Latest news with #Amerigo
Toronto Star
6 days ago
- Business
- Toronto Star
Amerigo Provides Update on MVC Operations
Processing of fresh tailings temporarily suspended Historic tailings continue to be processed Impact on annual production will depend on the timing of normalization of operations VANCOUVER, British Columbia, Aug. 06, 2025 (GLOBE NEWSWIRE) — Amerigo Resources Ltd. (TSX: ARG; OTCQX: ARREF) ('Amerigo' or the 'Company') provides an operational update on Minera Valle Central ('MVC'), the Company's 100% owned operation located near Rancagua, Chile.
Yahoo
30-07-2025
- Business
- Yahoo
Amerigo Announces Q2-2025 Results & Quarterly Dividend
Q2-2025 Net Income of $7.5 million Robust EBITDA1 of $17.8 million and Free Cash Flow to Equity1 of $6.5 million 16th Consecutive Quarterly Dividend of Cdn$0.03 Declared $7.6 million Returned through Dividends and Share Buybacks in Q2-2025 VANCOUVER, British Columbia, July 30, 2025 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. (TSX: ARG; OTCQX: ARREF) ('Amerigo' or the 'Company') is pleased to announce a strong financial performance for the three months ended June 30, 2025 ('Q2-2025'). Dollar amounts in this news release are in U.S. dollars unless indicated otherwise. Amerigo's Q2-2025 financial results included net income of $7.5 million, earnings per share ('EPS') of $0.05, EBITDA1 of $17.8 million, operating cash flow from operations before changes in non-cash working capital1 of $11.9 million and free cash flow to equity1 of $6.5 million. In Q2-2025, Amerigo returned $3.5 million to shareholders through its quarterly dividend of Cdn$0.03 per share and $4.0 million from the purchase and cancellation of 3.1 million common shares through a Normal Course Issuer Bid ('NCIB'). 'We are pleased to report strong financial results for the second quarter of 2025. Our operation, Minera Valle Central ('MVC'), once again met its production, cash cost1 and safety targets. Building upon those achievements, Amerigo is on track to meet annual guidance and be debt-free by year-end,' said Aurora Davidson, Amerigo's President and CEO. 'On the back of MVC's stellar operational performance and rising copper prices, Amerigo continues to rapidly return capital to shareholders under the Company's well-established Capital Return Strategy. In Q2-2025 alone, Amerigo bought and cancelled 3.1 million shares under its Normal Course Issuer Bid and paid its fifteenth consecutive quarterly dividend. In the first half of the year, the Company's free cash flow to equity1 was $11.3 million, and $12.1 million was returned to shareholders,' she added. 'We continue to expect strong, long-term copper demand around the world. Supportive fundamentals remain in place, despite trade tensions and the tariff-induced short-term logistical repositioning of significant copper cathode stocks to the United States. This repositioning has created a historical price arbitrage between the Comex and LME markets, which we believe will be resolved over time, albeit with continued upward pressure on copper prices. 1 This is a non-IFRS measure. See 'Non-IFRS Measures' for further information. In this macro setting, we believe that Amerigo's unique business model, which produces copper without a mine and avoids traditional mining and exploration risks, will continue to shine. With minimal debt and a significant, consistent return of capital to shareholders, Amerigo provides a clean and unencumbered exposure to the rising copper prices that we expect will continue,' Ms. Davidson added. On July 28, 2025, Amerigo's Board of Directors declared its sixteenth consecutive quarterly dividend. The dividend will be in the amount of Cdn$0.03 per share, payable on September 19, 2025, to shareholders of record as of August 29, 20253. Amerigo designates the entire amount of this taxable dividend to be an 'eligible dividend' for purposes of the Income Tax Act (Canada), as amended from time to time. Based on Amerigo's June 30, 2025, share closing price of Cdn$2.17, the Cdn$0.03 quarterly dividend declared on July 28, 2025, represents an annual dividend yield of 5.53%. This news release should be read with Amerigo's interim consolidated financial statements and Management's Discussion and Analysis ('MD&A') for Q2-2025, available on the Company's website at and on the SEDAR+ website at Q2-2025 Q2-2024 $ $ MVC's copper price ($/lb)4 4.42 4.39 Revenue ($ millions) 50.8 51.6 Net income ($ millions) 7.5 9.8 EPS ($) 0.05 0.06 EPS (Cdn) 0.06 0.08 EBITDA1 ($ millions) 17.8 22.3 Operating cash flow before changes in non-cash working capital1 ($ millions) 11.9 14.3 FCFE1 ($ millions) 6.5 6.7 June 30, 2025 Dec. 31, 2024 Cash ($ millions) 23.3 35.9 Restricted cash ($ millions) 0.9 4.4 Borrowings ($ millions) 7.0 10.7 Shares outstanding at end of period (millions) 161.5 164.5 Highlights and Significant Items In Q2-2025, Amerigo's posted net income of $7.5 million (Q2-2024: $9.8 million), driven by copper production from MVC of 15.5 million pounds ('M lbs') (Q2-2024: 14.0 M lbs) at an average MVC copper price of $4.42 per pound ('/lb') (Q2-2024: $4.39/lb). In Q2-2024, net income was higher as a result of $6.9 million in positive fair value adjustments to copper revenue receivables from a sharp quarter-on-quarter copper price appreciation (Q2-2025: $0.7 million). EPS in Q2-2025 was $0.05 (Cdn$0.06), compared to $0.06 (Cdn$0.08) in Q2-2024. The Company generated operating cash flow before changes in non-cash working capital1 of $11.9 million in Q2-2025, compared to $14.3 million in Q2-2024. The Company's quarterly net operating cash flow was $6.3 million (Q2-2024: $23.8 million) after changes in working capital in the period, most notably a $9.5 million reduction in current income tax liabilities associated with MVC's final 2024 income tax payment and reductions of $2.1 million in trade and other receivables. Free cash flow to equity1 was $6.5 million in Q2-2025 (Q2-2024: $6.7 million), after debt repayments of $4.0 million (Q2-2024: $4.2 million) and capital expenditures ('Capex') payments of $1.4 million (Q2-2024: $3.4 million). In Q2-2025, Amerigo returned $7.6 million to shareholders (Q2-2024: $3.6 million). This included $3.5 million