Argonaut Gold Reports 2023 Performance and Plans for 2024

Argonaut Gold announced its financial and operational results for the fourth quarter and the end of the 2023 fiscal year. In 2023, the company focused on key objectives, including the on-schedule commissioning of the Magino mine, improving the performance of the Florida Canyon mine, and enhancing operations at its Mexican mines. The company reported exceeding its production guidance by 9%, with notable success at Florida Canyon, achieving its highest production in 19 years.

For 2024, Argonaut Gold is prioritizing the Magino mine for growth and operational efficiency. Efforts include optimizing production and exploring reserve expansion at Magino, along with refining operations at the Florida Canyon mine through a sulfide redevelopment plan. The company also plans to conclude a debt refinancing agreement to support expansion goals.

Financial Summary for 2023:

• Revenue reached $372.5 million, a slight decrease from the previous year's $388.3 million, influenced by lower production in Mexico, balanced by initial output at Magino and improved production at Florida Canyon.
• The company reported a gross profit of $40.2 million, a significant increase from the previous year, and a net income of $38.3 million, a substantial improvement over the previous year's net loss of $152.2 million.
• Adjusted net loss stood at $2.5 million, showing improvement from the previous year's $22.4 million loss.
• The company concluded the year with $83.8 million in cash and $128.7 million in net debt.
• Total gold equivalent ounce (GEO) production was slightly lower year-over-year at 197,511 GEOs due to reduced output from Mexican mines, somewhat offset by new production from Magino and increased output at Florida Canyon.

Operational Updates:

• The Magino mine achieved commercial production as of November 1, 2023, contributing $60.0 million in revenue.
• In November, Argonaut Gold sold an additional 1.0% net smelter return royalty on its Magino mine for $28.0 million to Franco-Nevada Corporation.
• The company executed a public offering in December, selling 223,685,000 common shares for gross proceeds of $62.5 million.
• Financial covenants on a $250 million financing package were waived until March 8, 2024, as the company works on refinancing plans.