund manager Smith said the dividend cover among the FTSE 100’s biggest dividend payers suggested income investors were set for more pain.

‘I suspect that the really bad news for equity income investors is yet to surface,’ he said, pointing to dividend cover of an average of 1.3 times for the 20 highest yielding UK blue-chip stocks in mid-April, and 1.1 times for the 20 biggest dividend payers in absolute terms.

‘Over time, dividend cover for most businesses cannot be sustained at 1.1-1.3 times, as most of them need retained earnings in order to grow,’ he said.

‘I would suspect that the boards of companies which have passed the dividend will indeed not be allowing a good crisis to go to waste and will return with a much smaller and more sustainable dividend which will mean lower yields for equity income investing.’

Smith, manager of the £16.7bn Fundsmith Equity fund, is a longstanding critic of income investing, and renewed his attack on UK equity income funds.

He said fund manager trade body the Investment Association’s decision to suspend the yield requirements on funds in its UK Equity Income sector was ‘bad news for equity income investors’.

‘It’s not as if these requirements were exactly stringent to begin with,’ he added. Funds in the sector are normally required to provide 90% of the income of the FTSE All-Share over 12 months and yield more than the index over rolling three-year periods.

‘I have long said that no-one should invest in equities for income,’ he said. ‘If you had invested in the UK Equity Income sector over the past five years, you would on average have lost nearly 1.3% a year.’

Smith is an advocate of total return investing, arguing those who require income should sell some of their holdings, rather than rely on dividend payments, to provide it.

‘However, I realise that for many investors, the idea of realising part of their capital to provide income is anathema,’ he said.

‘If you insist on investing in for dividend income, consider investing alongside a family which founded and has control of a public company. Out of the 47 stocks in the Stoxx Europe 600 that are ‘‘family influenced’217;, only three have cancelled or postponed dividends.

‘Investing alongside them can help to preserve your income too, and in this market environment you may get some attractive opportunities to do so.’

[cpap man] 30/4/2020 14:04

De-listing risk

In the small caps world, we always have to be wary of the smallest companies, as they sometimes (often without warning) announce their intention to leave the stock market and become private companies (known as de-listing).

This usually does instant, and major (typically about -50%) damage to the share price. For this reason, it's vital to avoid buying micro/small cap shares where there's a risk of de-listing.

Off the top of my head, these are the main reasons (hence risk) of a micro cap de-listing;

Running out of cash, and no appetite from the market to provide fresh equity funding

Story stock that has gone stale - i.e. everyone's heard the story, and it's never worked, so impossible to get even gullible investors to back it again

Little to no liquidity in the shares - hence there's no point in being listed

Costs - often linked with the other points above - all the various costs of a listing can mount up to £100-200k, even for the smallest companies - e.g. broker/NOMAD, listing fees, PR, NEDs that probably wouldn't be employed at a private company, regulatory burden, wasted mgt time, etc. If there is no discernible benefit from being listed, then why continue with it?

It's worth checking our existing holdings, to see if any micro cap holdings display those traits. Covid-19 & the recession it's triggering, could well accelerate the de-listings of some micro caps. Hence why I mention it - this is an increased risk that could us money.

[cpap man] 19/10/2017 06:00

10 top income stocks for risk averse dividend investors - Stockopedia and Ben Hobson | 18th October 2017



Big companies with high dividend yields are naturally popular with income-focused investors. But they don't always turn out to be the safe, reliable investments that their owners had hoped for.

This year we've seen dividend cuts at some of the market's highest yielding stocks, including TalkTalk (TALK), Carillion (CLLN), Admiral (ADM) and Provident Financial (PFG). These companies saw their share prices savaged after slashing their payout, landing a double hit for their weary shareholders.

On these occasions, share prices and dividend payouts recover at very different and unpredictable rates, and some don't recover at all. It shows just how important it is to try and avoid the risk of a dreaded high yield trap - but how?

One answer is to take inspiration from a successful approach used by a handful of investment firms, such as Societe Generale, Fidelity and Investec. It's called Quality Income, and as the name suggests it zeroes in on high yields in good quality stocks.

What does financial quality look like?

