The Argonaut Gold (AR.to) 1q15 results NR this morning starts by screaming the following headline:
Argonaut Gold Announces First Quarter 2015
Revenue of $51.0 M; Cash Balance Builds to $64.0 M
Tooty toot toot toot, so let’s remember the first rule of the parallel universe that is mining company news releases, that they always contain the absolute best spin possible on the event or issue in question. In this case, if AR.to only has a revs number and a cash balance to boast about things can’t be very good. In fact, it all gets a bit too much when CEO Pete Dougherty* wobbles on with the same schtik later…
“Argonaut achieved tremendous operating results during the first quarter of 2015. In addition to a strong quarter of production, we added $13 million to our cash balance…”
…so let’s lay this cash thing to bed right now. Here’s the current assets section of the AR.to 1q15 balance sheet:
Seriously, what’s the big freakin’ fuss? I’m quite sure they’re not going to blast “HEY LOOK EVERYBODY! WE MOVED OUR CURRENT ASSETS POSITION UP THREE HUNDRED AND FIFTY-THREE THOUSAND DOLLARS!” to the world in the same manner, but when push comes to shove that’s what they’re doing here.
This type of style over substance bullshit from AR.to is precisely how this sector got into the trouble it’s in today. Mediocre management whistling past graveyards and fakey faking that everythings’s gonna be all right.
*Say hi to Kate Moss for me next time, Pete