Value Microcaps Junior Miners

[checkmate28]

Pounding the Table. AR.T ARNGF Argonaut Gold Announces C$10 Million "Bought Deal" Private Placement of Flow-Through Shares

Shares trading $3.06 Flow through at $3.86 25% Premium

Coming off some poor operations decisions in 2019, they were in the penalty box.

2020 Argonaut has made some good moves. They're transitioning from a mediocre cost producer to a low cost 300K - 350 OPY producer and than to 500k as they get underground at Magino. Its this Im speculating on.

Getting the permit to move forward with Magino was huge. Then the merge with Alio was another brilliant move, esp since they just broomed the Former Alio Ana Paula project for about $40M and royalty. This means AR got the Florida Canyon mine for less than $20M. Florida is about 80k OPY and has

Mine site after-tax free cash flow ("FCF") of approximately:
$216 million at $1,500 gold;
$326 million at $1,700 gold;
$491 million at $2,000 gold

Value proposition, Backing out the roughly $170M cash balance gives them an EV of about $500M US. The cash gives them a path to financing Magino and a guaranteed news flow. Cant be another good jurisdiction Mid tier out there that compares in value. Going to clarify these numbers with company next week.



Analyst Avg 12 mth target is $4.65 ARNGF. Compare to $6.13 for AR.T

6 Wall Street analysts have issued ratings and price targets for Argonaut Gold in the last 12 months. Their average twelve-month price target is $4.65, predicting that the stock has a possible upside of 100.00%. The high price target for ARNGF is $6.25 and the low price target for ARNGF is $3.00. There are currently 6 buy ratings for the stock, resulting in a consensus rating of "Buy."

That makes the Canadian avg for AR.T at $6.13

https://www.marketbeat.com/stocks/OTCMKTS/ARNGF/price-target/



Looking for brisk news flow. Lots of drill results, stacking cash and a production decision for Magino.


Utube below About 30Days old and before the Ana Paula sale. For the long term future mgt is suggesting here, that if the underground drilling proves to be like KL Island Gold next door, 18:00 - 19:00 they could be producing 325 and 350K low cost oz/yr from Magino alone with a long mine life. 38:00 - 39:00 you can see clearly the shared border with Island Gold above and below ground.

Just sharing my DD Here
CM28