The simple idea behind Quality Income is that financially strong firms don't often have to slash their dividend payouts. For Investec, for example, 'economic moats' are the definition of quality. Their strategy looks for above average yields in firms that are growing their dividends and have sustainable businesses protected by competitive advantages.

By comparison, Fidelity's Quality Income approach ranks high yield firms according to a string of measures that focus on cash flow, profitability and low debt. Again, they target firms with a record of growing dividends that are well covered by earnings.

Finally, Societe Generale, which was an architect of Quality Income strategies, looks for high (but not excessive) yields in firms with strong balance sheet health and low bankruptcy risk. It's a strategy that has worked impressively well since it was launched as an index in 2012.

A focus on dividend quality

For individual investors, there is a lot that can be learned from these approaches. A strategy tracked by Stockopedia that models Quality Income rules has managed a 14% return over the past year - not including dividends, which would have pushed the performance higher.

Put simply, the strategy looks for stocks with a yield of more than 4% (but less than 15%) in companies with a minimum market cap of £800 million. Each firm should pass at least seven of the nine checks in the Piotroski F-Score (I looked closely at this checklist in a recent article for Interactive Investor).

The F-Score looks for improving trends in a company's profitability, debt, liquidity, share dilution and operating efficiency. The strategy also checks for any risk that a company might go bust by using another accounting checklist called the Altman Z-Score. Financial stocks are excluded from the results.

To get a broader view of each company's quality, I've also included Stockopedia's Quality Rank. This scores and ranks each company against a range of 'quality' measures and brings them together in a single number - the higher the better.

Name Mkt Cap £m Forecast Yield % Piotroski F-Score (financial strength from 1-9) Quality Rank Sector
Stagecoach 922.5 7.5 7 67 Industrials
Taylor Wimpey 6,622 7.3 8 97 Consumer Cyclicals
Centrica 9,765 7.1 7 59 Utilities
SSE 14,198 6.9 7 65 Utilities
Royal Mail 3,874 6.3 8 90 Industrials
Barratt Developments 6,879 6.1 7 86 Consumer Cyclicals
BP 97,213 6 7 62 Energy
Dixons Carphone 2,168 5.7 7 69 Consumer Cyclicals
Marks and Spencer 5,700 5.4 7 82 Consumer Cyclicals
Rio Tinto 65,961 4.7 7 80 Basic Materials

This strategy picks up a broad range of stocks on forecast yields for the next financial year of more than 4.7%. As demanded by the rules, these firms all have strong balance sheet health trends, as measured by the Piotroski F-Score. And for the most part they also have decent Quality Rank scores.

While the strategy pairs high yield and high quality, it still manages to pick up some of the most popular names among income investors. Topping the list with yields of more than 7% are the transport group Stagecoach (SGC), housebuilder Taylor Wimpey (TW.) and the energy giant Centrica (CNA). The rest are all big-name dividend shares ranging from SSE (SSE), BP (BP.) and Rio Tinto (RIO) to Royal Mail (RMG), Dixons Carphone (DC.) and Marks & Spencer (MKS).

Comfort for risk averse investors

There has been a string of dividend cuts among high profile, high yield stocks this year. Usually these have coincided with reports of poor financial performance. Put together, these events have left investors nursing the pain of reduced dividend payouts and tumbling share prices.

While it's impossible to fully isolate a portfolio from the misery of a dividend cut, there are strategies that can offer some protection. Quality Income brings together above-average yields with robust financial quality to shine a spotlight on companies that are less likely to hit trouble. For risk-averse dividend investors, it's a strategy that could offer some extra comfort.

[liquid millionaire] 21/1/2015 11:00

Dear IPA Friend

Welcome to today's email. We've had lots and lots of emails lately about a story from Spain suggesting the tax authorities are targeting Brits who have bought properties there. Not quite the case, as Peter Esders at the Judicare Group tells us...

There seems to be quite a lot of talk and interest in relation to extra unexpected taxes paid on the purchase of property in Spain. This appears to be coming from one couple who seem to be aggrieved at paying the extra tax demand imposed by the tax authorities in Spain. Certainly reading through the comments on various forums there are lots of people getting worked up about this and who believe that this is a case of the Spanish tax authorities targeting Brits and that this is another example of unfair practices that happen in Spain. It is very easy to sensationalise such a story so it is probably sensible to look at what the actual situation is and why it occurs.

