VANCOUVER, British Columbia, Aug. 10, 2016 (GLOBE NEWSWIRE) — Amerigo Resources Ltd. (TSX:ARG) (“Amerigo” or the “Company”) reported today financial results for the three months ended June 30, 2016 (“Q2-2016”). The Company posted revenue of $19.3 million and a net loss of $3.6 million. The Company had negative cash flow from operations of $0.6 million, and had a cash balance of $9.0 million at June 30, 2016, after making scheduled debt repayments of $10.7 million.
Rob Henderson, Amerigo’s President and CEO, stated “MVC’s successful development of the Cauquenes deposit has contributed to record high copper production and lower cash costs. The Company is well positioned to take advantage of future increases in the copper price.”
Cash and Financing Activities
Amounts in this news release are reported in U.S. dollars except where indicated otherwise. The information in this news release and the tabular information contained in the following page should be read in conjunction with the Company’s Condensed Consolidated Interim Financial Statements (Unaudited) and Management’s Discussion and Analysis (“MD&A”) for the three months ended June 30, 2016 and the Audited Consolidated Financial Statements and MD&A for the year ended December 31, 2015, available at the Company’s website at www.amerigoresources.com and at www.sedar.com.
Amerigo Resources Ltd. produces copper and molybdenum under a long term partnership with the world’s largest copper producer, Codelco, by means of processing fresh and historic tailings from the world’s largest underground copper mine, El Teniente, near Santiago, Chile. Tel: (604) 681-2802; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX
|Comparative Overview ($, thousands)|
|Q2-2016 ($)||Q2-2015 ($)||Change ($)||Change (%)|
|Copper produced1 million pounds||14.4||9.1||5.3||58||%|
|% of production from historic tailings||57||%||28||%||–||104||%|
|Gross copper tolling price ($/lb)||2.10||2.65||(0.55||)||(21||%)|
|Cash cost per pound 2||1.65||2.15||(0.50||)||(23||%)|
|Total cost per pound 2||2.25||2.86||(0.61||)||(21||%)|
|1 As of January 1, 2015 production of copper concentrates from El Teniente fresh and historic tailings is conducted under a|
|tolling agreement with DET.|
|2 Cash and total costs are non-GAAP measures.|
|Summary Consolidated Statements of Financial Position ($, thousands)|
|June 30, 2016||December 31, 2015|
|Cash and cash equivalents||9,043||9,032|
|Property plant and equipment||177,554||181,494|
|Total liabilities and shareholders’ equity||216,131||220,210|
|Summary Consolidated Statements of Comprehensive Loss ($, thousands)|
|Gross tolling revenue||28,361||24,657|
|Notional items deducted from gross tolling revenue:|
|Smelting and refining||(4,784||)||(3,850||)|
|Molybdenum and other revenue||1,085||563|
|Tolling and production costs|
|Depreciation and amortization||(3,301||)||(1,678||)|
|Income tax recovery (expense)||594||(179||)|
|Other comprehensive income (loss)||256||(20||)|
|Loss per share – Basic and Diluted||(0.02||)||(0.01||)|
|Summary Consolidated Statements of Cash Flows ($, thousands)|
|Net Cash provided by (used in) operations||7,139||(4,359||)|
|Net cash used in investing acitivities||(2,138||)||(17,655||)|
|Net cash (used in) provided by financing acitivites||(7,673||)||20,760|
|Net cash outflow||(2,672||)||(1,254||)|
This news release contains certain forward-looking information and statements as defined in applicable securities laws (collectively referred to as “forward-looking statements”). These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “should”, “believe” and similar expressions is intended to identify forward-looking statements. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure that it will achieve or accomplish the expectations, beliefs or projections described in the forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These statements speak only as of the date of this news release. These forward-looking statements include but are not limited to, statements concerning:
Inherent in forward-looking statements are risks and uncertainties beyond our ability to predict or control, including risks that may affect our operating or capital plans; risks generally encountered in the permitting and development of mineral projects such as unusual or unexpected geological formations, negotiations with government and other third parties, unanticipated metallurgical difficulties, delays associated with permits, approvals and permit appeals, ground control problems, adverse weather conditions, process upsets and equipment malfunctions; risks associated with labour disturbances and availability of skilled labour and management; fluctuations in the market prices of our principal commodities, which are cyclical and subject to substantial price fluctuations; risks associated with the availability and pricing of materials used in our operations; risks created through competition for mining projects and properties; risks associated with lack of access to markets; risks associated with availability of tailings and mine plan estimates; risks posed by fluctuations in exchange rates and interest rates, as well as general economic conditions; risks associated with environmental compliance and changes in environmental legislation and regulation; risks associated with our dependence on third parties for the provision of critical services; risks associated with non-performance by contractual counterparties; title risks; social and political risks associated with operations in foreign countries; risks of changes in laws affecting our operations or their interpretation, including foreign exchange controls; and risks associated with tax reassessments and legal proceedings. All of these risks and uncertainties apply not only the Group and its operations, but also to Codelco and its operations. Codelco’s ongoing mining operations provide a significant portion of the materials the Group processes and its resulting production and therefore these risks and uncertainties may also affect their operations and in turn have a material effect on the Group.
Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about:
Future production levels and cost estimates assume there are no adverse mining or other events which significantly affect budgeted production.
We caution you that the foregoing list of important factors and assumptions is not exhaustive. Other events or circumstances could cause our actual results to differ materially from those estimated or projected and expressed in, or implied by, our forward-looking statements. You should also carefully consider the matters discussed under “Risk Factors” in our Annual Information Form. Except as required by law, we undertake no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, whether as a result of new information or future events or otherwise.
CONTACT: For further information, please contact: Rob Henderson, President and CEO (604) 697-6203 Aurora Davidson, Executive Vice President and CFO (604) 697-6207