Welcome!

.NET Authors: Lori MacVittie, Yeshim Deniz, Ivan Antsipau, Liz McMillan, Michael Bushong

News Feed Item

Argonaut Gold Announces Third Quarter 2012 Revenue of $72.9 Million and Net Income of $27.2 Million

Earnings Per Basic Share of $0.29

TORONTO, ONTARIO -- (Marketwire) -- 11/14/12 -- Argonaut Gold Inc. (TSX:AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased to announce its financial and operating results for the third quarter ended September 30, 2012. All dollar amounts are expressed in United States dollars unless otherwise specified.

THIRD QUARTER 2012 & RECENT HIGHLIGHTS


Financials                                                                  

--  Revenue of $72.9 million ($22.7 million in Q3 2011). 
--  Net income of $27.2 million, $0.29 per basic share. 
--  Cash flows from operating activities of $36.5 million. 
--  Cash on hand was $42.8 million at September 30, 2012. 
--  Repayment of $6 million debt and the Company is now debt free. 

Gold Production and Cost                                                    

--  Ounces loaded to pads: 53,906 gold ounces. 
    --  El Castillo: 41,630 ounces (39% increase from Q3 2011). 
    --  La Colorada: 12,276 gold ounces and 1,164,742 silver ounces. 
--  Production of 31,074 gold ounces in the third quarter of 2012. 
    --  El Castillo: 24,575 gold ounces. 
    --  La Colorada: 6,499 gold ounces and 41,937 silver ounces. 
--  Cash cost per gold ounce sold - $577 (Year to date $601). 

Operational Improvements:                                                   

--  Capital expenditures of $8.8 million on mineral properties, plant and
    equipment. 
--  El Castillo 
    --  Conveying and stacking system on the East Side Pad was fully
        functional during the third quarter 
    --  West Side Pad 8 permit granted, with pad construction to be
        commenced in fourth quarter 
    --  Land agreement signed extending term for an additional 10 year
        period 
--  La Colorada 
    --  Explosives permit received to begin full scale mining in 2013 
    --  Phase 2 pad construction is one-third complete 
    --  Refining facility completed; now handling all materials from El
        Castillo and La Colorada 
    --  During Q3 of 2012, overburden removal commenced to prepare for fresh
        ore mining 

Exploration                                                                 

--  Signed letter of intent with Bravada Gold Corp. for the Wind Mountain
    Project in Nevada; the project aligns with jurisdictional focus, low
    entry risk, reasonable acquisition cost of $30/ounce and good
    exploration potential on the project. 

This press release should be read in conjunction with the Company's unaudited interim condensed consolidated financial statements for the third quarter ended September 30, 2012 and associated management's discussion and analysis ("MD&A") which are available from the Company's website, www.argonautgold.com, in the "Investors" section under "Financial Filings", and under the Company's profile on SEDAR at www.sedar.com.


                                                                            
                            Three months           Nine months ended        
                      ended September 30,              September 30,        
Financials                   2012    2011 Change        2012    2011 Change 
----------------------------------------------------------------------------
Revenue ($ millions)      $  72.9 $  22.7   +221%   $  134.8 $  70.0    +92%
Net income ($                                                               
 millions)                $  27.2 $   6.0   +360%   $   45.8 $  17.1   +170%
Income per share -                                                          
 basic                    $  0.29 $  0.07   +329%   $   0.49 $  0.20   +150%
Income per share -                                                          
 diluted                  $  0.26 $  0.06   +333%   $   0.44 $  0.19   +132%
Cash flow from                                                              
 operating activities                                                       
 ($ millions)             $  36.5 $   7.7   +374%   $   49.6 $  19.4   +156%
Gold ounces sold           42,534  13,260   +221%     80,279  46,052    +74%
Gold ounces produced       31,074  16,884    +84%     76,081  52,351    +45%
Average realized gold                                                       
 sales price              $ 1,666 $ 1,707     -2%   $  1,649 $ 1,517     +9%
Overall Cash cost per                                                       
 gold ounce sold          $   577 $   628     -8%   $    601 $   597     +1%

Financial Results - Third Quarter 2012

During the third quarter of 2012, revenue was $72.9 million from gold sales of 42,534 ounces compared to $22.7 million from sales of 13,260 ounces in the third quarter of 2011. Cost of sales was $34.8 million for the quarter compared to $10.8 million for the third quarter of 2011. Cash cost per gold ounce sold was $577 compared to $628 in the same period of 2011. (Cash cost per gold ounce sold is a non-IFRS measure, see note below).