The ‘problem’; is that when some people bought properties in Spain they have been presented by a supplemental tax assessment for the Spanish equivalent of stamp duty. The tax authorities actually have the legal right to do this in cases where they believe it is appropriate and have four years in which to make such a claim.

In order to understand why some people are receiving supplemental assessments by the tax authorities in Spain on properties that they have already bought it is important to understand four different points that come together to create this issue;

One, when you buy a property in Spain you pay a transfer tax on the purchase. This is roughly equivalent to the stamp duty in the UK. The tax is based on the value of the property as a percentage. The tax is based on the higher of one of three values;

The value that the parties declare the transaction value to be (i.e. the value declared in the title deeds).

The Valor Catastral (Rateable Value). This is reassessed every so many years just like it is in the UK.

The value that the tax authorities believe the transaction to actually be.

In fact, although this issue is being discussed in relation to a purchase of property it can also happen in other circumstances such as an inheritance.

This method of calculating the tax has been in place for many years (I have been dealing with Spanish Law for over 20 years now and it has been the case well before then).

Two, in the past there has been a history of under declarations in Spain. This is where both the buyer and seller lie to the authorities as to how much the property was sold for. The amount that they wish to state that the property is worth (and therefore pay tax on) is declared in the title deeds and then the balance between that and the actual sales price was paid in cash and not declared to anybody.

The ‘advantageR17; of this was that both the buyer and the seller paid less tax on the transaction. Of course this was always illegal (it is tax evasion) but as it is a civil offence in most cases rather than a criminal offence most people over the years took the risk. It is amazing how Brits who would never think about doing something like that in the UK quickly adopted the culture in Spain (and other countries) when it came to this practice.

When I started dealing with Spain, people wishing to declare less than half the actual transaction cost and pay the rest in cash under the table was not unheard of. Over the years the amount being declared increased and now this habit has, thankfully, pretty much disappeared. The tax authorities in Spain are not stupid and have always known that this happens – after all, they themselves buy and sell properties and have probably done the same thing themselves.

Three, property prices in Spain have come down significantly over the last few years. There are some real bargains out there. In some cases the market value is less than the rateable value of the property. In addition to this because the market is still not particularly active it is difficult to accurately assess how much a property is worth. In the past you could normally see that a similar property had sold in the area recently for €X but now that is often not possible.

Four, the tax authorities in Spain need money. In the past, the amount that you could get away with declaring was anything above the rateable value as the authorities effectively turned a blind eye (or didn’t have the resources) to investigate what the true value was. With the economy in Spain suffering and many regional tax authorities struggling for money they have started to look at the black economy and tax evasion as a way of bringing in more tax euros.

If you put all of these four points together, you can get a situation where the sceptical tax authorities looking to make money look at a transaction and don’t believe how much was being declared in the title deeds. This could be because an under-declaration was made in the title deeds. It could be because the buyers got a genuine bargain. It could be because the authorities don’t know what the property is actually worth.

Whatever the reason you must remember that the tax that needs to be paid is based on the higher of the three things outlined above. Therefore, just because you declared the full price and that amount is higher than the rateable value doesn’t mean that the authorities won’t question the value.

Bottom line? No, the tax authorities are not targeting the Brits when it comes to this, they are also targeting other nationalities and the Spanish themselves.

Having read some of the forums and posts from the public to some of the articles about this subject in the press you would be forgiven in thinking that this is a particularly Spanish situation. It isn’t. It happens in many countries. In fact I have seen similar things happen in the UK – after all the authorities here can also query the value of a transaction (how many times have you read about somebody trying to dispose of an asset to a family member or to a company at an under value in order to save tax or the authorities revaluing the value of an estate in an inheritance.)

So you can now see how and why the tax authorities in Spain can query the declared value on a transaction. So what can be done about it? Well, there are several things that you can do to avoid this situation;

One, declare the actual purchase price in the title deeds. Do not under declare. It has always been illegal. It has always been a bad idea anyway as it creates an artificial capital gains tax unless you can sell at a similar under-declaration

Keep all of the paperwork including;

The advert for the property at the estate agent

Details of other similar properties for sale at the time and their prices

Copies of correspondence where you negotiate the price (what do you mean that you did all of this verbally and have no record?)

