Amerigo Announces Q2-2013 Copper Production Results
July 12 2013 - 8:30AM
Marketwired Canada
Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or the "Company") is pleased to
announce production results for the second quarter of 2013 from Minera Valle
Central ("MVC"), the Company's operations located near Rancagua, Chile. MVC
produced 9.55 million pounds of copper and 0.176 million pounds of molybdenum
during the three months ended June 30, 2013.
Dr. Klaus Zeitler, Amerigo's President and CEO, stated "As previously reported,
a slide in one of the Colihues working areas necessitated a change to MVC's mine
plan, and during the second and third quarters Colihues extraction rates and
grades will be lower than originally anticipated. April copper production was
36% lower than that of April 2012, as production was limited to 22 days in the
month. The revised mine plan began to show positive results in the last two
months of the quarter, as June copper production was slightly higher than that
for June 2012".
Rob Henderson, Amerigo's Chief Operating Officer, added "Production challenges
in Colihues are expected to continue through Q3, with gradual improvement
through Q4. Our production outlook for the year remains at the lower end of
45-50 million pounds of copper and 700,000 pounds of molybdenum".
Key operating and sales metrics are shown below.
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Production Metrics: Q2-2013 Q1-2013 Q4-2012 Q3-2012 Q2-2012
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Copper Production(million lbs) 9.550 12.834 13.561 12.701 11.570
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Molybdenum Production (million lbs) 0.176 0.258 0.291 0.322 0.229
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Ore milled (Tonnes 000's) 13,464 13,502 14,727 14,139 13,631
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Copper Grade (%) 0.158 0.160 0.155 0.149 0.156
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Copper Recovery (%) 20.3 27.0 27.0 27.3 24.7
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Power Costs (per kwh) $0.086 $0.097 $0.185 $0.166 $0.195
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Sales Metrics: Q2-2013 Q1-2013 Q1-2012 Q4-2011 Q3-2011
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Copper Sales (1) (Million lbs) 9.437 12.482 13.712 13.024 10.762
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Company's Recorded Copper Price
($US/lb) (2) 3.40 3.52 3.52 3.52 3.74
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Molybdenum Sales (million lbs) 0.178 0.241 0.286 0.338 0.243
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Company's Recorded Molybdenum Price
($US/lb) 11.00 11.34 11.08 11.64 14.02
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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
quarters' 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 Q2-2013 financial results at market open on Tuesday
August 6, 2013 and will hold an investor conference call to discuss the results
on Wednesday August 7, 2013 at 11:00 am Pacific Daylight Time/2:00 pm Eastern
Daylight Time.
To participate in the call, please dial the following number:
1-866-226-1792 (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. produces copper and molybdenum under a long term
partnership with the world's largest copper producer, Codelco, by means of
processing fresh and old tailings from the world's largest underground copper
mine, El Teniente near Santiago, Chile. 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, 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 and in Management's Discussion and Analysis in the
Company's financial statements. 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
FOR FURTHER INFORMATION PLEASE CONTACT:
Amerigo Resources Ltd.
Dr. Klaus Zeitler
President and CEO
(604) 218-7013
Amerigo Resources Ltd.
(604) 697-6201
www.amerigoresources.com
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