https://www.miningweekly.com
Crushing|Flow|Gold|Mining|Flow|Operations
Crushing|Flow|Gold|Mining|Flow|Operations
crushing|flow-company|gold|mining|flow-industry-term|operations

Argonaut expects significant free cash flow in H2

12th August 2020

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

North American intermediate gold producer Argonaut Gold, which last month closed the acquisition of Alio Gold, is forecasting significant free cash flow in the second half of the year, CEO Pete Dougherty said on Tuesday.

At $1 900/oz, the company would generate between $49-million and $79-million of free cash flow in the six months to December 2020.

“We are in a position to deliver significant free cash flow through the remainder of the year, which bodes well for the execution of our transition strategy of developing our lower-cost, longer-life pipeline of growth assets,” Dougherty said.

Argonaut experienced a large cash increase of $23-million during the second quarter, amid the two-month shutdown of mining, crushing and stacking activities in Mexico, owing to Covid-19 restrictions.

Production decreased sharply, with gold-equivalent ounces (GEOs) falling 22% year-on-year to 31 531. The average realised price achieved, however, rose sharply from $1 303/oz in the second quarter of 2019, to $1 713/oz in the quarter under review.

Dougherty reported that mining, crushing and stacking activities had ramped up well following the temporary shutdown of activities during April and May.

“We are getting the planned tonnes to the leach pads despite the heavy rains experienced recently in Mexico. These rains have the potential to dilute the solution on the leach pads and slow third-quarter recoveries, but any delay in recoveries is expected to be temporary and all operations are functioning to plan.”

The company’s adjusted net income surged 507% to $8.5-million, or $0.05 a share, in the quarter ended June.

Edited by Creamer Media Reporter

Comments

Showroom

Actom image
Actom

Your one-stop global energy-solution partner

VISIT SHOWROOM 
Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.1 0.132s - 93pq - 2rq
Subscribe Now