Copy of the contract and contract negotiations

Details of arranging payment

If the price is paid by bankers draft, a copy of that

Anything else where you have details of the price and how it was paid

Using that information it is possible to appeal against the value that the tax authorities assess as the value. This is possible. It is not easy and isn’t guaranteed to work, but is possible – I know, I have done it.

Prior to signing the title deed speak to the tax authorities about the declared price. The tax authorities in Spain are surprisingly helpful when it comes to the question of declared prices. If in doubt, speak to them about what should be declared.

Thank you, Peter. Excellent information and advice, as always. All for now, see you again tomorrow.

With Best Wishes

Iain

Iain Maitland
Editor, International Property Alerts

[liquid millionaire] 29/12/2014 16:45

North Korea hacks Fifa, awards itself World Cup, brands Sepp Blatter 'scary dictator'

[liquid millionaire] 29/8/2014 20:50

FT 28/08/2014

Sanctions add fresh urgency to Petropavlovsk refinancing
By James Wilson, Mining Correspondent Author alerts

Escalating fears over the potential impact of sanctions on Russia are adding to the problems facing Petropavlovsk as the gold miner races to refinance its debt.
The UK-listed miner of Russian gold acknowledged it was in a volatile situation because of the tension between Ukraine and Russia, with sanctions imposed by the west against banks including VTB and Sberbank, two of its senior lenders, that could limit their access to capital.


Petropavlovsk needs to reach agreement with its senior lenders to avoid breaching banking covenants by the end of the year. It also needs to refinance $310m of convertible bonds due early in 2015, and its shares have dropped sharply.
Senior lenders remained “steadfast in their commitment to the group”, Petropavlovsk said. It said they were willing to relax covenants, as was Industrial and Commercial Bank of China, which benefits from a guarantee that Petropavlovsk has given over project debt at IRC, an iron ore subsidiary.
Peter Hambro, chairman, called talks with bondholders “laboriousR21; but said there had been “meaningful dialogue .R01;. . I think we are in a position where in the near future we are going to make a material move forward.”
Delays over completing a deal to cut its IRC stake are another problem facing Petropavlovsk. Two Chinese groups, General Nice and Minmetals, have yet to complete the remaining instalment of a $238m subscription for IRC shares, announced last year, that would cut Petropavlovsk’s exposure to IRC.
Mr Hambro said the Chinese groups had a “strong desire to complete” the deal, but were being hampered by credit conditions in China. “It is a contract .R01;. . I am confident it will complete,” he said.
If the deal fails to complete as planned then Petropavlovsk may have to change the way it accounts for its IRC stake, increasing its exposure to the iron ore price – which has dropped sharply this year – and raising its net debt considerably.
Reporting interim financial results, Petropavlovsk said it cut net debt to $924m at the end of June and expected to reduce it to $850m at the end of the year after cutting mining costs.
Revenues for the six months to the end of June fell 10 per cent to $453m in spite of a 4 per cent increase in gold produced. Petropavlovsk swung to a pre-tax profit of $8.3m, compared with a $615m loss last year, but impairments at IRC pushed the group loss to $95m, compared with $742m a year ago.
The miner expanded its resources and reserves and said it had enough ore for operations for the next five years at current output rates. Operating results were “decent”, analysts at Citi said.
Shares fell more than 3 per cent to 35.5p in early afternoon trading in London.

[liquid millionaire] 28/8/2014 13:50

POG



grbaker 28 Aug'14 - 11:12 - 33641 of 33662 5 0

There's going to be a recording of the Webcast which you can listen
to a later date: it's well worth a listen!

I'll post the link as soon as I can...

A few key/interesting points from the presentation:

1. They have 3 Million oz. of Non-Refractory Ore, which can be
processed by their existing plants (without the need for the POX
plant) - this represents about 5 years of production at the current
rates of 625,000 a year

2. They also have currently identified 4.9 million ounces of
Refractory Ore - this is about 7 years worth of production for the
POX plant.

