Transformation Strategy

Argonaut's vision and strategy for the next few years is to transition our production and cost profile while minimizing equity dilution, through the sustainable growth and replacement of ounces. While continuing to focus on building our balance sheet and de-risking our development assets, our strategy for maximizing our cost efficiencies and profitability will put Argonaut in a solid position to transform from a high-cost producer, to a low-cost intermediate producer. Our transformation strategy is illustrated below:

Argonaut's Transformation Strategy

Executing Our Strategy - Our 3-Phase Approach

Executing on our transformation is outlined by our 3-Phase Approach below:

2021 Guidance

The Company anticipates it will produce between 210,000 and 250,000 GEOs during 2021 at a cash cost of between $950 and $1,050 per gold ounce sold and an all-in sustaining cost (“AISC”) of between $1,250 and $1,350 per gold ounce sold (see “Non-IFRS Measures” section).

Consolidated 2021 GEO Production and Cost Guidance

Placeholder Table Head Placeholder Table Head Consolidated
GEO Production   (1) In 000s 210 - 250
Cash costs (2)(3) $ per oz/Au 950 - 1,050
AISC (2)(3) $ per oz/Au 1,250 - 1,350

(1) GEOs are based on a conversion ratio of 80:1 silver to gold for 2020 and 85:1 for 2021. The silver to gold ratio is based on the three-year trailing average silver to gold ratio.
(2) Assumes exchanges rates of MXN:USD of 20:1 and CAD:USD of 1.3:1.
(3) Please refer to section "Non-IFRS Measures" here

2021 Capital Guidance ($M)(1)

The Company plans to invest between $255 million and $275 million in capital expenditures during 2021 with approximately 80% being expansionary capital (primarily for the construction of the Magino Gold mine) and 20% being sustaining capital.

(1) Assumes exchanges rates of MXN:USD of 20:1 and CAD:USD of 1.3:1.