Amerigo Reports Strong Q3-2012 Production Results: Year to Date Copper Production of 38.15 Million Pounds
October 16 2012 - 8:00AM
Marketwired Canada
Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or the "Company") is pleased to
announce production results for the third quarter of 2012 ("Q3-2012") from
Minera Valle Central, S.A. ("MVC"), the Company's operations located near
Rancagua, Chile. MVC produced 12.70 million pounds of copper and 321,788 pounds
of molybdenum in Q3-2012.
Dr. Klaus Zeitler, Amerigo's President and CEO, stated, "MVC's copper production
in Q3-2012 was 15% higher than that of Q3-2011, and year to date 2012 is more
than 20% higher than the comparable period in 2011. Molybdenum production was
almost 73% higher than Q3-2011, and year to date is more than 30% higher than in
2011. The Company's production outlook for full year 2012 remains at 50 million
pounds of copper and close to one million pounds of molybdenum."
Dr. Zeitler added, "Production was strong in the quarter and we expect it to
remain so during Q4-2012. MVC successfully concluded labour negotiations with
its work force and a new four year agreement is now in place with MVC's
unionized workers. Although power costs have once again reached high levels as
Chile moves into the drier spring and summer seasons, the Company continues to
look forward to the change in MVC's power contract that, effective January 1,
2013, will result in substantial annual savings through to the end of 2017."
Key operating and sales metrics are shown below.
---------------------------------------------------------------------------
Production Metrics: Q3-2012 Q2-2012 Q1-2012 Q4-2011 Q3-2011
---------------------------------------------------------------------------
Copper Production (million lbs) 12.70 11.57 13.88 12.09 11.01
---------------------------------------------------------------------------
Molybdenum Production (lbs) 321,788 228,932 216,292 195,729 186,297
---------------------------------------------------------------------------
Ore milled (Tonnes 000's) 14,139 13,631 13,617 15,449 13,313
---------------------------------------------------------------------------
Copper Grade (%) 0.149 0.156 0.168 0.154 0.147
---------------------------------------------------------------------------
Copper Recovery (%) 27.26 24.7 27.5 23.0 25.5
---------------------------------------------------------------------------
Molybdenum Grade in copper
concentrates (%) 0.88 0.76 0.68 0.69 0.69
---------------------------------------------------------------------------
Molybdenum Recovery (%) 84.1 75.5 68.8 68.4 71.2
---------------------------------------------------------------------------
Sales Metrics: Q3-2012 Q2-2012 Q1-2012 Q4-2011 Q3-2011
---------------------------------------------------------------------------
Copper sales(1) (Million lbs) 13.02 10.76 14.08 12.42 10.80
---------------------------------------------------------------------------
Copper price at end of period
($US/lb) 3.75 3.37 3.85 3.43 3.23
---------------------------------------------------------------------------
Prior period copper sales subject to
final pricing during period
(Million lbs) N/A N/A 4.42 0.87 1.33
---------------------------------------------------------------------------
Average final settlement price for
prior period copper sales ($US/lb) N/A N/A 3.6485 3.3328 4.362
---------------------------------------------------------------------------
Company's Recorded Copper Price
($US/lb)(2) 3.52 3.74 3.55 3.40 3.93
---------------------------------------------------------------------------
Molybdenum sales (lbs) 337,818 243,263 303.547 164,059 148,940
---------------------------------------------------------------------------
Molybdenum price at end of period
($US/lb) 11.513 13.10 14.570 13.413 14.340
---------------------------------------------------------------------------
Power Costs (per kwh) $0.1659 $0.1947 $0.2151 $0.1813 $0.1790
---------------------------------------------------------------------------
(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. 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 Q3-2012 financial results at market open on Thursday,
November 8, 2012, and will hold an investor conference call to discuss the
results on Friday, November 9, 2012, at 11:00 am Pacific Standard Time/2:00 pm
Eastern Standard 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.
Amerigo Resources (TSX:ARG)
Historical Stock Chart
From Jul 2024 to Aug 2024
Amerigo Resources (TSX:ARG)
Historical Stock Chart
From Aug 2023 to Aug 2024