returned to shareholders through Amerigo's regular quarterly dividend of Cdn$0.03 per share (Q2-2024: $3.6 million or Cdn$0.03 per share) and $4.0 million from the purchase and cancellation of 3.1 million common shares through a NCIB (Q2-2024: $nil). Q2-2025 cash cost1 was $1.82/lb (Q2-2024: $1.96/lb). The $0.14/lb reduction in cash cost was primarily due to a $0.19/lb decrease in smelting and refining charges, in response to the current annual benchmark, offset by a $0.03/lb increase in lime cost and a $0.03/lb increase in other direct costs. On June 30, 2025, the Company held cash and cash equivalents of $23.3 million (December 31, 2024: $35.9 million), restricted cash of $0.9 million (December 31, 2024: $4.4 million), and its working capital deficiency was $5.4 million, down from a working capital deficiency of $6.5 million on December 31, 2024. The Company's financial performance is sensitive to changes in copper prices. MVC's Q2-2025 provisional copper price was $4.42/lb. The final prices for April, May, and June 2025 sales will be based on the average London Metal Exchange ('LME') prices for July, August, and September 2025, respectively. A 10% increase or decrease from the $4.42/lb provisional price used on June 30, 2025, would result in a $6.9 million change in revenue in Q3-2025 regarding Q2-2025 production4. Investor Conference Call on July 31, 2025 Amerigo's quarterly investor conference call will occur on Thursday, July 31, 2025, at 11:00 a.m. Pacific Daylight Time/2:00 p.m. Eastern Daylight Time. Participants can join by visiting and entering their name and phone number. The conference system will then call the participants and place them instantly into the call. Alternatively, participants can dial directly to be entered into the call by an Operator. Dial 1-888-510-2154 (Toll-Free North America) and state they wish to participate in the Amerigo Resources Q2-2025 Earnings Call. Interactive Analyst Center Amerigo's public financial and operational information is available for download in Excel format through Virtua's Interactive Analyst Center ('IAC'). You can access the IAC by visiting under Investors > Interactive Analyst Center. About Amerigo and Minera Valle Central ('MVC') Amerigo Resources Ltd. is an innovative copper producer with a long-term relationship with Corporación Nacional del Cobre de Chile ('Codelco'), the world's largest copper producer. Amerigo produces copper concentrate, and molybdenum concentrate as a by-product at the MVC operation in Chile by processing fresh and historic tailings from Codelco's El Teniente mine, the world's largest underground copper mine. Tel: (604) 681-2802; Web: ARG:TSX; OTCQX: ARREF. Contact Information Aurora Davidson Graham Farrell President and CEO Investor Relations (604) 697-6207 (416) 842-9003 ad@ graham@ Summary Consolidated Statements of Financial Position June 30, December 31, 2025 2024 $ thousands $ thousands Cash and cash equivalents 23,253 35,864 Restricted cash 876 4,449 Property, plant and equipment 138,652 143,708 Other assets 23,722 21,450 Total assets 186,503 205,471 Total liabilities 83,177 100,682 Shareholders' equity 103,326 104,789 Total liabilities and shareholders' equity 186,503 205,471 Summary Consolidated Statements of Income and Comprehensive Income Three months ended June 30, 2025 2024 $ thousands $ thousands Revenue 50,846 51,602 Tolling and production costs (38,697 ) (35,109 ) Other expenses (1,542 ) (797 ) Finance expense (419 ) (353 ) Income tax expense (2,644 ) (5,576 ) Net income 7,544 9,767 Other comprehensive (loss) income (430 ) 42 Comprehensive income 7,114 9,809 Earnings per share - basic & diluted 0.05 0.06 Summary Consolidated Statements of Cash Flows Three months ended June 30, 2025 2024 $ thousands $ thousands Cash flow from operating activities 11,869 14,315 Changes in non-cash working capital (5,525 ) 9,490 Net cash from operating activities 6,344 23,805 Net cash used in investing activities (1,357 ) (3,384 ) Net cash used in financing activities (9,414 ) (6,001 ) Net decrease in cash and cash equivalents (4,427 ) 14,420 Effect of foreign exchange rates on cash 22 515 Cash and cash equivalents, beginning of period 27,658 13,801 Cash and cash equivalents, end of period 23,253 28,736 1 Non-IFRS Measures This news release includes five non-IFRS measures: (i) EBITDA, (ii) operating cash flow before changes in non-cash working capital, (iii) free cash flow to equity ('FCFE'), (iv) free cash flow ('FCF') and (v) cash cost. These non-IFRS performance measures are included in this news release because they provide key performance measures used by management to monitor operating performance, assess corporate performance, and plan and assess the overall effectiveness and efficiency of Amerigo's operations. These performance measures are not standardized financial measures under International Financial Reporting Standards as issued by the International Accounting Standards Board ('IFRS Accounting Standards'), and, therefore, amounts presented may not be comparable to similar financial measures disclosed by other companies. These performance measures should not be considered in isolation as a substitute for performance measures in accordance with IFRS Accounting Standards. (i) EBITDA refers to earnings before interest, taxes, depreciation, and administration and is calculated by adding depreciation expense to the Company's gross profit. (Expressed in thousands) Q2-2025 Q2-2024 $ $ Gross profit 12,149 16,493 Add: Depreciation and amortization 5,686 5,821 EBITDA 17,835 22,314 (ii) Operating cash flow before changes in non-cash working capital is calculated by adding back the decrease or subtracting the increase in changes in non-cash working capital to or from cash provided by operating activities. (Expressed in thousands) Q2-2025 Q2-2024 $ $ Net cash provided by operating activities 6,344 23,805 Add (deduct): Changes in non-cash working capital 5,525 (9,490 ) Operating cash flow before non-cash working capital 11,869 14,315 (iii) Free cash flow to equity ('FCFE') refers to operating cash flow before changes in non-cash working capital, less capital expenditures, plus new debt issued less debt repayments. FCFE