AMERIGO RESOURCES $0.50 - Toronto symbol ARG

AMERIGO RESOURCES $0.50 (Toronto symbol ARG; TSINetwork Rating: Speculative) (604-681-2802; www.amerigoresources.com; Shares outstanding: 172.3 million; Market cap: $86.2 million; No divd.) processes copper and molybdenum from the waste rock from Chile’s El Teniente, the world’s largest copper mine.

In the three months ended September 30, 2011, Amerigo’s cash flow was $0.03 a share, down from $0.06 a year earlier. However, that was the result of a strike that is now over.

Amerigo has just declared its semi-annual dividend of $0.02 a share. That gives the stock a high 8.0% yield. The dividend appears safe, but a prolonged period of low copper prices could lower the cash the company has available for dividend payments.

Amerigo is still a buy, but only for aggressive investors.

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