Dividend declared of Cdn 4.5 cents per share, total dividends
Cdn 9 cents per share
Cash costs lower at US 60 cents per pound in 2005 after molybdenum
credits
Moly production 26% higher than original estimate with production of
632,000 pounds
High volume extraction equipment at Colihues commissioned in
February 2006
VANCOUVER, Feb. 16 /CNW/ - AMERIGO RESOURCES LTD. (Vancouver, British
Columbia) reported results of the year ended December 31, 2005 today.
Significant events are as follows:
- Net earnings after tax for the year ended December 31, 2005 were
US$17,992,467, 79% higher than restated earnings of US$10,049,614 in
fiscal 2004. Net earnings in 2005 are after year-end adjustments of
US$770,000 and settlement provisions of US$1.7M in Q4 due to lower
year end molybdenum prices. Annual earnings were higher in 2005 due
to higher copper prices and the contribution of molybdenum production
starting in May 2005. Net earnings in 2004 were restated for
adjustments to future income tax assets to accord with Canadian GAAP.
- Earnings per share for the year ended December 31, 2005 were S$0.2287
non diluted, from earnings per share of US$0.1586 non diluted in
fiscal 2004.
- Cash flow from operations was US$21,874,229 in the year ended
December 31, 2005, compared to cash flow from operations of
US$14,029,775 in the year ended December 31, 2005.
- Copper production in fiscal 2005 was 29.88 million pounds, compared
to 31.12 million pounds produced in fiscal 2004. Copper production
did not meet the annual forecast due to low extraction rates from
Colihues, unfavourable ore characteristics from the El Teniente
tailings during the year and the Company's emphasis on maximizing
molybdenum production at prevailing high prices.
- High-volume extraction equipment at Colihues - The first stage of
monitoring equipment for the extraction of Colihues tailings was
commissioned in February 2006 with initial operating results
performing to design expectations. Installation of the second stage
of equipment is expected to be commissioned in March 2006, with
additional stages to be added during the remainder of the year.
- Molybdenum production in fiscal 2005 was 631,843 pounds from eight
months of production, 26% higher than original 2005 projections of
500,000 pounds of moly.
- Cash costs (the aggregate of smelter, refinery and other charges,
production costs net of molybdenum-related net benefits,
administration and transportation costs) before El Teniente royalty
were lower at US$0.60/lb in fiscal 2005, compared to a cash cost of
US$0.69/lb in the preceding fiscal year, despite significantly higher
smelter and refinery charges.
Total costs (the aggregate of cash costs, El Teniente royalty,
depreciation and accretion) for the year ended December 31, 2005 were
US$0.93/lb compared to US$0.88/lb in fiscal 2004 due to higher
royalty payments to El Teniente resulting from higher copper prices.
- Capital plant expenditures for the molybdenum plant and expansion of
the copper processing facility of US$26.7M were undertaken in 2005
and were funded from cash flow from operations.
- Cash balance was US$13M at December 31, 2005 after $26.7M of capital
expenditures and the payment to shareholders of a semi-annual
dividend of $3.2M.
- Strategic investment - Subsequent to December 31, 2005 Amerigo
acquired beneficial ownership of 26,643,000 million common shares of
Chariot Resources Limited ("Chariot") and 11,532,000 share purchase
warrants of Chariot. Each share purchase warrant entitles Amerigo to
acquire an additional common share of Chariot at a price of Cdn$0.35
per share until December 22, 2006. The common shares and warrants
acquired represent approximately 19.7% of Chariot's 193,965,147
issued and outstanding common shares, which amount includes common
shares issuable on the exercise of the warrants. The Company
purchased these securities for investment purposes, as it believes in
the potential of Chariot and its Marcona copper project in southern
Peru.
- Dividend - On August 4, 2005 the Board of Directors of Amerigo
declared a semi-annual dividend of Cdn 4.5 cents that was paid to
shareholders on September 1, 2005. On February 16, 2006 the Board of
Directors of Amerigo declared a final dividend of Cdn 4.5 cents per
share payable on April 7, 2006 to shareholders of record as of
March 31, 2006.
The information herein contained should be read in conjunction with the
Audited Consolidated Financial Statements and Management Discussion and
Analysis for the year ended December 31, 2005, available at the Company's
website at www.amerigoresources.com and at www.sedar.com
----------------------------
Amerigo Resources Ltd. is a Canadian junior company producing copper and
molybdenum from its MVC operations near Santiago, Chile. Tel: (604) 681-2802;
Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX
The Toronto Stock Exchange has not reviewed nor accepted responsibility
for the adequacy or accuracy of the contents of this news release, which has
been prepared by management. Statements contained in this news release that
are not historical facts are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks and uncertainties which could cause actual
results to differ materially from estimated results. Such risks and
uncertainties are detailed in the Company's filings with the TSX and on SEDAR.
Forward-looking statements are based on the beliefs, estimates and opinions of
the Company's management on the date the statements are made. The Company
undertakes no obligation to update these forward-looking statements if
management's beliefs, estimates or opinions, or other factors, should change.
<<
AMERIGO RESOURCES LIMITED
SELECTED FINANCIAL INFORMATION
YEARS ENDED DECEMBER 31, 2005 AND 2004
--------------------------------------
All figures are in US Dollars
Consolidated Balance Sheets
December 31, December 31,
2005 2004
$ $
-------------------------------
Cash and cash equivalents 12,953,516 8,239,089
Mineral property, plant and equipment 52,725,600 26,965,818
Total assets 87,239,450 49,747,412
-------------------------------
-------------------------------
Total liabilities 23,948,597 13,982,633
Shareholders' equity 63,290,853 35,764,779
-------------------------------
Total liabilities and shareholders'
equity 87,239,450 49,747,412
-------------------------------
-------------------------------
Consolidated Statements of Operations
Year ended Year ended
Dec. 31, 2005 Dec. 31, 2004
$ $
-------------------------------
Total revenue, net of smelter and refinery
charges 58,328,082 35,241,609
Cost of sales 36,024,749 20,958,656
Other expenses 2,174,090 1,313,054
Non-operating items (2,873,344) (683,654)
Income tax expense 4,390,854 3,137,107
Minority Interest 619,266 466,832
-------------------------------
Net earnings 17,992,467 10,049,614
-------------------------------
-------------------------------
EPS - Basic 0.2287 0.1586
EPS - Diluted 0.2035 0.1156
Consolidated Statements of Cash Flows
Year ended Year ended
Dec. 31, 2005 Dec. 31, 2004
$ $
-------------------------------
Net cash provided by operating activities 21,874,229 14,029,775
Net cash used in investing activities (26,682,309) (10,646,958)
Net cash provided by financing activities 9,512,174 449,557
>>
