Topic: Growth Stocks

The Stock Pickers Digest Hotline – Friday, July 18, 2008

Article Excerpt

AMERIGO RESOURCES, $1.34, symbol ARG on Toronto, has a contract with Codelco, Chile’s state-owned copper producer, to process the tailings from El Teniente, the world’s largest underground copper mine. Tailings are the waste rock produced in the mining process. Amerigo treats the tailings to extract copper and molybdenum. Amerigo rose this week after reporting lower power costs at El Teniente for the three months ended June 30, 2008. Electricity prices fell 24.7%, to $0.2462 per kilowatt hour from $0.3268, due to higher rainfall and additional hydro-electric sources. (All figures except share price in U.S. dollars.) That’s after Amerigo’s first quarter electricity costs rose 285%, to $13.9 million from $3.6 million. Amerigo has bought two 10-megawatt electricity generators in order to become energy self-sufficient. It expects these to begin generating power later this year. Labor troubles at El Teniente are now settled, but disruptions in the supply of tailings in April and May hurt Amerigo’s second quarter production. Copper production fell 28.6%, to…