Updating Amerigo Resources, Reitmans (Canada) Ltd. and Restaurant Brands International

Article Excerpt

AMERIGO RESOURCES $0.61 (Toronto symbol ARG; TSINetwork Rating: Speculative) (604-681-2802; www.amerigoresources.com; Shares outstanding: 180.2 million; Market cap: $109.9 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, and the company’s contract with its owner runs through 2021. Amerigo has other deals to process material at the nearby Colihues and Cauquenes tailings ponds. For the three months ended June 30, 2019, the company’s copper production fell 9.0%, to 13.3 million pounds (at a production cost of $1.97 per pound) from 14.7 million pounds (at a cost of $1.71) a year earlier. The lower output was due to reduced copper recoveries during the latest quarter. The material extracted from Cauquenes was from a known poor-quality zone, as expected in the mining plan. However, in addition to lower grades, the material had significant iron and clay contamination, which negatively affected recoveries and the quality of the final copper…