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:

2022 Guidance

The Company anticipates it will produce between 200,000 and 230,000 GEOs during 2022 at a cash cost of between $1,100 and $1,190 per gold ounce sold and an all-in sustaining cost (“AISC”) of between $1,415 and $1,525 per gold ounce sold (see “Non-IFRS Measures” section).

Consolidated 2022 GEO Production and Cost Guidance

Placeholder Table Head Placeholder Table Head Consolidated
GEO Production   (1) In 000s 200 - 230
Cash costs (2)(3) $ per oz/Au 1,100 - 1,190
AISC (2)(3) $ per oz/Au 1,415 - 1,525

(1) GEOs are based on a conversion ratio of 85:1 silver to gold. 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