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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
Post by Tokatoon May 02, 2007 9:39am
557 Views
Post# 12710018

Q2 likely to be US$0.10/share

Q2 likely to be US$0.10/shareEPS of US$0.06 in Q1 was good. I thought it may be a penny or two higher due to higher settlement contracts (but these are one-time items anyways). In Q2 with production up 20% from Q1 EPS based on the same copper price should be around US$0.08, especially given that the marginal cost of the additional 20% increase would be small. Given that copper prices are likely to average around US$0.40/lb. higher in Q2 that should add two pennie. Even without Colihues, ARG on track to generate arounf US$0.35/share in EPS (based on US$3.25/lb. copper). And this is real earnings as ARG's CAPEX is dropping close to its depreciation level - therefore earnings = cash flow. So ARG's cash balance should build throughout the year. Getting Colihues going will be a huge boost (as it would double production and earnings). Seeing the cash build should also mean other initiatives in the future.
Bullboard Posts