Amerigo taps copper’s strong supply/demand outlook

Article Excerpt

Amerigo Resources’ shares have skyrocketed 915.4% since March 2020. However, we feel the prospects for the company, and copper prices, remain very positive. AMERIGO RESOURCES $1.32, is a buy for aggressive investors. The company (Toronto symbol ARG; TSINetwork Rating: Speculative) (www.amerigoresources.com; Shares outstanding: 181.8 million; Market cap: $241.8 million; No dividends paid) reported 15.6% higher copper production in the latest quarter. Specifically, output for the quarter ended June 30, 2021, climbed to 15.0 million pounds (at a production cost of $1.81 per pound) from 13.0 million pounds (at a cost of $1.72). The year-earlier quarter experienced production interruptions due to the pandemic. Copper dropped to as low as $2.10 U.S. a pound in March 2020 from around $2.82 in January of that year. It had been as high as $3.28 a pound in June 2018. However, since then copper has surged to $4.04. Demand from recovering economies isn’t the only factor fuelling the recent price gains: Due to a lack of new mines, long-term…

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