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Bullboard - Stock Discussion Forum 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... see more

TSX:ARG - Post Discussion

Amerigo Resources Ltd > New identity, new narrative, the call in a nutshell
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Post by SomeGainNoPain on Nov 04, 2021 5:11pm

New identity, new narrative, the call in a nutshell

Mrs Davidson is transforming the company in a meaningful way. No more angry investors in the conference calls - we will have none of that from here on. 
The new narrative: we are green. We use clean energy and we clean up mines tailing mess, yet we are profitable. So you green investing ETFs, better look this way.
The dividend: it has to be sustainable and has to grow. If 6% is not enough for you, look elsewhere (and good luck with that: FM doesn't even yield 0.1%)
The buyback: no idea if it will catch. The unused money will return to shareholders through an NCIB if it didn't work. Luzich and al intended to use it, but it was not binding.
The special dividends: don't count on it. That is not sustainable.
The company growth: waiting for offers and occasions, we will not ruin our business to grow. 
Hedging : working on it, if it can secure the dividend, but our situation with royalties makes this complicated - stay tuned, but don't hold your breath
All in all, this has become a mature and smart company, run by mature and smart people. What is there not to love?
Comment by goldens on Nov 04, 2021 7:38pm
It will be interesting to see if they take $1.30. It still might be worth it if you are getting rid of a large amount and you need the money for another investment. If you try to unload a large amount quickly you might get less than an average of $1.30 given the volume. They also have a crapload of shares still in the game. All in all I can't wait for the Dutch auction to end.
Comment by SomeGainNoPain on Nov 05, 2021 11:48am
I think the dutch auction will work. It may seem a bit annoying to wait another week to see this pass by, but the right way to play it is to put a buy order at 1.30. Every once in a while, the fat cats wait for the SP to rise a bit, and then they unload a bunch of shares down to 1.30. 1.30 is an attractive price for ARG to buy back their shares, and Aurora implicitly admitted they will pay even ...more  
Comment by goldens on Nov 06, 2021 9:05am
Q4 should also have a positive adjustment of about $3.5 million assuming copper prices average in the $4.40 range to the end of December. That is about 5% higher than the $4.23 price they used in the calculation. If prices stay above $4 for the longer term (and I believe they will) then I suspect we will see the dividend increased or the NCIB to continue which will increase the price further.  ...more  
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