Business
Amerigo Resources Reports Q1-2020 Financial Results
Net loss of $4.0 million ($0.02 LPS) after $5.3 million of negative copper settlement adjustments Net negative operating cash flow of $1.4 million Working
About this update from Amerigo Resources Ltd
[{"type":"text","content":" Net loss of $4.0 million ($0.02 LPS) after $5.3 million of negative copper settlement adjustments Net negative operating cash flow of $1.4 million <li\">Working capital deficiency of $27.7 million VANCOUVER, British Columbia, May 06, 2020 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. (TSX: ARG) (“Amerigo” or the “Company”) announced financial results for the quarter ended March 31, 2020 (“Q1-2020”). Quarterly financial performance was impacted by low copper prices as a result of the current global pandemic, which affected Q1-2020 copper revenue from MVC (Minera Valle Central, the Company’s 100% owned operation locater near Rancagua, Chile) and resulted in negative copper settlement adjustments of $5.3 million. Amounts in this news release are reported in U.S. dollars except where indicated otherwise. COVID-19 effect on financial results and ongoing uncertainty In March 2020, the World Health Organization declared a global pandemic related to COVID-19. The current and expected impacts from the pandemic on the global economy are anticipated to be far reaching. To date, there have been significant stock market declines, significant volatility in commodity and foreign exchange markets and the global movement of people and some goods has become restricted. There is significant ongoing uncertainty surrounding COVID-19 and the extent and duration of the impact that it may have on the demand and on the market prices of copper and molybdenum, and on global financial markets. The Company’s financial results were substantially impacted during Q1-2020 as a result of lower copper prices. Commodity market fluctuations resulting from COVID-19 may continue to impact the Company’s financial results and liquidity for some time. MVC has not experienced production interruptions or significant disruption to its supply chain because of the COVID-19 global pandemic. Amerigo reported quarterly net loss of $4.0 million Net loss during Q1-2020 was $4.0 million (Q1-2019: $1.4 million), due to lower production and lower metal prices including the effect of negative fair value adjustments to copper receivables ($5.3 million negative adjustments in Q1-2020 compared to $2.1 million positive adjustments in Q1-2019). Copper price declined from an average price of $2.75 per pound (“/lb”) in December 2019 to an average price of $2.35/lb in M...