represents the amount of cash generated by the Company in a reporting period that can be used to pay for the following: a) potential distributions to the Company's shareholders and b) any additional taxes triggered by the repatriation of funds from Chile to Canada to fund these distributions. Free cash flow ('FCF') refers to FCFE plus repayments of borrowings. (Expressed in thousands) Q2-2025 Q2-2024 $ $ Operating cash flow before changes in non-cash working capital 11,869 14,315 Deduct: Cash used to purchase plant and equipment (1,357 ) (3,384 ) Repayment of borrowings, net of new debt issued (4,000 ) (4,244 ) Free cash flow to equity 6,512 6,687 Add: Repayment of borrowings, net of new debt issued 4,000 4,244 Free cash flow 10,512 10,931 (iv) Cash cost is a performance measure commonly used in the mining industry that is not defined under IFRS. Cash cost is the aggregate of smelting and refining charges, tolling/production costs net of inventory adjustments and administration costs, net of by-product credits. Cash cost per pound produced is based on pounds of copper produced and is calculated by dividing cash cost by the number of pounds of copper produced. (Expressed in thousands) Q2-2025 Q2-2024 $ $ Tolling and production costs 38,697 35,109 Add (deduct): Smelting and refining charges 3,554 5,791 Transportation costs 407 374 Inventory adjustments (367 ) (548 ) By-product credits (7,023 ) (6,399 ) Depreciation and amortization (5,686 ) (5,821 ) DET royalties - molybdenum (1,299 ) (1,056 ) Cash cost 28,283 27,450 Copper tolled (M lbs) 15.52 13.98 Cash cost ($/lb) 1.82 1.96 2 Capital returned to shareholders The table below summarizes the capital returned to shareholders since the implementation of Amerigo's Capital Return Strategy in October 2021. (Expressed in millions) Shares repurchased Dividends Paid Total $ $ $ 2021 8.8 2.8 11.6 2022 12.3 15.8 28.1 2023 2.6 14.6 17.2 2024 1.8 19.4 21.2 2025 5.1 7.0 12.1 30.6 59.6 90.2 3 Dividend dates A dividend of Cdn$0.03 per share will be paid on September 19, 2025, to shareholders of record as of August 29, 2025. Under the 'T+1 settlement cycle', the Company's shares will commence trading on an ex-dividend basis at the opening of trading on August 29, 2025. Shareholders purchasing Amerigo shares on or after the ex-dividend date will not receive this dividend, as it will be paid to the selling shareholders. Shareholders purchasing Amerigo shares before the ex-dividend date will receive the dividend. 4 MVC's copper priceMVC's copper price is the average notional copper price for the period before smelting and refining, DET notional copper royalties, transportation costs and excluding settlement adjustments to prior period sales. MVC's pricing terms are based on the average LME copper price of the third month following the delivery of copper concentrates produced under the DET tolling agreement ('M+3'). This means that when final copper prices are not yet known, they are provisionally marked to market at the end of each month based on the progression of the LME-published average monthly M and M+3 prices. Provisional prices are adjusted monthly using this consistent methodology until they are settled. Q1-2025 copper deliveries were marked to market on March 31, 2025, at an average price of $4.42/lb and were settled in Q2-2025 as follows: January 2025 sales settled at the April 2025 LME average price of $4.17/lb February 2025 sales settled at the May 2025 LME average price of $4.32/lb March 2025 sales settled at the June 2025 LME average price of $4.46/lb Q2-2025 copper deliveries were marked to market on June 30, 2025, at an average price of $4.42/lb and will be settled at the LME average prices for July, August, and September 2025. Cautionary Statement Regarding Forward-Looking Information This news release contains certain 'forward-looking information' as such term is defined under applicable securities laws (collectively called "forward-looking statements"). This information relates to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "should", "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning: forecasted production and operating costs; our strategies and objectives; our estimates of the availability and quantity of tailings and the quality of our mine plan estimates; prices and price volatility for copper, molybdenum and other commodities and materials we use in our operations; the demand for and supply of copper, molybdenum and other commodities and materials that we produce, sell and use; sensitivity of our financial results and share price to changes in commodity prices; our financial resources and financial condition; interest and other expenses; domestic and foreign laws affecting our operations; our tax position and the tax rates applicable to us; our ability to comply with our loan covenants; the production capacity of our operations, our planned production levels and future production; potential impact of production and transportation disruptions; hazards inherent in the mining industry causing personal injury or loss of life, severe damage to or destruction of property and equipment, pollution or environmental damage, claims by third parties and suspension of operations estimates of asset retirement obligations and other costs related to environmental protection; our future capital and production costs, including the costs and potential impact of complying with existing and proposed environmental laws and regulations in the operation and closure of our operations; repudiation, nullification, modification or renegotiation of contracts; our financial and operating objectives; our environmental, health and safety initiatives; the outcome of legal proceedings and other disputes in which we may be involved; the outcome of negotiations concerning metal sales, treatment charges and royalties; disruptions to the Company's information technology systems, including those related to cybersecurity; our dividend policy, including the security of the quarterly dividends and our Capital Return Strategy; and general business and economic conditions, including, but not limited to, our assessment of strong market fundamentals supporting copper forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such statements. Inherent in forward-looking statements are risks and uncertainties beyond our ability to predict or control, including risks that may affect our operating or capital plans; risks generally encountered in the operation, permitting and development of mineral projects such as unusual or unexpected geological formations, negotiations with government and other third parties, unanticipated metallurgical difficulties, delays associated with permits, approvals and permit appeals, ground control problems, adverse weather conditions (including, but not limited, to heavy rains), process upsets and equipment malfunctions; risks associated with labour disturbances and availability of skilled labour and management; risks related to the potential impact of global or national health concerns; government or regulatory actions or inactions, including, but not limited to, the imposition of tariffs on the importation of copper; fluctuations in the market prices of our principal commodities, which are cyclical and subject to substantial price fluctuations; risks created through competition for mining projects and properties; risks associated with lack of access to markets; risks associated with availability of and our ability to obtain both tailings from Codelco's Division El Teniente ('DET') current production and historic tailings from tailings deposit; the availability of and ability of the Company to obtain adequate funding on reasonable terms for expansions and acquisitions; mine plan estimates; risks posed by fluctuations in exchange rates and interest rates, as well as general economic conditions; risks associated with environmental compliance and changes in environmental legislation and regulation; risks associated with our dependence on third parties for the provision of critical services; risks associated with non-performance by contractual counterparties; risks associated with supply chain disruptions; title risks; social and political risks associated with operations in foreign countries; risks of changes in laws affecting our operations or their interpretation, including foreign exchange controls; and risks associated with tax reassessments and legal proceedings. Many of these risks and uncertainties apply to the Company and its operations, as well as DET and its operations. DET's ongoing mining operations provide a significant portion of the materials the Company processes and its resulting metals production. Therefore, these risks and uncertainties may also affect the Company's operations and have a material effect. Actual results and developments will likely differ materially from those expressed or implied by the forward-looking statements in this news release. Such statements are based on several assumptions which may prove to be incorrect, including, but not limited to, assumptions about: general business and economic conditions; interest and currency exchange rates; changes in commodity and power prices; acts of foreign governments and the outcome of legal proceedings; the supply and demand for deliveries of and the level and volatility of prices of copper, molybdenum and other commodities and products used in our operations; the ongoing supply of material for processing from DET's current mining operations; the grade and projected recoveries of tailings processed by MVC; the ability of the Company to profitably extract and process material from the historic tailings deposit; the timing of the receipt of and retention of permits and other regulatory and governmental approvals; our costs of production and our production and productivity levels, as well as those of our competitors; changes in credit market conditions and conditions in financial markets generally; our ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; the availability of qualified employees and contractors for our operations; our ability to attract and retain skilled staff; the satisfactory negotiation of collective agreements with unionized employees; the impact of changes in foreign exchange rates and capital repatriation on our costs and results; engineering and construction timetables and capital costs for our expansion projects; costs of closure of various operations; market competition; tax benefits and tax rates; the outcome of our copper concentrate sales and treatment and refining charge negotiations; the resolution of environmental and other proceedings or disputes; the future supply of reasonably priced power; average recoveries for fresh and historic tailings; our ability to obtain, comply with and renew permits and licenses in a timely manner; and Our ongoing relations with our employees and entities with which we do production levels and cost estimates assume no adverse mining or other events significantly affecting budgeted production levels. Climate change is a global issue that could pose significant challenges affecting the Company's future operations. This could include more frequent and intense droughts followed by intense rainfall. In the last several years, Central Chile has experienced both drought conditions and significant rain episodes. The Company's operations are sensitive to water availability and the reserves required to process projected historic tailings tonnage. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company's control, the Company cannot assure that it will achieve or accomplish the expectations, beliefs or projections described in the forward-looking statements. The preceding list of important factors and assumptions is not exhaustive. Other events or circumstances could cause our results to differ materially from those estimated, projected, and expressed in or implied by our forward-looking statements. You should also consider the matters discussed under Risk Factors in the Company`s Annual Information Form. The forward-looking statements contained herein speak only as of the date of this news in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-06-2025
- Business
- Yahoo
Amerigo Announces Board Appointment