3. The Pox plant will take 1 year to start up... so they can safely
put it on hold for 4 years at least.

4. They are finding new ore AT A HIGHER GRADE as fast as they are
depleting it from production

5. Total Cash Costs for H1 2014 were $853

6. Record H1 2014 production of 306,000 oz.

7. 60% of their Gold is produced in the second half of the
year.

[N.B. Seems to me they could easily beat their forecast, if they
can keep up the current rate of production in H2!]

8. They believe that the delay in General Nice completing the IRC
deal is due to the current lack of liquidity (credit) available in
China and that General Nice do intend to complete when they
can.

9. Mr Hambro also said that there was a 'contractual commitment'
and 'a guarantee' that they will complete.

10. None of the analysts put the boot in

11. According to my notes there were no questions from:

Bank of America Merrill Lynch
Citi
Goldman Sachs
HSBC
J.P. Morgan Cazenove

12. Only Maurice Mason from Peel Hunt asked a potentially sensitive
question, related to the Convertible Bond Negotiations, which Mr
Hambro declined to answer...

Mr Mason asked what level of debt POG was confident of repaying in
2015, assuming there were some holdouts who refused to
refinance.

Mr Hambro basically replied that this was a 'good question', but
that to answer it would lead the Company to become 'a hostage to
fortune'.

13. Mr Hambro also said that contacting the Bond Holders was a
moving target, with people they have already contacted saying that
they have now sold when next contacted...

...sounded to me like they were making progress but some of the
Bondholders are actively trading the Bonds and that this is holding
up the process a little.

14. Paperwork on relaxing the Covenants is underway with one out of
the three banks (but they did not say which one): this is very good
news as it likely means that the risks of a covenant breach are at
this point reduced.

GLA,

GRB

P.S. I am also in the process of updating the header and will post
it as soon as I can.

Stoopid 28 Aug'14 - 11:13 - 33642 of 33662 0 0

Katsy Lol ;-D damn I hope you are wrong........

I hope crimex defaults before we go bust ;-D

grbaker 28 Aug'14 - 11:14 - 33643 of 33662 2 0

You can listen to the Webcast and see the presentation here;

hxxp://microsites.streamuk.com/petropavlovsk2/default.aspx?wid=4969ae3


Stoopid 28 Aug'14 - 11:32 - 33644 of 33662 0 0

Ta GRB for the more comprehensive recap :-D I appreciate all you
do
on here as im sure do others.

I thought they said that all the covenants were being
renegotiated
and the legal documentation was being prepared? I stand
corrected.
But I suspect the others will probably follow suit and as a
result
it means a covenant breach is now unlikely.

Im surprised that the update has not had more of an impact on the
SP. But hey this is POG.

grbaker 28 Aug'14 - 12:24 - 33645 of 33662 1 0

They did say that... although Mr Hambro, I think it was, confirmed,
when a PI asked a question (Alex Wright I believe), that actual
paperwork [i.e. done deal IMHO] was underway with one out of the
three lenders...

We know from this document http://www.petropavlovsk.net/images/stories/Presentations/140703_financial_operating_review.pdf
(see page 22) that there are three key Russian Banks whom I assume
Mr Hambro was referring to (I have also included what POG has
borrowed from them below):

Alfabank / $115 million
Sberbank / $479 million
VTB / $225 million

The question is which one has agreed!

We also know that Alfabank (from the same document) is largely paid
off and so is probably not an issue...

...that leave Sberbank and VTB. Let's hope it's Sberbank...

It's very good news either way!

[lfc4ever] 08/11/2013 16:48

am i missing something?
is it too late to accept the offer? if not, surely buying at sub 58 is an easy arbitrage?

[lfc4ever] 15/10/2013 14:31

does anyone understand the timing/ procedure for acceptance.

i have had a request for instructions from HL, but nothing from TD and IG.

[ironstorm] 02/10/2013 13:03

Well after much deliberation I have decided where I am putting my ill-gotten gains - Anglo Asian Mining (AAZ). Should seem attractive to those invested here I would think.

hxxp://ironstorminvesting.blogspot.co.uk/

[lfc4ever] 01/10/2013 06:18

one would imagine that the jitters in the US will be bad for equities, good for gold and thus good for ar. And thus good for us. Oh- hold on a moment...