Amerigo reports strong Q2 2021 copper production, maintains its annual guidance
(Kitco News) - Amerigo Resources (TSX: ARG) today announced that in Q2 2021, the company produced 15 million pounds of copper at a cash cost of $1.81 per pound and 0.33 million pounds of molybdenum from Minera Valle Central (MVC), the company's 100% owned operation located near Rancagua, Chile.
The company said that Q2 2021 copper production was 16% higher than in Q2 2020, at 96% of guidance. Molybdenum production in Q2 2021 was at 84% of guidance, negatively affected by lower moly grade in the sector of Cauquenes tailings processed during the quarter.
Amerigo added that the company maintains its annual production guidance of 61.0 million pounds of copper and 1.5 million pounds of molybdenum.
The company noted that its Q2 2021 cash cost of $1.81/lb was 5% lower than the company's latest cash cost guidance of $1.90/lb due to stronger molybdenum by-product credits as molybdenum prices increased during the quarter. MVC's average copper price in Q2 2021 was $4.44/lb, compared to $4.08/lb in Q1-2021.
"We are pleased to report another strong operational quarter at MVC, coupled with robust copper prices. The teams in Canada and Chile have made significant progress during the first half of the year to strengthen Amerigo's financial position, including restructuring the company's debt facilities," said president and CEO Aurora Davidson.
Amerigo Resources is an innovative copper producer with a long-term relationship with Corporación Nacional del Cobre de Chile ("Codelco"), the world's largest copper producer. Amerigo produces copper concentrate and molybdenum concentrate as a by-product at the MVC operation in Chile by processing fresh and historic tailings from Codelco's El Teniente mine, the world's largest underground copper mine.