VANCOUVER, British Columbia, June 02, 2025 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. (TSX: ARG; ARREF:OTC) ('Amerigo' or the 'Company') is pleased to announce the appointment of Ignacio Cruz to the Company's board of directors. Ignacio Cruz is a Civil Engineer with over forty years of experience in leading positions in the Chilean mining, energy, and civil society sectors. Most recently, Mr. Cruz was Executive Chair of TECHO International, Latin America's largest NGO with operations in 19 countries. Before that, he was CEO of Colbún S.A., Chile's second-largest power generation company. His mining sector experience includes fourteen years with Antofagasta Minerals, including as General Manager of Los Pelambres and El Tesoro. His career has been distinguished by his ability to lead organizations and large infrastructure projects, manage complex financial structures, and develop sustainable strategies that create value for all stakeholders. Mr. Cruz has been a board member of numerous business and philanthropic organizations in Chile. He is an international speaker on strategic management, team leadership, sustainability in mining, people management, and shared value in the extractive industry. He founded Emerge Chile and EverXin, a consultancy firm that utilizes Artificial Intelligence to drive process optimization. 'Ignacio is a highly respected member of the Chilean business community. We are honoured to welcome him to the Amerigo board of directors and will benefit from his extensive experience and thirst for knowledge. Ignacio has excelled as an executive in multiple industries and deeply understands the challenges and opportunities of mining operations in Chile,' said Klaus Zeitler, Amerigo's Executive Chairman. 'We look forward to tapping into his vision and expertise in strategy, leadership, sustainability and stakeholder engagement to maximize long-term value,' Dr. Zeitler added. About Amerigo Amerigo Resources Ltd. is an innovative copper producer with a long-term relationship with Corporación Nacional del Cobre de Chile ('Codelco'), the world's largest copper producer. Amerigo produces copper concentrate and molybdenum concentrate as a by-product at the MVC operation in Chile by processing fresh and historic tailings from Codelco's El Teniente mine, the world's largest underground copper mine. Tel: (604) 681-2802; Web: Listing: ARG: TSX. For further information, please contact: Aurora Davidson Graham Farrell President and CEO Investor Relations (604) 697 6207 (416) 842-9003 ad@ graham@ in to access your portfolio
Associated Press
09-04-2025
- Business
- Associated Press
Amerigo Reports Q1-2025 Operational Results
Q1-2025 copper production of 13.2 million pounds Results in line with 2025 guidance of 62.9 million pounds of copper Scheduled annual plant maintenance shutdown completed in Q1-2025 Capital return to shareholders of $4.6 million in Q1-2025 VANCOUVER, British Columbia, April 09, 2025 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. (TSX: ARG; OTCQX: ARREF) ('Amerigo' or the 'Company') is pleased to announce operational results for the quarter ended March 31, 2025 ('Q1-2025') from Minera Valle Central ('MVC'), the Company's 100% owned operation located near Rancagua, Chile. Dollar amounts in this news release are in U.S. dollars ('USD') unless indicated otherwise. In Q1-2025, MVC produced 13.2 million pounds ('M lbs') of copper and 0.24 M lbs of molybdenum. During the quarter, MVC's plant availability was 97.6%, and there were no lost-time accidents involving MVC employees. During Q1-2025, MVC completed its annual plant maintenance shutdown. Every year, this maintenance shutdown generates the Company's lowest production quarter, which is factored into the Company's annual production guidance. Following this year's successful maintenance operations, the 2025 annual production guidance of 62.9 M lbs of copper and 1.3 M lbs of molybdenum remains in place. 'Operations during the first quarter of 2025 proceeded smoothly, and once again, MVC successfully completed its planned annual plant maintenance shutdown without incident or delay. As expected, the fewer operating days had an impact on quarterly production and consequently, on cash cost. However, we remain on track to meet our annual production and cash cost guidance,' said Aurora Davidson, Amerigo's President and CEO. Copper prices in the first quarter responded positively to the structural challenges of growing demand amid constrained supply. The average monthly spot price on the London Metal Exchange ('LME'), the benchmark market for copper producers where most of the world's long-term copper supply contracts are traded, increased from $4.05 per pound in December 2024 to $4.41 per pound in March 2025. MVC's pricing terms are based on the average LME copper price of the third month following the delivery of copper concentrates. Global trade shifts and anticipated copper tariffs prompted a significant reallocation of copper inventories from Europe and Asia to the United States. This resulted in record spreads between the LME and the U.S. COMEX market before the rollout of widespread import tariffs to the United States on April 2, 2025. Although no copper tariffs were implemented, short-term copper prices experienced a significant downward adjustment. 'While we are seeing short-term volatility in copper prices in response to market reactions to the shifting global trade landscape, we continue to observe that the copper supply chain, from mining to smelting and refining, as well as the fabrication of semis and the manufacture of finished goods, continues to face complex challenges. This includes the need for most nations to continue importing copper, and protectionism will likely incentivize copper prices in a market already facing deficit scenarios. Any rise in copper prices from present levels strongly supports our goal to be debt-free by year-end 2025 while fully deploying our Capital Return Strategy through quarterly dividends, performance dividends, and share buybacks in 2025,' Ms. Davidson added. The Company's cash cost¹ in Q1-2025 was $2.22 per pound ('/lb'), impacted by lower production in the quarter associated with fewer operating days. Cost projections for the remainder of 2025 indicate that Amerigo's annual cash cost guidance