TORONTO, Nov. 3, 2022 /CNW/ - Argonaut Gold Inc. (TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased to announce today its operating and financial results for the third quarter ended September 30, 2022. For the third quarter 2022, the Company reports production of 45,939 gold equivalent ounces ("GEO" or "GEOs"2), revenue of $75.3 million, cash flow from operating activities before changes in non-cash working capital and other items of $13.6 million, net loss of $1.3 million or loss per share of $0.00, and adjusted net loss3 of $0.2 million or adjusted loss per share3 of $0.00. All dollar amounts are expressed in United States dollars, unless otherwise specified (C$ refers to Canadian dollars).


1 "Cash Flow" refers to "Cash flow from operating activities before changes in non-cash operating working capital and other items".

2 GEOs are based on a conversion ratio of 80:1 for silver to gold for 2022 and 85:1 for 2021. The silver to gold conversion ratio is based on the three-year trailing average silver to gold ratios. These are the referenced ratios for each year throughout this press release.

3 This is a Non-IFRS Measure. Please refer to the section entitled "Non-IFRS Measures" for a discussion of these Non-IFRS Measures.


"We made significant progress on the completion and construction of the Magino Project. We remain focused on the long-term strategic objective to generate increasing cash flow through low-cost production growth. Magino is a key driver of our future growth with a production potential of 142,000
ounces per year for the first five years of production at significantly lower life-of-mine cash costs3 of approximately $907 per ounce," said Larry Radford, Argonaut President and CEO.

"Year-to-date, our production results are in-line with our expectations. We had a challenging third quarter at our La Colorada and Florida Canyon mines that was mostly offset by the consistent performance of our El Castillo Complex. The challenge at these two mines were due to the block model performance and seasonal rains at La Colorada that are expected but were heavier than normal. With infill programs ongoing in support of revised block models, we expect improved reconciliations in the future."

Q3 2022 and RECENT HIGHLIGHTS
Corporate Highlights
Produced 45,939 gold equivalent ounces;
Delivered cash flow before changes in working capital and other items of $13.6 million;
Following due diligence by the banking syndicate and meeting the conditions precedent, closed a $250 million debt facility;
Closed the sale of a 2% net smelter returns royalty agreement on Magino with Franco-Nevada Corporation ("Franco-Nevada") for proceeds of US$52.5 million;
Completed a $10 million equity private placement with Franco-Nevada;
Argonaut has entered into gold price protection through forward gold contracts
Beginning in Q3 2023, 25,000 gold ounces per quarter at $1,860 per ounce for the first six quarters; and
15,000 gold ounces per quarter at $1,860 per gold ounce and 10,000 gold ounces per quarter at $1,763 per gold ounce for the next 10 quarters starting in Q1 2025;

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