Copper producer Amerigo expects lower Q3 output due to 'historic levels' of rainfall in Chile
|Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here!|
(Kitco News) - Chile-focused copper producer Amerigo Resources (TSX: ARG) (OTCQX: ARREF) announced today that its production in Q3 2023 is currently expected to be approximately 2.7 million pounds lower than the estimate set out in the company’s revised plan because of ongoing “historic levels” of rainfall in Chile.
According to a press release, as of September 10, 2023, year-to-date cumulative rain at Minera Valle Central (MVC), the company’s 100% owned operation located near Rancagua, Chile, has been 695 mm, compared to full-year annual rainfall of 287 mm in 2022 and 247 mm in 2021.
“As a result of these massive rains, Q3 2023 copper production is now expected to be approximately 2.7 million pounds lower than the estimate set out in the company’s revised plan following the successful grid reconnection at MVC on July 22,” Amerigo said in a press release.
Because the rainy season at MVC typically ends in mid-September, the company said it is currently maintaining its revised target of 16.5 M lbs for Q4 2023.
“Ironically, after ten years of drought conditions during which we successfully adjusted operations to use less water, the adage of when it rains, it pours has proven true for Amerigo in 2023,” commented president and CEO Aurora Davidson.
“Our team at MVC continues to work tirelessly to resume normal operations. While we cannot have final or definite clarity on the effect of the rains on our current quarter’s production, we have estimated a decrease of 2.7 million pounds of copper. We are evaluating all options to increase production in Q4 2023 to mitigate this impact and will provide an update in due course,” she added.
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.
|Silver production in Peru down 2.8% in July - report|