Business
Amerigo Resources Reports Q2-2019 Financial Results
Q2-2019 net loss of $6.6 million ($0.04 LPS) as a result of low production and low copper prices June 2019 debt repayments made on schedule VANCOUVER, British C
About this update from Amerigo Resources Ltd
[{"type":"text","content":" Q2-2019 net loss of $6.6 million ($0.04 LPS) as a result of low production and low copper prices June 2019 debt repayments made on schedule VANCOUVER, British Columbia, Aug. 08, 2019 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. (TSX: ARG) (“Amerigo” or the “Company”) announced financial results for Q2- 2019. Amerigo’s financial results in Q2-2019 were affected by low production at Minera Valle Central (\"MVC\"), the Company’s 100% owned operation located near Rancagua, Chile, and by low copper prices in the period. Rob Henderson, Amerigo’s President and CEO, stated “MVC experienced a very poor start up to the Phase Two expansion project this year due to low recoveries from the historic Cauquenes tailings deposit. In July, MVC completed construction of the deep level extraction sump and the new concentrate regrind mill, with which we expect performance to improve. In order to have more short-term financial flexibility, the existing MVC bank loans are expected to be restructured in Q3-2019.” Amounts in this news release are reported in U.S. dollars except where indicated otherwise. Amerigo reported a financial loss of $6.6 million in Q2-2019 Net loss was $6.6 million (Q2-2018: net income of $2.7 million), due to lower production and lower metal prices. Loss per share was $0.04 (Q2-2018: earnings per share of $0.02). The Company used cash flow of $4.8 million in operations, before changes in non-cash working capital (Q2-2018: generated cash flow from operations of $6.4 million before changes in non-cash working capital). Net cash from operating activities in Q2-2019 was $3.0 million (Q2-2018: $1.8 million). MVC’s Q2-2019 production remained low, negatively affecting financial performance Q2-2019 production was 13.3 million pounds of copper (Q2-2018: 14.7 million pounds), as a result of continued low plant recoveries during the quarter. Cauquenes material was still being extracted from the same low quality, high fines extraction zone that adversely affected Q1-2019 production. Copper production is comprised of 8.2 million pounds from Cauquenes (Q2-2018: 9.2 million pounds) and 5.1 million pounds from fresh tailings (Q2-2018: 5.5 million pounds). Molybdenum production was 0.2 million pounds (Q2-2018: 0.4 million pounds). The material processed in the molybdenum plant in recent months has also been very fine, negatively affecting produ...