During the third quarter of 2012, gross profit was $38.0 million compared to $11.9 million gross profit in the third quarter of 2011. During the quarter, profit from operations was $35.7 million compared to $10.4 million for 2011. Net income for the quarter was $26.2 million or $0.29 per basic share versus $6.0 million or $0.07 per basic share in 2011.

Cash on hand increased from $21.4 million at June 30, 2012 to $42.8 million. Capital expenditures in the third quarter were $8.8 million primarily as a result of expanding operations at the El Castillo and La Colorada mines. The 2012 capital expenditures and exploration programs for Argonaut Gold includes $47-$50 million at El Castillo, La Colorada and San Antonio which includes pre-production stripping at La Colorada of approximately $3-4 million. Cash flow from operations was $36.5 million during the quarter, compared to $7.7 million for the third quarter of 2011.

CEO Commentary

Mr. Pete Dougherty, Argonaut's President and CEO states: "The Company saw both record gold production as well as record gold sales during the third quarter. The record sales during the third quarter provided a nice boost in earnings for our shareholders and allowed us to repay a $6 million short term debt note. The increase in production is the result of higher grade than that anticipated by the mine plan grade, commissioning of the west side pad and realizing the full benefits of the new stacking and conveying system at El Castillo."

In commenting on the recent announcement regarding the acquisition of Prodigy Gold, Mr. Dougherty added: "Argonaut Gold was created with the idea of building a company that would produce between 300,000-500,000 ounces of gold annually. With the pending addition of the Magino mine in Ontario, we will have the gold resources available to achieve our vision to continue the creation of a gold mining company with a high leverage to gold resources, low capital entry point, low operational costs and a stream of projects that contain hidden value drivers. Execution of that vision will be the result of the Argonaut employees striving to obtain greater results every day, as they have previously demonstrated, since we have been in operation."


El Castillo Operating Statistics                                            
                                    3 Months Ended           9 Months Ended 
                                     September 30,            September 30, 
                                                 %                        % 
                              2012    2011  Change     2012    2011  Change 
                           ------- ------- -------- ------- ------- --------
Mining (000s)                                                               
--------------------------                                                  
Total tonnes mined           6,355   4,842     +31%  17,358  14,572     +19%
Tonnes ore mined             3,083   2,908      +6%   8,640   8,233      +5%
Heap Leach Pad (000s)                                                       
--------------------------                                                  
Direct ore tonnes to pad     1,811   2,283     -21%   5,528   6,016      -8%
Crushed ore tonnes to pad    1,270     613    +107%   3,273   2,202     +49%
Production                                                                  
--------------------------                                                  
Gold grade (g/t)              0.42    0.32     +38%    0.40    0.33     +19%
Gold loaded to pad (oz)     41,630  29,997     +39% 112,133  87,777     +28%
Gold loaded to carbon (oz)  24,575  16,884     +46%  61,907  52,351     +18%
Gold sold (oz)              33,839  13,260    +155%  66,286  46,052     +44%
(1) "g/t" is grams per tonne                                                
(2) "oz" means ounce                                                        

El Castillo Summary of Production Results

Total tonnes mined in the third quarter 2012 were up 31 percent compared to the third quarter 2011. Of note, there was a 107% increase in crushed tonnes during the third quarter of 2012 over the third quarter of 2011. The total ounces loaded to the pad were 41,630 in the third quarter; a 39% increase over the third quarter of 2011.

The strip ratio of waste to ore was 1.06 compared to a strip ratio of 0.66 in the third quarter of 2011.

2012 production guidance at El Castillo has been increased to 84,000-85,000 ounces with a cash cost between $625 and $650 per gold ounce.


