Amerigo Resources Ltd · TSX:ARG
Amerigo Resources — Investor Presentation (May 2025)
22 slides from Amerigo Resources's investor presentation, May 2025
Slide 1: The Copper Factory
MAY 2025 The Copper Factory Superior investment performance from reliable copper production 1
Slide 2: Forward Looking Information
Forward Looking Information ALL REFERENCES TO DOLLARS ARE US DOLLARS, UNLESS OTHERWISE negotiations with government and other third parties, unanticipated metallurgical INDICATED difficulties, delays associated with permits, approvals and permit appeals, ground control problems, adverse weather cond
Slide 3: Forward Looking Information
Forward Looking Information ALL REFERENCES TO DOLLARS ARE US DOLLARS, UNLESS OTHERWISE • tax benefits and tax rates; INDICATED • the outcome of our copper concentrate sales and treatment and refining charge negotiations; Actual results and developments are likely to differ, and may differ materially
Slide 4: What we do for shareholders
What we do for shareholders Investment performance fueled by quick capital returns As we do not require growth capital, we can return capital to shareholders Quarterly dividends (safe, predictable, paid each quarter) Performance dividends (flexible in all aspects) Share buybacks (Normal Course Issue
Slide 5: Value Proposition
Value Proposition We recover copper in a We offer direct leverage to rising copper “ c o p p e r f a c t o r y” prices Simple and sustainable business model; predictable Full exposure to rising copper prices without traditional operations and cash flow mining risk, minimal overhead and low Capex We
Slide 6: Fully Deployed Capital Return Strategy (CRS)
Fully Deployed Capital Return Strategy (CRS) With copper prices stable over the period Amerigo Has Outperformed Mid-Tier Copper Producers, Copper ETFs and Copper Futures on a Compound Annual Growth Rate (CAGR) Since October 2021 when the CRS was Deployed 6
Slide 7: CRS Since Inception
CRS Since Inception With copper prices stable over the period Additional Dividends Primed for a Rise in Long-Term Copper Prices Opportunistic Share Buybacks $0.05 Shares Average Dollars $0.04 Repurchased Price CAD Spent CAD 2021 7.1M $1.30 $9.3M $0.04 2022 10.8M $1.62 $17.4M $0.03 2023 2.3M $1.57 $3
Slide 8: Operating Cash Flow is Key to CRS
Operating Cash Flow is Key to CRS $35.00 $5.00 $30.00 Weak copper $4.50 $25.00 price triggered by $18.3 Ukraine $20.00 invasion $4.00 $20.6 $15.00 $8.9 $13.9 $3.50 $15.6 $13.2 Historic $10.00 $14.1 floods in $8.85 $8.8 $10.2 $8.84 Chile $3.41 $5.00 $2.6 $1.85 $2.6 $1.83 $3.00 $0.76 $8.50 $2.83 $4.18
Slide 9: CRS Deployed with Continued Debt Reduction
CRS Deployed with Continued Debt Reduction $35.0 $5.00 $4.50 $30.0 $4.00 $25.0 $3.50 $3.00 $20.0 $2.50 $15.0 $2.00 $10.0 $1.50 $1.00 $5.0 $0.50 $- $- Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Debt@Q/E US$M $30.4 $30.8 $27.0 $27.6 $23.7 $2
Slide 10: Debt Elimination will Unlock More Capital Returns
Debt Elimination will Unlock More Capital Returns Figures shown on a per share basis $0.20 $1.95 $0.18 $1.75 $0.16 Debt $0.14 Share Price $1.55 $0.12 $0.10 $1.35 $0.08 Total $1.15 $0.06 Capital Returned $0.04 $0.95 $0.02 $- $0.75 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 202
Slide 11: Operational Excellence Fuels Industry-Leading CRS
