Latest news with #AmerigoResources
Yahoo
15-05-2025
- Business
- Yahoo
Statutory Profit Doesn't Reflect How Good Amerigo Resources' (TSE:ARG) Earnings Are
Even though Amerigo Resources Ltd.'s (TSE:ARG) recent earnings release was robust, the market didn't seem to notice. Our analysis suggests that investors might be missing some promising details. Our free stock report includes 2 warning signs investors should be aware of before investing in Amerigo Resources. Read for free now. One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. This ratio tells us how much of a company's profit is not backed by free cashflow. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". For the year to March 2025, Amerigo Resources had an accrual ratio of -0.25. That indicates that its free cash flow quite significantly exceeded its statutory profit. In fact, it had free cash flow of US$43m in the last year, which was a lot more than its statutory profit of US$18.3m. Given that Amerigo Resources had negative free cash flow in the prior corresponding period, the trailing twelve month resul of US$43m would seem to be a step in the right direction. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Happily for shareholders, Amerigo Resources produced plenty of free cash flow to back up its statutory profit numbers. Based on this observation, we consider it possible that Amerigo Resources' statutory profit actually understates its earnings potential! And it's also positive that the company showed enough improvement to book a profit this year, after losing money last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For example, we've discovered 2 warning signs that you should run your eye over to get a better picture of Amerigo Resources. Today we've zoomed in on a single data point to better understand the nature of Amerigo Resources' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
10-05-2025
- Business
- Yahoo
Amerigo Resources Ltd (ARREF) Q1 2025 Earnings Call Highlights: Strong Financial Performance ...
Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Amerigo Resources Ltd (ARREF) reported a strong financial performance in Q1 2025, with a net income of $3.3 million and earnings per share of $0.02. The company generated substantial cash from operations amounting to $11.6 million, highlighting its strong cash flow position. Amerigo Resources Ltd (ARREF) successfully completed its annual maintenance shutdown in Q1, which is part of its normal operations, ensuring continued operational efficiency. The company maintained a record of 3 years and 3 months without lost time accidents, demonstrating a strong commitment to safety. Amerigo Resources Ltd (ARREF) returned $4.6 million to shareholders in Q1 through dividends and share buybacks, showcasing its effective capital return strategy. The Q1 2025 production was lower due to the timing of the annual maintenance shutdown, which affected quarterly production and cash costs. Copper prices experienced considerable volatility during Q1, with daily prices ranging from a low of $3.94 to a high of $4.53, impacting revenue predictability. The company faced a working capital deficiency of $4.6 million as of March 31, 2025, although it improved from the previous quarter. There was a decrease in the grade of fresh tailings in Q1, attributed to weather conditions in Chile, which could affect future production levels. CapEx was front-loaded in Q1, resulting in higher expenditures compared to previous quarters, which may impact cash flow management throughout the year. Warning! GuruFocus has detected 9 Warning Signs with LND. Q: Given the maintenance shutdown in Q1, how should we expect the cadence of revenue for the remainder of the year to align with the 62.9 million pound guidance? A: The only effect on production and revenue was in Q1 due to the maintenance shutdown. We completed the shutdown in March and resumed normal operations. Q2 is expected to be a regular production and revenue generation quarter. - Aurora Davidson, CEO Q: The grade from fresh tailings dropped in Q1. What was the reason, and what should we expect going forward? A: The lower grade in Q1 is typical due to weather conditions in Chile, affecting mining areas. This is the first time in years that both the maintenance shutdown and lower grades occurred in the same quarter. This was anticipated in our budget. - Aurora Davidson, CEO Q: CapEx was elevated in Q1 compared to previous quarters. What should we expect for the rest of the year? A: The CapEx for 2025 is budgeted at $13 million, with a significant portion front-loaded in Q1 due to the maintenance shutdown. The full-year guidance remains at $13 million. - Aurora Davidson, CEO Q: Should we expect a decline in shares outstanding by year-end, or is the buyback just to offset stock-based compensation? A: Our minimal commitment is to prevent dilution. We have surpassed this in Q1 and will continue buybacks, seeing opportunities to buy back shares at good prices. This does not preclude performance dividends under favorable copper price conditions. - Aurora Davidson, CEO Q: With no debt obligations by year-end, is the board considering increasing the permanent dividend? A: Once debt is eliminated, the funds previously allocated to debt repayment will benefit shareholders. Revisiting the quarterly dividend amount is a logical step forward. - Aurora Davidson, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
