ARNGF - Argonaut Gold: More Share Dilution To Start The Year
- Argonaut Gold released its FY2022 guidance last week, announcing that gold-equivalent ounce production was expected to come in at 200,000 to 230,000 ounces at $1,415/oz to $1,525/oz.
- These costs were well below my estimates, and all-in sustaining costs at Magino have also been revised higher in the most recent technical report.
- As I noted last year, Magino's cost estimates were too ambitious, and this means that Argonaut no longer has a path to being a low-cost miner on a consolidated basis.
- Given the funding shortfall that remains in place and the dampened investment outlook, I believe there are far more attractive ways to play the sector elsewhere.
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Argonaut Gold: More Share Dilution To Start The Year