ARREF - Amerigo Reports Q2-2024 Operational Results | Benzinga
Q2-2024 Copper Production of 14.0 million pounds, 2024 Guidance Maintained
$3.6M Quarterly Dividend Paid in Q2-2024, Additional $4.8 M Performance Dividend Declared
Q2-2024 cash cost1 of $1.96 per pound, Outperforming Guidance
Annual Maintenance Shutdown Completed According to Plan
VANCOUVER, British Columbia, July 10, 2024 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. (TSX:ARG, OTCQX:ARREF) ("Amerigo" or the "Company") is pleased to announce production results for the quarter ended June 30, 2024 ("Q2-2024") 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 unless indicated otherwise.
"During the second quarter, Amerigo's team at MVC completed its planned annual 8-day maintenance shutdown. Despite the non-planned impact of one million pounds of reduced copper production due to the previously reported periods of heavy rains (see Company news releases of June 17, 2024, and June 26, 2024), we have maintained our 2024 production guidance. The impact of the rains was significantly lower than in 2023 because of recently completed risk mitigation projects and MVC's response plan," said Aurora Davidson, Amerigo's President and CEO.
"In addition to its swift operational response to the heavy rains, the MVC team continues to excel in managing and controlling costs. Successfully blunting the headwind of a lower-than-expected quarterly copper production level, we are trending below our guided cash cost. The combination of excellent operational results from MVC and the robust copper prices recorded in the second quarter enabled us to continue strengthening our balance sheet with increased cash and lowered debt. Amerigo's board of directors has just declared the Company's first performance dividend, which is Amerigo's unique way of quickly transferring strong copper price performance to shareholders," she added.
In Q2-2024, MVC produced 14.0 million pounds ("M lbs") of copper, with 64% of production coming from fresh tailings. MVC's plant availability was 94%. Production for the first half of 2024 ("H1-2024") was 30.0 M lbs, representing 48% of Amerigo's 2024 copper production guidance of 62.4 M lbs.
Q2-2024 molybdenum production was 0.3 M lbs. H1-2024 molybdenum production of 0.6 M lbs. is in line with Amerigo's annual molybdenum production guidance of 1.2 M lbs.
Amerigo's cash cost1 in Q2-2024 was $1.96 per pound ("/lb"), and H1-2024 normalized cash cost1 was $1.92/lb, both below the Company's 2024 cash cost1 guidance of $2.08/lb. Normalized H1-2024 cash cost1 excludes $0.04/lb paid to MVC's supervisors in January 2024 as the signing bonus of a 3-year collective labor agreement.
Amerigo's quarterly copper price in Q2-2024 was $4.39/lb, compared to $3.95/lb in Q1-2024. The Company's molybdenum price was $21.11/lb, up from $19.67/lb in Q1-2024.
On June 30, 2024, Amerigo's cash position was $28.7 million ($12.5 million higher than December 31, 2023), and restricted cash was $4.2 million ($2.1 million lower than December 31, 2023). Outstanding bank debt was $15.5 million, $5.8 million lower than December 31, 2023.
On June 30, 2024, MVC's water reserves were over 10.0 million cubic meters, sufficient to maintain projected historic tailings processing rates for at least eighteen months, the Company's maximum forecast horizon.
| Q2-2024 |
| Q1-2024 |
| Q4-2023 |
| Q3-2023 |
| Q2-2023 |
| Fresh tailings |
| Tonnes per day |
| 111,636 |
| 116,246 |
| 117,331 |
| 109,276 |
| 138,261 |
| Operating days |
| 82 |
| 90 |
| 92 |
| 86 |
| 76 |
| Tonnes processed |
| 9,247,246 |
| 10,514,765 |
| 10,789,129 |
| 9,397,541 |
| 10,535,165 |
| Copper grade |
| 0.184% |
| 0.177% |
| 0.174% |
| 0.175% |
| 0.169% |
| Copper recovery |
| 23.6% |
| 20.8% |
| 21.0% |
| 22.6% |
| 22.3% |
| Copper produced (M lbs) |
| 8.98 |
| 8.55 |
| 8.69 |
| 8.21 |