of $1.93/lb (excluding MVC's collective agreement signing bonuses) remains valid. Amerigo's average provisional copper price in Q1-2025 was $4.42/lb, compared to $4.06/lb in Q4-2024. Q4-2024 copper deliveries, marked to market on December 31, 2024 at $4.08/lb, were settled at the LME average monthly prices for January 2025 ($4.07/lb), February 2025 ($4.23/lb) and March 2025 ($4.41/lb). The Company's molybdenum price was $20.14/lb, down from $21.38/lb in Q4-2024. In Q1-2025, Amerigo returned $4.6 million to shareholders, $3.5 million through the quarterly dividend and $1.1 million through share buybacks. In connection with the plant shutdown, Q1-2025 Capex payments were approximately $6.8 million, accounting for around 52% of the annual Capex budget, which remains on track. As of March 31, 2025, Amerigo's cash position was $27.7 million, $8.2 million lower than the $35.9 million reported as of December 31, 2024. Additionally, restricted cash was $3.1 million, $1.3 million lower than the $4.4 million reported as of December 31, 2024. Outstanding bank debt was $11.5 million, unchanged from December 31, 2024. Q1-2025 Q4-2024 Q3-2024 Q2-2024 Q1-2024 Fresh tailings Tonnes per day 136,915 134,545 129,339 111,636 116,246 Operating days 77 91 92 82 90 Million tonnes processed 10.15 12.28 11.90 9.25 10.51 Copper grade 0.165% 0.182% 0.184% 0.184% 0.177% Copper recovery 21.5% 25.9% 23.6% 23.6% 20.8% Copper produced (M lbs) 7.97 12.78 11.38 8.98 8.55 Historic tailings Tonnes per day 39,733 32,930 32,815 45,469 49,289 Operating days 81 92 88 62 90 Million tonnes processed 3.25 3.01 2.90 2.91 4.42 Copper grade 0.238% 0.241% 0.239% 0.245% 0.251% Copper recovery 30.9% 34.6% 32.1% 31.3% 30.5% Copper produced (M lbs) 5.26 5.53 4.89 5.00 7.45 Copper produced (M lbs) 13.23 18.31 16.27 13.98 16.00 Copper delivered (M lbs) 12.92 18.23 16.48 14.33 15.96 Cash cost¹($/lb) 2.22 1.73 1.93 1.96 1.96 Normalized cash cost¹($/lb) 2.22 1.73 1.93 1.96 1.89 Molybdenum produced (M lbs) 0.24 0.33 0.33 0.30 0.32 Molybdenum sold (M lbs) 0.24 0.33 0.33 0.30 0.32 Capital Return Strategy Since implementing its Capital Return Strategy ('CRS') in October 2021, Amerigo has returned a total of $83.0 million to shareholders, $56.0 million through quarterly and performance dividends and $27.0 million through share buybacks, reducing by 12.5% the number of common shares outstanding at the inception of the CRS. Amerigo's CRS consists of three mechanisms: quarterly dividends, performance dividends, and share buybacks. These mechanisms provide shareholders with a consistent return on invested capital and quickly transfer the benefits of rising copper prices to Amerigo's shareholders. Release of Q1-2025 financial results on May 5, 2025 Amerigo will release its Q1-2025 financial results at the market open on Monday, May 5, 2025. Investor conference call on May 8, 2025 Amerigo's quarterly investor conference call will be held on Thursday, May 8, 2025, at 11:00 a.m. Pacific Daylight Time/2:00 p.m. Eastern Daylight Time. Participants can join by visiting and entering their name and phone number. The conference system will then call the participants and place them instantly into the call. Alternatively, participants can dial directly to be entered into the call by an Operator. Dial 1-888-510-2154 (Toll-Free North America) and state that they wish to participate in the Amerigo Resources Q1-2025 Earnings Call. Interactive Analyst Center Amerigo's published financial and operational information is available for download in Excel format through Virtua's Interactive Analyst Center ('IAC'). You can access the IAC by visiting under Investors > Interactive Analyst Center. About Amerigo and MVC Amerigo is an innovative copper producer with a long-term relationship with Corporación Nacional del Cobre de Chile ('Codelco'), the world's largest copper producer. Amerigo produces copper concentrate and molybdenum concentrate as a by-product at the MVC operation in Chile by processing fresh and historic tailings from Codelco's El Teniente mine, the world's largest underground copper mine. Tel: (604) 681-2802; Website: Listing: ARG - TSX. Contact Information ¹ Non-IFRS Measures This news release references three non-IFRS measures: cash cost, normalized cash cost and EBITDA. These non-IFRS performance measures are included in this news release because they provide key performance measures used by management to monitor operating performance, assess corporate performance, and plan and assess the overall effectiveness and efficiency of Amerigo's operations. These performance measures are not standardized financial measures under International Financial Reporting Standards as issued by the International Accounting Standards Board ('IFRS Accounting Standards'), and, therefore, amounts presented may not be comparable to similar financial measures disclosed by other companies. These performance measures should not be considered in isolation as a substitute for performance measures in accordance with IFRS Accounting Standards. Cash cost is a performance measure commonly used in the mining industry that is not defined under IFRS. Cash cost is the aggregate of smelting and refining charges, tolling/production costs net of inventory adjustments and administration costs, net of by-product credits. Cash cost per pound produced is based on pounds of copper produced and is calculated by dividing cash cost by the number of pounds of copper produced. Normalized cash cost excludes the cost per pound paid to MVC's workers as signing bonuses of 3-year collective labour agreements. In Q1-2024, the normalized cash cost excluded $0.07/lb paid to MVC's supervisors for this concept. EBITDA refers to earnings before interest, taxes, depreciation and administration and is calculated by adding depreciation expense to the Company's gross profit. The Company reconciles these performance measures against IFRS measures every quarter when financial results are reported. Reconciliations are included in the Company's quarterly earnings release and Management's Discussion and Analysis. Cautionary Note Regarding Forward-Looking Information This news release contains certain 'forward-looking information' as defined