Amerigo Announces Q3-2024 Results & Quarterly Dividend
Q3-2024 Net Income of $2.8 million
Robust EBITDA1 of $13.3 million and Free Cash Flow to Equity1 of $5.9 million
13th Quarterly Dividend of Cdn$0.03 declared
Cdn$0.07 per share returned to Shareholders in Q3-2024
VANCOUVER, British Columbia, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. (TSX:ARG, OTCQX:ARREF) ("Amerigo" or the "Company") is pleased to announce a strong financial performance for the three months ended September 30, 2024 ("Q3-2024"). Dollar amounts in this news release are in U.S. dollars unless indicated otherwise.
Amerigo reported net income of $2.8 million in Q3-2024, a significant turnaround from the $5.8 million net loss in the three months ended September 30, 2023 ("Q3-2023"), which was generated by lower copper prices and the impact on production of last year's flooding throughout Chile. Amerigo's copper production from Minera Valle Central ("MVC") reached 16.3 million pounds ("M lbs") in Q3-2024, a 46% increase compared to Q3-2023 (11.1 M lbs).
EBITDA1 for the quarter was $13.3 million, with free cash flow to equity1 of $5.9 million.
In Q3-2024, Amerigo returned $8.5 million to shareholders through its quarterly dividend of Cdn$0.03 per share and its initial performance dividend of Cdn$0.04 per share.
"We are pleased to report strong quarterly financial performance once again. Our three key performance drivers, production, copper prices, and cost management, were robust in the third quarter. Of particular significance, in Q3-2024, Amerigo paid its first performance dividend. This additional payment illustrated the ability of our Capital Return Strategy2 to share the benefits of strong copper prices with shareholders quickly," said Aurora Davidson, Amerigo's President and CEO.
"As we approach the end of 2024, our operations at MVC continue to outperform internal guidance. The United States and China have recently initiated economic stimulus measures, and global electrification continues. These factors will continue to increase the strain on the copper industry, whose output is vital to achieving these economic and social goals. We believe the positive effect on copper prices is just starting to be seen, so we maintain a positive outlook for copper prices and remain committed to Amerigo's successful Capital Return Strategy2," she added.
On October 28, 2024, Amerigo's Board of Directors declared its thirteenth quarterly dividend. The dividend will be in the amount of Cdn$0.03 per share, payable on December 20, 2024, to shareholders of record as of November 29, 20243. Amerigo designates the entire amount of this taxable dividend to be an "eligible dividend" for purposes of the Income Tax Act (Canada), as amended from time to time.
Based on Amerigo's September 30, 2024, share closing price of Cdn$1.74, the Cdn$0.03 quarterly dividends, and the Performance Dividend of Cdn$0.04 per share declared on July 8, 2024, represent an annual dividend yield of 9.2%4.
This news release should be read with Amerigo's interim consolidated financial statements and Management's Discussion and Analysis ("MD&A") for Q3-2024, available on the Company's website at www.amerigoresources.com and on the SEDAR+ website at www.sedarplus.ca.
Q3-2024
Q3-2023
MVC's copper price ($/lb)5
4.22
3.76
Revenue ($ millions)
45.4
30.3
Net income (loss) ($ millions)
2.8
(5.8
)
EPS (LPS) ($)
0.02
(0.04
)
EPS (LPS) (Cdn)
0.02
(0.05
)
EBITDA1 ($ millions)
13.3
3.2
Operating cash flow before changes in non-cash working capital1 ($ millions)
8.9
2.6
FCFE1 ($ millions)
5.9
(2.6
)
September 30, 2024
Dec. 31, 2023
Cash ($ millions)
25.1
16.2
Restricted cash ($ millions)
6.7
6.3
Borrowings ($ millions)
14.9
20.7
Shares outstanding at end of period (millions)
166.0
164.8
Highlights and Significant Items
Amerigo achieved a solid financial performance in Q3-2024, posting a net income of $2.8 million (Q3-2023: net loss of $5.8 million), driven by increased copper production from MVC of 16.3 M lbs (Q3-2023: 11.1 M lbs) and an average MVC copper price of $4.22 per pound (/lb") (Q3-2023: $3.76/lb).
