Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, October 19, 2012

Article Excerpt

AMERIGO RESOURCES, $0.59, symbol ARG on Toronto, jumped over 11% this week after the company reported higher copper production in the latest quarter. The company processes copper and molybdenum from the waste rock from Chile’s El Teniente, the world’s largest copper mine. This contract runs through 2021. Amerigo has a further agreement to process material from the nearby Colihues tailings pond. Amerigo gets 94% of its revenue by processing copper. The remaining 6% comes from molybdenum. In the three months ended September 30, 2012, the company’s copper production rose 15.3%, to 12.70 million pounds from 11.01 million pounds a year earlier. Amerigo also increased its molybdenum output by 72.7%, to 321,788 pounds from 186,297 pounds. The company is well positioned to keep raising its production. But even so, its shares are down from a high of $1.50 in February 2011. That’s mostly because copper prices have fallen from about $4.60 a pound in February 2011 to today’s price of $3.71. Amerigo pays a semi-annual dividend…