Business
Amerigo reports earnings of US$4.6 million in Q1-2006
Amerigo reports earnings of US$4.6 million in Q1-2006.
About this update from Amerigo Resources Ltd
[{"type":"text","content":"\n\n\n\n\nEarnings per share are US$0.0524 up from EPS of US$0.0237 in Q1-2005\n\nFinancing closed in March 2006 strengthens cash position to \nUS$15.5 million\n\nPurchase of strategic stake in Chariot Resources\n\nDividend of US$3.6M declared in the quarter\n\nVANCOUVER, May 4 /CNW/ - Amerigo Resources Ltd. (TSX:ARG) (\"Amerigo\" or\nthe \"Company\") reported results for the quarter ended March 31, 2006 today.\nSignificant events are as follows:\n\n- Net earnings after tax for the quarter ended March 31, 2006 were\n US$4,606,768, 180% higher than earnings of US$1,644,722 in Q1-2005 due\n to stronger revenue from higher copper prices and from molybdenum\n sales and revenue pursuant to a tolling contract, both of which were\n nil in Q1-2005 and 11% lower than earnings of US$5,208,567 in Q4-2005\n due primarily to lower molybdenum sales and lower tolling contract\n revenue partly offset by higher copper prices.\n\n- Earnings per share for the quarter ended March 31, 2006 were US$0.0524\n non-diluted, compared to earnings per share of US$0.0237 in Q1-2005\n and US$0.0604 in Q4-2005.\n\n- Cash flow from operations was US$4,085,418 in Q1-2006 compared to cash\n flow from operations of US$1,765,989 in Q1-2005.\n\n- Copper production in Q1-2006 was 6.75 million pounds, compared to\n 7.49 million pounds produced in Q1-2005 and 7.73 million pounds\n produced in Q4-2005. Copper production was lower than expected arising\n from a longer than anticipated annual maintenance shutdown at\n El Teniente, other plant shutdowns following a small fire and for the\n integration of new equipment and lower recoveries from Colihues. For\n Q2-2006 a previously announced production shortfall of approximately\n 500 tonnes of copper and 30,000 pounds of molybdenum is expected\n following a temporary plant shutdown.\n\n- Molybdenum production in Q1-2006 was 176,967 pounds, which is below\n projected production due to lower molybdenum content in the\n El Teniente tailings. In Q4-2005, molybdenum production was\n 245,950 pounds.\n\n- Cash costs (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 were US$1.39/lb in Q1-2006, compared to cash costs of US$0.91/lb in\n Q1-2005 and US$0.67/lb in Q4-2005. The increase in cash costs fr...