Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, February 27, 2015

Article Excerpt

AMERIGO RESOURCES, $0.32, symbol ARG on Toronto, processes copper and molybdenum from waste rock at Chile’s El Teniente, the world’s largest underground copper mine. This includes rock from the mine’s current production and tailings from the nearby Colihues deposit. This contract runs at least through 2037. The company gets 94% of its revenue by processing copper. The remaining 6% comes from molybdenum. In the quarter ended December 31, 2014, Amerigo’s copper output fell 7.4%, to 11.35 million pounds from 12.25 million a year earlier. Molybdenum production declined 11.8%, to 160,107 pounds from 181,464. But despite the lower production and a decline in copper prices, Amerigo’s cash flow jumped 94.3%, to $5.4 million, or $0.031 a share, from $2.8 million, or $0.016 (all figures except share price in U.S. dollars). The company was able to lower its cost of producing each pound of copper. Amerigo is moving ahead with building a plant to process material from the Cauquenes tailings deposit, located near its current operations…