Florida Canyon Gold — Argonaut Gold — Q4 2018 Earnings Presentation
17 slides from Florida Canyon Gold's earnings presentation, Feb 20, 2019
Slide 1: Fourth Quarter and Year Ended December 31, 2018 Conference Call
TSX:AR TSX:AR CORPORATE PRESENTATION Fourth Quarter and Year Ended December 31, 2018 Conference Call February 20, 2019
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: 2018 Highlights
2018 Highlights Financial Performance 165,117 Production GEOs2 • Net loss of $7.6M • Record Q4 and annual production • Adjusted net income1 - $16.4M • Company achieved the milestone of • Loss per share – basic $0.04 1M GEOs produced since its founding • Adjusted earnings per share1 - $0.09 Short Ter
Slide 4: 2018 CSR Highlights
2018 CSR Highlights Argonaut continues to create sustainable value through innovation and collaboration within the communities in which we operate. Some 2018 highlights include: MEXICO CANADA 2nd Annual “Gran Carrera Student Scholarship Magino Community Magino Revegetation Trial La Colorada” Race at
Slide 5: Financial Performance
Financial Performance Fourth Quarter Year Ended December 31 2018 2017 2018 2017 Production (GEO)1,2 51,658 34,987 165,117 126,704 Sales (GEO)2 42,328 31,025 155,480 123,554 Revenue ($M) $51.6 $39.5 $196.1 $155.1 Earnings (loss) per share - basic ($0.10) $0.03 ($0.04) $0.14 Adjusted earnings per shar
Slide 6: Operations Overview
Operations Overview Fourth Quarter Year Ended December 31 Production (GEOs)2 2018 2017 2018 2017 El Castillo 18,984 8,707 48,311 59,540 San Agustin1 18,993 10,946 68,815 13,878 La Colorada 13,681 15,334 47,991 53,286 TOTAL1 51,658 34,987 165,117 126,704 Cash Costs3 El Castillo $1,007 $1,015 $1,016 $
Slide 7: 2018 Production Guidance vs. Actual 2018 Production
2018 Production Guidance vs. Actual 2018 Production 2018 PRODUCTION ACTUAL 2018 GUIDANCE (GEOs)1 PRODUCTION (GEOs)1 El Castillo Complex 105K – 115K 117,126 La Colorada 60K – 65K 47,991 Consolidated 165K – 180K 165,117 El Castillo Complex slightly La Colorada had lower Achieved consolidated exceeded
Slide 8: Q4 2018 Capital Spending And Cash Flow ($M)
Q4 2018 Capital Spending And Cash Flow ($M) Investing in the future Cash Flow Reconciliation Capital Spend Opening balance cash 20.6 Cash flow from ops excl. working capital 9.2 Sustaining Expansion Stripping Changes in working capital (13.7) El Castillo 0.5 0.4 1.1 Cash before investment & financin
Slide 9: Three Year Production Outlook
Achieving Our Objectives and Delivering Value Three Year Production Outlook Consolidated Production Consolidated 250 Year GEO1 Production % G ROWTH 200K-215K (000s) 65 200 165,117 GEO1 Production 2017 150 2 Actual2 127 126,704 100 2018 Actual 165 50 0 2017 2018 2019E 2019E 200 - 215 Year 1 GEOs are
Slide 10: 2019 GEO Production and Guidance (000s)
2019 GEO Production and Guidance (000s) El Castillo/ San Agustin La Colorada Consolidated Complex GEO Production2 In 000s 140 - 150 60 - 65 200 - 215 $ per Cash costs 1,3 760 - 860 800 - 900 775 - 875 ounce Au $ per AISC 1,3 975 – 1,075 ounce Au 1 Assumes a MXN:USD exchange rate of 20:1. 2 GEOs are
Slide 11: Investing to the Future – 2019 Plans
Investing to the Future – 2019 Plans EL CASTILLO COMPLEX MAGINO § Construction of the La Victoria leach § Complete Provincial Environmental pad phase 2 at the El Castillo mine. Assessment process. § Expansion of the San Agustin § Advance construction permit, Mine crushing and stacking system from Cl
Slide 12: 2019 Capital Estimate
2019 Capital Estimate 2019 Capital Estimate ($M)1 El Castillo / San Agustin 27 - 31 La Colorada 14 - 16 Development Assets 9 - 13 $50 - $60 Includes ~$15M budgeted Includes $3M - $5M for for San Agustin crushing exploration and stacking expansion 1 Assumes exchange rates of MXN:USD of 20:1 and CAD:U
Slide 13: Summary of Investment Case
Summary of Investment Case Strong balance Highly Defensive Proven sheet with leveraged to gold stock operator flexibility upside in gold • $15M cash1 • Long track record of • 5.9M Measured and • Nine year track record of • $50M revolver adding cash to the Indicated Resource Gold profitable productio
Slide 14: Our Focus
Our Focus Build balance sheet De-risk development projects Deliver 200k+ GEO1 production in 2019 1 GEOs are based on a conversion ratio of 75:1 for silver to gold ounces. The conversion ratios are based on three year trailing average silver to gold exchange ratio. TSX:AR Fourth Quarter and Year End
Slide 15: Additional Information
TSX:AR ADDITIONAL INFORMATION /ArgonautGoldInc @Argonaut_Gold Dan Symons Vice President, Investor Relations @ArgonautGoldInc Argonaut Gold Inc. company/Argonaut-Gold-Inc First Canadian Place 100 King St. West, Suite 5700 Toronto, ON M5X 1C7 T: 416-915-3107 Argonaut Gold Inc. Email: dan.symons@argona
Slide 16: 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 17: Mineral Resource Notes and Disclosures
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 addition, the quantity