Amerigo Resources Ltd · TSX:ARG
Amerigo Resources — Investor Presentation (April 2021)
17 slides from Amerigo Resources's investor presentation, April 2021
Slide 1: Profitable Long-Term Copper Producer in Chile
April 2021 Profitable Long-Term Copper Producer in Chile Transforming environmental liabilities into an economic asset TSX: ARG | OTCQX: ARREF
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 included herein, other than statements of historical fact, including, without limitation, statements regarding potential mineralization and
Slide 3: Who We Are
Who We Are Not a mine, but a Historical copper Strategic Long-term growth “Copper Factory" producer Partnership Strategy with a focus with Codelco on shareholder value (world’s largest copper producer) 3
Slide 4: The Copper Factory – Minera Valle Central (MVC)
The Copper Factory – Minera Valle Central (MVC) Purchased by Amerigo in 2003 when annual copper production was 26MM lbs Production has increased dramatically to 55MM lbs in 2020 with guidance of 60MM+ lbs in 2021 MVC produces copper (with a molybdenum by-product) from both fresh and historic t
Slide 5: Codelco Partnership – Mutually Beneficial
Codelco is the world’s largest and strongest copper partner with 11% of global 01 production and 10% of known reserves MVC has contractual rights to El 02 Teniente’s tailings Codelco Partnership Codelco receives a royalty based 03 – Mutually on production + copper price Beneficial 04 MVC is strategi
Slide 6: Our Business Model
Our Business Model Our business model has We maximize production by We manage costs to been built on managing a mix of fresh and maximize margin with a low USD$300MM of historic tailings sustaining CAPEX of investment since 2003 ~US$6MM/year 6
Slide 7: Copper Pure Play – Highly Leveraged to Copper Prices
Copper Pure Play – Highly Leveraged to Copper Prices Assuming 60+ M Lbs annual copper production Copper price (US$/lb) 3.00 3.40 3.80 4.00 4.40 4.80 EBITDA (US$ M) 37 48 57 61 70 79 7
Slide 8: Growth Strategy: Rinse and Repeat
Growth Strategy: Rinse and Repeat MVC’s business model addresses a major environmental issue within the mining industry. Our business model has been proven and tested over time and is evaluating different expansion opportunities Near Term Growth Medium Term Growth Long Term Growth El Teniente’s unta
Slide 9: Focused on ESG
Focused on ESG Our operations are driven by minimizing Copper is a pillar of We reduce tailings environmental the emerging “Green footprints & impact, a true Economy” environmental risk participant of the circular economy 9
Slide 10: Copper: Entering a Bullish Cycle
Copper: Entering a Bullish Cycle Green metals (copper at the top of the list) will be critical to build a greener global economy Sustainable energy sources (solar, wind, geothermal) will support a surge in copper demand Green demand in this decade is expected to match and then surpass the dema
Slide 11: Capitalization Table
Capitalization Table CAPITALIZATION % DESCRIPTION (As of April 25, 2021) Luzich Partners LLC 24,611,500 13.54% Geologic Resource Partners & George Ireland 23,778,514 13.08% Ross Beatty 22,733,792 12.51% Aegis Financial Corp. 18,765,831 10.32% Management & Directors 9,246,223 5.09% Held by insiders 9
Slide 12: Why Invest in Amerigo
Why Invest in Amerigo Copper has entered a new, multi-year bullish cycle Amerigo is a pure play copper producer that is highly levered to the copper price Low CAPEX with predictable EBITDA & cash flow Strategically positioned with the world’s largest copper producer in the world’s premier copper pro
Slide 13: Appendices
Appendices TSX: ARG | OTCQX: ARREF
Slide 14: DET Royalties
DET Royalties ($/lb) Sliding scale tied to copper prices Cu price Royalty $ 3.00 $ 0.68 Cu price Royalty Royalty ($/lb) factor ($/lb) $ 3.20 $ 0.76 Fresh tailings $ 1.95 13.5% $ 0.26 $ 3.40 $ 0.85 $ 4.80 28.4% $ 1.36 $ 3.50 $ 0.90 Cauquenes $ 1.95 16% $ 0.31 $ 3.60 $ 0.94 $ 5.50 39% $ 2.15 $ 3.80
Slide 15: Moly by-product credit
Moly by-product credit ($/lb) MVC produces molybdenum as a by- Moly price Credit to Cash Cost product (2021 guidance: 1,500,000 lbs) $ 9.00 $ (0.18) When talking about cash cost (a non- $ 9.50 $ (0.19) GAAP measure) moly is considered a $ 10.00 $ (0.20) “credit” to cash cost $ 10.50 $ (0.21) $ 1
Slide 16: Management
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. Cáceres is
Slide 17: Directors
Directors Dr. Klaus Zeitler Robert Gayton Sidney Robinson George Ireland Executive Chairman & Director Lead Independent Director Director Director Dr. Zeitler founded Amerigo in 2003. He Dr. Gayton, FCDA (FCA) is a Chartered Mr. Robinson was a senior partner at George Ireland has almost 40 years of
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