Business
Amerigo Resources Reports Q3-2018 Financial Results
Record quarterly copper production of 17.6 million pounds copper Cash cost reduced to $1.38 per pound $6.2 million generated from operations Net income of $1.4
About this update from Amerigo Resources Ltd
[{"type":"text","content":" Record quarterly copper production of 17.6 million pounds copper Cash cost reduced to $1.38 per pound $6.2 million generated from operations Net income of $1.4 million VANCOUVER, British Columbia, Nov. 05, 2018 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. (\"Amerigo\" or the \"Company\") (TSX: ARG) is pleased to announce financial results for Q3-2018. Results continue to be in line with the Company’s 2018 production and cost guidance. The Company continues to expect 2018 production of 65 - 70 million pounds of copper at a cash cost of $1.45 to $1.60/lb and molybdenum production guidance has been increased to 1.8 million pounds. “In Q3-2018, Amerigo achieved record production of 17.6 million pounds of copper as the MVC Phase Two expansion began to improve recovery efficiency as planned. As we ramped up production, cash cost came down to $1.38/lb from $1.71/lb in the preceding quarter. These results allowed us to generate $6.2 million in operating cash flow, despite lower copper prices,” said Rob Henderson, Amerigo’s President and CEO. He added, “We look forward to achieving commercial production of the Phase Two project in Q4-2018.” Amounts in this news release are reported in U.S. dollars except where indicated otherwise. Amerigo reported net income and strong cash flow despite lower copper prices Net income was $1.4 million (Q3-2017: $7.9 million) due to lower copper prices and the effect of revenue settlement adjustments realized in Q3-2018 for Q2-2018 copper deliveries. Earnings per share were $0.01 (Q3-2017: $0.04). Cash flow generated from operations before changes in non-cash working capital was $6.2 million (Q3-2017: $11.0 million). MVC’s average copper price in Q3-2018 was $2.74/lb MVC’s copper price was $2.74 per pound (“/lb”) (Q3-2017: $3.00/lb) and MVC’s molybdenum price was $11.77/lb (Q3-2017: $8.10/lb). Revenue was $32.4 million (Q3-2017: $37.4 million), including copper tolling revenue of $27.2 million (Q3-2017: $34.9 million) and molybdenum and other revenue of $5.2 million (Q3-2017: $2.5 million). Copper tolling revenue is calculated from MVC’s gross value of copper produced of $42.8 million (Q3-2017: $50.3 million) less notional items including DET royalties of $9.2 million (Q3-2017: $9.4 million), smelting and refining of $5.8 million (Q3-2017: $5.5 million) and transportation of $0.6 million (Q3-2017...