Amerigo Resources Ltd T.ARG

Alternate Symbol(s): ARREF

Metals & Mining Industrial Metals & Minerals

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.

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Amerigo Resources Ltd > Conference Call

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Comment by constructionsiteon Nov 06, 2023 11:38am

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Post# 35719478

RE:Conference Call

I have not listened to the CC. If anyone has and is willing to share their insights, these would be gratefully received here.

I read the following in the PR as concerning. It is the first time that Aurora has indicated that the dividend policy is being re-evaluated:

"Despite the past two challenging quarters, I am pleased to announce the Board of Directors has declared the Company’s ninth consecutive dividend. Given the combination of recent operational impacts and current economic headwinds weighing on copper prices, the Board is examining the temporary modification of the quarterly and performance dividend components of our Capital Return Strategy."

Up until now, it was always: "the divi is safe, not to worry".
Now, however, we read, "it may be soon time to worry"....
The SP clearly reflects this.

On the other hand, copper prices have been more or less stable for the past 6 months, and the more recent trend is favourable... so, if you're able to stomach the possibility of a near-term (and likely temporary) dividend adjustment, then this could be a great stock to play the eventual build of global electrical infrastructure.