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 of 300k to 500k ounces per year.

2020 Focus & Goals

Argonaut's 2020 Focus

2020 Guidance

The Company anticipates it will produce between 160,000 to 175,000 GEOs1 during 2020 at a cash cost2 of between $900 to $1,000 per gold ounce sold and all-in sustaining costs (“AISC”)2 of between $1,150 to $1,250 per gold ounce sold.

2020 GEO Production and Cost Guidance

Placeholder Table Head Placeholder Table Head Consolidated
GEO Production   (1) In 000s 175-185
Cash costs (2)(3) $ per oz/Au 900 - 1,000
AISC (2)(3) $ per oz/Au 1,150 - 1,250

(1) GEO is based on a conversion ratio of 80:1 for silver to gold ounces for 2020. The conversion ratios are based on three year trailing average silver to gold exchange ratio.
(2) Assumes a MXN:USD exchange rate of 18.5:1.
(3) Please refer to section "Non-IFRS Measures" here

The Company plans to invest $40 to $45 million in capital expenditures during 2020.

2020 Capital Estimate ($M)(1)

Actual capital spend 3 Months Ended MARCH 31, 2020 2020 Remaining Estimate Total CAPITAL Estimate
-- $40M - $45M

(1) Assumes exchanges rates of MXN:USD of 18.5:1 and CAD:USD of 1.3:1.