06-05-2025
- Business
- Yahoo
TSX Dividend Stocks Featuring Amerigo Resources And Two Others
With Canada's election now behind it, the focus has shifted to economic policies and trade diversification, as policymakers aim to stimulate growth amid a backdrop of softening earnings forecasts. In this environment, dividend stocks can offer stability and income potential for investors seeking resilience; Amerigo Resources and two other TSX-listed companies exemplify this approach with their consistent dividend payouts. Top 10 Dividend Stocks In Canada Name Dividend Yield Dividend Rating Royal Bank of Canada (TSX:RY) 3.54% ★★★★★☆ Olympia Financial Group (TSX:OLY) 6.99% ★★★★★☆ Russel Metals (TSX:RUS) 4.11% ★★★★★☆ Savaria (TSX:SIS) 3.00% ★★★★★☆ Whitecap Resources (TSX:WCP) 9.66% ★★★★★☆ Power Corporation of Canada (TSX:POW) 4.35% ★★★★★☆ SECURE Waste Infrastructure (TSX:SES) 3.14% ★★★★★☆ IGM Financial (TSX:IGM) 5.15% ★★★★★☆ Acadian Timber (TSX:ADN) 6.69% ★★★★★☆ Richards Packaging Income Fund (TSX: 6.11% ★★★★★☆ Click here to see the full list of 25 stocks from our Top TSX Dividend Stocks screener. Underneath we present a selection of stocks filtered out by our screen. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Amerigo Resources Ltd., with a market cap of CA$280.60 million, operates through its subsidiary Minera Valle Central S.A. to produce copper and molybdenum concentrates in Chile. Operations: Amerigo Resources Ltd. generates revenue of $192.77 million from the production of copper concentrates under a tolling agreement with DET. Dividend Yield: 6.6% Amerigo Resources' dividend, yielding 6.6%, is among the top 25% in Canada. While dividends have increased, they remain unstable due to a short payment history of four years and volatility. The dividend is well-covered by cash flows (26.6% cash payout ratio) and earnings (71.7% payout ratio). Despite significant insider selling recently, the company reported strong earnings growth with net income rising to US$19.24 million from US$3.38 million year-over-year, suggesting potential for future stability in payouts. TSX:ARG Dividend History as at May 2025 Simply Wall St Dividend Rating: ★★★★★☆ Overview: Imperial Oil Limited is involved in the exploration, production, and sale of crude oil and natural gas in Canada with a market cap of CA$48.39 billion. Operations: Imperial Oil's revenue is primarily derived from its Downstream segment at CA$57.32 billion, followed by the Upstream segment at CA$18.31 billion, and the Chemical segment contributing CA$1.40 billion.
Yahoo
07-04-2025
- Business
- Yahoo
3 Top TSX Dividend Stocks With At Least 3% Yield
In the face of ongoing economic uncertainties, including potential tariff impacts and inflationary pressures, the Canadian market remains resilient, supported by strong household balance sheets and healthy labor-market conditions. For investors seeking stability amidst this volatility, dividend stocks with yields of at least 3% can offer a reliable income stream while providing exposure to some of Canada's most established companies. Name Dividend Yield Dividend Rating Whitecap Resources (TSX:WCP) 9.41% ★★★★★★ SECURE Waste Infrastructure (TSX:SES) 3.08% ★★★★★☆ Russel Metals (TSX:RUS) 4.60% ★★★★★☆ National Bank of Canada (TSX:NA) 4.04% ★★★★★☆ Savaria (TSX:SIS) 3.44% ★★★★★☆ Royal Bank of Canada (TSX:RY) 3.75% ★★★★★☆ IGM Financial (TSX:IGM) 5.48% ★★★★★☆ Power Corporation of Canada (TSX:POW) 4.43% ★★★★★☆ Acadian Timber (TSX:ADN) 6.91% ★★★★★☆ Richards Packaging Income Fund (TSX: 6.29% ★★★★★☆ Click here to see the full list of 26 stocks from our Top TSX Dividend Stocks screener. Let's review some notable picks from our screened stocks. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Amerigo Resources Ltd., operating through its subsidiary Minera Valle Central S.A., focuses on producing copper and molybdenum concentrates in Chile, with a market cap of CA$280.75 million. Operations: Amerigo Resources Ltd. generates revenue primarily from the production of copper concentrates under a tolling agreement with DET, amounting to $192.77 million. Dividend Yield: 6.9% Amerigo Resources has shown growth in dividend payments over three years, but these have been volatile, with a payout ratio of 71.7% indicating coverage by earnings. The cash payout ratio is low at 26.8%, suggesting dividends are well-covered by cash flows. Despite significant insider selling recently, the stock trades below its estimated fair value and offers a top-tier dividend yield of 6.92%. Recent earnings showed substantial improvement with net income rising to US$19.24 million from US$3.38 million the previous year, supporting ongoing dividend