Amerigo Resources Ltd. (TSX: ARG) posted net income of US$8.4 million, EBITDA of US$18.5 million and quarterly operating cash flow before changes in non-cash working capital of US$14.1 million in its financial results for the quarter ended September 30, 2021
“Amerigo had strong operations, with solid financial results and accomplished planned annual maintenance during the shortened quarter,” said President and CEO, Aurora Davidson.
“During the quarter, we also announced a substantial issuer bid to provide the mechanism to orderly retire up to Cdn$25 million in the share capital of the company and Amerigo has reinstated dividends, which will now be paid on a quarterly basis.
“We anticipate providing 2022 guidance to the market in conjunction with the release of the Q4-2021 production results at early in January 2022.”
Highlights and Significant Items
- Q3-2021 net income increased to US$8.4 million (Q3-2020: US$5.4 million) due to higher production and higher metal prices.
- The company generated operating cash flow before changes in non-cash working capital of US$14.1 million in Q3-2021 (Q3-2020: US$10.7 million). Quarterly net operating cash flow was US$25.4 million (Q3-2020: US$15.4 million).
- Q3-2021 production was 16.0 million pounds of copper (Q3-2020: 14.7 million pounds) including 7.4 million pounds from Cauquenes (Q3-2020: 8.0 million pounds) and 8.6 million pounds from fresh tailings (Q3-2020: 6.7 million pounds).
- Molybdenum production in Q3-2021 was 0.3 million pounds (Q3-2020: 0.4 million pounds).
- Q3-2021 cash cost decreased 10% to US$1.62 per pound (“/lb”) (Q3-2020: US$1.80/lb).
- Revenue during Q3-2021 was US$48.1 million (Q3-2020: US$37.6 million), including copper tolling revenue of US$42.5 million (Q3-2020: US$35.5 million) and molybdenum revenue of US$5.6 million (Q3-2020: US$2.1 million).
- Copper tolling revenue is calculated from the company’s gross value of copper produced during Q3-2021 of US$72.0 million (Q3-2020: US$44.3 million) and negative fair value adjustments to settlement receivables of US$2.9 million (Q3-2020: positive fair value adjustments of US$5.9 million), less notional items including royalties to Codelco’s El Teniente division of US$20.6 million (Q3-2020: US$9.8 million), smelting and refining of US$5.5 million (Q3-2020: US$4.4 million) and transportation of US$0.5 million (Q3-2020: US$0.5 million). The Q3-2021 settlement adjustments included US$2.4 million in negative settlement adjustments in respect of Q2-2021 production, which are final adjustments.
- On September 28, 2021, Amerigo commenced a substantial issuer bid to purchase for cancellation from Amerigo shareholders who choose to participate up to Cdn$25 million in value of its common shares. The issuer bid expires on November 12, 2021.
- On September 30, 2021, the company held cash and cash equivalents of US$64.9 million (December 31, 2020: US$14.1 million), restricted cash of US$6.4 million (December 31, 2020: $nil) and had working capital of US$21.6 million (December 31, 2020: working capital deficiency of US$6.1 million).
For further information please visit: http://www.amerigoresources.com/