Full Debt Repayment Achieved in October 2025
Quarterly dividend Increased by 33%
Quarterly Dividend of Cdn$0.04 Declared
VANCOUVER, British Columbia, Oct. 29, 2025 (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, 2025 ("Q3-2025") and the full repayment of corporate debt on October 27, 2025. Dollar amounts in this news release are in U.S. dollars unless indicated otherwise.
Amerigo's Q3-2025 financial results included net income of $6.7 million, earnings per share ("EPS") of $0.04, EBITDA1 of $18.7 million, operating cash flow before changes in non-cash working capital1 of $12.4 million and free cash flow to equity1 ("FCFE") of $11.1 million. In Q3-2025, Amerigo returned $3.5 million to shareholders through its quarterly dividend of Cdn$0.03 per share.
"We are pleased to report strong financial results for the third quarter of 2025. Our operation, Minera Valle Central ("MVC"), experienced lower than expected production during the quarter, as reported in prior news releases. However, the Company delivered solid cost and financial performance in a rising copper price environment. This strong performance positioned MVC to fully repay its remaining debt of $7.5 million on October 27, 2025," said Aurora Davidson, Amerigo's President and CEO.
"Reaching debt-free status was one of our stated objectives for 2025 and concludes a strategic ten-year period for the Company. In 2015, the first debt tranche of $64.4 million was secured to fund MVC's expansion without diluting shareholders, followed by a $35.3 million tranche in 2017 to fund the second expansion phase. This debt was restructured in 2021, allowing Amerigo to quickly deploy its Capital Return Strategy, which has returned $93.7 million to shareholders to date. The Company's quarterly dividend has now been increased to Cdn$0.04 per share, which is roughly 50% of the annual additional free cash flow that will become available from not carrying debt."
"Recent copper supply disruptions have further strengthened copper demand fundamentals. This strength has driven a significant price increase from September's average LME copper price of $4.51 per pound to $4.83 per pound in October, as of this news release. In this setting, Amerigo continues to provide an unmatched way to invest in copper, backed by the Company's ability to deliver predictable results and a consistent return of capital to shareholders," Ms. Davidson added.
1 This is a non-IFRS measure. See "Non-IFRS Measures" for further information.
On October 27, 2025, Amerigo's Board of Directors declared its seventeenth consecutive quarterly dividend. The dividend will be in the amount of Cdn$0.04 per share, payable on December 19, 2025, to shareholders of record as of November 28, 20253. 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, 2025, share closing price of Cdn$2.72, the Cdn$0.04 quarterly dividend declared on October 27, 2025, represents an annual dividend yield of 5.88%.
This news release should be read with Amerigo's interim consolidated financial statements and Management's Discussion and Analysis ("MD&A") for Q3-2025, available on the Company's website at www.amerigoresources.com and on the SEDAR+ website at www.sedarplus.ca.
Q3-2025
Q3-2024
$
$
MVC's copper price ($/lb)4
4.54
4.22
Revenue ($ millions)
52.5
45.4
Net income ($ millions)
6.7
2.8
EPS ($)
0.04
0.02
EPS (Cdn)
0.06
0.02
EBITDA1($ millions)
18.7
13.3
Operating cash flow before changes in non-cash working capital1($ millions)
12.4
8.9
FCFE1($ millions)
11.1
5.9
September 30, 2025
Dec. 31, 2024
Cash ($ millions)
28.0
35.9
Restricted cash ($ millions)
3.1
4.4
Borrowings ($ millions)
7.3
10.7
Shares outstanding at end of period (millions)
161.5
164.5
Highlights and Significant Items
In Q3-2025, Amerigo's posted net income of $6.7 million (Q3-2024: $2.8 million), driven by copper production from MVC of 14.6 million pounds ("M lbs") (Q3-2024: 16.3 M lbs) at an average MVC copper price of $4.54 per pound ("/lb") (Q3-2024: $4.22/lb). In Q3-2025, net income was higher as a result of $1.3 million in positive fair value adjustments to copper revenue receivables from a quarter-on-quarter copper price appreciation (Q3-2024: $2.7 million in negative fair value adjustments), as well as a decrease in smelting and refining charges of $3.0 million from $6.4 million in Q3-2024 to $3.4 million in Q3-2025.
EPS in Q3-2025 was $0.04 (Cdn$0.06), compared to $0.02 (Cdn$0.02) in Q3-2024.
The Company generated operating cash flow before changes in non-cash working capital1 of $12.4 million in Q3-2025, compared to $8.9 million in Q3-2024. The Company's quarterly net operating cash flow was $11.8 million (Q3-2024: $10.5 million) after changes in working capital in the period.
Free cash flow to equity1 was $11.1 million in Q3-2025 (Q3-2024: $5.9 million), after capital expenditures payments of $1.3 million (Q3-2024: $3.0 million).
In Q3-2025, Amerigo returned $3.5 million to shareholders (Q3-2024: $8.5 million) through Amerigo's regular quarterly dividend of Cdn$0.03 per share (Q3-2024: through the payment of Amerigo's quarterly dividend of Cdn$0.03 per share as well as a performance dividend of Cdn$0.04 per share).
Q3-2025 cash cost1 was $1.80/lb (Q3-2024: $1.93/lb). The $0.13/lb reduction in cash cost1 was caused predominantly by a $0.25/lb increase in molybdenum by-product credits from stronger molybdenum prices and a $0.16/lb decrease in smelting and refining charges in response to the current annual benchmark, offset by a $0.07/lb increase in power cost, a $0.07/lb increase in lime costs, a $0.04/lb increase in maintenance, and a $0.03/lb increase in other direct costs.
On September 30, 2025, the Company held cash and cash equivalents of $28.0 million (December 31, 2024: $35.9 million), restricted cash of $3.1 million (December 31, 2024: $4.4 million), and had working capital (current assets less current liabilities) of $0.9 million, up from a working capital deficiency of $6.5 million on December 31, 2024.
On September 30, 2025, the provisional copper price used by MVC was $4.54/lb. The final prices for July, August, and September 2025 sales will be the average London Metal Exchange ("LME") prices for October, November, and December 2025, respectively. A 10% increase or decrease from the $4.54/lb provisional price used on September 30, 2025, would result in a $6.8 million change in revenue in Q4-2025 regarding Q3-2025 production.
Investor Conference Call on October 30, 2025
Amerigo's quarterly investor conference call will occur on Thursday, October 30, 2025, at 11:00 a.m. Pacific Daylight Time/2:00 p.m. Eastern Daylight Time. Participants can join by visiting https://emportal.ink/4hqveMG 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 Q3-2025 Earnings Call.
Interactive Analyst Center
Amerigo's public financial and operational information is available for download in Excel format 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 Davidson President and CEO(604)
Graham FarrellInvestor Relations(416)
Summary Consolidated Statements of Financial Position
September 30,
December 31,
2025
2024
$ thousands
$ thousands
Cash and cash equivalents
28,045
35,864
Restricted cash
3,059
4,449
Property, plant and equipment
134,730
143,708
Other assets
25,169
21,450
Total assets
191,003
205,471
Total liabilities
84,020
100,682
Shareholders' equity
106,983
104,789
Total liabilities and shareholders' equity
191,003
