ARNGF - Argonaut Gold plunges as Q4 loss grows costs rise at Magino project
Argonaut Gold ( OTCPK:ARNGF ) -19.8% in Monday's trading after reporting a wider Q4 loss and weaker revenues hurt by declining gold sales and higher costs.
Argonaut ( OTCPK:ARNGF ) said its Q4 net loss grew to $174.9M from a $37.3M loss in the year-earlier quarter, and Q4 revenues fell 6.8% Y/Y to $95.9M million as production sank 31% to 42,510 gold equivalent oz and sales slumped 9.4% to 51,615 gold equivalent oz.
For FY 2023, Argonaut ( OTCPK:ARNGF ) guided for production of 200K-230K gold equivalent oz, after FY 2022 production came in at 203,155 gold equivalent oz.
Argonaut ( OTCPK:ARNGF ) coped with many challenges in 2022, CFO David Ponczoch said on the post-earnings conference call , citing higher construction costs at its Magino project - which required a large capital raise - and inflationary pressures that weighed on operating results of its low-grade heap leach operations, which led to an impairment of the company's Mexican assets and Florida Canyon mine.
The company has said Magino has the potential to be one of the 10 largest gold mines in Canada, but the project has been weighed by severe cost overruns .
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Argonaut Gold plunges as Q4 loss grows, costs rise at Magino project