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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

Comment by SomeGainNoPainon Jan 13, 2022 11:29am
112 Views
Post# 34312859

RE:New Chilean constitution

RE:New Chilean constitutionThere shouldn't be any cause for concern for copper miners. Ever since the nationalisation of Codelco, the way copper mining is made in Chile is a realization of a socialist dream. It is a cash cow: Even Amerigo paid 29 Million US dollars in royalties to Codelco last year, and Codelco is state owned and returns its profits to the state.
What is really at stake is for lithium miners: the chilean government would very much like to benefit from the incredible lithium price surge (500+% Y/Y), and have another cash cow, similar to  copper.

However mining lithium is no walk in the park, it requires a lot of knowhow (as does recovering copper from tailings) .  The ability to attract lithium miners, that have this knowhow, in a context where the miners know the clhilean government will want to keep a hand in the jar, that is very much in question.

For Amerigo, the contract is there for us for much longer than the next government will stay in office. I see a real possibility of expansion through additional tailing reclaiming contracts, because there is a real political appetite for the green narrative, especially in a socialist-woke government.

GLTA      
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