Florida Canyon Gold — Argonaut Gold — Q3 2021 Earnings Presentation
23 slides from Florida Canyon Gold's earnings presentation, Nov 15, 2021
Slide 1: Corporate Presentation – Third Quarter Ended September 30, 2021
TSX:AR CORPORATE PRESENTATION Third Quarter Ended September 30, 2021 Conference Call November 15, 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: Q3 2021 and Recent Highlights
Q3 2021 and Recent Highlights Financial Performance Production and Cost • Quarterly cash flows from operating activities before changes in non-cash operating working capital and other items of $39.6M • Quarterly production of 58.8k GEOs2 • Quarterly revenue of $108.6M • Cash cost per gold ounce sold
Slide 4: Financial Performance
Financial Performance Three Months Ended September 30, Nine Months Ended September 30, 2021 % 2021 2020 2021 2020 % Change Change Sales (GEO)1 60,606 49,291 23% 185,372 125,691 47% Revenue ($M) 108.6 94.4 15% 334.0 218.9 53% Net income (loss) ($M) 15.0 13.4 12% 63.8 (3.8) 1779% Earnings (loss) per s
Slide 5: Q3 2021 Capital Spending and Cash Flow ($M)
Q3 2021 Capital Spending and Cash Flow ($M) Investing in the future Q3 Cash Flow Reconciliation ($M) Q3 Capital Spend ($M) Opening balance cash 216.0 Sustaining Expansion Stripping El Castillo 1.0 — 1.0 Cash flow from operations excl. working capital 39.6 La Colorada 0.5 — — Changes in working capit
Slide 6: Operations Overview
Operations Overview Three Months Ended September 30, Nine Months Ended September 30, 2021 Production (GEO)1 2021 2020 % Change 2021 2020 % Change El Castillo 11,246 9,492 18% 36,403 33,615 8% San Agustin 17,626 17,198 2% 56,307 45,245 24% La Colorada 15,802 10,972 44% 49,606 31,869 56% Florida Canyo
Slide 7: 2021 Guidance
2021 Guidance 2021 Production and Cost Guidance Tracking vs. Guidance through Q3 2021 First Nine month Full Year 2021 Guidance 2021 Lower Half Upper Half GEO production 182,230 210,000 – 250,000 Cash cost per gold ounce sold1 $955 $950 – $1,050 AISC per gold ounce sold1 $1,234 $1,250 – $1,350 Cash F
Slide 8: Argonaut's Commitment to Sustainability
Argonaut’s Commitment to Sustainability 2020 Highlights & 2021 Ongoing Programs • Reduction in water consumption by 8% by switching to drip irrigation at operations. • Reduced GHG by ~84 tonnes/year by installing solar panels. La Colorada Solar Farm in collaboration with municipality • Plant and spe
Slide 9: Q3 & Recent CSR Highlights
Q3 & Recent CSR Highlights Magino La Colorada El Castillo Complex Indigenous Group Site Tours at Magino Road repair and maintenance of Scholarship Program sports stadiums Cerro del Gallo Florida Canyon Meeting with the Guanajuato Food Drive initiative at the Tri-County Fair Governor of State Miguel
Slide 10: Magino Construction Capital Estimate
Magino Construction Capital Estimate Magino Construction Capital Disclosure OCTOBER 2020 MAY 2021 AUGUST 2021 ~C$500M CAD C$500M C$500M with potential for with likely increase increase up to 15% above 15% disclosed May 2021 New "bottoms up" capital estimate underway. As the entire site is now expose
Slide 11: Conceptual Magino Project Timeline
Conceptual Magino Project Timeline 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Fixed Bid Contract Closure Plan filed Logging Pre-Production Mining Earthworks Project Construction Pouring Concrete / Erect Steel High Level Critical Path Covering Buildings Dry Commissioning Items Putting pieces
Slide 12: Magino Construction Update
Magino Construction Update Open Pit Area Process Plant Site Area TMF Construction Liners on Dams TSX:AR Q3 2021 Results Ended September 30, 2021 Conference Call – November 15, 2021 | ARGONAUT GOLD 12
Slide 13: Process Plant Equipment Update
Process Plant Equipment Update Crusher Mill Cyclone CIP Tanks Thickener Major process plant equipment arriving Q1 2022. TSX:AR Q3 2021 Results Ended September 30, 2021 Conference Call – November 15, 2021 | ARGONAUT GOLD 13
Slide 14: San Agustin – Quadrupled Mineral Tenure
San Agustin – Quadrupled Mineral Tenure • Acquired new concessions from Fresnillo for $5.75M • Allows pit expansion, increase mineral reserves and extends mine life • Increases area of potential exploration by over 400% Note: Refer to Argonaut Press Release dated October 12, 2021. TSX:AR Q3 2021 Res
Slide 15: High Grade Results at La Colorada
High Grade Results at La Colorada News Release - April 26, 2021 News Release - September 13, 2021 • DH 20-LCRC-592 intersected 12.2m @ • South Vein: DH 21-LCRC-667 intersected 38.1m @ 9.1 g/t Au 98.9 g/t Au and 30.3 g/t Ag, incl. 3.0m of and 126.6 g/t Ag, incl. 4.6 metres of 51.9 g/t Au and 28.5 g/t
Slide 16: High Grade Results at La Colorada
High Grade Results at La Colorada Recent Drill Results Section B - High Grade Gold Veins Below the El Crestón Pit at La Colorada Mine Note: Refer to Argonaut Press Release dated September 13, 2021. TSX:AR Q3 2021 Results Ended September 30, 2021 Conference Call – November 15, 2021 | ARGONAUT GOLD 16
Slide 17: Magino High-Grade Drill Results at Depth Below the Pit
Magino High-Grade Drill Results at Depth Below the Pit Long Section Looking North MA19-016 11.0m at 11.68 g/t Au MA20-045 12.0m at 10.6 g/t Au MA12-424 7.6m at 29.4 g/t Au MA20-044 MA20-038 3.0m at 46.8 g/t Au MA20-057 1.0m at 118.8 g/t Au Incl. 1.0 at 140.0 g/t Au 3.1m at 47.1 g/t Au Incl. 1.3m at
Slide 18: Early-stage Resource Definition Drilling
Early-stage Resource Definition Drilling TSX:AR Q3 2021 Results Ended September 30, 2021 Conference Call – November 15, 2021 | ARGONAUT GOLD 18
Slide 19: 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 TSX:
Slide 20: 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 21: 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 22: Mineral Resource Notes and Disclosures
Mineral Resource Notes and Disclosures (1) Mineral Reserves and Mineral Resources have been estimated as at December 31, 2020 in accordance withNational Instrument (“NI”) 43-101 as required by Canadian securities regulatory authorities. Mineral Resources are presented inclusive of Mineral Reserves.
Slide 23: Consolidated Mineral Resources & Mineral Reserves
Consolidated Mineral Resources & Mineral Reserves(1) MINERAL RESERVES PROVEN & PROBABLE Contained Au Contained Ag Tonne Au Grade Ag Grade Cu Grade Contained Project Category Ounce Ounces (Millions) (g/t) (g/t) (% Cu) Tonnes Cu (000s) (000s) El Castillo2 Proven 0.2 0.51 4 El Castillo2 Probable 17.1 0