Q1 Highlights
- Q1-2025 copper production of 13.2 million pounds
- Results in line with 2025 guidance of 62.9 million pounds of copper
- Scheduled annual plant maintenance shutdown completed in Q1-2025
- Capital return to shareholders of $4.6 million in Q1-2025
Amerigo Resources Ltd. (TSX: ARG; OTCQX: ARREF) announced operational results for the quarter ended March 31, 2025 (“Q1-2025”) 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 (“USD”) unless indicated otherwise.
In Q1-2025, MVC produced 13.2 million pounds (“M lbs”) of copper and 0.24 M lbs of molybdenum. During the quarter, MVC’s plant availability was 97.6%, and there were no lost-time accidents involving MVC employees.
During Q1-2025, MVC completed its annual plant maintenance shutdown. Every year, this maintenance shutdown generates the Company’s lowest production quarter, which is factored into the Company’s annual production guidance. Following this year’s successful maintenance operations, the 2025 annual production guidance of 62.9 M lbs of copper and 1.3 M lbs of molybdenum remains in place.
Copper prices in the first quarter responded positively to the structural challenges of growing demand amid constrained supply. The average monthly spot price on the London Metal Exchange (“LME”), the benchmark market for copper producers where most of the world’s long-term copper supply contracts are traded, increased from $4.05 per pound in December 2024 to $4.41 per pound in March 2025. MVC’s pricing terms are based on the average LME copper price of the third month following the delivery of copper concentrates.
Global trade shifts and anticipated copper tariffs prompted a significant reallocation of copper inventories from Europe and Asia to the United States. This resulted in record spreads between the LME and the U.S. COMEX market before the rollout of widespread import tariffs to the United States on April 2, 2025. Although no copper tariffs were implemented, short-term copper prices experienced a significant downward adjustment.
The Company’s cash cost¹ in Q1-2025 was $2.22 per pound (“/lb”), impacted by lower production in the quarter associated with fewer operating days. Cost projections for the remainder of 2025 indicate that Amerigo’s annual cash cost guidance of $1.93/lb (excluding MVC’s collective agreement signing bonuses) remains valid.
Amerigo’s average provisional copper price in Q1-2025 was $4.42/lb, compared to $4.06/lb in Q4-2024. Q4-2024 copper deliveries, marked to market on December 31, 2024 at $4.08/lb, were settled at the LME average monthly prices for January 2025 ($4.07/lb), February 2025 ($4.23/lb) and March 2025 ($4.41/lb).
The Company’s molybdenum price was $20.14/lb, down from $21.38/lb in Q4-2024.
In Q1-2025, Amerigo returned $4.6 million to shareholders, $3.5 million through the quarterly dividend and $1.1 million through share buybacks. In connection with the plant shutdown, Q1-2025 Capex payments were approximately $6.8 million, accounting for around 52% of the annual Capex budget, which remains on track.
As of March 31, 2025, Amerigo’s cash position was $27.7 million, $8.2 million lower than the $35.9 million reported as of December 31, 2024. Additionally, restricted cash was $3.1 million, $1.3 million lower than the $4.4 million reported as of December 31, 2024. Outstanding bank debt was $11.5 million, unchanged from December 31, 2024.
Operational Summary
Capital Return Strategy
Since implementing its Capital Return Strategy (“CRS”) in October 2021, Amerigo has returned a total of $83.0 million to shareholders, $56.0 million through quarterly and performance dividends and $27.0 million through share buybacks, reducing by 12.5% the number of common shares outstanding at the inception of the CRS.
Amerigo’s CRS consists of three mechanisms: quarterly dividends, performance dividends, and share buybacks. These mechanisms provide shareholders with a consistent return on invested capital and quickly transfer the benefits of rising copper prices to Amerigo’s shareholders.
Release of Q1-2025 financial results on May 5, 2025
Amerigo will release its Q1-2025 financial results at the market open on Monday, May 5, 2025.
Amerigo Resources is a market awareness client of Capital 10X. For more information, including potential conflicts of interest please see our Content Disclaimer.
