Amerigo Announces Q4-2013 and Full Year Production Results
January 24 2014 - 6:30AM
Marketwired Canada
Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or the "Company") announced today
production results for the fourth quarter of 2013 from Minera Valle Central
("MVC"), the Company's operations located near Rancagua, Chile. MVC produced
12.254 million pounds of copper and 0.181 million pounds of molybdenum during
the three months ended December 31, 2013, for a total of 45.673 million pounds
of copper and 0.809 million pounds of molybdenum for the full year.
Dr. Klaus Zeitler, Amerigo's Chairman and CEO, stated, "I am pleased to report
that despite the fact tonnage and recoveries from Colihues are still being
adversely affected by the April slide event, copper production of 45.673 million
pounds and estimated cash costs of $2.14/lb copper both met the Company's
previously announced annual guidance. We are estimating 2014 production to
remain steady at 45 million pounds of copper and 800,000 pounds molybdenum, not
accounting for the Company's planned Cauquenes expansion".
Rob Henderson, Amerigo's President and Chief Operating Officer, added, "Under
the constraints of lower metal prices in 2013, management's focus was on safety
and operating margin. MVC's cash costs in 2013 were 13% lower than cash costs of
$2.46/lb in 2012. Copper production in Q4 includes 1.479 million pounds of
copper produced pursuant to a tolling contract with Minera Maricunga, which will
continue throughout 2014. Development of the Cauquenes expansion project remains
a priority."
Key operating and sales metrics are shown below.
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Production Metrics: Q4-2013 Q3-2013 Q2-2013 Q1-2013 Q4-2012
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Copper Production(million lbs) 12.254 11.035 9.550 12.834 13.561
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Molybdenum Production (million
lbs) 0.181 0.193 0.176 0.258 0.291
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Ore milled (Tonnes 000's) 14,164 14,604 13,464 13,502 14,727
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Copper Grade (%) 0.162 0.159 0.158 0.160 0.155
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Copper Recovery (%) 21.3 21.5 20.3 27.0 27.0
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Power Costs (per kwh) $ 0.154 $ 0.080 $ 0.086 $ 0.097 $ 0.185
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Sales Metrics: Q4-2013 Q3-2013 Q2-2013 Q1-2013 Q4-2012
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Copper Sales1 (Million lbs) 12.595 10.856 9.437 12.482 13.712
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Company's Recorded Copper Price
($US/lb)2 3.16 3.19 3.40 3.52 3.52
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Molybdenum Sales (million lbs) 0.174 0.205 0.178 0.241 0.286
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Company's Recorded Molybdenum
Price ($US/lb) 9.67 9.41 11.00 11.34 11.08
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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 2013 annual financial results at market open on
Thursday February 26, 2014 and will hold an investor conference call to discuss
the results on Friday February 27, 2014 at 11:00 am Pacific Standard Time/2:00
pm Eastern Standard 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
Chairman & CEO
(604) 218-7013
Amerigo Resources Ltd.
(604) 697-6201
www.amerigoresources.com
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