Florida Canyon Gold — Argonaut Gold — Q3 2023 Earnings Presentation
17 slides from Florida Canyon Gold's earnings presentation, Nov 14, 2023
Slide 1: Building a Low-Cost Mid-Tier North American Gold Producer
Building a Low-Cost Mid-Tier North American Gold Producer Third Quarter 2023 Results TSX: AR November 14, 2023
Slide 2: Forward-Looking Information
Forward-Looking Information Certain information contained or incorporated by reference in this presentation, including any information as to our strategy, projects or future financial or operating performance, constitutes “forward-looking statements”. Forward- looking statements are frequently chara
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: Consolidated Q3 GEOs Production Up 17%
Consolidated Q3 GEOs Production Up 17% 70,000 $2,800 Magino has achieved commercial production • Mill operating at or above nameplate capacity 60,000 $2,400 53,911 • Further step-improvement expected in Q4 Production (Gold Equivalent Ounces(1)) Cost per Ounce Sold (US$/oz) 50,000 $2,000 86% Higher P
Slide 5: Magino Mining Metrics Continue to Improve
Magino Mining Metrics Continue to Improve Mining is behind schedule for the year Mined Total Material Moved (kt) 1,600 • Pioneering benches & historical underground workings 1,200 1,319 • Workforce issues 1,155 1,240 800 • Lower haulage capacity than design 717 704 716 400 508 411 380 - Resulting in
Slide 6: Magino Mill Process Metrics are Ramping Towards Design Values
Magino Mill Process Metrics are Ramping Towards Design Values Mill Daily Tonnage & Throughput Rate Mill tonnage continues to improve 12,000 470 440 458 • Approaching nameplate capacity of 10,000 Nameplate capacity: 422 10,000 tonnes per day 415 tonnes per day 10,000 371 370 • September is an outlier
Slide 7: 2023 Magino Reserve Expansion Program Began in Q3
2023 Magino Reserve Expansion Program Began in Q3 • Resource body remains open at depth, along strike to the east • Conversion of resources to reserves could support an increase to towards Alamos’ Island Gold Mine, and west along strike process capacity from 10,000 tpd to a range of 17,500 tpd – 20,
Slide 8: Florida Canyon Mine Highlights
Florida Canyon Mine Highlights Optimizing Current Oxide Operation for Near-term Production Current • Transformed the asset, it is now cash flow positive Opportunity • On pace to produce over 40% more gold equivalent ounces in 2023 than in 2022 Evaluating Significant Sulfide System Below Oxide Long-t
Slide 9: Financial Performance Reflects Current Transformation
Financial Performance Reflects Current Transformation Q3 2023A Q3 2022A Change Gold Sold (oz) 54,571 38,639 41% Cost of Sales1 ($/oz sold) $1,607 $1,768 (9%) Cash Cost1 ($/oz sold) $1,383 $1,405 (2%) • Gold sold increased due to Magino All-in Sustaining Costs1 ($/oz sold) $1,601 $1,893 (15%) contrib
Slide 10: Liquidity & 2023 Outlook
Liquidity & 2023 Outlook Liquidity Overview Actions to strengthen balance sheet: Outstanding Undrawn • Sold an additional 1% NSR on Magino and other non-core (as at Sept. 30, 2023) (as at Sept. 30, 2023) royalties for $29.5M Cash and Cash Equivalents $45M - • Deferral of repayment on the $19.1 milli
Slide 11: Delivering per Share Growth through Responsible Capital Allocation
Delivering per Share Growth through Responsible Capital Allocation Five Major Objectives Balance Sheet 1) Complete Magino Construction Health Repaying 2) Ramp Magino to Steady-State Re-Development Debt 3) Stabilize Florida Canyon Redeveloping Florida Canyon Expansion 4) Magino & Florida Canyon Drill
Slide 12: Appendix
APPENDIX
Slide 13: 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 14: 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 15: 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 16: Endnote
Endnote 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. TSX: AR | 16
Slide 17: 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