under applicable securities laws (collectively referred to as 'forward-looking statements'). This information relates to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words 'anticipate', 'plan', 'continue', 'estimate', 'expect', 'may', 'will', 'project', 'predict', 'potential', 'should', 'believe' and similar expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning: forecasted production, operating and cash costs and Capex expenditures for 2025; our strategies and objectives; our estimates of the availability and quantity of tailings and the quality of our mine plan estimates; prices and price volatility for copper, molybdenum and other commodities and materials we use in our operations; our estimate as to projected EBITDA for 2025; our estimate as to the amount of the royalty to be payable to DET in 2025; the demand for and supply of copper, molybdenum and other commodities and materials that we produce, sell and use; sensitivity of our financial results and share price to changes in commodity prices; our financial resources and financial condition and our expected ability to fully deploy all tools of our CRS; our expectation to be debt-free as of the end of 2025; the expected negotiation and payment of signing bonuses to MVC's operators; interest and other expenses; domestic and foreign laws affecting our operations; our tax position and the tax rates applicable to us; our ability to comply with our loan covenants; the production capacity of our operations, our planned production levels and future production; potential impact of production and transportation disruptions; hazards inherent in the mining industry causing personal injury or loss of life, severe damage to or destruction of property and equipment, pollution or environmental damage, claims by third parties and suspension of operations estimates of asset retirement obligations and other costs related to environmental protection; our future capital and production costs, including the costs and potential impact of complying with existing and proposed environmental laws and regulations in the operation and closure of our operations; repudiation, nullification, modification or renegotiation of contracts; our financial and operating objectives; our environmental, health and safety initiatives; the outcome of legal proceedings and other disputes in which we may be involved; the outcome of negotiations concerning metal sales, treatment charges and royalties; disruptions to the Company's information technology systems, including those related to cybersecurity; our dividend policy; and general business and economic conditions, including, but not limited to, our assessment of strong market fundamentals supporting copper prices. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such statements. Inherent in forward-looking statements are risks and uncertainties beyond our ability to predict or control, including risks that may affect our operating or capital plans; risks generally encountered in the operation, permitting and development of mineral projects such as unusual or unexpected geological formations, negotiations with government and other third parties, unanticipated metallurgical difficulties, delays associated with permits, approvals and permit appeals, ground control problems, adverse weather conditions (including, but not limited, to heavy rains), process upsets and equipment malfunctions; risks associated with labour disturbances and availability of skilled labour and management; risks related to the potential impact of global or national health concerns; government or regulatory actions or inactions; fluctuations in the market prices of our principal commodities, which are cyclical and subject to substantial price fluctuations; risks created through competition for mining projects and properties; risks associated with lack of access to markets; risks associated with availability of and our ability to obtain both tailings DET current production and historic tailings from tailings deposit; the availability of and ability of the Company to obtain adequate funding on reasonable terms for expansions and acquisitions; mine plan estimates; risks posed by fluctuations in exchange rates and interest rates, as well as general economic conditions; risks associated with environmental compliance and changes in environmental legislation and regulation; risks associated with our dependence on third parties for the provision of critical services; risks associated with non-performance by contractual counterparties; risks associated with supply chain disruptions; title risks; social and political risks associated with operations in foreign countries; risks of changes in laws affecting our operations or their interpretation, including foreign exchange controls; and risks associated with tax reassessments and legal proceedings. Many of these risks and uncertainties apply to the Company and its operations, as well as DET and its operations. DET's ongoing mining operations provide a significant portion of the materials the Company processes and its resulting metals production. Therefore, these risks and uncertainties may also affect the Company's operations and have a material effect. Actual results and developments are likely to differ and may differ materially from those expressed or implied by the forward-looking statements contained in this news release. Such statements are based on several assumptions which may prove to be incorrect, including, but not limited to, assumptions about: general business and economic conditions; interest and currency exchange rates; changes in commodity and power prices; acts of foreign governments and the outcome of legal proceedings; the supply and demand for, deliveries of, and the level and volatility of prices of copper, molybdenum and other commodities and products used in our operations; the ongoing supply of material for processing from Codelco's current mining operations; the grade and projected recoveries of tailings processed by MVC; the ability of the Company to profitably extract and process material from the historic tailings deposit; the timing of the receipt of and retention of permits and other