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Amerigo Announces Q3-2017 Financial Results
$11.0 million generated from operations Net income of $7.9 million Phase Two Cauq...
About this update from Amerigo Resources Ltd
[{"type":"text","content":"Amerigo Announces Q3-2017 Financial Results$11.0 million generated from operationsNet income of $7.9 million Phase Two Cauquenes expansion proceeding on time and budgetVancouver, British Columbia--(Newsfile Corp. - November 8, 2017) - Amerigo Resources Ltd. (TSX: ARG) (\"Amerigo\" or the \"Company\") reported today financial results for the three months ended September 30, 2017 (\"Q3-2017\").  Cash of $11.0 million was generated from operations before working capital changes. The Company posted revenue of $37.4 million and net income of $7.9 million. Debt proceeds for the second phase of the Cauquenes expansion (\"Phase Two\") were $4.8 million, and debt repayments on existing loans were $3.0 million. At September 30, 2017, cash balance was $22.7 million. The improvement of $10.4 million in the Company's financial results and $9.4 million in operating cash flow generated in the quarter compared to Q3-2016 was the result of stronger copper prices, which positively impacted quarterly revenue on a provisional price basis, and resulted in $4.5 million in positive settlement adjustments to prior quarter sales.Rob Henderson, Amerigo's President and CEO, stated \"The price of copper has increased substantially over the last year in response to continued strong demand from China and an expectation of global supply shortfalls in the future. The Company is now starting to reap the benefits of the investment in Cauquenes. MVC's focus is to safely sustain the level of copper production, control costs and complete the Phase Two expansion project on time and on budget.\"Financial ResultsGross tolling copper revenue was $50.3 million (Q3-2016: $32.5 million), due to stronger copper prices. The Company's recorded copper tolling price was $3.00/lb (Q3-2016: $2.13/lb). Revenue from molybdenum was $2.5 million (Q3-2016: $2.1 million combined from molybdenum and the Maricunga tolling contract).Revenue after notional items was $37.4 million (Q3-2016: $23.4 million). Tolling and production costs were $25.5 million (Q3-2016: $24.3 million), driven by higher power and lime costs. Unit tolling and production costs were $1.67/lb (Q3-2016: $1.56/lb).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 not...