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Amerigo Resources Reports 2021 Production Results and Provides 2022 Guidance
2021 results beat production and cost guidance Copper production of 63.4 million pounds, 4% over guidance Cash cost1 of $1.75/lb, 2% below guidance VANCOUVER, B
About this update from Amerigo Resources Ltd
[{"type":"text","content":" 2021 results beat production and cost guidance Copper production of 63.4 million pounds, 4% over guidance Cash cost1 of $1.75/lb, 2% below guidance VANCOUVER, British Columbia, Jan. 13, 2022 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. (TSX: ARG; ARREF: OTC) (“Amerigo” or the “Company”) is pleased to announce production results for the year ended December 31, 2021 from Minera Valle Central (“MVC”), the Company’s 100% owned operation located near Rancagua, Chile. Dollar amounts in this news release are in U.S. dollars unless indicated otherwise. “We are pleased to report annual copper production of 63.4 million pounds. MVC’s strong operational performance, together with an annual robust average LME copper price of $4.22/lb resulted in a transformative year for Amerigo under which the Company put in place quarterly dividends and share repurchase initiatives”, said Aurora Davidson, Amerigo’s President and CEO. “We would like to thank the Company’s employees for their continued commitment to meeting corporate goals. We look forward to another year of strong performance and robust markets under which the Company will continue returning capital to shareholders”, stated Ms. Davidson. In 2021, MVC produced 63.4 million pounds (“M lbs”) of copper at a cash cost1 of $1.75 per pound (“/lb”) and 1.3 M lbs of molybdenum. Annual copper production was 4% over guidance, due to higher fresh tailings tonnage and grade. During the year, MVC successfully completed a series of plant modifications to take advantage of the higher throughput of fresh tailings coming from El Teniente. Production from fresh tailings increased from 45% of copper production in Q1-2021 to 55% of copper production in Q4-2021. To the extent that a higher percentage of production comes from fresh tailings, historical tailings are depleted at a lower rate. Amerigo’s 2021 cash cost1 of $1.75/lb was 2% lower than the Company’s cash cost1 guidance of $1.79/lb mostly due to higher than projected production. Annual molybdenum production was 11% below guidance, driven by the lower molybdenum content found in fresh tailings. Water reserves at Colihues at year end 2021 were 5.8 million cubic meters, which are sufficient for MVC to maintain the Cauquenes tonnage processing projected in Amerigo’s 2022 production guidance. MVC’s operations have continued without any significant disruptions...