The following is a summary of the Amerigo Resources Ltd. (ARREF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Amerigo Resources reported a Q1 net income of $4.3 million, EBITDA of $13.6 million, and free cash flow to equity of $7.3 million.
The company's Q1 copper revenue was $61.3 million, with an average copper price of $3.95 per pound.
Amerigo's Q1 2024 financial results show total revenues of $44.9 million, down from $52.6 million in Q1 2023, primarily due to lower copper and molybdenum prices.
A quarterly dividend of $3.7 million was distributed to shareholders, equating to a 7.7% yield against their quarter-end share price.
The company reported lower costs due to a weakened peso and lower pass-through charges but faced higher line costs. Their all-in sustaining costs stood at $3.57 per pound.
Amerigo's financial performance remains dependent on the behavior of the Chilean peso.
Business Progress:
Amerigo's Q1 2024 operations experienced lower power costs from reduced power consumption and lower grinding costs due to less consumption and lower input costs.
The company is progressing with two CapEx projects expected to generate an additional 345 tons of copper per year upon completion.
Amerigo has approved production optimization projects with works expected to be completed in seven months and to come online by 2025.
The company maintains a cash position target of $25 million, as part of its strategy to maximize returns to its investors.
Amidst strengthening global copper demand, as indicated by rising copper prices in April, Amerigo plans to remain unhedged with potential considerations to move into partial hedging if the surge in copper prices continues.
The company is actively seeking further opportunities in copper tailings, keeping close relations with El Teniente.
More details: AMERIGO RESOURCES LTD IR
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