Earnings per share in Q3-2024 was $0.02 (Cdn$0.02), compared to a loss per share of $0.04 (Cdn$0.05) in Q3-2023.
The Company generated operating cash flow before changes in non-cash working capital1 of $8.9 million in Q3-2024 (Q3-2023: $2.6 million). Quarterly net operating cash flow was $10.5 million (Q3-2023: cash used of $7.5 million). Free cash flow to equity1 was $5.9 million in Q3-2024 (Q3-2023: negative free cash flow to equity1 of $2.6 million).
Q3-2024 cash cost1 was $1.93/lb (Q3-2023: $2.44/lb). The $0.51/lb reduction in cash cost was caused predominantly by a 46% increase in production during Q3-2024, compared to flooding-impacted production in Q3-2023. This resulted in decreased unit costs overall, including reductions in power costs ($0.22/lb), maintenance ($0.08/lb), other direct costs ($0.08/lb), direct labour ($0.06/lb), historic tailings extraction ($0.05/lb), grinding media ($0.05/lb) and administration ($0.04/lb). These lower costs were offset by a $0.09/lb decrease in by-product credits.
On September 30, 2024, the Company held cash and cash equivalents of $25.1 million (December 31, 2023: $16.2 million), restricted cash of $6.7 million (December 31, 2023: $6.3 million), and had a working capital deficiency of $4.9 million (December 31, 2023: $12.3 million)
In Q3-2024, Amerigo returned $8.5 million to shareholders (Q3-2023: $3.7 million) through the payment of Amerigo's quarterly dividend of Cdn$0.03 per share and a performance dividend of Cdn$0.04 per share.
The Company's financial performance is sensitive to changes in copper prices. MVC's Q3-2024 provisional copper price was $4.24/lb. The final prices for July, August and September 2024 sales will be the average London Metal Exchange ("LME") prices for October, November and December 2024, respectively. A 10% increase or decrease from the $4.24/lb provisional price used on September 30, 2024, would result in a $7.0 million change in revenue in Q4-2024 regarding Q3-2024 production.
1 This is a non-IFRS measure. See "Non-IFRS Measures" for further information.
Investor Conference Call on October 31, 2024
Amerigo's quarterly investor conference call will be held on Thursday, October 31, 2024, at 11:00 a.m. Pacific Daylight Time/2:00 p.m. Eastern Daylight Time.
Participants can join by visiting https://emportal.ink/4dccA8Y and entering their name and phone number. The conference system will then call the participants and place them instantly into the call. Alternatively, participants can dial directly to be entered into the call by an Operator. Dial 1-888-510-2154 (Toll-Free North America) and state they wish to participate in the Amerigo Resources Q3-2024 Earnings Call.
Interactive Analyst CenterAmerigo has made published financial and operational information available for Excel download through Virtua's Interactive Analyst Center ("IAC"). You can access the IAC by visiting www.amerigoresources.com under Investors > Interactive Analyst Center.
About Amerigo and Minera Valle Central ("MVC")
Amerigo Resources Ltd. is an innovative copper producer with a long-term relationship with Corporación Nacional del Cobre de Chile ("Codelco"), the world's largest copper producer.
Amerigo produces copper concentrate, and molybdenum concentrate as a by-product at the MVC operation in Chile by processing fresh and historic tailings from Codelco's El Teniente mine, the world's largest underground copper mine. Tel: (604) 681-2802; Web: www.amerigoresources.com; ARG:TSX; OTCQX: ARREF.
Contact Information
Aurora DavidsonPresident and CEO(604)
Graham FarrellInvestor Relations(416)
Summary Consolidated Statements of Financial Position
September 30,
December 31,
2024
2023
$ thousands
$ thousands
Cash and cash equivalents
25,127
16,248
Restricted cash
6,727
6,282
Property plant and equipment
146,273
156,002
Other assets
23,525
21,027
Total assets
201,652
199,559
Total liabilities
95,244
94,706
Shareholders' equity
106,408
104,853
Total liabilities and shareholders' equity
201,652
