Argonaut Gold ups net income in Q3 as gold production jumps 20%
(Kitco News) - Argonaut Gold (TSX: AR) announced today that the company produced 58,777 gold equivalent ounces in Q3 2021, an increase of 20% compared to Q3 2020.
The company explained that higher production was primarily related to the increased production from all Mexican operations, higher gold grade and operational and productivity improvements at the Florida Canyon mine following its acquisition on July 1, 2020 and higher gold grade at the La Colorada mine.
Revenue for the third quarter of 2021 was $108.6 million, an increase from $94.4 million for the three months ended 2020.
Net income for the third quarter of 2021 was $15.0 million or earnings per basic share of $0.05, relatively in line with net income of $13.4 million or earnings per basic share of $0.05 for the third quarter of 2020, representing a 12% increase in net income.
Cash flows from operating activities before changes in non-cash operating working capital and other items totaled $39.6 million during the third quarter of 2021, an increase from $29.0 million in the third quarter of 2020, representing a 37% increase.
The company said that this generation of cash flow is key for the company, as it continues to re-invest into the growth and diversification of the business through the construction of the Magino project in Ontario, Canada.
President and CEO Pete Dougherty added, "With $107 million of cash flow generated through the first nine months of the year, we have already surpassed our target of generating $100 million in cash flow in 2021. Overall, it was a tremendous financial quarter with a 12% increase in net income and an 43% increase in adjusted net income year-over-year."
Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production. Its primary assets are the El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico, the La Colorada mine in Sonora, Mexico and the Florida Canyon mine in Nevada, USA.
The company also holds the construction stage Magino project, the advanced exploration stage Cerro del Gallo project and several other exploration stage projects, all of which are located in North America.
By Vladimir BasovFor Kitco News
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