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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 28, 2008 8:33pm
506 Views
Post# 15337628

I decide to get back in

I decide to get back inAfter reading the Q2 results I liked the following:  EPS of $0.07 despite high electricity costs (though way down from Q1) and the fact they decided to pay the dividend.  Q3 looks brighter assuming higher production (labour contracts have been settled at El Teniente) and lower power costs.  Sure, the wildcard is copper prices.  If you want to be a more conservative and assume it averages $3.50/lb. my rough guess is that the negative settlement price adjustment would be offset by higher output and lower costs.  Be quite happy with another $0.07 in Q3 if the base is $3.50/lb (instead of $3.80/lb).  Low P/E and high dividend yield.  At this price I decided it was good enough for me again.
Bullboard Posts