Amerigo Announces Q2-2012 Production Results
July 17 2012 - 8:00AM
Marketwired Canada
Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or the "Company") is pleased to
announce production results for the second quarter of 2012 ("Q2-2012") from
Minera Valle Central, S.A. ("MVC"), the Company's operations located near
Rancagua, Chile. MVC produced 11.57 million pounds of copper and 228,932 pounds
of molybdenum in Q2-2012.
Dr. Klaus Zeitler, Amerigo's President and CEO, stated, "MVC's copper production
in Q2-2012, although lower than the record production of Q1-2012, was 22.4%
higher than that of Q2-2011, and at 25.45 million pounds for the first half of
the year was 23.5% higher than the comparable period in 2011. Molybdenum
production was 19.9% higher than Q2-2011, and the 445,224 pounds produced year
to date is 10.5% higher than in the comparable 2011 period. As a result, we
remain on track to meet or exceed the Company's production targets of 50 million
pounds of copper and close to one million pounds of molybdenum for the year."
Dr. Zeitler added, "In addition to lost production due to El Teniente's annual
maintenance shut down which took place in April this year, torrential rainfall
for several days in June also had an adverse effect on production. Despite these
challenges, MVC's 2012 year to date production remains on budget."
Key operating and sales metrics are shown below.
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Production Metrics: Q2-2012 Q1-2012 Q4-2011 Q3-2011 Q2-2011
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Copper Production (Million lbs) 11.57 13.88 12.09 11.01 9.45
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Molybdenum Production (lbs) 228,932 216,292 195,729 186,297 190,917
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Ore milled (Tonnes 000's) 13,631 13,617 15,449 13,313 11,307
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Copper Grade (%) 0.156 0.168 0.154 0.147 0.148
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Copper Recovery (%) 24.7 27.5 23.0 25.5 25.7
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Molybdenum Grade in copper
concentrates (%) 0.76 0.68 0.69 0.69 0.78
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Molybdenum Recovery (%) 75.5 68.8 68.4 71.2 76.0
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Sales Metrics: Q2-2012 Q1-2012 Q4-2011 Q3-2011 Q2-2011
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Copper sales(1) (Million lbs) 10.76 14.08 12.42 10.80 9.32
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Copper price at end of period
($US/lb) 3.37 3.85 3.43 3.23 4.22
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Prior period copper sales
subject to final pricing
during period (Million lbs) N/A 4.42 0.87 1.33 3.57
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Average final settlement price
for prior period copper sales
($US/lb) N/A 3.6485 3.3328 4.362 4.2897
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Company's Recorded Copper Price
($US/lb)(2) 3.74 3.55 3.40 3.93 3.97
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Molybdenum sales (lbs) 243,263 303.547 164,059 148,940 195,006
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Molybdenum price at end of
period ($US/lb) 13.10 14.570 13.413 14.340 15.880
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Power Costs (per kwh) $0.1947 $0.2151 $0.1813 $0.1790 $0.2067
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1 Copper sales per the Company's records, which may differ from copper sales
per the smelter. All differences between Company and smelter records for a
quarter will be recorded as settlement adjustments in subsequent quarters
until settled.
2 Copper price recorded for the Company's financial statements for the
quarter before smelter and refinery charges and settlement adjustments to
prior periods' sales and after hedging. The Company calculates this number
by dividing quarterly dollar sales as recorded in its financial statements
(calculated based on copper deliveries per the smelter) over quarterly
copper sales per the Company's own records.
The Company will release Q2-2012 financial results at market open on Friday
August 3, 2012 and will hold an investor conference call to discuss the results
on Tuesday August 7, 2012 at 11:00 am Pacific Daylight Time/2:00 pm Eastern
Daylight Time.
To participate in the call, please dial the following number:
1-800-355-4959 (Toll-Free North America)
Please let the operator know you wish to participate in the Amerigo Resources
conference call.
Media are invited to attend on a listen-only basis.
Following management's discussion of the quarterly results, the analyst and
investment community will be invited to ask questions.
Amerigo Resources Ltd., through its Chilean subsidiary MVC, produces copper and
molybdenum at its plant south of Santiago, Chile by processing tailings from
Codelco's El Teniente, the world's largest underground copper mine. MVC treats
both the fresh tailings from El Teniente's current production and the old
tailings from a tailings pond close to MVC's plant pursuant to long term
contracts with Codelco, the world's largest copper producer. Tel: (604)
681-2802; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX
Certain of the information and statements contained herein that are not
historical facts, constitute "forward-looking information" within the meaning of
the Securities Act (British Columbia), Securities Act (Ontario) and the
Securities Act (Alberta) ("Forward-Looking Information"). Forward-Looking
Information is often, but not always, identified by the use of words such as
"seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend";
statements that an event or result is "due" on or "may", "will", "should",
"could", or "might" occur or be achieved; and, other similar expressions. More
specifically, Forward-Looking Information contained herein includes, without
limitation, information concerning future tailings production volumes and the
Company's copper and molybdenum production, all of which involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company, or industry results, to be
materially different from any future results, performance or achievements
expressed or implied by such Forward-Looking Information; including, without
limitation, material factors and assumptions relating to, and risks and
uncertainties associated with, the supply of tailings from El Teniente and
extraction of tailings from the Colihues tailings impoundment, the achievement
and maintenance of planned production rates, the evolving legal and political
policies of Chile, the volatility in the Chilean economy, military unrest or
terrorist actions, metal price fluctuations,
favourable governmental relations, the availability of financing for activities
when required and on acceptable terms, the estimation of mineral resources and
reserves, current and future environmental and regulatory requirements, the
availability and timely receipt of permits, approvals and licenses, industrial
or environmental accidents, equipment breakdowns, availability of and
competition for future mineral acquisition opportunities, availability and cost
of insurance, labour disputes, land claims, the inherent uncertainty of
production and cost estimates, currency fluctuations, expectations and beliefs
of management and other risks and uncertainties, including those described under
Risk Factors in the Company's Annual Information Form dated March 31, 2008, and
in each subsequent Management's Discussion and Analysis. Such Forward-Looking
Information is based upon the Company's assumptions regarding global and Chilean
economic, political and market conditions and the price of metals, including
copper and molybdenum, and future tailings production volumes and the Company's
copper and molybdenum production.. Among the factors that have a direct bearing
on the Company's future results of operations and financial conditions are
changes in project parameters as plans continue to be refined, interruptions in
the supply of fresh tailings from El Teniente, further delays in the extraction
of tailings from the Colihues tailings impoundment, a change in government
policies, competition, currency fluctuations and restrictions and technological
changes, among other things. Should one or more of any of the aforementioned
risks and uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from any conclusions, forecasts or
projections described in the Forward-Looking Information. Accordingly, readers
are advised not to place undue reliance on Forward-Looking Information. Except
as required under applicable securities legislation, the Company undertakes no
obligation to publicly update or revise Forward-Looking Information, whether as
a result of new information, future events or otherwise.
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