                                                   3 Months                 
                                                    Ended                   
                                                    Q3     Q2      %     YTD
La Colorada Operating Statistics                  2012   2012 Change    2012
                                                ------ ------ ------- ------
Mining (000s)                                                               
-----------------------------------------------                             
Total tonnes moved                               2,708    840   +222%  4,226
Heap Leach Pad (000s)                                                       
-----------------------------------------------                             
Crushed ore tonnes to pad                          848    744    +14%  2,272
Production                                                                  
-----------------------------------------------                             
Gold grade (g/t)                                  0.43   0.43     +0%   0.43
Gold loaded to pad (oz)                         12,276 10,173    +21% 31,335
Gold loaded to carbon (oz)                       6,499  4,590    +42% 14,174
Silver loaded to carbon (oz)                    41,937 25,796    +63% 84,915
Gold sold (oz)                                   8,695  5,298    +64% 13,993
Silver sold (oz)                                52,861  9,748   +442% 62,609
(1) "g/t" is grams per tonne                                                
(2) "oz" means ounce                                                        

La Colorada Summary of Production Results

Approximately three quarters of the Phase 1 material to be reprocessed has been recrushed and restacked for leaching. Construction on pads 8, 10 & 11 has begun and approximately one-third of the pad has been completed. The crusher relocation and enhancements are scheduled for Q4 which has led to production estimates of 3-4,000 ounces of gold. Final crushing circuit expansion is scheduled for early in Q2 of 2013.

Overburden removal began in the third quarter of 2012 with approximately 1.8 million tonnes moved. 2012 production guidance at La Colorada was been increased to 17,000 -18,000 ounces with a cash cost between $625 and $650 per gold ounce.

Looking Forward - 2012:

The Company plans on investing a total of between $48 million to $50 million on capital expenditures and exploration initiatives in 2012.


--  $33-34 million of capital expenditure investments 
    --  El Castillo - Capital expenditures are primarily for expanding West
        heap leach pad capacity and operational improvements including a
        conveying and stacking system. 
    --  La Colorada - Capital expenditures are primarily for new
        infrastructure including crushing, screening and conveying, heap
        leach pad construction, a gold recovery plant and refinery, and
        other infrastructure. Additional expenditures are expected to
        include land acquisition, and permitting. 
    --  San Antonio - Capital expenditures are allocated for engineering and
        environmental studies, land and water rights purchases, permitting
        for the project and infrastructure improvements. 
--  $5 million for La Colorada pre-production stripping costs 
--  $10-11 million exploration program 
    --  El Castillo - 1,400 metre core drilling program to collect
        mineralized sulphide ore for further metallurgical test work. 
    --  La Colorada - 35,000 metre drill program to expand resource areas
        and test multiple exploration targets within the Company's land
        position is in progress. Planned drilling on mine dumps and
        stockpiles was completed during the quarter. The main resource
        targets for 2012 are El Creston and Veta Madre. 
    --  San Antonio - 10,500 metre drill program to test multiple
        exploration targets and complete condemnation drilling in areas of
        planned processing facilities is ongoing. 

Non-IFRS Measures

The Company included the non-IFRS measure "Cash cost per gold ounce sold" in this press release to supplement its financial statements which are presented in accordance with International Financial Reporting Standards ("IFRS"). Cash cost per gold ounce sold is equal to cost of sales less silver sales divided by gold ounces sold. The Company believes that this measure provides investors with an improved ability to evaluate the performance of the Company. Non-IFRS measures do not have any standardized meaning prescribed under IFRS. Therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Please see the MD&A for full disclosure on non-IFRS measures.

Technical Information and Mineral Properties Reports

The technical information contained in this document has been prepared under supervision of, and reviewed and approved by Mr. Thomas H. Burkhart, Argonaut's Vice President of Exploration, and a qualified person as defined by National Instrument 43-101 ("NI 43-101"). For further information on the Company's properties please see the reports as listed below on the Company's website or on www.sedar.com:


----------------------------------------------------------------------------
                          NI 43-101 Technical Report on Resources and       
El Castillo Mine          Reserves, Argonaut Gold Inc., El Castillo Mine,   
                          Durango State, Mexico dated November 6, 2010      
----------------------------------------------------------------------------
                          NI 43-101 Preliminary Economic Assessment La      
La Colorada Property      Colorada Project, Sonora, Mexico dated December   
                          30, 2011                                          
----------------------------------------------------------------------------
                          Technical Report and Mineral Resource Estimate on 
San Antonio Gold Project  the San Antonio Gold Project, Baja California Sur,
                          Mexico dated June 30, 2011                        
----------------------------------------------------------------------------
                          La Fortuna, Durango, Mexico, Technical Report     
La Fortuna Property       dated October 21, 2008                            
----------------------------------------------------------------------------

