Florida Canyon Gold — Argonaut Gold — Q2 2021 Earnings Presentation
25 slides from Florida Canyon Gold's earnings presentation, Aug 11, 2021
Slide 1: Corporate Presentation – Second Quarter Ended June 30, 2021
TSX:AR CORPORATE PRESENTATION Second Quarter Ended June 30, 2021 Conference Call August 11, 2021
Slide 2: Forward Looking Information
FORWARD LOOKING INFORMATION This presentation may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. All information, other than statements of historical facts, included in this presentation that address activities, events or developments that the
Slide 3: Q2 2021 & Recent Highlights
Q2 2021 & Recent Highlights ARGONAUT CHECKS ALL THE BOXES : OPERATIONS § Record Quarterly Production § Record Quarterly Revenue § Strong Cash Flow § Solid Earnings EXPLORATION DEVELOPMENT § Magino exploration at § Magino construction depth progress § La Colorada exploration § Florida Canyon convey b
Slide 4: Q2 2021 and Recent Highlights
Q2 2021 and Recent Highlights Financial Performance Production and Cost • Record quarterly revenue of $120.2M • Record quarterly production of 63.7k GEOs2 • Record quarterly cash flows from operating activities before • Cash cost per gold ounce sold1 of $876 changes in non-cash operating working cap
Slide 5: Financial Performance
Financial Performance Second Quarter Ended June 30 6 Months Ended June 30 % % 2021 2020 2021 2020 Change Change Sales (GEO)1 65,650 34,196 92% 124,766 76,400 63% Revenue ($M) 120.2 58.0 107% 225.5 124.5 81% Net income (loss) ($M) 21.8 (7.7) 383% 48.8 (17.2) 384% Earnings (loss) per share - basic $0.
Slide 6: Q2 2021 Capital Spending and Cash Flow ($M)
Q2 2021 Capital Spending and Cash Flow ($M) Investing in the future Q2 Cash Flow Reconciliation ($M) Q2 Capital Spend ($M) Opening balance cash Sustaining Expansion Stripping 227.3 El Castillo 0.5 - 2.3 Cash flow from operations excl. working capital 39.3 La Colorada 0.7 - 0.1 Changes in working cap
Slide 7: Operations Overview
Operations Overview Second Quarter Ended June 30 6 Months Ended June 30 Production (GEO)1 2021 2020 % Change 2021 2020 % Change El Castillo 12,723 9,151 39% 24,695 23,586 5% San Agustin 19,734 14,268 38% 38,681 28,047 38% La Colorada 17,288 7,869 120% 33,804 20,897 62% Florida Canyon 13,798 25,811 T
Slide 8: Recent Quarterly Production and Cash Flow
Recent Quarterly Production and Cash Flow GEOs (000s) Cash Flow ($M) 70.0 $70.0 63.7k 59.7k 57.0k Before changes in working capital 60.0 $60.0 GEO Production (000) 47.5k 49.0k 50.0 $50.0 Cash Flow ($M) 44.7k 41.5k 40.0 $39.5 $39.3 $40.0 31.5k 30.0 $29.0 $30.0 $27.2 $27.7 20.0 $20.0 $17.2 $14.8 10.0
Slide 9: 2021 Guidance
2021 Guidance 2021 Production and Cost Guidance First Half 2021 Full Year 2021 Guidance GEO production 123,452 210,000 – 250-000 Cash cost per gold ounce sold1 $936 $950 - $1,050 AISC per gold ounce sold1 $1,247 $1,250 - $1,350 On track to achieve 2021 consolidated production and cost guidance. Upda
Slide 10: Argonaut's Commitment to Sustainability
Argonaut’s Commitment to Sustainability 2020 Highlights & 2021 Ongoing Programs • Reduction in water consumption by 8% by switching to drip irrigation at operations. • Reduced GHG by ~84 tonnes/year by La Colorada Solar Farm in collaboration with municipality installing solar panels. • Plant and spe
Slide 11: Conceptual Magino Project Timeline
Conceptual Magino Project Timeline 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Fixed Bid Contract Closure Plan filed Logging Pre-Production Mining Earthworks Pouring Concrete / Erect Steel Project Construction Covering Buildings High Level Critical Path Dry Commissioning Items Putting pieces
