TSX-listed Argonaut Gold has achieved record fourth-quarter production and has met its yearly production guidance, despite reporting a net loss of $17.5-million for the fourth quarter, and a net loss of $7.6-million for the year.

This translates to a loss of $0.10 a share for the reporting quarter and a $0.04 apiece loss for the year.

The Mexico-focused company reported net income of $23.9-million, or $0.14 per basic share, for the prior year.

Its adjusted earnings a share came to $0.09 apiece for the year, on the back of adjusted net income of $16.4-million.

Argonaut produced 51 658 gold-equivalent ounces (GEO) in the fourth quarter last year, bringing total yearly production to 165 117 GEO.

CEO and president Pete Dougherty said in a statement on Wednesday that the company challenged itself early in 2017 to achieve 65% production growth between 2017 and 2019.

“With our record fourth quarter in 2018 leading to a record year for the company in terms of production, we are well on our way to achieving this objective.  During 2018, we surpassed the significant milestone of over one-million GEOs produced since Argonaut's founding, a testament to our commitment to health and safety, our people, our communities and our environment. 

“Our quarterly cash flows were impacted by timing of gold sales, as well as the previously disclosed Republic Metals Corporation bankruptcy filing.  Our main focus during 2019 will be expanding the San Agustin mine's crushing capacity and adding cash to the balance sheet through free cash flow generation by our operations, while continuing to de-risk and advance our development assets."

COO Bill Zisch was confident that the company would produce more than 200 000 GEO in 2019. The guidance has been set between 200 000 GEO and 215 000 GEO, with a cash cost between $775/GEO and $875/GEO.

The company planned to invest between $50-million and $60-million on capital expenditure and exploration initiatives in 2019, including about $27-million at the El Castillo complex, about $14-million at the La Colorada mine and about $10-million at its development assets.

These plans include construction of the La Victoria lead pad Phase 2, expansion of the San Agustin crushing and stacking system from 20 000 t/d to 30 000 t/d and construction of the Phase 3 leach pad expansion, at El Castillo mine.

At La Colarada, the company wants to construct leach pad phases 4A and 4B and upgrade the strip plant.

At Magino, Argonaut will complete the provincial environmental assessment process, advance its construction permit, mine closure plan and schedule 2 authorisations, while advancing detailed design and engineering.

Further, Argonaut will complete a prefeasibility study at Cerro del Gallo and advance environmental permitting at San Antonio.