Amerigo Renews Stock Buyback Program


  • NCIB renewal confirms Amerigo’s commitment to a balanced Capital Return Strategy
  • Up to 10.9 million shares (10% of public float) may be retired over one year
  • Buyback would be in addition to ~9% dividend yield

Amerigo Resources Ltd. (TSX: ARG) (OTCQX: ARREF) announced that it has received approval from the Toronto Stock Exchange (the “TSX”) to proceed with a new normal course issuer bid (the “NCIB”).

The NCIB will commence on December 2, 2023, and may continue to December 1, 2024, or at such earlier time as the NCIB is completed or terminated at the option of the Company.

Under the NCIB, Amerigo may purchase for cancellation up to 10,900,000 common shares of the Company (the “Shares”), approximately 10% of Amerigo’s public float as of November 24, 2023. As of November 24, 2023, there were 164,845,034 issued and outstanding Shares of the Company, of which 109,114,122 were forming the public float.

We are pleased to announce the renewal of Amerigo’s ability to buy back shares for cancellation, which is one of our tools to return capital to shareholders. In the last two years, we retired more than 20.1 million Shares under two NCIBs and one Substantial Issuer Bid. Under the right market and treasury conditions, this trend could continue next year. We look forward to continue showcasing our commitment to shareholder returns in 2024.Aurora Davidson, CEO, Amerigo Resources Ltd.

Amerigo’s average daily trading volume (“ADTV”) for the six months ending October 31, 2023, was 135,288 Shares, and therefore, the new NCIB’s daily purchase limit will be 33,822 Shares, 25% of ADTV.

However, once per calendar week, Amerigo may make one block purchase that exceeds the daily purchase restriction.

Under the NCIB, Shares may be purchased in open market transactions on the TSX at the prevailing market price at the time of such trade. All Shares purchased under the NCIB will be cancelled.

Under Amerigo’s previous NCIB, which commenced on December 2, 2022, and will expire on December 1, 2023, Amerigo received TSX approval to purchase up to 11,080,000 Shares in open market transactions on the TSX.

As of the date of this release, Amerigo had repurchased and cancelled 2,281,187 Shares at a weighted average purchase price of Cdn$1.57 per Share under that earlier NCIB.

Amerigo has a multi-year capital allocation strategy and a Capital Return Strategy that uses quarterly dividends¹, performance dividends and share buybacks to return capital consistently and flexibly to shareholders.

Amerigo believes that from time to time, the purchase of Shares under NCIBs is an attractive investment opportunity for Amerigo and accretive to the value of Amerigo’s Shares.

The actual number of Shares purchased under the NCIB and the timing of such purchases will be determined by Amerigo. There cannot be any assurance as to how many Shares, if any, will ultimately be acquired by the Company.

¹With an annual yield of 9.16%, based on four quarterly dividends of Cdn$0.03 per share each, divided over Amerigo’s November 24, 2023, share price of Cdn$1.31.

Duane Hope is a Partner at Capital 10X, he brings over 15 years of communications and research experience to the firm. His research and writing have appeared in publications for North American, European and Asian audiences.


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