ARNGF - Argonaut Gold: Turnaround Thesis In Early Innings

• Argonaut Gold released its Q3 results last week and reported quarterly production of 49,000 gold-equivalent ounces, continuing to track below its FY2020 production guidance.
• However, the weak results were largely due to a cessation of mining activities in Q2 related to the government-mandated shutdowns due to COVID-19.
• The good news in Q3 was that Argonaut has announced a positive construction decision at Magino, and we should see improved operating results going forward at the company's operations.
• Based on an attractive valuation relative to peers on a per ounce basis, I would view any pullbacks below US$1.60 as speculative buying opportunities.

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