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 us “the 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!