ARREF - Amerigo Declares Initial Performance Dividend | Benzinga

Performance Dividend of Cdn$0.04 per Share Declared¹

Amerigo's Capital Return Strategy to Investors Now Fully Deployed

Annualized Dividend Yield of 10.3%²

VANCOUVER, British Columbia, July 09, 2024 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. (TSX:ARG, OTCQX:ARREF) ("Amerigo" or the "Company") is pleased to declare the Company's first Performance Dividend.

"We are very pleased to report that Amerigo has declared its first Performance Dividend of Cdn$0.04 per share. This initial Performance Dividend provides significant, immediate, and additional investment returns to shareholders. It also demonstrates Amerigo's unique ability to share the benefit of strong copper prices with investors promptly," said Aurora Davidson, Amerigo's President and CEO. "With this first Performance Dividend, Amerigo has now deployed all three tools in the Company's comprehensive Capital Return Strategy³."

"The strong copper prices we experienced last quarter confirmed our long-standing view on the strength of copper supply and demand fundamentals. The positive impact of these recent copper prices also demonstrated Amerigo's ability to generate substantial excess cash for shareholders. This is possible because of Amerigo's excellent operating performance and low debt and capital requirements. This combination is powerfully and predictably generating a strong Return on Invested Capital for the Company and shareholders," she added.

"In less than a quarter, our cash reserves have reached targeted levels, allowing more than the equivalent of an additional quarterly dividend to be paid to shareholders. Amerigo's Performance Dividend is a flexible mechanism with regard to timing, frequency and the amount of capital returned to shareholders. We look forward to a strong second half of 2024."

On July 8, 2024, Amerigo's Board of Directors declared its first Performance Dividend. The dividend will be in the amount of Cdn$0.04 per share, payable on August 6, 2024, to shareholders of record as of July 16, 2024¹. 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 June 30, 2024, share closing price of Cdn$1.55, this Performance Dividend, along with the Company's quarterly dividends of Cdn$0.03 per share, represents an annual dividend yield of 10.3%².

Capital Return Strategy

Since implementing its Capital Return Strategy (the "Strategy") in September 2021, Amerigo has paid cumulative quarterly dividends of Cdn$0.32 per share ($40.5 million) and used $23.7 million to purchase and cancel 20.1 million of its common shares, a 11.1% reduction in the number of common shares outstanding at the inception of the Strategy.

With the declaration of the Company's first Performance Dividend, the three legs of the Strategy (quarterly dividends, performance dividends, and share buybacks) are now fully deployed. Amerigo's Performance Dividend is a flexible mechanism with regard to timing, frequency and the amount of capital returned to shareholders. It is ideally suited to return capital to shareholders quickly and is a unique tool to transfer the benefits of solid copper price performance to Amerigo's shareholders.

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