Operational Excellence Fuels Industry-Leading CRS Full recovery in Q4-2023 from 100 historic floods 20 Copper Actual Cash Plant Production Production Cost Availability 90 18 (M lbs) vs Guidance ($/lb). 80 16 2021 63.4 4% over $1.75 98.0% 70 14 2022 64.0 3.4% over $1.98 98.8% 60 12 2023 57.6 7.5% und
Slide 12: We have Inexhaustible Material to Process
We have Inexhaustible Material to Process We have built our business to complement this world-class copper resource 12
Slide 13: Chile
Copper is the “salary of Chile” – building block of the economy and social contract Operations located Amerigo has a +30- in Chile, the world’s year strategic leading copper relationship with producer Codelco’s El Teniente mine Chile Minimal Jurisdictional Codelco is Chile’s Risk state-owned copper
Slide 14: Pure Copper Play – High Leverage to Copper Prices
Pure Copper Play – High Leverage to Copper Prices Assumptions for 2025 Production Guidance (62.9 M lbs copper production) 1 Copper price ($/lb) 3.80 4.00 4.15 4.30 4.50 4.70 EBITDA2 ($M) 56.3 62.3 66.7 71.1 76.7 82.3 FCFE2 ($M) 14.1 18.5 21.6 24.8 29.0 31.9 1 Excludes the effect of settlement adjust
Slide 15: Corporate Structure
Corporate Structure CAPITALIZATION SHAREHOLDERS Shares outstanding1 164.1 M Retail Investors Options1 (average exercise price Cdn$1.50) 9.5 M 13% Management & Board 14% Share price1 Cdn$1.73 Market cap1 $204.4 M Aegis Financial Corp. Yield on quarterly dividends1 Other Institutional 6.9% 13% (Exclud
Slide 16: Appendices
Appendices
Slide 17: Amerigo's Multi-year Capital Allocation Strategy: A Long-Term View
Amerigo's Multi-year Capital Allocation Strategy: A Long-Term View Variances are Expected and Can Be Absorbed Normalized assumptions Variance against LT assumptions 2022 2023 2024 2025 2026 2027 Actual Guidance Expected Major assumptions MVC production predictable and stable > 60 M lbs per year Prov
Slide 18: El Teniente Royalties
El Teniente Royalties ($/lb) Sliding scale tied to copper prices Cu price Royalty $ 3.00 $ 0.73 Cu price Royalty Royalty ($/lb) factor ($/lb) $ 3.20 $ 0.81 Fresh tailings $ 1.95 13.5% $ 0.26 $ 3.40 $ 0.89 $ 4.80 28.4% $ 1.36 $ 3.50 $ 0.93 Cauquenes $ 1.95 16% $ 0.31 $ 3.60 $ 0.98 $ 5.50 39% $ 2.15
Slide 19: Moly by-product credit
Moly by-product credit ($/lb) MVC produces molybdenum as a by- Moly price Credit to Cash Cost product $ 14.00 $ (0.23) When talking about cash cost (a non- $ 16.00 $ (0.26) GAAP measure) moly is considered a $ 18.00 $ (0.29) “credit” to cash cost $ 20.00 $ (0.32) $ 22.00 $ (0.36) At the right
Slide 20: Leading Yield and Capital Payout Ratio in the Copper Sector
Leading Yield and Capital Payout Ratio in the Copper Sector Dividend Yield * Capital Payout Ratio** Amerigo Resources 7.02% 218% Antofagasta 1.39% N/A*** Atalaya Mining Copper 1.52% 58% Freeport-McMoRan 1.60% 33% Rio Tinto 6.73% N/A*** Southern Copper 3.11% 88% Teck Resources 1.02% 62% * Does not in
Slide 21: Executive Management
Executive Management Aurora Davidson Dr. Klaus Zeitler Carmen Amezquita Christian Cáceres President, CEO & Director Executive Chairman & Director Chief Financial Officer General Manager, MVC Ms. Davidson has been with Amerigo Dr. Zeitler founded Amerigo in 2003. He Ms. Amezquita is a Chartered Mr. C
Slide 22: Board of Directors
Board of Directors Dr. Klaus Zeitler Robert Gayton George Ireland Executive Chairman & Director Lead Independent Director Director Dr. Zeitler founded Amerigo in 2003. He has more than Dr. Gayton, FCPA (FCA) is a Chartered George Ireland has almost 40 years of experience in 50 years of experience in