Business
Amerigo Announces Q1-2016 Financial Results
Cash cost down to $1.81/lb Cash flow of $1.4 million generated from operations Vanco...
About this update from Amerigo Resources Ltd
[{"type":"text","content":"Amerigo Announces Q1-2016 Financial ResultsCash cost down to $1.81/lbCash flow of $1.4 million generated from operationsVancouver, British Columbia--(Newsfile Corp. - May 4, 2016) - Amerigo Resources Ltd. (TSX: ARG) (\"Amerigo\" or the \"Company\") reported today financial results for the three months ended March 31, 2016 (\"Q1-2016\").  The Company posted revenue of $19.3 million and a net loss of $4.4 million. Cash of $1.4 million was generated from operations and the Company's cash balance increased to $11.8 million. Cash cost decreased to $1.81/lb as a result of higher quarterly production. Rob Henderson, Amerigo's President and CEO, stated \"MVC has demonstrated the potential of the historic Cauquenes tailings deposit this quarter and the Company is now set up for generating higher copper production and reduced unit operating costs well into the future.\"Financial resultsRevenue was $19.3 million (Q1-2015: $17.7 million), a 9% increase due to higher production offset by lower copper prices. The Company's recorded copper tolling price was $2.24/lb (Q1-2015: $2.68/lb).Tolling costs were $21.7 million (Q1-2015: $19.0 million), an increase of 14% driven by a 45% increase in copper production. 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 notional royalties decreased to $1.81/lb (Q1-2015: $2.33/lb) due to higher production. Total cost (a non-GAAP measure equal to the aggregate of cash cost, DET notional royalties and depreciation) decreased to $2.45/lb (Q1-2015: $3.06/lb), due to lower cash cost and lower DET notional royalties. Gross loss was $2.4 million (Q1-2015: $1.3 million) and net loss was $4.4 million (Q1-2015: $4.1 million).In Q1-2016 the Company generated cash flow from operations before changes in non-cash working capital of $1.4 million (Q1-2015: $1.2 million). ProductionQ1-2016 production was 12.9 million pounds of copper, 45% higher than the 8.9 million pounds produced in Q1-2015.Copper production includes 6.7 million pounds from Cauquenes, 5.3 million pounds from fresh tailings and 0.9 million pounds from Minera Maricunga.The ramp-up in production from Cauquenes has progressed in line with expectations, with tonnage at design rates of 60,000 tpd and pla...