Amerigo Resources Ltd., based in Vancouver, British Columbia, has reported its operational results for the first quarter ended March 31, 2024, from its wholly-owned Minera Valle Central (MVC) operation located near Rancagua, Chile. The company’s copper production reached 16.0 million pounds, surpassing its guidance by 2%, and its molybdenum production was also above expectations. Notably, Amerigo achieved a normalized cash cost of $1.89 per pound of copper, which is 9% below their guided annual cash cost.
The company’s operational success has positioned it to continue its Capital Return Strategy, highlighted by a $3.7 million dividend distributed to shareholders in Q1-2024. Amerigo’s President and CEO, Aurora Davidson, emphasized the significance of these achievements, drawing parallels to the favorable operational cash flow and strong balance sheet similar to 2021, which enabled Amerigo to refinance debt and return capital to shareholders effectively.
MVC’s production in Q1-2024 not only demonstrated the operation’s efficiency with a 97.7% plant availability rate but also underlined the strategic importance of MVC to Amerigo’s overall performance. The company remains on track to meet its 2024 production guidance of 62.4 million pounds of copper, despite a planned annual plant maintenance shutdown in May.
Additionally, Amerigo highlighted its robust financial position, with a cash balance of $13.8 million and a continued effort to reduce bank debt, which stood at $19.5 million at the end of the quarter. The company also noted MVC’s substantial water reserves, ensuring sustained processing rates for the foreseeable future.
Amerigo’s Capital Return Strategy, initiated in September 2021, has seen significant capital distributed back to investors through quarterly dividends and share buybacks, emphasizing the company’s commitment to shareholder value. The Strategy remains well-supported by Amerigo’s current copper prices and operational achievements, with further capital returns anticipated as copper prices strengthen.
The company has scheduled the release of its Q1-2024 financial results for May 8, 2024, followed by an investor conference call on May 9, 2024, offering stakeholders further insights into its performance and outlook. 
