Take physic, pomp

Harry Potter and The…no, wait…Argonaut Gold and The Magino Capex

It’s the mining world’s fictional franchise: Set in a mythical land where nothing is as it seems, the never-ending adventures of Argonaut Gold are full of trickery, come in multiple parts and feature lead protagonists who can move in and out of the realms of reality at will:

  • In October 2020, Argonaut Gold (AR.to) greenlighted Magino, with capex estimated between C$480m and C$510m
  • At end 2020 when announcing the EPCM with Ausenco, that figure was confirmed
  • In May 2021, AR told us capex “remains within 15% of the previous guided estimate”
  • In August 2021, that 15% overrun was “in jeopardy”
  • In December 2021, we got the large bucket of ice-cold water and the new capex estimate, C$800m
  • And tonight, May 11th 2022, AR tells usthe updated EAC (estimated cost to completion) is likely to be approximately 15% higher than the previously reported EAC of C$800 million“.

So tune in for the next part of this gripping saga, as the Project That Dare Not Speak Its Name tries for The Billion…coming soon.

P.S: Who remembers this jewel from the December 14th NR that announced the capex hike to C$800m? “…the Company believes the risk of further significant increases to the EAC are low with a significant contingency in place.” Hocus Pocus!


    IAMGOLD: “Hold my beer”.


    […] inflation is running rife” spiel from the idiots in charge of mining companies, please? While last night’s post on Argonaut Gold (AR.to) tried to inject some (gallows) humour into the dog’s dinner at Magino, the market reaction […]


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