ARNGF - Argonaut Gold: A Very Reasonable Valuation For An Organic Growth Story

• Argonaut Gold released its Q4 and FY2020 results last week, reporting a new quarterly record for gold-equivalent ounce production.
• This sharp increase in production combined with higher metal prices translated to 19% revenue growth year-over-year.
• While Argonaut continues to be an unattractive high-cost producer with FY2021 guidance forecasting costs of $1,300/oz, the story going forward is Magino which provides significant organic growth.
• At a current market cap of ~$494 million, the stock looks very reasonably valued here at just ~$92.00/oz, so I see the stock as a Speculative Buy here at US$1.63.

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