Florida Canyon Gold — Argonaut Gold — Q1 2021 Earnings Presentation
21 slides from Florida Canyon Gold's earnings presentation, May 5, 2021
Slide 1: Corporate Presentation: First Quarter Ended March 31, 2021
TSX:AR CORPORATE PRESENTATION First Quarter Ended March 31, 2021 Conference Call May 5, 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: Q1 2021 & Recent Highlights
Q1 2021 & Recent Highlights ARGONAUT CHECKS ALL THE BOXES : OPERATIONS § Record Production § Record Revenue § Strengthened Team EXPLORATION DEVELOPMENT § Magino exploration at § Magino construction depth progress § La Colorada § Fixed-bid contract exploration with Ausenco § Ausenco private placement
Slide 4: Magino Construction Update
Magino Construction Update COMPLETED UPDATES INCLUDE: KEY AUTHORIZATIONS: § Fisheries & Oceans Canada: Fish Habitat Alteration & Removal Loading and hauling of softwood § Ontario Ministry of Environment, Conservation and Parks: Environmental Compliance Approval - Construction Water § Ministry of Nat
Slide 5: Magino Construction Update (con't)
Magino Construction Update (con’t) PROJECT TIMELINE: Pace of capital spend to increase in Q2/Q3: § Pre-production mining § Process plant construction § TMF construction TSX:AR Q1 2021 Results Ended March 31, 2021 Conference Call – MAY 5, 2021 | ARGONAUT GOLD 5
Slide 6: Q1 2021 and Recent Highlights
Q1 2021 and Recent Highlights Financial Performance Production and Cost • Record quarterly production of 59.7k GEOs2 • Record quarterly revenue of $105.3M • Cash cost per gold ounce sold1 of $1,003 • Cash flows from operating activities before changes in non- cash operating working capital and other
Slide 7: Financial Performance
Financial Performance First Quarter Ended March 31 2021 2020 % Change Sales (GEO)1 59,116 42,204 39% Revenue ($M) 105.3 66.6 58% Net income (loss) ($M) 27.0 (9.5) 382% Earnings (loss) per share - basic 0.09 (0.05) 280% Cash flow from operating activities 27.7 14.8 88% [before changes in working capi
Slide 8: Q1 2021 Capital Spending and Cash Flow ($M)
Q1 2021 Capital Spending and Cash Flow ($M) Investing in the future Q1 Cash Flow Reconciliation Q1 Capital Spend Opening balance cash 214.2 Sustaining Expansion Stripping Cash flow from operations excl. working capital 27.7 El Castillo 0.4 - 3.0 Changes in working capital (1.4) San Agustin 2.2 0.1 -
Slide 9: Operations Overview
Operations Overview First Quarter Ended March 31 Production (GEO)1 2021 2020 % Change El Castillo 12,228 14,729 (17%) San Agustin 18,947 13,779 38% La Colorada 16,516 13,028 27% Florida Canyon 12,013 - - TOTAL 59,704 41,536 44% Cash Cost (per Au oz.)2 El Castillo $1,049 $1,099 (5%) San Agustin $807
Slide 10: Q1 2021 and Recent CSR Highlights
Q1 2021 and Recent CSR Highlights Inauguration of the “Solar Farm” solar panel park located in La Colorada, in collaboration with the Mining Fund and the municipality of La Colorada, Sonora. Concluded a community agreement with Garden River First Nation for our Magino project. Continued work on our
Slide 11: High Grade Results at La Colorada
High Grade Results at La Colorada Note: Refer to Argonaut Press Release dated April 26, 2021. TSX:AR Q1 2021 Results Ended March 31, 2021 Conference Call – MAY 5, 2021 | ARGONAUT GOLD 11
Slide 12: 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 Note: Refer to Argonaut Press Rele
Slide 13: 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 14: Magino Plan View
Magino Plan View MA20-043 MA20-044 MA20-045 MA20-050A TSX:AR Q1 2021 Results Ended March 31, 2021 Conference Call – MAY 5, 2021 | ARGONAUT GOLD 14
Slide 15: Drill Highlights Intercepting New South Zone
Drill Highlights Intercepting New South Zone Long Section Looking North MA20-050A MA20-046 7.0m at 14.0 g/t 11.0m at 4.4 g/t Incl. 3.0m @ 31.9 g/t Au Incl. 1.0m at 22.8 g/t Au MA20-051 8.0m at 9.3 g/t Incl. 5.0m at 14.6 g/t Au MA20-045 12.4m at 10.6 g/t Incl. 2.0m at 48.7 g/t Au MA20-043 9.0m at 13.
Slide 16: Magino Upcoming Construction Milestones
Magino Upcoming Construction Milestones UPCOMING MILESTONES INCLUDE: § Commencing plant site pad blasting and Open pit area clearing continuing pad development. § Commencing open pit production drilling and blasting. § Continuing onsite haul road construction to TMF from open pit mine area. § Comple
Slide 17: 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 18: TSX:AR Additional Information
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 19: 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 20: Mineral Resource Notes and Disclosures
Mineral Resource Notes and Disclosures Mineral Reserves and Mineral Resources have been estimated as at December 31, 2019 in accordance with NI 43-101 as required by Canadian securities regulatory authorities. Mineral Resources are presented inclusive of Mineral Reserves. Numbers may not sum due to
Slide 21: 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