06:28 AM EDT, 05/16/2024 (MT Newswires) -- Argonaut Gold ( ARNGF ) , which is in the process of being bought over by Alamos Gold ( AGI ) , overnight Wednesday reported that it widened its first-quarter adjusted net loss year over year.

First-quarter adjusted net loss came in at US$30.1 million, or a loss of US$0.03 per share, widening from a loss of US$5.1 million, or a loss of US$0.01 per share. The result missed the S&P Capital IQ consensus normalized EPS estimate of US$0 for the quarter.

Net loss from continuing operations also widened to US$333.8 million, or a loss of US$0.31 per share, from a loss of US$5.0 million, or nil per share. The larger loss was attributed to an impairment recorded for the Magino mine, higher income tax expense and higher net finance expense.

The definitive agreement Argonaut entered into with Alamos resulted in a number of significant changes to the presentation of the financial statements and expenses. The statements reflect three major changes related to the Transaction.

As part of the deal, Alamos will acquire Argonaut's Magino mine. Argonaut's assets in the U.S. and Mexico will also be spun out to its existing shareholders within a newly created junior gold producer.

"At our flagship Magino Mine, ramp up of mining and milling activities during the first quarter of the year proceeded at a slower rate than planned. Mining rates were lower than planned due to low loader availability. However, mining rates are improving, as expected with a second PC3000 shovel commissioned in late April, which has resulted in mining rates of 65,000 tonnes per day during the first part of May. Mill throughput rates on a tonne per operating hour basis were largely in line with nameplate rates, however plant availability was low due to a number of significant unplanned downtime events. A specialist team was brought in to assist the mill maintenance team to make the necessary repairs and optimizations to the plant. That work is expected to be completed by the end of the second quarter, which should put the mill on track to achieve nameplate capacity in the second half of the year.

"During the quarter, Florida Canyon delivered strong production while securing the required permits to construct Phase III of the South Heap Leach Pad which is expected to be completed in the third quarter 2024. The company expects to publish a NI 43-101 Technical Report in the second quarter 2024 which incorporates the 2023 exploration results and updates to the operating plan.

"The agreement with Alamos provides a unique opportunity to place Magino in the hands of a company with stronger financial capacity to complete the ramp up and optimization of Magino. Ultimately, this decision provides long-term upside potential for all stakeholders," stated Richard Young, President and CEO of Argonaut Gold ( ARNGF )