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Amerigo (TSX:ARG) recovers from quarterly loss

Mining
TSX:ARG
03 August 2022 13:15 (EDT)
Amerigo Resources Ltd. - President & CEO, Aurora Davidson.

Source: Portal Minero.

Amerigo Resources (ARG) announced the financial results for its second quarter after recovering from a significant net loss.

Amerigo’s financial results were impacted by reduced copper production during the annual scheduled maintenance shutdown of Minera Valle Central (MVC) in Chile and US$5.1 million in negative price settlement adjustments to previous quarterly copper sales.

“… Amerigo’s financial results were negatively affected by a substantial decline in copper prices which translated to a quarterly loss of $5.1 million… Copper price volatility is not new or uncommon, but Amerigo is now well-positioned to weather a period of lower prices,” Aurora Davidson, Amerigo’s President and CEO, said.

In addition, quarterly results included a net loss per share of US$0.03 and an EBITDA of $6.7 million. The company stated it is backed by a strong balance sheet and is committed to returning capital to shareholders,

Amerigo reported that its cash and restricted cash values for the quarter were $57.2 million, compared to starting the year with cash and restricted cash of $64.0 million.

The company also declared its quarterly dividend to shareholders of $0.03 per share. Based on the share closing price of Cdn$1.24 on June 30th, this represented an annual dividend yield of 9.68 per cent.

Amerigo’s board is also seeking TSX approval for a normal course Issuer bid after December 2nd, once the current one-year program expires.

Amerigo Resources Ltd. (ARG) is down 6.25 per cent and is trading at $1.20 per share as of 1:00 p.m. ET.


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