Amerigo Resources ( (ARREF) ) has released its Q3 earnings. Here is a breakdown of the information Amerigo Resources presented to its investors.
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Amerigo Resources Ltd., a copper producer with operations in Chile, is known for processing tailings from Codelco’s El Teniente mine to produce copper and molybdenum concentrates.
In its Q3-2024 earnings report, Amerigo Resources announced a strong financial performance, marked by a significant improvement in its net income compared to the previous year, as well as a dividend declaration for its shareholders.
The company reported a net income of $2.8 million for Q3-2024, a notable recovery from a $5.8 million loss in Q3-2023. This improvement was driven by a 46% increase in copper production, reaching 16.3 million pounds, and higher copper prices. Amerigo also generated an EBITDA of $13.3 million and a free cash flow to equity of $5.9 million. Additionally, the company declared a quarterly dividend of Cdn$0.03 per share and introduced a performance dividend, resulting in a total payout of $8.5 million to shareholders.
Amerigo’s strong performance reflects robust production and cost management strategies, as evidenced by a reduced cash cost of $1.93 per pound, down from $2.44 per pound in the previous year. The company’s capital return strategy, including dividends and performance-based payouts, is designed to share the benefits of strong copper prices with its shareholders.
Looking forward, Amerigo’s management remains optimistic about the future, anticipating continued support from favorable copper price trends, driven by global economic stimulus measures and the ongoing demand for electrification. The company is committed to maintaining its successful capital return strategy while navigating the dynamic copper market.
