Argonaut Gold plummets as Magino project's costs jump 57%, CEO departs

Argonaut Gold

14/12/2021 18:12

** Shares of Argonaut Gold Inc  AR.TO  plunge as much as
27.07% to C$2.29, the lowest in over nine months
    ** AR raises construction capital estimate for Magino
project in Ontario by ~57% to C$800 mln ($622.52 mln)
 urn:newsml:reuters.com:*:nCNWVBNv5a
    ** Co says it expects through Dec.31 ~C$342 mln would have
been invested into Magino, leaving ~C$459 mln remaining to be
invested
    ** "While the Project (Magino) has experienced capital
increases in several areas, the largest increases have been
related to cost increases, inflation and COVID-19 impacts" -
Argonaut Gold 
    ** Co estimates impacts from cost increases, inflation and
COVID-19 account for ~32% of the capital increase
    ** Co also says Pete Dougherty has ceased to be the
president and CEO of AR effective immediately
    ** AR has started a search to replace these roles and is
working in real time to put interim leadership in place
    ** AR is down ~15% so far this year


($1 = 1.2851 Canadian dollars)

 (Reporting by Arunima Kumar in Bengaluru)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94))