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Amerigo Resources Ltd T.ARG

Alternate Symbol(s):  ARREF

Amerigo Resources Ltd. is a Canada-based copper producer. The Company owns a 100% interest in Minera Valle Central S.A. (MVC), a producer of copper concentrates. MVC, located in Chile, has a long-term contract with the El Teniente Division (DET) of Corporacion Nacional del Cobre de Chile (Codelco) to process fresh and historic tailings from El Teniente. The Company operates in one segment, the production of copper concentrates under a tolling agreement with DET.


TSX:ARG - Post by User

Bullboard Posts
Comment by CalifDreamingon May 15, 2008 4:51pm
243 Views
Post# 15078967

RE: Guys: Insiders are not SELLING - so what?

RE: Guys: Insiders are not SELLING - so what?They won't show much, if ANY, profit in Q2.    Most of the "profit" in Q1 was from final repricing of Q4 production, which won't occur again in Q2.

Reality is that their total cost of production was $3.34 lb in Q1 and sales price was $3.56.  It's the spread btw those two numbers that count. 9.9MM lbs x $0.22 = $2.18MM.   And with production down due to Codelco strikes, they expect roughly similar production in Q2.

The dividend will likely be cut/eliminated in Q2.  Makes no sense to see $2.2MM in cash flow (let alone earnings) and pay out $6MM in divvies.  And now that they said the generators are unlikely to be online until Q3/Q4, they are going to suffer even more as electricity prices keep climbing and there will likely be mandatory 5-10% power cuts this summer (their winter).

Bullboard Posts