About Argonaut Gold

Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

Cautionary Note Regarding Forward-looking Statements

This news release contains forward-looking statements that involve risks and uncertainties that could cause results to differ materially from management's current expectations. Actual results may differ materially due to a number of factors. Except as required by law, Argonaut Gold Inc. assumes no obligation to update the forward-looking information contained in this news release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
There will be 50 billion Internet connected devices by 2020. Today, every manufacturer has a propriety protocol and an app. How do we securely integrate these "things" into our lives and businesses in a way that we can easily control and manage? Even better, how do we integrate these "things" so that they control and manage each other so our lives become more convenient or our businesses become more profitable and/or safe? We have heard that the best interface is no interface. In his session at Internet of @ThingsExpo, Chris Matthieu, Co-Founder & CTO at Octoblu, Inc., will discuss how these devices generate enough data to learn our behaviors and simplify/improve our lives. What if we could connect everything to everything? I'm not only talking about connecting things to things but also systems, cloud services, and people. Add in a little machine learning and artificial intelligence and now we have something interesting...
Last week, while in San Francisco, I used the Uber app and service four times. All four experiences were great, although one of the drivers stopped for 30 seconds and then left as I was walking up to the car. He must have realized I was a blogger. None the less, the next car was just a minute away and I suffered no pain. In this article, my colleague, Ved Sen, Global Head, Advisory Services Social, Mobile and Sensors at Cognizant shares his experiences and insights.
We are reaching the end of the beginning with WebRTC and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) irreversibly encoded. In his session at Internet of @ThingsExpo, Peter Dunkley, Technical Director at Acision, will look at how this identity problem can be solved and discuss ways to use existing web identities for real-time communication.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT. Attendees will learn real-world benefits of WebRTC and explore future possibilities, as WebRTC and IoT intersect to improve customer service.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at Internet of @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, will share some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, an Open Source Cloud Communications company that helps the shift from legacy IN/SS7 telco networks to IP-based cloud comms. An early investor in multiple start-ups, he still finds time to code for his companies and contribute to open source projects.
The Internet of Things (IoT) promises to create new business models as significant as those that were inspired by the Internet and the smartphone 20 and 10 years ago. What business, social and practical implications will this phenomenon bring? That's the subject of "Monetizing the Internet of Things: Perspectives from the Front Lines," an e-book released today and available free of charge from Aria Systems, the leading innovator in recurring revenue management.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges.
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines.
All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Erik Lagerway, Co-founder of Hookflash, will walk through the shifting landscape of traditional telephone and voice services to the modern P2P RTC era of OTT cloud assisted services.
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehension and conference efficiency.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, will discuss single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example to explain some of these concepts including when to use different storage models.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace. These technological reforms have not only changed computers and smartphones, but are also changing the data processing model for all information devices. In particular, in the area known as M2M (Machine-To-Machine), there are great expectations that information with a new type of value can be produced using a variety of devices and sensors saving/sharing data via the network and through large-scale cloud-type data processing. This consortium believes that attaching a huge number of devic...
Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies, with a focus on the enterprise, industrial, aerospace, and defense industries. Innodisk is dedicated to serving their customers and business partners. Quality is vitally important when it comes to industrial embedded flash and DRAM storage products. That’s why Innodisk manufactures all of their products in their own purpose-built memory production facility. In fact, they designed and built their production center to maximize manufacturing efficiency and guarantee the highest quality of our products.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. Download Slide Deck: ▸ Here
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital business.
BSQUARE is a global leader of embedded software solutions. We enable smart connected systems at the device level and beyond that millions use every day and provide actionable data solutions for the growing Internet of Things (IoT) market. We empower our world-class customers with our products, services and solutions to achieve innovation and success. For more information, visit www.bsquare.com.
With the iCloud scandal seemingly in its past, Apple announced new iPhones, updates to iPad and MacBook as well as news on OSX Yosemite. Although consumers will have to wait to get their hands on some of that new stuff, what they can get is the latest release of iOS 8 that Apple made available for most in-market iPhones and iPads. Originally announced at WWDC (Apple’s annual developers conference) in June, iOS 8 seems to spearhead Apple’s newfound focus upon greater integration of their products into everyday tasks, cross-platform mobility and self-monitoring. Before you update your device, here is a look at some of the new features and things you may want to consider from a mobile security perspective.