Florida Canyon Gold — Argonaut Gold — Q1 2023 Earnings Presentation
21 slides from Florida Canyon Gold's earnings presentation, May 5, 2023
Slide 1: Building a Low-Cost Mid-Tier North American Gold Producer
Building a Low-Cost Mid-Tier North American Gold Producer First Quarter 2023 Results TSX: AR May 5, 2023
Slide 2: Forward-Looking Information
Forward-Looking Information This presentation may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical facts, included in this MD&A that address activities, events, or developments that the Company
Slide 3: Argonaut Today: A Pivotal Growth Stage
Argonaut Today: A Pivotal Growth Stage ARGONAUT’S NEW VALUE CREATION STRATEGY Focus on Focus on Deliver and High-quality Assets Free Cash Flow Prosper Rebalance portfolio focusing on quality Reposition to a lower cost North Build a team and culture to support assets and disciplined capital American
Slide 4: Unlocking Value: Current Objectives at Three Key Assets
Unlocking Value: Current Objectives at Three Key Assets 1 MAGINO PROJECT 2 FLORIDA CANYON 3 LA COLORADA REPOSITION ARGONAUT AS A LOW-COST NORTH AMERICAN GOLD COMPANY Commercial Explore Large Optimize Remaining Production Sulfide Resource Value Commission the mill Stabilize and optimize Trade-off stu
Slide 5: Q1 Production Reflects Scheduled Wind Down of Mexican Operations
Q1 Production Reflects Scheduled Wind Down of Mexican Operations Quarterly Consolidated Production (GEOs) 70,000 Production (Gold Equivalent Ounces(1)) 30% Decline in Consolidated Q1 Production 60,000 • Lower ore tonnes mined and lower grades placed on leach pads at three Mexican operations as plann
Slide 6: Magino Project: First Gold Pour Expected Second Half of May 2023
Magino Project: First Gold Pour Expected Second Half of May 2023 DEVELOPMENT UPDATE: Well-positioned to Achieve Commercial Capital Costs Production Rates Anticipated in Q3 2023 ✓ Operational readiness activities continue to advance ~$652M Project Spend To-date* (includes $69M invested in Q1 2023) ✓
Slide 7: Initiating Resource Expansion Program at Magino
Initiating Resource Expansion Program at Magino Measured & Indicated Resources Increased by 13% to West-facing Cross Section of Magino Open Pit 4.6 Moz and Inferred Mineral Resources Increased to 843,000 oz* • Nearly all Measured, Indicated and Inferred Resources fall into a larger open pit cone wit
Slide 8: Florida Canyon Mine: Stabilize & Optimize
Florida Canyon Mine: Stabilize & Optimize Optimizing Current Oxide Operation for Current Near-term Production Growth Opportunity • Significant increase in Inferred Mineral Resources to 2.1 Moz Au where 700,000 ounces of sulfide mineralization helped pull an additional 1.35 Moz of oxide mineralizatio
Slide 9: Mexican Operations In Line With 2023 Plan
Mexican Operations In Line With 2023 Plan La Colorada Mine All Three Mines Currently Expected to UNITED Meet Full-Year Production Guidance • Expected to complete final phase of STATES mining by the end of 2023 • Expected to complete majority of leaching processes in 2024 • To be placed on care and m
Slide 10: Financial Performance Reflects Current Transformation Phase of Production Base
Financial Performance Reflects Current Transformation Phase of Production Base Q1 2023A Q1 2022A Change Production Gold Equivalent Ounces(1) 38,585 55,516 (30%) • Per ounce sold unit costs impacted by non-cash inventory write-down leading to a cost Gold Sold (oz) 36,168 54,107 (33%) increase of ~$25
Slide 11: Liquidity
Liquidity As at Subsequent to March 31, 2023 Quarter-end • Remaining balance of the total Loan Cash and Cash Equivalents $58.4M - Facilities are expected to cover Term Loan Magino’s remaining project costs • CA$17.5 million flow through Total drawdown $146M $176M equity raise subsequent to quarter-
Slide 12: Argonaut Today: Upcoming Catalysts
Argonaut Today: Upcoming Catalysts Near-term Catalysts Long-term Catalysts ❑ Develop Magino into one of the largest and ❑ Become a low-cost mid-tier North American lowest cost gold mines in Canada gold producer that creates significant value ❑ Stabilize operations at Florida Canyon and for stakehold
Slide 13: Appendix
APPENDIX
Slide 14: Notes & Disclosures
Notes & Disclosures Argonaut Gold is a Canadian gold company with a portfolio of operations and multi-stage assets in North America. The Company is in the final stages of construction at its Magino Project, located in Ontario, Canada. The Company also has three operating mines including the Florida
Slide 15: Notes & Disclosures Continued
Notes & Disclosures Continued NON-IFRS MEASURES The Company has included certain non-IFRS measures including “Cost of sales per ounce sold”, “Cost of sales per ounce sold”, “All-in sustaining costs per gold ounce sold” (or “AISC), “Cash cost per ounce sold”, “Adjusted net (loss) income”, and “Adjust
Slide 16: Notes & Disclosures For Mineral Resource and Reserve Estimates
Notes & Disclosures For Mineral Resource and Reserve Estimates (1) Mineral Reserves and Mineral Resources have been estimated as at December 31, 2022 in accordance with NI 43-101 as required by Canadian securities regulatory authorities. Mineral Resources are presented inclusive of Mineral Reserves.
Slide 17: Consolidated Mineral Reserves & Resources
Consolidated Mineral Reserves & Resources(1) Effective as of December 31, 2022 Contained Contained Contained Tonnes Au Grade Ag Grade Cu Grade Project Category Au Ounces Ag Ounces Tonnes Cu (millions) (g/t) (g/t) (%Cu) (000s) (000s) (000s) Magino Proven 26.3 1.24 1,044 Magino Probable 37.0 1.11 1,31
Slide 18: Consolidated Mineral Reserves & Resources Continued
Consolidated Mineral Reserves & Resources(1) Continued Effective as of December 31, 2022 Contained Contained Contained Tonnes Au Grade Ag Grade Cu Grade Project Category Au Ounces Ag Ounces Tonnes Cu (millions) (g/t) (g/t) (%Cu) (000s) (000s) (000s) Magino Measured 48.8 0.99 1,556 Magino Indicated 1
Slide 19: Consolidated Mineral Reserves & Resources Continued
Consolidated Mineral Reserves & Resources(1) Continued Effective as of December 31, 2022 Contained Contained Contained Tonnes Au Grade Ag Grade Cu Grade Project Category Au Ounces Ag Ounces Tonnes Cu (millions) (g/t) (g/t) (%Cu) (000s) (000s) (000s) Magino Inferred 31.6 0.83 843 Florida Canyon Infer
Slide 20: Endnotes
Endnotes 1) Gold Equivalent Ounces (“GEOs”) are based on a conversion ratio of 80:1 for silver to gold in 2023 and 2022. The silver to gold conversion ratio is based on the three-year trailing average silver to gold ratio. Produced ounces are calculated as ounces loaded to carbon. 2) The production
Slide 21: Additional Information
TSX: AR ADDITIONAL INFORMATION /ArgonautGoldInc @Argonaut_Gold Joanna Longo Investor Relations @ArgonautGoldInc Phone: (416) 575-6965 Email: investor.relations@argonautgold.com company/Argonaut-Gold-Inc Argonaut Gold Inc. WWW.ARGONAUTGOLD.COM