Amerigo says its financial results in second quarter were negatively affected by copper prices decline
(Kitco News) - Amerigo Resources (TSX: ARG) reported today that its Q2 2022 copper production was 14.9 million pounds, in line with Q2 2021 production of 15.0 M lbs despite MVC operating for 8 fewer days in Q2 2022 due to its annual maintenance shutdown.
The company said that its copper production in Q2 2022 was positively impacted by higher tonnage, grade and recoveries from fresh tailings and higher grade and recoveries from Cauquenes.
According to a press-release, the company's quarterly results included a net loss of $5.1 million (Q2 2021: net income of $11.6 million), loss per share of $0.03 (Cdn$0.04) and EBITDA of $6.7 million.
Amerigo explained that its quarterly financial results were impacted by reduced copper production during the annual scheduled maintenance shutdown of its Minera Valle Central operation in Chile, and $5.1 million in negative price settlement adjustments to prior quarter copper sales.
Importantly, Amerigo said that its Board of Directors declared a quarterly dividend of Cdn$0.03 per share, payable on September 20, 2022, to shareholders of record as of August 31, 2022.
"We are pleased to report a strong operational quarter where we continued to meet production and cost objectives, which incorporated the annual maintenance shutdown. However, Amerigo's financial results were negatively affected by a substantial decline in copper prices which translated to a quarterly loss of $5.1 million," said President and CEO Aurora Davidson. "Copper price volatility is not new or uncommon, but Amerigo is now well-positioned to weather a period of lower prices. Backed by a strong balance sheet, we remain committed to our policy of returning capital to shareholders."
Amerigo Resources is an innovative copper producer with a long-term relationship with Chile's 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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