Today's most interesting research report is the piece written by Michael Parkin of Desjardins on Argonaut Gold (AR.to). Here's how it kicks off:
The Desjardins Takeaway
Through channel checks, we came across a new LOM plan for El Castillo published recently by Argonaut which calls for production to fall by ~50% in 2017. Based on our revised estimates, we believe the company can produce nearly 95koz next year on a total basis, down ~30% yoy (consensus is currently at 125koz for 2017). We view the San Agustin update from April 29 as positive, but believe the nearer-term negative outlook will overshadow the update. We are downgrading Argonaut to Sell from Buy.