Argonaut Gold Inc. reported consolidated earnings and production results for the first quarter ended March 31, 2013. For the quarter, the company reported revenue of $43,080,000 compared to $24,353,000 a year ago. Net income was $11,615,000 or $0.08 per basic share compared to $7,260,000 or $0.08 per basic share a year ago. Cash flow from operating activities before changes in non--cash operating working capital and other items was $19,351,000 compared to $8,141,000 a year ago. Capital expenditures of $18.8 million on mineral properties, plant and equipment primarily as a result of infrastructure improvements at the El Castillo and La Colorada mines. For the quarter, the company produced gold of 28,907 ounces compared to 20,884 ounces a year ago. The 2013 production guidance at El Castillo is expected to be between 90,000-100,000 ounces with a cash cost between $700 and $725 per gold ounce sold. The 2013 production guidance at La Colorada is between 30,000-40,000 ounces, back loaded to the second half of the year, with a cash cost between $450 and $475 per gold ounce sold. The company plans on investing a total of between $64 million to $74 million on capital expenditures and exploration initiatives in 2013. Major capital expenditures in 2013 are expected to include approximately $25 million at El Castillo, $19 million at La Colorada, $6 million at Magino, between $5 million and $11 million at San Antonio and between $2 million and $3 million for other capital expenditures. Exploration expenditures in 2013 are expected to amount to between $7 million and $10 million. Capital expenditures and exploration program for the remainder of the year looks to be in the $45 million to $55 million range, pending approval of some of the projects.

Argonaut Gold Inc. announced production results for the first quarter ended March 31, 2013. The company had gold production of 28,907 ounces during the first quarter ended March 31, 2013. This included 23,125 ounces at its 100% owned El Castillo Mine (El Castillo) located in Durango, Mexico and 5,782 ounces of gold at its 100% owned La Colorada Mine (La Colorada) located in Hermosillo, Mexico. 36,023 gold ounces loaded on the pad, a 2% improvement over first quarter 2012. Production of 44,879 silver ounces, a 161% improvement over first quarter 2012. 3,763 gold ounces and 70,694 silver ounces loaded on the pad.

Argonaut Gold Inc., Q1 2013 Earnings Call, May 14, 2013