Key Highlights
- Copper Production of 16.3 million pounds, Ahead of Guidance
- Q3-2024 cash cost of $1.93 per pound, 7% Below Annual Guidance
- US$8.5 million in Quarterly and Performance Dividends Paid in Q3-2024
Amerigo Resources Ltd. (TSX: ARG) (OTCQX: ARREF) announced production results for the quarter ended September 30, 2024 (“Q3-2024”) 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 unless indicated otherwise.
Amerigo’s Capital Return Strategy was designed so shareholders can quickly benefit from a quarter like this. We will continue to deploy all three mechanisms in the Strategy with maximum flexibility, as we expect copper prices to continue strengthening due to fundamental supply and demand issues. We are off to a great start in Q4, as copper prices are well above the quarterly average prices we have received throughout 2024.Aurora Davidson, President & CEO, Amerigo Resources Inc.
In Q3-2024, MVC produced 16.3 million pounds (“M lbs”) of copper, with 70% of production coming from fresh tailings and 0.3 M lbs of molybdenum. MVC’s plant availability was 97%.
During the nine months ended September 30, 2024 (“YTD-2024”), MVC produced 46.2 M lbs of copper and 1.0 M lbs of molybdenum.
Cash Costs
Amerigo’s cash cost in Q3-2024 was $1.93 per pound (“/lb”), and YTD-2024 normalized cash cost1 was $1.93/lb, both below the Company’s 2024 cash cost1 guidance of $2.08/lb. YTD-2024 normalized cash cost1 excludes $0.02/lb paid to MVC’s supervisors in January 2024 as the signing bonus of a 3-year collective labour agreement.
On September 30, 2024, MVC’s water reserves were over 10.0 million cubic meters, sufficient to maintain projected historic tailings processing rates for at least eighteen months, the Company’s maximum forecast horizon.
Realized Prices
Amerigo’s quarterly copper price in Q3-2024 was $4.22/lb, compared to $4.39/lb in Q2-2024. The Company’s molybdenum price was $21.39/lb, compared to $21.11/lb in Q2-2024.
In Q3-2024, Amerigo paid shareholders $8.5 million in dividends, bringing YTD-2024 dividend payments to $15.8 million.
On September 30, 2024, Amerigo’s cash position was $25.1 million ($8.9 million higher than December 31, 2023), and restricted cash was $6.7 million ($0.4 million higher than December 31, 2023). Outstanding bank debt was $15.5 million, $5.8 million lower than December 31, 2023.
3Q 2024 Operational Review Table
Capital Return Strategy
Since implementing its Capital Return Strategy (the “Strategy”) in September 2021, Amerigo has returned a total of $72.7 million to shareholders, $49.0 million through quarterly and performance dividends and $23.7 million through share buybacks, reducing by 11.1% the number of common shares outstanding at the inception of the Strategy.
Amerigo’s Strategy consists of three mechanisms: quarterly dividends, performance dividends, and share buybacks. These mechanisms ideally provide shareholders with a consistent return on invested capital and quickly transfer the benefits of rising copper prices to Amerigo’s shareholders.
Release of Q3-2024 financial results on October 30, 2024
Amerigo will release Q3-2024 financial results at the market open on Wednesday, October 30, 2024.
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