Business
Record Q1 earnings of US$5.6M up 21% from Q1-2006 despite production restrictions
Record Q1 earnings of US$5.6M up 21% from Q1-2006 despite production restrictions.
About this update from Amerigo Resources Ltd
[{"type":"text","content":"\n\n\n\nFull fresh tailings flow restored\n\n\nUS$5.3M dividend declared\n\n\nVANCOUVER, May 2 /CNW/ - Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or\nthe "Company") reported results for the quarter ended March 31, 2007 today.\nSignificant events are as follows:\n\n\n- Net earnings after tax for the quarter ended March 31, 2007 were\n $5,551,282, 21% higher than earnings of $4,606,768 in Q1-2006 due to\n a combination of higher copper prices offsetting lower production.\n Even with plant shutdowns in connection with final bridge repairs,\n Q1-2007 results were an earnings record for the first quarter.\n\n- Earnings per share for the quarter ended March 31, 2007 were 6 cents\n fully diluted, compared to fully diluted earnings per share of\n 5 cents in Q1-2006.\n\n- Cash flow from operating activities was $6,882,868, or 7 cents per\n share in Q1-2007, compared to $4,085,418 or 5 cents per share in Q1-\n 2006.\n\n- Production in Q1-2007 was 6.33 million pounds of copper and\n 123,448 pounds of molybdenum, a production decrease of 6% in copper\n and 30% in molybdenum from Q1-2006 due to plant shutdowns and low\n molybdenum content in fresh tailings. Due to the plant shutdowns MVC\n operated only 84% of operating days in the quarter.\n\n- Gross copper selling price was $3.03/lb after settlement adjustments,\n compared to an LME average price of $2.69/lb during the quarter.\n Realized copper price (copper revenue net of smelter and refinery\n charges and including settlement adjustments to prior quarter sales\n divided by copper pounds sold in the quarter) was $2.43/lb.\n\n- Cash costs (the aggregate of smelter, refinery and other charges,\n production costs net of molybdenum-related net benefits,\n administration and transportation costs) before El Teniente royalty\n were $1.47/lb in Q1-2007, compared to cash costs of $1.39/lb in Q1-\n 2006. The increase in cash costs was caused by higher power, smelter\n and refinery costs, mitigated by the positive effect of strong\n molybdenum by-product credits. Power costs increased substantially\n due to higher marginal power surcharges in Chile. Smelter and\n refinery costs remained at significantly higher 2006 levels as MVC\n was still fulfilling its 2006 copper quota in Q1-2007.\n\n- Total costs (the aggregate of cash costs, El Teniente royalty, MVC\n stock-based compensa...