Business
Amerigo Announces 2015 Financial Results
VANCOUVER, BC--(Marketwired - February 25, 2016) - Amerigo Resources Ltd. (TSX: ARG) ("Amerigo" or the "Company") reported today financial results for the year
About this update from Amerigo Resources Ltd
[{"type":"text","content":" VANCOUVER, BC--(Marketwired - February 25, 2016) - Amerigo Resources Ltd. (TSX: ARG) (\"Amerigo\" or the \"Company\") reported today financial results for the year ended December 31, 2015. The Company posted revenue of $52.6 million1, operating cash outflow before changes in non-cash working capital of $5.0 million and a net loss of $16.9 million. Rob Henderson, Amerigo's President and CEO, stated, \"In 2015, MVC invested in the development of the historic Cauquenes tailings deposit, and is now well-positioned to continue operations in today's challenging copper price environment. Our outlook for 2016 is to generate record copper production and lower cash cost. We remain focused on reducing unit costs, improving liquidity and delivering against our targets to build value.\" Financial results Revenue was $52.6 million compared to $92.9 million in 2014, a 43% decrease due to lower copper prices, lower production under the tolling agreement with DET and the suspension of molybdenum production in April 2015 in response to low market prices. Pre-operating revenue of $5.1 million from Cauquenes was excluded from 2015 revenue. The Group's gross copper tolling fee was $2.47/lb (2014: gross copper selling price: $3.14/lb). Tolling and production costs were $65.7 million, a decrease of 24% from $86.3 million in 2014, driven by the suspension of Colihues and molybdenum operations in 2015, capitalization of Cauquenes costs, a weaker Chilean peso (\"CLP\") compared to the U.S. dollar and cost reduction initiatives at MVC. Pre-operating costs of $5.9 million from Cauquenes were excluded from 2015 tolling and production costs. Cash cost (a non-GAAP measure equal to the aggregate of smelting and refining charges, tolling/production costs net of inventory adjustments and administration costs, net of by-product credits) before DET royalties increased to $2.18/lb (2014: $2.08/lb) due to higher unit power cost (including a lower contribution from the MVC generators) and lower by-product credits. Total cost (a non-GAAP measure equal to the aggregate of cash cost, DET royalties and depreciation) decreased to $2.85/lb (2014: $3.02/lb), due to lower DET royalties and depreciation charges. Gross loss was $13.0 million (2014: gross profit of $6.6 million) and net loss was $16.9 million (2014: $10.7 million). In 2015, the Group had operating cash o...