Amerigo Resources Ltd T.ARG

Nice Opening

[savyinvestor333]

Cleareed out 92000 at $.92

[goldens]

And gone. No interest in this stock because there is no vision.

[Cranium]

What kind of vision do you want?  They produce copper and make lots of money in this environment.  Their "vision" is that they will pay down (or renegotiate) debt and then buy back stock and pay dividends to shareholders. Many people who want divs don't want to buy the stock until the divs are announced... they will likely have to pay a lot more for that certainty. 

[goldens]

Make lots of money in this environment? This is a fantastic environment. They already said they ran full out during the pandemic so what is the problem. How about looking at an expansion once their cash position is better. There are lots of other tailings in Chile they could be looking to mine. Copper is going to be in the $5 range. We need a hedge fund to get in and shake up the company. 

[Cranium]

The Growth Strategy is in the investor presentation.  They're looking at other tailings at El Teniente and other Codelco mines.  But there's no way that adding other operations would be more accretive to earnings than buying back shares at these prices. I doubt we'll hear anything about new operations until the debt is paid or renegotiated. I'm not happy with the share

[Lucentio]

It's the grade  of the  tailings that count. My understanding is that current grades are higher  than normal as there is not enough space for full treatment up the mountain, so the compromise was made to take out the balance of the copper further down the mountain and hence MVC.

[savyinvestor333]

Seems plausible. Would you mind providing your source and how long will this go on?

[Lucentio]

Sorry I've misled you.  I have no idea on grades right now. My comment was about initial build of mine, not enough space or water up the mine for a full tailings solution so take out bulk of copper up the mountain and remove most of the residual at MVC.  Note too that tailings were  just dumped and stored for many years. at El Cauqennes and  El Colihues.

[savyinvestor333]

From the conference call they implied lower tonnage from El Teniente but they can get better recoveries. Is this what you were referring to? Another factor to consider is tonnage. In Q4 2020, we processed a substantial amount of fresh tailings from El Teniente, averaging 136 tons per day. In 2021, the information we have received from El Teniente in respect of this variable is slightly lower