Amerigo Resources Ltd. (TSX: ARG; OTCQX: ARREF) announced production results for the quarter ended June 30, 2024 (“Q2-2024”) 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.
Highlights
- Q2-2024 Copper Production of 14.0 million pounds, 2024 Guidance Maintained
- $3.6M Quarterly Dividend Paid in Q2-2024, Additional $4.8 M Performance Dividend Declared
- Q2-2024 cash cost1 of $1.96 per pound, Outperforming Guidance
- Annual Maintenance Shutdown Completed According to Plan
In Q2-2024, MVC produced 14.0 million pounds (“M lbs”) of copper, with 64% of production coming from fresh tailings. MVC’s plant availability was 94%. Production for the first half of 2024 (“H1-2024”) was 30.0 M lbs, representing 48% of Amerigo’s 2024 copper production guidance of 62.4 M lbs.
Q2-2024 molybdenum production was 0.3 M lbs. H1-2024 molybdenum production of 0.6 M lbs. is in line with Amerigo’s annual molybdenum production guidance of 1.2 M lbs.
Amerigo’s cash cost1 in Q2-2024 was $1.96 per pound (“/lb”), and H1-2024 normalized cash cost1 was $1.92/lb, both below the Company’s 2024 cash cost1 guidance of $2.08/lb. Normalized H1-2024 cash cost1 excludes $0.04/lb paid to MVC’s supervisors in January 2024 as the signing bonus of a 3-year collective labor agreement.
Amerigo’s quarterly copper price in Q2-2024 was $4.39/lb, compared to $3.95/lb in Q1-2024. The Company’s molybdenum price was $21.11/lb, up from $19.67/lb in Q1-2024.
On June 30, 2024, Amerigo’s cash position was $28.7 million ($12.5 million higher than December 31, 2023), and restricted cash was $4.2 million ($2.1 million lower than December 31, 2023). Outstanding bank debt was $15.5 million, $5.8 million lower than December 31, 2023.
On June 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.
Capital Return Strategy
Since implementing its Capital Return Strategy (the “Strategy”) in September 2021, Amerigo has paid cumulative quarterly dividends of Cdn$0.32 per share ($40.5 million) and used $23.7 million to purchase and cancel 20.1 million of its common shares, a 11.1% reduction in the number of common shares outstanding at the inception of the Strategy.
On July 8, 2024, Amerigo’s board of directors declared the Company’s first Performance Dividend of Cdn$0.04 per share. With the declaration of the Company’s first Performance Dividend, the three legs of the Strategy (quarterly dividends, performance dividends and share buybacks) are now fully deployed. Amerigo’s Performance Dividend is a flexible mechanism with regard to timing, frequency and the amount of capital returned to shareholders. It is ideally suited to return capital to shareholders quickly and is a unique tool to transfer the benefits of solid copper price performance to Amerigo’s shareholders.
Release of Q2-2024 financial results on July 31, 2024
Amerigo will release Q2-2024 financial results at the market open on Wednesday, July 31, 2024.
Investor conference call on Thursday, August 1, 2024
Amerigo’s quarterly investor conference call will be held on Thursday, August 1, 2024, at 11:00 a.m. Pacific Daylight Time/2:00 p.m. Eastern Daylight Time.
Participants can join by visiting https://emportal.ink/3VNPCys 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 1-888-664-6392 (Toll-Free North America) and state they wish to participate in the Amerigo Resources Q2-2024 Earnings Call.
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: www.amerigoresources.com; Listing: ARG: TSX.
Amerigo Resources is a market awareness client of Capital 10X. For more information, including potential conflicts of interest please see our Content Disclaimer.
