Slide 1: Amerigo
Admerigo
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may include certain "Forward-Looking Statements” as that term is used in applicable securities law. All statements, other than statements of historical fact, included herein, including, without limitation, statements regarding potential mineralization and
Slide 3: Amerigo Resources Ltd.
Amerigo Resources Ltd. - Stock Exchange Listing TSX Venture - ARG - Shares Outstanding 61,913,701 million - Share Price (March 1, 2004) C$2.20 - Market Capitalization C$136.2 million - Net Debt Nil - Senior Management & Directors Steven Dean, Chairman & Director Klaus Zeitler, President & Director S
Slide 4: Highlights of 2003
Highlights of 2003 July 1, 2003 to Dec. 31, 2003 - MVC Operating Profit US$2.32 million - Net Earnings After Tax US$1,881,013 - MVC Operating Profit (before depreciation) US$2.71 million - Copper Produced & Sold 14.42 million lbs - Cash Cost US$0.567 per lb - Total Cost US$0.627 per lb - Average Pri
Slide 5: Summary Balance Sheet December 31, 2003 (Audited)
Summary Balance Sheet December 31, 2003 (Audited) Assets USD millions Cash $4.4 Accounts Receivable 2.1 Inventory & Other 0.6 7.1 Plant & Equipment, Mineral Properties & Other 24.7 $31.8 Liabilities Accounts Payable $1.9 El Teniente royalty payable 0.6 Other 0.2 2.7 Non-Current Other 0.4 Enami Loans
Slide 6: MVC Background
MVC Background - Ex-Codelco management established MVC in 1990/1991. - Financial backer was Fe Grande S.A. (major Chilean private construction group). - Not Fe Grande S.A.’s ‘core business’ - Too small to interest Codelco – Codelco gets royalty with no expenditures and better management. 5
Slide 7: MVC
MVC - The MVC site is located 8 kilometers east of the city of Rancagua and 90 kilometers south of Santiago at 700 meters elevation. - Commenced operations in 1992. - Currently treating 90,000 - 100,000 tonnes per day of fresh tailings from El Teniente Copper Mine. - Currently producing approximatel
Slide 8: Site Overview
Site Overview Canal to Caren Tailings Deposit - El Teniente tailings are transported to MVC along a 36 kilometer launder, reprocessed, MVC Process and returned to the tailings offices Plant launder that deposits into the Caren tailings deposit 50 kilometers west of MVC. Colihues Tailings Tailings fr
Slide 9: Investment Highlights
Investment Highlights - Experienced Management - Senior mining company background, entrepreneurial track record, technical depth. - Growth Prospects - Timely exposure to a new copper producer with real near term production growth of 41% in year 1 and 77% by year 3. - Substantial Leverage to Copper P
Slide 10: Experienced Management Team
Experienced Management Team - Mr. Steven Dean - Chairman, Director - Previous President & Director of Teck Cominco Limited (1999 to 2001). - Founder and Chief Executive Officer of PacMin Mining Corporation Limited (1995 to 1999). - Executive Director & member of founding management of Normandy Posei
Slide 11: Development Plan
Development Plan - Current Production: 13,000 tonnes (28.7 million pounds) per year. - Phase 1: Increase production to approximately 15,500 tonnes (34 million pounds) per year at a capital cost of US$2.0 million (below original budget of US$3.0 million) by the 1st Quarter 2004. - Invest in additiona
Slide 12: Growth Potential
Growth Potential - MVC is reviewing other opportunities to increase copper recovery and decrease costs. - Negotiate the right to increase the treatment rate of the Colihues tailings pond to up to 40,000 tpd from the contracted 10,000 tpd, which would increase annual production to up to 30,000 tonnes
Slide 13: Copper Production Profile
Copper Production Profile 35,000 30,000 30,000 54% (contained metal) Tonnes per year 25,000 22% 19,500 20,000 16,000 45% 15,000 11,000 10,000 % 172 5,000 0 2003F Base Case 2004F Phase 1 2005F Phase 2 Potential 40,000 tpd Projected Projected Colihues Projected 12
Slide 14: Amerigo Business Strategy
Amerigo Business Strategy - Pure Copper Junior Producer - Focus on opportunities that are ‘below the radar’ of Majors - Value driven - not size - Leverage off Chilean industry network 13
Slide 15: Copper Market
Copper Market - Chile is the world’s largest copper mining country, producing 34% of world production and 19% of world refined copper production in 2002. - Codelco is the world’s largest producer of copper at 12.2% of world production. - Net world copper consumption is expected to grow at 3.8% in 20
Slide 16: Industry Cash Cost Comparison
Industry Cash Cost Comparison $0.80 $0.70 MVC $0.60 $0.50 (US$/lb) $0.40 $0.30 $0.20 $0.10 $- i s s ina uas oma urt yeli reen nd rad a i l n l wy toba Kidd m h L s o a G k la b lm e ta lla ya vic C ee h ue a S Cr is An Co Ba Lou Cr Hig lley Q lanca hyas n Va B P Sa Based on 2003 estimates. Source of
Slide 17: Industry Total Cost Comparison
Industry Total Cost Comparison $1.20 Total cost includes depreciation $1.00 and interest expense. $0.80 MVC (US$/lb) $0.60 $0.40 $0.20 $- li d as i yn a i a ns ye hlan Lom as lm elw tamin uas an bal brad ou rt ee k d Ca ig y asa S n ah S to e ic r G ee Kid H lley Ba Phy A ll is u a v Co Cr Q lanc Lo
Slide 18: Capital Cost/Production Comparison
Capital Cost/Production Comparison - Compared to other copper projects, MVC has the lowest capital cost per tonne of annual copper production. - Capital costs include acquisition costs and initial development costs. - Copper production includes copper equivalents. $6,000 $5,400 $5,100 Capital Cost/A
Slide 19: Why Buy Amerigo?
Why Buy Amerigo? - Low capital cost for expansion of production. - Potential for a 150% production increase if Colihues extraction is increased to 40,000 tpd. - Significant accretive value and earnings - with or without further increases in the copper price. - Experienced management with a track rec