Florida Canyon Gold — Argonaut Gold — Q3 2020 Earnings Presentation
19 slides from Florida Canyon Gold's earnings presentation, Nov 6, 2020
Slide 1: Corporate Presentation: Third Quarter Ended September 30, 2020
Gold producer with advanced exploration projects in the Americas CORPORATE PRESENTATION Third Quarter Ended September 30, 2020 Conference Call TSX:AR November 6, 2020
Slide 2: Forward Looking Information
FORWARD LOOKING INFORMATION This presentation contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws concerning the proposed transaction and the business, operations and financial performance and condition of Argonaut Gold Inc. (“Arg
Slide 3: Q3 & Recent CSR Highlights
Q3 & Recent CSR Highlights La Colorada received the ESR (Socially Responsible Award) for the 9th consecutive year. Continued COVID-19 support for communities, including sanitization of homes and businesses and donation of hygiene supplies. Donation of food baskets in communities surrounding operatio
Slide 4: Q3 2020 and Recent Highlights
Q3 2020 and Recent Highlights Financial Performance Production and Cost • Net income of $13.4 million or $0.05 per • Consolidated production of 49k GEOs2 basic share • Cash cost per gold ounce sold1 of $1,008 • Increase in cash balance by $23.1M • AISC per gold ounce sold1 of $1,401 exclusive of Jul
Slide 5: Financial Performance
Financial Performance Third Quarter Ended September 30 9 Months Ended September 30 % % 2020 2019 2020 2019 Change Change Sales (GEO)1 49,291 45,567 8% 125,691 145,426 -14% Revenue ($M) 94.4 66.8 41% 218.9 196.8 11% Net income (loss) ($M) 13.4 4.9 173% (3.8) 14.4 -126% Earnings (loss) per share - bas
Slide 6: Q3 2020 Capital Spending And Cash Flow ($M)
Q3 2020 Capital Spending And Cash Flow ($M) Investing in the future Q3 Cash Flow Reconciliation Q3 Capital Spend Sustaining Expansion Stripping Opening balance cash 65.2 El Castillo 1.5 - - Cash flow from operations 31.1 San Agustin 1.4 - - Cash before investment & financing 96.3 La Colorada 0.7 - -
Slide 7: Year-End 2020 Cash Estimate ($M)
Year-End 2020 Cash Estimate ($M) Q3 ending cash balance $178 Free cash flow from operations1 $27+ Ana Paula sale proceeds $30 Convertible debenture net proceeds $55 Flow-through financing net proceeds $9 Debt repayment & financial obligations ($27) Capital spend2 ($50) YE 2020 Ending Balance Cash Es
Slide 8: Operations Overview
Operations Overview Third Quarter Ended September 30 9 Months Ended September 30 % % Production (GEO)1 2020 2019 2020 2019 Change Change El Castillo 9,492 14,592 (35%) 33,615 52,613 (36%) San Agustin 17,198 15,702 10% 45,245 43,765 3% La Colorada 10,972 14,418 (24%) 31,869 42,716 (25%) Florida Canyo
Slide 9: 2020 Guidance
2020 Guidance 2020 GEO2 Production Guidance (in 000s) Full Year Previous Mine Q1 Actual Q2 Actual Q3 Actual Q4 Estimate 2020 Estimate Estimate El Castillo 15 9 10 10 - 14 43 – 47 45 – 50 San Agustin 14 14 17 18 - 22 63 – 67 62 – 68 La Colorada 13 8 11 14 - 18 46 – 50 53 – 55 Florida Canyon* 11 13 11
Slide 10: Magino Fully Financed – Moving to Construction
Magino Fully Financed – Moving to Construction Initial capital of $360-$380M Feasibility Study Highlights1 • A 10,000 tonne per day processing facility; • Average annual gold production of 150,000 ounces over the first five years; 4.6% coupon / up 35% conversion • A 17-year mine life; • Cash cost of
Slide 11: Conceptual Magino Project Timeline
Conceptual Magino Project Timeline 2020 2021 2022 2023 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Fixed Bid Price Closure Plan filed Project Construction First Gold Commissioning and Ramp Up Magino Drill Results CONTINUOUS Expansion Studies Expansion Studies including underground TSX:AR Third Quarter
Slide 12: Magino – Pathway to Expansion
Magino – Pathway to Expansion d 20ktpd k t p Potential Open Pit 2 0 High-Grade + Underground t o Drilling at Operation a t h Inferred Depth P Resource Conversion Potential M&I Additional 33M Resource tonnes at 0.83 g/t for 10ktpd1 Conversion Potential 0.9Moz. Inferred Resource1 Years 1-5 150koz Prod
Slide 13: Argonaut's Vision & Strategy
Argonaut’s Vision & Strategy Transitioning our production and cost profile: High-Cost Producer Low Cost Intermediate Producer 150k – 200k oz 300k – 500k oz per year per year SUSTAINABLE GROWTH & REPLACEMENT of ounces Generating cash flow Favourable gold price De-risking our to finance growth environ
Slide 14: Executing Our Strategy – Our 3-Phase Approach
Executing Our Strategy – Our 3-Phase Approach HARVEST REPLACE GROWTH § HARVEST cash from § REPLACE short mine § GROWTH through existing operations life operations the development project pipeline § Significant free cash § Florida Canyon flow as capital comes provides immediate § All development stag
Slide 15: Low Risk Investment
Low Risk Investment So far in 2020… § JULY 1st: Alio Merger closing Dec. 31/19 Sept. 30/20 § JULY 23rd: Closed C$126.5M Equity Financing Market Cap ($M) 262 Market Cap ($M) 587 Net Cash ($M) 28 § SEPT 11th: Agreement to sell Ana Paula for Net Cash ($M) 156 $30M on closing, C$10M on construction Ente
Slide 16: Additional Information
TSX:AR Diversified Intermediate Producer and Developer in North America ADDITIONAL INFORMATION /ArgonautGoldInc @Argonaut_Gold Dan Symons Vice President, Corporate Development & Investor Relations @ArgonautGoldInc Argonaut Gold Inc. company/Argonaut-Gold-Inc First Canadian Place 100 King St. West, S
Slide 17: Mineral Resource Notes and Disclosures
Mineral Resource Notes and Disclosures Mineral Reserves and Mineral Resources have been estimated as at December 31, 2019 in accordance with NI 43-101 as required by Canadian securities regulatory authorities. Mineral Resources are presented inclusive of Mineral Reserves. Numbers may not sum due to
Slide 18: Notes and Disclosures
Notes and Disclosures Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production. Its primary assets are the El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico, the La Colorada mine in Sonora, Mexico and the Flo
Slide 19: Consolidated Mineral Resources & Mineral Reserves
Consolidated Mineral Resources & Mineral Reserves(1) Contained Au Contained Ag Tonnes Au Grade Ag Grade Cu tonnes Project Category Ounces Ounces Cu % (millions) (g/t) (g/t) (000s) (000s) (000s) Mineral Reserves Proven & Probable El Castillo Proven 1.1 0.60 21 El Castillo Probable 18.4 0.37 220 San A