Amerigo Resources Ltd. (TSX:ARG)
VANCOUVER, BRITISH COLUMBIA, CANADA, October 12, 2021 /EINPresswire.com/ —
Amerigo Reports Q3-2021 Production Results
Quarterly copper production of 16 million pounds, 9% over Q3 guidance
Cash cost of $1.62/lb, 8% below Q3 guidance and lowest quarterly cash cost of 2021
Annual MVC plant maintenance shutdown successfully completed on schedule
Amerigo Resources Ltd. (TSX: ARG; ARREF: OTC) is pleased to announce production results for the quarter ended September 30, 2021 (“Q3-2021”) from Minera Valle Central ("MVC"), the Company’s 100% owned operation located near Rancagua, Chile. Dollar amounts in this news release are in U.S. dollars.
In Q3-2021, MVC produced 16 million pounds (“M lbs”) of copper at a cash cost1 of $1.62 per pound (“/lb”) and 0.3 M lbs of molybdenum.
Q3-2021 copper production was at 109% of guidance2 (YTD-2021: 101% of guidance2), due to higher fresh tailings tonnage and grade. During the quarter, MVC also successfully completed a series of planned plant modifications which now allow it to process a higher throughput of fresh tailings without sacrificing recovery. Production from fresh tailings in Q3-2021 accounted for 54% of quarterly production.
Molybdenum production in Q3-2021 was at 100% of guidance2 (YTD-2021: 95% of guidance2), marginally affected as more copper production comes from fresh tailings than from Cauquenes, as fresh tailings have lower molybdenum content.
“Amerigo completed Q3-2021 with very strong production results. The annual plant maintenance shutdown was completed successfully and on schedule, and full production operations resumed on October 2, 2021. A total of 1,390 maintenance tasks and projects were completed safely and on time by our team in Chile to ensure MVC’s plant continues to operate as expected”, said Aurora Davidson, Amerigo’s President and CEO.
Q3-2020 cash cost of $1.62/lb was 8% lower than the Company’s Q3 cash cost guidance of $1.76/lb3 due to higher than projected production and lower than anticipated power, steel and lime costs.
MVC’s average copper price in Q3-2021 was $4.23/lb, compared to $4.44/lb in Q2-2021.
On September 30, 2021, the Company’s cash and restricted cash balance was $71 million (an increase of $18 million from June 30, 2021) and outstanding bank debt was $35 million (unchanged from June 30, 2021).
Release of Q3-2021 financial results on November 3, 2021
Amerigo will release Q3-2021 financial results at market open on Wednesday, November 3, 2021.
Investor conference call on November 4, 2021
Amerigo’s quarterly investor conference call will take place on Thursday, November 4, 2021, at 11:00 am Pacific Time/2:00 pm Eastern Time. To join the call, please dial 1-888-664-6392 (Toll-Free North America) and enter confirmation number 79182997.
121 Mining Investment Online Americas
Amerigo will be participating in the 121 Mining Investment Online Americas conference from October 13 to 15, 2021. CEO Aurora Davidson will be available for one-on-one meetings with investors for the duration of the event. The 121 Mining Investment conference connects senior investors from institutional funds, private equity groups, family offices and sector analysts that are based in Canada and USA, through one-on-one investor meetings hosted virtually.
About Amerigo and 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; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX.
Aurora Davidson Graham Farrell
President and CEO Investor Relations
(604) 697-6207 (416) 842-9003
1 Cash cost is a non-IFRS financial performance measure. Refer to “Non-IFRS Measures” at the end of this press release.
2 Annual production guidance provided in Amerigo’s news release of January 14, 2021.
3 Updated cash cost guidance provided in Amerigo’s Q2-2021 MD&A.
This news release includes “cash cost”, which is a performance measure commonly used in the mining industry that is not defined under International Financial Reporting Standards (“IFRS”). Cash cost is the aggregate of smelting and refining charges, tolling/production costs net of inventory adjustments and administration costs, net of by-product credits. Cash cost per pound produced is based on pounds of copper produced and is calculated by dividing cash cost over the number of pounds of copper produced.
This non-IFRS performance measure is included in this news release because it provides a key performance measure used by management to monitor operating performance, assess corporate performance, and to plan and assess the overall effectiveness and efficiency of Amerigo’s operations. This performance measure is not a standardized financial measure under IFRS and, therefore, amounts presented may not be comparable to similar financial measures disclosed by other companies. This performance measure should not be considered in isolation as a substitute for measures of performance in accordance with IFRS.
Please see Cautionary Note Regarding Forward-Looking Information contained in the release on SEDAR
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Source: EIN Presswire