Business
Amerigo Resources Reports Q2-2020 Financial Results
$2.8 million cash generated from operations in the quarter Quarterly net loss down to $3.6 million ($0.02 LPS) Lower tolling & production costs, cash cost and t
About this update from Amerigo Resources Ltd
[{"type":"text","content":" $2.8 million cash generated from operations in the quarter Quarterly net loss down to $3.6 million ($0.02 LPS) Lower tolling & production costs, cash cost and total cost VANCOUVER, British Columbia, Aug. 12, 2020 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. (TSX: ARG) (“Amerigo” or the “Company”) announced financial results for the quarter ended June 30, 2020 (“Q2-2020”). Net loss was $3.6 million (Q2-2019: $6.6 million) from higher revenue and lower tolling and production costs at MVC (Minera Valle Central, the Company’s 100% owned operation located near Rancagua, Chile). Loss per share during Q2-2020 was $0.02 (Q2-2019: $0.04). MVC’s average copper price in Q2-2020 was $2.61 per pound (“/lb”) (Q2-2019: $2.67/lb). The Company generated $2.8 million in operating cash flow before changes in non-cash working capital in Q2-2020 (Q2-2019: used cash of $4.8 million in operations). Quarterly net operating cash flow was $1.1 million (Q2-2019: $3.0 million). Amounts in this news release are reported in U.S. dollars except where indicated otherwise. MVC produced 13.0 million pounds of copper during Q2-2020 (Q2-2019: 13.3 million pounds) at a cash cost of $1.72/lb (Q2-2019: $1.97/lb) ·Q2-2020 production of 13.0 million pounds of copper (Q2-2019: 13.3 million pounds) included 6.3 million pounds from historical tailings (“Cauquenes”) (Q2-2019: 8.2 million pounds) and 6.7 million pounds from fresh tailings (Q2-2019: 5.1 million pounds). Q2-2020 production results were in line with the Company’s guidance. Additional information on Q2-2020 production results is available on the Company’s news release of July 23, 2020 ·Molybdenum production was 0.4 million pounds (Q2-2019: 0.2 million pounds). Cash cost (a non-GAAP measure equal to the aggregate of smelting and refining charges, tolling/production costs net of inventory adjustments and administration costs, net of by-product credits) was $1.72/lb (Q2-2019: $1.97/lb). Total cost (a non-GAAP measure equal to the aggregate of cash cost, Codelco’s Division El Teniente (“DET”) notional copper royalties and DET molybdenum royalties of $0.50/lb and depreciation of $0.33/lb) decreased to $2.55/lb (Q2-2019: $2.95/lb), due to lower cash cost and lower DET notional royalties from lower metal prices. MVC’s average copper price in Q2-2020 was $2.61/lb During Q2-2020, MVC’s copper price was $2...