Buy them to profit from electric cars

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AMERIGO RESOURCES $1.14 (Toronto symbol ARG; TSINetwork Rating: Speculative) (604-681-2802; www. amerigoresources.com; Shares outstanding: 176.3 million; Market cap: $201.0 million; No dividends paid) processes copper and molybdenum from the waste rock of the El Teniente mine in Chile. That site is the world’s largest copper operation. Amerigo has other deals to process material at the nearby Colihues and Cauquenes copper tailings ponds. In the three months ended September 30, 2017, Amerigo’s revenue jumped 60.0%, to $37.4 million from $23.4 million. Cash flow was up sharply, to $11.0 million, or $0.06 a share, from $1.7 million, or $0.01 a share, a year earlier. Copper prices have surged 28% over the last year, to $3.20 U.S. a pound from $2.50. The increase came from stronger global demand. At the same time, copper supply from China was disrupted by the government’s move to clamp down on industrial pollution; a shake-up at two of China’s state-owned mines also limited output. Last year was most likely the first…