Business
Amerigo Comments on Market Volatility
Amerigo Comments on Market Volatility.
About this update from Amerigo Resources Ltd
[{"type":"text","content":"\n\n\n\nVANCOUVER, May 22 /CNW/ - Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or\nthe "Company") commented today on two matters which the Company believes may\nhave had an effect on the market price for the Company's shares over the past\n2 weeks, in addition to normal market factors including changes in the price\nof copper and molybdenum.\n\n\nIn its May 2, 2007 press release announcing Q1-2007 results, the Company\ncommented that power costs had increased substantially during the first\nquarter due to higher marginal power surcharges in Chile. Although the\nNational Energy Commission of Chile has forecast that power costs will be\nvolatile for the next few years, the Company's power costs are not expected to\nremain at this historically high level. Based on recently published\nprojections of the National Energy Commission of Chile and independent energy\nconsultants, power costs are expected to return to historical levels of\napproximately 5 cents per kilowatt hour, or approximately one-half of the\nCompany's Q1-2007 rates, due to substantial new energy capacity scheduled to\ncome on stream in the next few years. In the meantime it is expected that,\nsubject to demand levels and a series of factors including oil price, natural\ngas price, and water flow in the country's hydro facilities, prices are\nexpected to fluctuate between these levels until the new capacity is\ncommissioned. Energy is priced on a national basis in Chile, and impacts all\nconsumers in a similar way.\n\n\nThere also appears to be concern over the level of the Company's\nmolybdenum production, particularly in Q1-2007. Although the Company cannot\naccurately predict these production numbers as extraction levels depend on the\ntailings received by its MVC operations, the Company is pleased to announce\nthat molybdenum production to date in Q2-2007 has already exceeded the full\nQ1-2007 production.\n\n\n -----------------------------------------\n\n\nAmerigo Resources Ltd. is a Canadian junior company producing copper and\nmolybdenum from its MVC operations near Santiago, Chile. Tel: (604) 681-2802;\nFax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX\n\n\nThe Toronto Stock Exchange has not reviewed nor accepted responsibility\nfor the adequacy or accuracy of the contents of this news release, which has\nbeen prepared by ...