Florida Canyon Gold — Argonaut Gold — Q3 2018 Earnings Presentation
15 slides from Florida Canyon Gold's earnings presentation, Nov 9, 2018
Slide 1: Third Quarter 2018 Conference Call
TSX:AR CORPORATE PRESENTATION Third Quarter 2018 Conference Call November 9, 2018
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 2018 Results Conference Call
Q3 2018 Results Conference Call OVERVIEW FINANCIALS OPERATIONS LOOKING AHEAD TSX:AR Q3 2018 Conference Call – NOVEMBER 9, 2018 | ARGONAUT GOLD 3
Slide 4: Q3 2018 and Recent Highlights
Q3 2018 and Recent Highlights Q3 2018 Financial Performance 34,165 Production GEOs2 • Net loss of $2.7 million and adjusted net • At cash cost of $867/oz Au sold1 & loss1 of $1.0 million AISC of $988/oz Au sold1 • Loss per share – basic of $0.02 and adjusted loss per share – basic1 of $0.01 Short Te
Slide 5: Financial Performance
Financial Performance 3 months ended September 30 Change 9 months ended September 30 Change 2018 2017 2018 2017 Production (GEO)1,2 34,165 24,280 41% 113,459 91,717 24% Sales (GEO)1,2 34,248 23,160 48% 113,152 93,080 22% Revenue ($M) $41.3 $28.7 44% $144.4 $115.6 25% Net income (loss) ($M) ($2.7) $0
Slide 6: Q3 2018 Capital Spending, Cash Flow & Liquidity ($M)
Q3 2018 Capital Spending, Cash Flow & Liquidity ($M) Investing in the future Cash Flow Reconciliation Capital Spend Opening balance cash 22.7 Sustaining Expansion Stripping Cash flow from ops. excl. working capital El Castillo 0.7 1.9 2.6 10.9 La Colorada 0.1 0.2 - Changes in working capital (3.2) M
Slide 7: Q3 2018 - Operations Overview
Q3 2018 - Operations Overview Third Quarter YTD at September 30 Production (GEOs)1 2018 2017 2018 2017 El Castillo Complex2 26,894 14,453 79,149 53,765 El Castillo 10,368 11,521 29,327 50,833 San Agustin2 16,526 2,932 49,822 2,932 La Colorada 7,271 9,827 34,310 37,952 TOTAL 34,165 24,280 113,459 91,
Slide 8: Looking Ahead
Looking Ahead RETURNING TO BASELINE ANNUALIZED 200K+ OPERATIONAL GEO PROFILE EXCELLENCE Q1 2018 Q4 2018 § Increased throughput at all ~52K locations 10% - 60% 41K GEOs (1) § Over 20% increase in grade at La Colorada GEOs (1) § Increased recoveries at El Castillo due to south pit ore type § Run-of-mi
Slide 9: Achieving Our Objectives and Delivering Value
Achieving Our Objectives and Delivering Value Three Year Growth Plan Consolidated Production Consolidated GEO1 Year Production4 250 (000s) 200 owth GEO1 Production2,4 Gr 2017 65% Actual 127 150 100 2018E 165 - 180 50 2019E 210 - 225 0 2017 2018E 2019E Year Argonaut Goal: Unparalleled Production Annu
Slide 10: Development Assets
Development Assets Magino1 Cerro del Gallo2 San Antonio3 ARGONAUT ALAMOS PROPERTY PROPERTY ISLAND GOLD MINE MAGINO PROJECT § Ontario, Canada § Guanajuato, Mexico § Baja California Sur, Mexico § M&I 144.0Mt at 0.91 g/t Au for § M&I 47,878 kt at 0.60 g/t Au for § M&I 65,089 tonnes at 0.83 g/t Au 4.197
Slide 11: Summary of Investment Case
Summary of Investment Case Strong balance Highly Defensive sheet with leveraged to Proven gold stock flexibility upside in gold operator • $21M cash1 • Long track record of • $50M revolver • De-risking of • Track record of low adding cash to the development assets cost production • $8M drawn1 balanc
Slide 12: Our Focus
Our Focus Build balance sheet De-risk development projects Prepare for 200k+ GEO1 production in 2019 1 Gold equivalent ounces (“GEO” or “GEOs”) are based on a conversion ratio of 70:1 for silver to gold. TSX:AR Q3 2018 Conference Call – NOVEMBER 9, 2018 | ARGONAUT GOLD 12
Slide 13: Additional Information
WWW.ARGONAUTGOLD.COM ADDITIONAL INFORMATION TSX:AR Dan Symons Vice President, Investor Relations Argonaut Gold Inc. First Canadian Place 100 King St. West, Suite 5700 Toronto, ON M5X 1C7 T: 416-915-3107 Email: dan.symons@argonautgold.com /ArgonautGoldInc @Argonaut_Gold /company/Argonaut-Gold-Inc TSX
Slide 14: Notes and Disclosures
Notes and Disclosures Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production stage El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico and the production stag
Slide 15: Mineral Reserves and Mineral Resource Notes and Disclosures
Mineral Reserves and Mineral Resource Notes and Disclosures All Mineral Resources have been estimated in accordance with Canadian Institute of Mining Standards. Mineral Resources are not known with the same degree of certainty as Mineral Reserves and do not have demonstrated economic viability. In a