Slide 12: Magino Construction Update
Magino Construction Update Open Pit Area Process Plant Concrete Box Culverts for Dam Dam Construction TSX:AR Q2 2021 Results Ended June 30, 2021 Conference Call – August 11, 2021 | ARGONAUT GOLD 12
Slide 13: Magino Construction
Magino Construction Magino Lodge – Camp, Recreation Centre and Kitchen Aaron MacDonnell, Environmental Manager and Ground Breaking Ceremony with Provincial Steve Murphy, Environmental Stewardship and Municipal government officials and local Manager for Michipicoten First Nation. Indigenous communiti
Slide 14: Magino Plan View
Magino Plan View TSX:AR Q2 2021 Results Ended June 30, 2021 Conference Call – August 11, 2021 | ARGONAUT GOLD 14
Slide 15: Magino High-Grade Drill Results at Depth Below the Pit
Magino High-Grade Drill Results at Depth Below the Pit Long Section Looking North MA19-016 11.0m at 11.68 g/t Au MA20-045 12.0m at 10.6 g/t Au MA12-424 7.6m at 29.4 g/t Au MA20-044 MA20-038 3.0m at 46.8 g/t Au MA20-057 1.0m at 118.8 g/t Au Incl. 1.0 at 140.0 g/t Au 3.1m at 47.1 g/t Au Incl. 1.3m at
Slide 16: Elbow Zone – Long Section
Elbow Zone – Long Section Early-stage resource definition drilling on the Elbow Zone. TSX:AR Q2 2021 Results Ended June 30, 2021 Conference Call – August 11, 2021 | ARGONAUT GOLD 16
Slide 17: High Grade Results at La Colorada
High Grade Results at La Colorada Note: Refer to Argonaut Press Release dated April 26, 2021. TSX:AR Q2 2021 Results Ended June 30, 2021 Conference Call – August 11, 2021 | ARGONAUT GOLD 17
Slide 18: High Grade Results at La Colorada
High Grade Results at La Colorada Recent Drill Results High Grade Gold Veins Below the El Crestón Pit at La Colorada Mine 21.3m @ 44.59 g/t Au & 275 g/t Ag Incl. 3.0m @ 283.10 g/t Au & 858 g/t Ag 12.2m @ 98.85 g/t Au & 30 g/t Ag Incl. 3.0m @ 383 g/t Au & 114 g/t Ag Three drill rigs active on phase 2
Slide 19: Optimizing Florida Canyon
Optimizing Florida Canyon Acquired Florida Canyon: July 2020 Status of improvements since acquiring: DRILL & BLAST HAUL ORE DUMP ORE LOAD CRUSHER CRUSH PICK UP CRUSHED HAUL CRUSHED LOAD AND BULLDOZE IN PIT TO CRUSHER ON GROUND WITH LOADER ORE ORE WITH LOADER ORE TO LEACH PAD CRUSHED ORE ON LEACH PAD
Slide 20: Optimizing Florida Canyon
Optimizing Florida Canyon Conveyor 1 Tunnels & Utilities Grasshoppers ready for deployment TSX:AR Q2 2021 Results Ended June 30, 2021 Conference Call – August 11, 2021 | ARGONAUT GOLD 20
Slide 21: Potential Near-Term Catalysts
Potential Near-Term Catalysts Magino Construction Progress • Monthly newsletter and quarterly press release updates Magino Exploration • Targeting high-grade gold mineralization at depth La Colorada Exploration • Targeting the down dip extension of gold and silver veins below the El Créston pit Flor
Slide 22: Diversified Intermediate Producer and Developer in North America
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 23: 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 24: Mineral Resource Notes and Disclosures
Mineral Resource Notes and Disclosures (1) Mineral Reserves and Mineral Resources have been estimated as at December 31, 2020 in accordance withNational Instrument (“NI”) 43-101 as required by Canadian securities regulatory authorities. Mineral Resources are presented inclusive of Mineral Reserves.
Slide 25: Consolidated Mineral Resources & Mineral Reserves
Consolidated Mineral Resources & Mineral Reserves(1) MINERAL RESERVES PROVEN & PROBABLE Contained Au Contained Ag Contained Tonnes Tonnes Au Grade Ag Grade Cu Grade Project Category Ounces Ounces Cu (Millions) (g/t) (g/t) (% Cu) (000s) (000s) El Castillo2 Proven 0.2 0.51 4 El Castillo2 Probable 17.1