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Amerigo Resources Reports Q1-2019 Financial Results
Cash of $5.2 million generated from operations Net loss of $1.4 million ($0.01 LPS) VANCOUVER, British Columbia, May 08, 2019 (GLOBE NEWSWIRE) -- Amerigo Resour
About this update from Amerigo Resources Ltd
[{"type":"text","content":" Cash of $5.2 million generated from operations Net loss of $1.4 million ($0.01 LPS) VANCOUVER, British Columbia, May 08, 2019 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. (TSX: ARG) (“Amerigo” or the “Company”) announced financial results for Q1- 2019, which were affected by lower than forecast production as a result of low plant recoveries, as announced in the Company’s news release of April 15, 2019. Amerigo posted a net loss of $1.4 million or $0.01 per share. Cash generated from operations before changes in working capital was $5.2 million. Including changes in working capital, the Company used $1.5 million in operations in the quarter. Rob Henderson, Amerigo’s President and CEO, stated, “Financial results were below expectations due to low production in the quarter. Operating cash flow of $5.2 million in Q1-2019 is expected to be maintained in Q2-2019 and should then increase in the second half of the year as the planned new extraction sump will enable more operational flexibility and result in higher plant recovery.” Amounts in this news release are reported in U.S. dollars except where indicated otherwise. Amerigo reported a net loss of $1.4 million and cash flow from operations of $5.2 million Net loss was $1.4 million (Q1-2018: net income of $1.2 million), due to lower production and lower metal prices. Loss per share was $0.01 basic and diluted (Q1-2018: earnings per share of $0.01 basic and diluted). Cash flow generated from operations before changes in non-cash working capital was $5.2 million (Q1-2018: $5.9 million. MVC’s Q1-2019 production was lower than expected, negatively affecting financial performance including cash cost Q1-2019 production was 13.0 million pounds of copper (Q1-2018: 14.2 million pounds), as a result of low plant recoveries. Cauquenes material was extracted from a low-grade zone and had higher than expected fines content and significant iron and clay contamination. MVC also lost 7 operation days in Q1-2019 as a result of a DET tailings system maintenance shutdown. Copper production is comprised of 8.4 million pounds from Cauquenes (Q1-2018: 8.9 million pounds) and 4.6 million pounds from fresh tailings (Q1-2018: 5.3 million pounds). Molybdenum production was 0.2 million pounds (Q1-2018: 0.4 million pounds). Cash cost (a non-GAAP ...