distributions. Click here and access our complete dividend analysis report to understand the dynamics of Amerigo Resources. Our valuation report unveils the possibility Amerigo Resources' shares may be trading at a discount. Simply Wall St Dividend Rating: ★★★★★☆ Overview: Finning International Inc. is involved in the sale, service, and rental of heavy equipment and engines across Canada, Chile, the United Kingdom, Argentina, and other international markets with a market cap of CA$4.89 billion. Operations: Finning International Inc.'s revenue from the sale, service, and rental of heavy equipment, engines, and related products amounts to CA$11.21 billion. Dividend Yield: 3% Finning International offers a stable dividend yield of 3.03%, supported by a low payout ratio of 29.7% and cash payout ratio of 17.3%, indicating strong coverage by earnings and cash flows. The dividend has grown steadily over the past decade, although it remains below top-tier Canadian payers' yields. Recent financials showed slight declines in net income to C$509 million, but revenues increased to C$11.21 billion, underpinning its reliable dividend payments amidst board leadership changes and share buybacks totaling C$175 million. Delve into the full analysis dividend report here for a deeper understanding of Finning International. Insights from our recent valuation report point to the potential undervaluation of Finning International shares in the market. Simply Wall St Dividend Rating: ★★★★★☆ Overview: SECURE Waste Infrastructure Corp. operates in the waste management and energy infrastructure sectors across Canada and the United States, with a market cap of CA$3 billion. Operations: SECURE Waste Infrastructure Corp. generates revenue from its Energy Infrastructure segment, contributing CA$9.49 billion, and Environmental Waste Management (EWM), contributing CA$1.19 billion. Dividend Yield: 3.1% SECURE Waste Infrastructure pays a reliable dividend of C$0.10 per share, supported by a low payout ratio of 17.5% and cash payout ratio of 25.5%, ensuring strong coverage by earnings and cash flows. The dividend has grown steadily over the past decade but remains below top-tier Canadian yields at 3.08%. Recent financials revealed significant earnings growth to C$582 million, alongside strategic acquisitions and share buybacks totaling C$332.65 million, enhancing shareholder value amidst robust revenue increases to C$10.67 billion. Click to explore a detailed breakdown of our findings in SECURE Waste Infrastructure's dividend report. In light of our recent valuation report, it seems possible that SECURE Waste Infrastructure is trading behind its estimated value. Embark on your investment journey to our 26 Top TSX Dividend Stocks selection here. Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports. Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TSX:ARG TSX:FTT and TSX:SES. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
01-03-2025
- Business
- Yahoo
Amerigo Resources (TSE:ARG) Is Paying Out A Dividend Of $0.03
Amerigo Resources Ltd. (TSE:ARG) will pay a dividend of $0.03 on the 20th of March. The dividend yield will be 6.6% based on this payment which is still above the industry average. See our latest analysis for Amerigo Resources Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. Prior to this announcement, Amerigo Resources' dividend made up quite a large proportion of earnings but only 26% of free cash flows. This leaves plenty of cash for reinvestment into the business. EPS is set to grow by 9.6% over the next year if recent trends continue. Assuming the dividend continues along recent trends, we think the payout ratio could reach 125%, which probably can't continue without starting to put some pressure on the balance sheet. The track record isn't the longest, but we are already seeing a bit of instability in the payments. The annual payment during the last 3 years was $0.0618 in 2022, and the most recent fiscal year payment was $0.0824. This means that it has been growing its distributions at 10% per annum over that time. Amerigo Resources has grown distributions at a rapid rate despite cutting the dividend at least once in the past. Companies that cut once often cut again, so we would be cautious about buying this stock solely for the dividend income. Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. We are encouraged to see that Amerigo Resources has grown earnings per share at 9.6% per year over the past five years. Recently, the company has been able to grow earnings at a decent rate, but with the payout ratio on the higher end we don't think the dividend has many prospects for growth. Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All of these factors considered, we think this has solid potential as a dividend stock. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Taking the debate a bit further, we've identified 1 warning sign for Amerigo Resources that investors need to be conscious of moving forward. Is Amerigo Resources not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
