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Amerigo beats its annual copper production guidance in Chile

Kitco News

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(Kitco News) - Amerigo Resources (TSX: ARG) announced Thursday that in 2021, the company produced 63.4 million pounds of copper from Minera Valle Central ("MVC";) in Chile, exceeding its annual guidance by 4%.

Amerigo said that its 2021 cash cost of $1.75/lb was 2% lower than the company's cash cost guidance of $1.79/lb, mostly due to higher than projected production.

However, the company added that its annual molybdenum production was 11% below guidance, driven by the lower molybdenum content found in fresh tailings.

"MVC's strong operational performance, together with an annual robust average LME copper price of $4.22/lb resulted in a transformative year for Amerigo under which the company put in place quarterly dividends and share repurchase initiatives";, said president and CEO Aurora Davidson.

"We would like to thank the company's employees for their continued commitment to meeting corporate goals. We look forward to another year of strong performance and robust markets under which the company will continue returning capital to shareholders,"; she added.

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Based on MVC's mine plan for 2022, Amerigo said that its annual production guidance is 61.9 M lbs of copper and 1.2 M lbs of molybdenum, with cash cost expected to be $1.90/lb, driven by higher market-driven treatment and refinery charges ($0.06/lb).

Amerigo also anticipates an increase in steel prices which would impact grinding costs ($0.04/lb), projected lower moly by-product credits ($0.02/lb) and a projected escalation of all other costs combined ($0.02/lb).

Amerigo 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.

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