Canadian gold company Argonaut Gold, which operates the La Colorada mine in Sonora, Mexico, reported a record quarterly gold production of 59,704 equivalent ounces (oz) and record quarterly revenue of $105.3 million, an increase of $66.6 million compared to the first quarter of 2020.
During the first quarter of 2021, the miner sold 56,727 oz of gold at an average realized price of $1,761/oz, compared to 40,169 oz of gold sold at an average price of $1,585/oz for the same period in 2020.
In addition, ounces sold for the first quarter of 2021 increased 41% compared to the same period in 2020. This was mainly due to higher grades and better than expected recoveries in La Colorada, which led to higher production and sales, according to the company.
“It was our second consecutive quarter of record quarterly production and revenue,” President and CEO Pete Dougherty, said. “We demonstrated strong cash flow during the first quarter, which underpins our strategy to harvest cash from the existing operations, replace depleted ounces and invest in our growth asset portfolio to transform Argonaut from a high-cost, junior producer with short mine lives to a lower cost intermediate producer with long mine lives.”
According to Argonaut Gold, La Colorada reported a reduction in cash cost per ounce of gold sold to $765 or 25% compared to the first quarter of 2020.
