Business
Amerigo reports earnings of US$39.3 million in 2006 up from US$17.9 million in 2005
Amerigo reports earnings of US$39.3 million in 2006 up from US$17.9 million in 2005.
About this update from Amerigo Resources Ltd
[{"type":"text","content":"\n\n\n\n Earnings of US$39.3 million in 2006 up 119% from 2005\n\n Earnings per share are US42 cents up from EPS of US23 cents in 2005\n\n Cash flow from operations of US$26.6M in 2006\n\n\nVANCOUVER, Feb. 21 /CNW/ - Amerigo Resources Ltd. (TSX:ARG) (\"Amerigo\" or\nthe \"Company\") reported results for the year ended December 31, 2006 today.\nSignificant events are as follows:\n\n\n- Net earnings after tax for the year ended December 31, 2006 were\n $39,283,683, 119% higher than earnings of $17,992,467 in 2005 due to\n higher copper prices more than offsetting lower production and profit\n from the sale of a strategic investment. Despite production\n restrictions imposed by El Teniente, 2006 is an record earnings year\n for Amerigo.\n\n- Earnings per share for the year were 42 cents, compared to earnings\n per share of 23 cents in 2005.\n\n- Cash flow from operating activities was $26,576,910 or 29 cents per\n share in 2006, compared to $21,874,229 or 28 cents per share in 2005.\n\n- Production in 2006 was 24.67 million pounds of copper and\n 674,549 pounds of molybdenum, a copper production decrease of 17% due\n to restricted tailings flow and various temporary plant shutdowns\n imposed by El Teniente. Molybdenum production increased 7% due to a\n full year of molybdenum production.\n\n- Gross copper selling price was $3.33/lb after settlement adjustments,\n compared to an LME average price of $3.05/lb during the year.\n Realized copper price (copper revenue net of smelter and refinery\n charges and including settlement adjustments to prior year sales\n divided by copper pounds sold in the year) was $2.74/lb.\n\n- Cash cost (the aggregate of smelter, refinery and other charges,\n production costs net of molybdenum-related net benefits,\n administration and transportation costs) before El Teniente royalty\n was $1.20/lb in 2006, compared to 60 cents/lb in 2005. The increase\n in cash cost was caused by lower copper production due to production\n constraints, higher smelter and refinery costs due to the effect of\n copper price participation with the smelter and higher power, steel\n and maintenance costs.\n\n- Total cost (the aggregate of cash cost, El Teniente royalty, MVC\n stock-based compensation, depreciation and accretion) for the year\n ended December 31, 2006 was $1.80/lb compared to 94 cents/lb in 2005.\n The increase ...