Amerigo says its Q3 copper production in Chile exceeds guidance while cash cost trends lower
(Kitco News) - Amerigo Resources (TSX: ARG) today reported that Q3 2021 production of 16 million pounds of copper from its Minera Valle Central (MVC) operation located near Rancagua, Chile, was at 109% of guidance due to higher fresh tailings tonnage and grade.
The company said that during the quarter, MVC also successfully completed a series of planned plant modifications which now allow it to process a higher throughput of fresh tailings without sacrificing recovery.
Amerigo added that Q3 2021 cash cost of $1.62/lb was 8% lower than the company's quarterly cash cost guidance of $1.76/lb due to higher than projected production and lower than anticipated power, steel and lime costs.
MVC's average copper price in Q3 2021 was $4.23/lb, compared to $4.44/lb in Q2 2021, the company noted in its statement.
"Amerigo completed Q3 2021 with very strong production results. The annual plant maintenance shutdown was completed successfully and on schedule, and full production operations resumed on October 2, 2021. A total of 1,390 maintenance tasks and projects were completed safely and on time by our team in Chile to ensure MVC's plant continues to operate as expected", said President and CEO Aurora Davidson.
Amerigo Resources is an innovative copper producer with a long-term relationship with 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.