Earnings per share are US$0.0524 up from EPS of US$0.0237 in Q1-2005
Financing closed in March 2006 strengthens cash position to
US$15.5 million
Purchase of strategic stake in Chariot Resources
Dividend of US$3.6M declared in the quarter
VANCOUVER, May 4 /CNW/ - Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or
the "Company") reported results for the quarter ended March 31, 2006 today.
Significant events are as follows:
- Net earnings after tax for the quarter ended March 31, 2006 were
US$4,606,768, 180% higher than earnings of US$1,644,722 in Q1-2005 due
to stronger revenue from higher copper prices and from molybdenum
sales and revenue pursuant to a tolling contract, both of which were
nil in Q1-2005 and 11% lower than earnings of US$5,208,567 in Q4-2005
due primarily to lower molybdenum sales and lower tolling contract
revenue partly offset by higher copper prices.
- Earnings per share for the quarter ended March 31, 2006 were US$0.0524
non-diluted, compared to earnings per share of US$0.0237 in Q1-2005
and US$0.0604 in Q4-2005.
- Cash flow from operations was US$4,085,418 in Q1-2006 compared to cash
flow from operations of US$1,765,989 in Q1-2005.
- Copper production in Q1-2006 was 6.75 million pounds, compared to
7.49 million pounds produced in Q1-2005 and 7.73 million pounds
produced in Q4-2005. Copper production was lower than expected arising
from a longer than anticipated annual maintenance shutdown at
El Teniente, other plant shutdowns following a small fire and for the
integration of new equipment and lower recoveries from Colihues. For
Q2-2006 a previously announced production shortfall of approximately
500 tonnes of copper and 30,000 pounds of molybdenum is expected
following a temporary plant shutdown.
- Molybdenum production in Q1-2006 was 176,967 pounds, which is below
projected production due to lower molybdenum content in the
El Teniente tailings. In Q4-2005, molybdenum production was
245,950 pounds.
- 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 US$1.39/lb in Q1-2006, compared to cash costs of US$0.91/lb in
Q1-2005 and US$0.67/lb in Q4-2005. The increase in cash costs from
Q1-2005 is derived from lower production, which results in higher per
unit costs, from higher smelter and refinery costs due to the effect
of the copper price participation in these costs, and from higher
production and maintenance costs overall, partly as a result of a
stronger Chilean peso. The increase in cash costs from Q4-2005 results
from reduced molybdenum by-product credits and net tolling benefits.
- Total costs (the aggregate of cash costs, El Teniente royalty,
depreciation and accretion) for the quarter ended March 31, 2006 were
US$1.84/lb compared to US$1.14/lb in Q1-2005 and US$1.11/lb in
Q4-2005. The increase from Q1-2005 is driven by higher cash costs and
higher royalty payments to El Teniente from higher copper prices and
the molybdenum royalty; the increase from Q4-2005 is driven mostly
from cash costs.
- On March 17, 2006 the Company closed a financing for net proceeds of
US$14.6M.
- Capital plant expenditures for the final stages of the mill expansion
project and for equipment for the extraction of tailings from Colihues
was US$6.8M in Q1-2006 and were funded from cash flow from operations.
- Cash balance was US$15.5M at March 31, 2006 after $6.8M of capital
expenditures and a strategic investment in Chariot Resources Ltd. of
US$10.3M.
- Dividend - On February 16, 2006 the Board of Directors of Amerigo
declared a dividend of Cdn 4.5 cents per share payable on April 7,
2006 to shareholders of record as of March 31, 2006.
The information in this news release and the Selected Financial
Information contained in the following page should be read in conjunction with
the Consolidated Financial Statements and Management Discussion and Analysis
for the year ended December 31, 2005, which will be 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
QUARTERS ENDED MARCH 31, 2006 AND MARCH 31, 2005
All figures are in US Dollars
Consolidated Balance Sheets
March 31, December 31,
2006 2005
$ $
------------------------------
Cash and cash equivalents 15,453,290 12,953,516
Mineral property, plant and equipment 59,126,439 52,725,600
Total assets 107,045,851 87,239,450
------------------------------
------------------------------
Total liabilities 27,032,070 23,948,597
Shareholders' equity 80,013,781 63,290,853
------------------------------
Total liabilities and shareholders' equity 107,045,851 87,239,450
------------------------------
------------------------------
Consolidated Statements of
Operations
Qtr ended Qtr ended
March 31, March 31,
2006 2005
$ $
------------------------------
Total revenue, net of smelter and
refinery charges 17,037,743 8,398,280
Cost of sales 10,827,314 5,897,027
Other expenses 852,337 788,838
Non-operating items (75,770) (287,702)
Income tax expense 699,514 243,176
Minority Interest 127,580 112,219
------------------------------
Net earnings 4,606,768 1,644,722
------------------------------
------------------------------
EPS - Basic 0.0524 0.0237
EPS - Diluted 0.0515 0.0186
Consolidated Statements of Cash Flows
Qtr ended Qtr ended
March 31, March 31,
2006 2005
$ $
------------------------------
Net cash provided by operating activities 4,085,418 1,765,989
Net cash used in investing activities (17,105,095) (4,517,658)
Net cash provided by financing activities 15,595,929 3,368,939
>>
