Amerigo Resources Ltd · TSX:ARG
Amerigo Resources — Investor Presentation (February 2024)
19 slides from Amerigo Resources's investor presentation, February 2024
Slide 1: The Copper Factory
F EBRUARY 2 0 2 4 The Copper Factory Returning capital through sustainable and 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: Corporate Structure
Corporate Structure CAPITALIZATION SHAREHOLDERS Shares outstanding1 164.8 M Retail Investors 13% Management & Options1 (average exercise price Cdn$1.26) 10.8 M Board 21% Share price1 Cdn$1.29 Market cap1 $157.4 M Aegis Financial Corp. Other Institutional Yield1 9.3% 13% Investors 53% Capital Returne
Slide 5: Value Proposition
Value Proposition WE R EC OVER C OPPER IN A D IR E C T LE V E R A GE TO C OP P E R P R IC E S “C OPPER FA C TOR Y” Simple and sustainable business model; predictable Full exposure to rising copper prices without traditional operations and cash flow mining risk, minimal overhead and low CAPEX A D D I
Slide 6: What we do
What we do %% We capture lost value through our operational excellence wv We produce copper from mining waste without traditional mining risk x We replace the world’s need for a 30,000 TPA copper mine
Slide 7: How we do it
How we do it We receive waste We process the We get market We return profits streams from one waste streams to prices for the to shareholders of Chile’s largest recover copper recovered copper copper mines and molybdenum and molybdenum 7
Slide 8: Amerigo's Multi-year Capital Allocation Strategy: A Long Term View
Amerigo's Multi-year Capital Allocation Strategy: A Long Term View Variances are Expected and Can Be Absorbed Normalized assumptions Variance against LT assumptions 2022 2023 2024 2025 Q1 Q2 Q3 Q4 Major assumptions MVC production stable > 60 M lbs per year 3 years of outperformance, proven operation
Slide 9: Shareholder Friendly Capital Return Strategy
Shareholder Friendly Capital Return Strategy Quarterly dividends As we do not require (safe, predictable, growth capital, we can paid each quarter) return capital to shareholders Performance dividends (flexible in all aspects) Share buybacks (Normal Course Issuer Bids, Substantial Bids) 9
Slide 10: Foundations of the Capital Return Strategy
Foundations of the Capital Return Strategy 10
Slide 11: Pure Copper Play – High Leverage to Copper Prices
Pure Copper Play – High Leverage to Copper Prices Assumptions for 2024 Production Guidance (62.4 M lbs copper production) 1 Copper price ($/lb) 3.60 3.90 4.10 4.30 4.50 4.80 EBITDA2 ($M) 34.6 43.8 49.6 55.1 60.8 68.8 11 FCFE2 ($M) 3.3 10.0 14.2 18.2 22.3 28.2 1 Excludes the effect of settlement adju
Slide 12: We have Inexhaustible Material to Process
We have Inexhaustible Material to Process Amerigo processes the daily waste material from the world’s largest underground fii) copper mine — El Teniente > EI Teniente’s = EI Teniente current life of began operating mine is projected in 1905 to run to 2082 Admerigo Long-term strategic agreement to co
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: Appendices
Appendices
Slide 15: Water Supply – A Managed and Controlled Risk
Water Supply – A Managed and Controlled Risk Chile faced drought conditions for 10 years until mid-2023 Amerigo took steps to mitigate water supply risk and ensure having water reserves to operate for at least 18 months without curtailing operations during the drought Multiple sources of water: wate
Slide 16: El Teniente Royalties
El Teniente Royalties ($/lb) Sliding scale tied to copper prices Cu price Royalty $ 3.00 $ 0.72 Cu price Royalty Royalty ($/lb) factor ($/lb) $ 3.20 $ 0.80 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 17: Moly by-product credit
Moly by-product credit ($/lb) MVC produces molybdenum as a by- Moly price Credit to Cash Cost product $ 14.00 $ (0.22) When talking about cash cost (a non- $ 16.00 $ (0.25) GAAP measure) moly is considered a $ 18.00 $ (0.29) “credit” to cash cost $ 20.00 $ (0.32) $ 22.00 $ (0.35) At the right
Slide 18: 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 19: Directors
Directors Dr. Klaus Zeitler Robert Gayton George Ireland Alberto Salas Executive Chairman & Director Lead Independent Director Director Director Dr. Zeitler founded Amerigo in 2003. He Dr. Gayton, FCDA (FCA) is a Chartered George Ireland has almost 40 years of Alberto Salas is a mining entrepreneur,
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