Copper producer Amerigo Resources reports production above guidance in first quarter
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(Kitco News) - Chile-focused copper producer Amerigo Resources (TSX: ARG) today announced "another strong operational quarter" with production of 16.5 million pounds of copper in Q1 2023, which is 4.5% above guidance.
The company said that the improvement in copper production was due to higher grades from fresh tailings and higher grades and recoveries from historical tailings. Amerigo's 2023 annual copper production guidance is 62.3 M lbs.
The company's quarterly molybdenum production was 0.3 M lbs, 5.2% over guidance. Amerigo's 2023 annual molybdenum production guidance is 1.0 M lbs.
Amerigo's cash cost in Q1 2023 was $1.91 per pound, 11% lower than the company's annual guided cash cost of $2.14 per pound.
"The positive cash cost performance in the quarter was mainly driven by higher-than-guided molybdenum by-product credits from stronger molybdenum production and market prices," the company said.
Amerigo's quarterly copper price in Q1 2023 was $4.02 per pound, compared to $3.80 per pound in Q4 2022, and the company's molybdenum price was $31.73 per pound, up from $21.00 per pound in Q4 2022.
On March 31, 2023, the company's cash was $43.9 million (an increase of $6.1 million from December 31, 2022), and restricted cash was $6.4 million (an increase of $2.2 million from December 31, 2022).
Amerigo 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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