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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 Jul 13, 2007 9:19am
608 Views
Post# 13083282

Very much looking forward to Q2

Very much looking forward to Q2I think very strong Q2 results as well as the announcement of dividend ($0.065) will get this stock moving towards $4.00 soon. Q2 strong (EPS should be at least US$0.10) for many reasons: 1) Production has been strong. My guess is 8.0 mm lbs. of copper and 215,000 lbs. of molybdenum. The implied normal quarterly run-rate is 7.5 mm lbs. of copper and 187,500 lbs. of molybdenum. However, I understand grades have been higher than normal (either due to higher mine grades and/or less efficient processing practices by El Teniente). As well, moly/copper ratio is higher (normal is 1 lb. of moly per 40 lbs. of copper) due to some change in mine grade. ARG earlier issued a press release saying that moly production by mid-quarter had already exceeded all of Q1. 2) Copper and moly prices have been strong during quarter. As well, copper and moly prices ended the quarter higher than at the beginning, so ARG will pick-up positive price adjustments. With a strong copper price going into Q3 investors can look forward to a very good quarter as well. ARG generating gobs of cash and has large cash position (likely aroud US$30 mm). I would rather see buy-backs than investments (i.e., DNT), but the investments have value and upside and so far DNT doing well.
Bullboard Posts