CA - Amerigo Resources: Time To Take Profits As Prospects For Copper Deteriorate (Rating Downgrade)
2024-05-16 06:52:26 ET
Summary
- I expect EBITDA for Q2 2024 to surpass $15 million as copper prices are at a record high.
- I think there is a decent chance that the quarterly dividend will be increased to at least C$0.05 ($0.037) per share over the coming months.
- However, the short-term prospects for the copper prices are deteriorating due to the potential reopening of Cobre Panama and fresh tariffs on Chinese goods.
- As the market valuation of Amerigo Resources has a high correlation with copper prices, I think this could be for investors to trim or close their positions.
Introduction
In January 2024, I wrote a bullish article on SA about Chile-focused copper producer Amerigo Resources ( ARREF ) ( ARG:CA ) in which I said that 2024 could be a strong year for the company as concerns about a global copper surplus are diminishing....
Amerigo Resources: Time To Take Profits As Prospects For Copper Deteriorate (Rating Downgrade)