Argonaut Gold (AR.TO) has updated the market with their plans for 2013. The company plans to produce between 120,000 and 140,000 ounces of gold from their two Mexican mines. Cash costs are slowly edging up and are expected to come in around $650/oz.
As Argonaut plans to spend between $57M and $75M on in capex, their free cash flow will be approximately $40-50M for this year.
We will be keeping an eye on Argonaut Gold as they acquired Prodigy Gold for their Magino-project, which we think is one of the most promising North American advanced exploration assets. In excess of 89,000 meter of drilling has been completed on Magino, and we are looking forward to a resource update and an updated PEA later this year.
Disclosure: The author holds a long position in Argonaut Gold Inc. after the buyout of Prodigy Gold Inc. Please see our disclaimer for current positions.
