Savvy Trades and Investments

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Amerigo Resources (ARREF) reports

Amerigo Resources is a copper producer (with a small amount of molybdenum). They are not a big producer, and they are not growing fast. But they have a useful dividend (a little over 7% at current prices). They reported a positive quarter and year today:

https://www.amerigoresources.com/_resources/news/nr-20240410.pdf?v=0.1

A few highlights:
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Q1-2024 copper production of 16.0 million pounds, 2% over guidance

Q1-2024 normalized cash cost1 of $1.89 per pound, beating guidance by 9%

$3.7 million dividend to shareholders in Q1-2024

VANCOUVER, British Columbia, April 10, 2024 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. (TSX: ARG; OTCQX: ARREF) (“Amerigo” or the “Company”) is pleased to announce production results for the quarter ended March 31, 2024 (“Q1-2024”) 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 (“USD”) unless indicated otherwise.

“We are pleased to report a strong first quarter. Copper production of 16 million pounds was 2% over guidance, molybdenum production of 324,00 pounds was 4% over guidance, and our normalized cash cost of $1.89 per pound was 9% below our guided annual cash cost. These results reflect our commitment to operational excellence and cost management, which are key drivers of our financial performance," said Aurora Davidson, Amerigo’s President and CEO.

“The current combination of excellent operational results from MVC and strengthening copper prices are similar to 2021. Then, the substantial operational cash flow generated by the Company positioned us to refinance and reduce our bank debt and roll out Amerigo’s very successful Capital Return Strategy. Today, three years later, Amerigo’s considerably stronger balance sheet will allow these anticipated cash flows to be further focused on our Capital Return Strategy. With a secure quarterly dividend currently yielding over 8%, we are excited about distributing significant additional capital to investors as copper prices continue to rise on favorable supply/demand dynamics,” she added.