ARREF - Amerigo Resources: Little To Fear From Chile's New Government

• The recent presidential election in Chile saw the victory of 35-year-old leftist politician Gabriel Boric. The new government could mean higher taxes and more stringent regulations on the mining sector.
• Amerigo Resources, however, is unlikely to be targeted by the new presidency: its ESG-friendly copper operations, and its status as a tolling partner of Codelco should play in its favor.
• There are always some risks involved, but I'm comfortable holding Amerigo at this stage, and plan to enjoy the dividends.
• The weaker Chilean peso increases Amerigo's margins, providing a mitigating factor if the Chilean economy did deteriorate.
• At the current price, the stock continues to offer a decent margin of safety.

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