Argonaut Gold's Projected 2015 Cash Costs Exceed Expectations: CIBC

Thursday January 08, 2014 11:46 AM

After Argonaut Gold Inc. (TSX:AR) released strong 2014 production results, Canadian bank CIBC likes what they see with the company’s cash cost guidance for 2015. Argonaut’s 2014 production results exceeded their revised guidance of 130,000 to 135,000 gold equivalent ounces, totaling over 136,000 ounces. “In addition to its operating results, Argonaut also announced its 2015 guidance, which we would characterize as broadly in line with expectations,” CIBC says. “Production guidance of 135,000-140,000 gold equivalent ounces was below our estimate of 153,000 gold equivalent ounces, but cash cost guidance of $700-$750 per ounce was better than our expectation of roughly $800 per ounce.” CIBC also highlighted Argonaut’s La Colorada mine’s improved performance of late and expects continued success into 2015.

By Alex Létourneau of Kitco News aletourneau@kitco.com