AMERIGO RESOURCES $0.14 (Toronto symbol ARG; TSINetwork Rating: Speculative) (604-681-2802; www.amerigoresources.com; Shares outstanding: 174.7 million; Market cap: $21.8 million; No dividends paid) processes copper and molybdenum from the waste rock of the El Teniente mine in Chile; that’s the world’s largest copper operation.
In the quarter ended March 31, 2016, Amerigo’s copper production jumped 45.0%, to 12.86 million pounds, at a cost of $1.82 per pound. A year earlier, output was 8.86 million, at a cost of $2.33 a pound.
Cash flow rose 21.7%, to $1.4 million, or $0.008 a share, from $1.2 million, or $0.007 a share. The gains came because the company started processing tailings from its new Cauquenes deposit in late 2015.
Copper prices have fallen from over $4.50 U.S. a pound at the start of 2011 to just $2.09 today. In the near term, the metal’s outlook is uncertain. But longer term, an improving global economy and unsteady supply should push copper prices higher.
Amerigo is still a buy for aggressive investors.
