- 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.
For further details see:
Amerigo Resources: Little To Fear From Chile's New Government