regulatory and governmental approvals; our costs of production and our production and productivity levels, as well as those of our competitors; changes in credit market conditions and conditions in financial markets generally; our ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; the availability of qualified employees and contractors for our operations; our ability to attract and retain skilled staff; the satisfactory negotiation of collective agreements with unionized employees; the impact of changes in foreign exchange rates and capital repatriation on our costs and results; engineering and construction timetables and capital costs for our expansion projects; costs of closure of various operations; market competition; tax benefits and tax rates; the outcome of our copper concentrate sales and treatment and refining charge negotiations; the resolution of environmental and other proceedings or disputes; the future supply of reasonably priced power; rainfall in the vicinity of MVC continuing to trend towards normal levels; average recoveries for fresh and historic tailings; our ability to obtain, comply with and renew permits and licenses in a timely manner; and our ongoing relations with our employees and entities we do business with. Future production levels and cost estimates assume no adverse mining or other events affecting budgeted production levels. Climate change is a global issue that could pose challenges that could affect the Company's future operations. This could include more frequent and intense droughts followed by intense rainfall. Central Chile has experienced drought conditions and significant rainfall episodes in recent years. The Company's operations are sensitive to water availability and the reserves required to process projected historic tailings tonnage. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company's control, the Company cannot assure that it will achieve or accomplish the expectations, beliefs or projections described in the forward-looking statements. The preceding list of important factors and assumptions is not exhaustive. Other events or circumstances could cause our results to differ materially from those estimated, projected, and expressed in or implied by our forward-looking statements. You should also consider the matters discussed under Risk Factors in the Company`s Annual Information Form. The forward-looking statements contained herein speak only as of the date of this news release. Except as required by law, we undertake no obligation to revise any forward-looking statements or the preceding list of factors, whether due publicly or otherwise, to new information or future events. Future-oriented financial information ('FOFI') or financial outlooks included in this news release are based on the assumptions contained in the Company's 2025 Budget, which was prepared consistently with the Company's accounting policies. FOFI has been included in this news release to provide context to the Company's 2025 guidance and may not be appropriate for other purposes. ¹ This is a non-IFRS measure. See 'Non-IFRS Measures' for further information.
Yahoo
10-02-2025
- Business
- Yahoo
Amerigo Resources to Present at the Metals and Mining Growth Virtual Investor Conference February 13th
Company invites individual and institutional investors, as well as advisors and analysts, to attend online at VANCOUVER, British Columbia, Feb. 10, 2025 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. ('Amerigo') (ARG:TSX, ARREF:OTCQX), based in Vancouver, British Columbia focused on producing copper from mining waste are retuning capital to shareholders, today announced that Aurora Davidson, President & CEO, will present live at the Metals and Mining Virtual Investor Conference hosted by on February 13th, 2025 DATE: February 13th TIME: 10:30 AM ESTLINK: for 1x1 meetings: February 12, 13, 14, and 17 This will be a live, interactive online event where investors are invited to ask the company questions in real-time. If attendees are not able to join the event live on the day of the conference, an archived webcast will also be made available after the event. It is recommended that online investors pre-register and run the online system check to expedite participation and receive event updates. Learn more about the event at Recent Company Highlights Amerigo recently announced its 2024 production results which beat guidance on all measurables In addition to 2024 results, Amerigo announced 2025 guidance which projects a strong year of production and cash generation Amerigo provides investors direct exposure to copper prices, while returning capital through quarterly dividends, performance dividends, and share buybacks About Amerigo and MVC Amerigo is an innovative copper producer with a long-term relationship with Corporación Nacional del Cobre de Chile ('Codelco'), the world's largest copper producer. Amerigo produces copper concentrate and molybdenum concentrate as a by-product at the MVC operation in Chile by processing fresh and historic tailings from Codelco's El Teniente mine, the world's largest underground copper mine. Tel: (604) 681-2802; Web: Listing: ARG: TSX. About Virtual Investor Conferences®Virtual Investor Conferences (VIC) is the leading proprietary investor conference series that provides an interactive forum for publicly traded companies to seamlessly present directly to investors. Providing a real-time investor engagement solution, VIC is specifically designed to offer companies more efficient investor access. Replicating the components of an on-site investor conference, VIC offers companies enhanced capabilities to connect with investors, schedule targeted one-on-one meetings and enhance their presentations with dynamic video content. Accelerating the next level of investor engagement, Virtual Investor Conferences delivers leading investor communications to a global network of retail and institutional investors. CONTACTS:Amerigo ResourcesName: Aurora DavidsonTitle: President & CEOPhone: +1-416-842-9003Email: ad@ Virtual Investor Conferences John M. ViglottiSVP Corporate Services, Investor AccessOTC Markets Group (212) 220-2221johnv@ in to access your portfolio
