Dollar amounts in this news release are in U.S. dollars unless indicated otherwise.
Amerigo’s annual financial results included annual net income of $19.2 million, earnings per share (“EPS”) of $0.12, EBITDA of $68.8 million and free cash flow to equity (“FCFE”) of $27.8 million.
In 2024, Amerigo returned $21.2 million to shareholders, including Cdn$0.16 per share of quarterly and performance dividends. 2024 was the first year the Company employed all the elements of its Capital Return Strategy (“CRS”): quarterly dividends, performance dividends, and share buybacks.
In Q4-2024, Amerigo’s net income was $2.4 million, with EPS of $0.01, EBITDA of $19.5 million, and FCFE of $8.0 million.
In July 2024, Amerigo paid its first performance dividend, illustrating our ability to quickly share the benefits of strong copper prices with shareholders. Currently, copper prices are starting to behave as in Q2-2024, before the declaration of that initial performance dividend. However, compared to July 2024, we are comfortably above our targeted minimum cash balances, and the overhang of the upcoming U.S. election is behind us. We are again in an excellent position to quickly take advantage of rising copper prices on behalf of shareholders.
We have set ambitious operational and financial goals for 2025. We expect to extinguish our already low level of debt before year-end, which will allow us to return even greater levels of capital to shareholders. We continue to see strongly supported fundamentals in our sector, which should lead to higher copper prices and exceptional economics for Amerigo. With minimal remaining debt and a proven CRS in place, Amerigo is extremely well positioned to continue to reward shareholdersAurora Davidson, CEO & President of Amerigo Resources
Amerigo’s copper production from Minera Valle Central (“MVC”) reached 64.6 million pounds (“M lbs”) of copper (2023: 57.6 M lbs, impacted by flooding throughout Chile), 4% over the Company’s annual production guidance of 62.4 M lbs. MVC also produced 1.3 M lbs of molybdenum in 2024 (2023: 1.2 M lbs), 8% over the Company’s guidance of 1.2 M lbs.
On February 24, 2025, Amerigo’s Board of Directors declared its fourteenth quarterly dividend. The dividend will be Cdn$0.03 per share, payable on March 20, 2025, to shareholders of record as of March 6, 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 December 31, 2024, share closing price of Cdn$1.56, the Cdn$0.03 per share quarterly dividend represents an annual dividend yield of 7.7%.
This news release should be read with Amerigo’s audited consolidated financial statements and Management’s Discussion and Analysis (“MD&A”) for the years ended December 31, 2024, and 2023, available on the Company’s website at www.amerigoresources.com and on the SEDAR+ website at www.sedarplus.ca.
Financial Summary
Highlights and Significant Items
- Amerigo achieved a solid financial performance in 2024, posting a net income of $19.2 million (2023: $3.4 million), driven by increased copper production from MVC of 64.6 M lbs (2023: 57.6 M lbs) and an average MVC copper price in 2024 of $4.15 per pound (“/lb”) (2023: $3.86/lb).
- Basic EPS in 2024 were $0.12 (Cdn$0.16), compared to $0.02 (Cdn$0.03) in 2023.
- The Company generated operating cash flow before changes in non-cash working capital of $47.1 million (2023: $22.3 million). Annual net operating cash flow was $59.8 million (2023: $20.3 million). Free cash flow to equity was $27.8 million (2023: $nil).
- Cash cost in 2024 was $1.89/lb (2023: $2.17/lb). The $0.28/lb reduction in cash cost was caused predominantly by a 12.2% increase in copper production during 2024. This resulted in decreased unit costs overall, most notably in power costs ($0.08/lb), direct labour ($0.03/lb), grinding media ($0.03/lb), administration ($0.03/lb), and other direct costs ($0.04/lb).
- On December 31, 2024, the Company held cash and cash equivalents of $35.9 million (December 31, 2023: $16.2 million), restricted cash of $4.4 million (December 31, 2023: $6.3 million) and had a working capital deficiency of $6.5 million (December 31, 2023: $12.3 million).
- In 2024, Amerigo returned $21.2 million to shareholders (2023: $17.2 million), including $14.5 million (2023: $14.6 million) through the payment of Amerigo’s quarterly dividends of Cdn$0.03 per share, $4.8 million through the payment of a Cdn$0.04 per share performance dividend (2023: $nil) and $1.8 million by purchasing 1.4 million common shares for cancellation through a Normal Course Issuer Bid (2023: $2.6 million and 2.3 million common shares).
- The Company’s financial performance is sensitive to changes in copper prices. MVC’s Q4-2024 provisional copper price was $4.08/lb. The final prices for October, November and December 2024 sales will be the average London Metal Exchange (“LME”) prices for January ($4.07/lb), February and March 2025, respectively.
- A 10% increase or decrease from the $4.08/lb provisional price used on December 31, 2024, would result in a $7.4 million change in revenue in Q1-2025 regarding Q4-2024 production.
Investor Conference Call on February 27, 2025
Amerigo’s quarterly investor conference call will be held on Thursday, February 27, 2025, at 11:00 a.m. Pacific Standard Time/2:00 p.m. Eastern Standard Time. Participants can join by visiting https://emportal.ink/3NOSCpK 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 Q4-2024 Earnings Call.
Interactive Analyst Center
Amerigo has made published financial and operational information available for Excel download through Virtua’s Interactive Analyst Center (“IAC”). You can access the IAC by visiting www.amerigoresources.com
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: www.amerigoresources.com; ARG:TSX; OTCQX: ARREF.
Amerigo Resources is a market awareness client of Capital 10X. For more information, including potential conflicts of interest please see our Content Disclaimer.
