<<
Earnings per share are US$0.13 up from EPS of US$0.06 in Q2-2005
Cash flow from operations of US$10.2M in Q2-2006
Dividend declared of CDN 4.5 cents per share
Increased strategic stake in Chariot Resources
>>
VANCOUVER, Aug. 2 /CNW/ - Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or
the "Company") reported results for the quarter ended June 30, 2006 today.
Significant events are as follows:
<<
- Net earnings after tax were a record US$12,444,608 in Q2-2006, 168%
higher than earnings of US$4,635,764 in Q2-2005, mainly due to higher
copper prices.
- Earnings per share were US$0.1322 non-diluted in Q2-2006, compared to
earnings per share of US$0.0607 in Q2-2005.
- Cash flow from operations was US$10,208,246 or US$0.1084 per share in
Q2-2006, compared to cash flow from operations of US$2,202,756 or
US$0.0288 in Q2-2005. Actual cash flow was lower than earnings
substantially due to an increase in accounts receivable from metal
sales.
- Production was 6.57 million pounds of copper and 203,548 pounds of
molybdenum in Q2-2006, a decrease of 7% in copper production due to a
temporary plant shutdown from El Teniente. Moly production increased
31% from Q2-2005.
- Gross copper selling price was $4.15/lb after settlement adjustments,
compared to an LME average of $3.27/lb during the quarter. Realized
copper price was $3.52/lb, also after settlement adjustments.
- 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$0.90/lb in
Q2-2006, compared to cash costs of US$0.59/lb in Q2-2005. The increase
in cash costs was caused by lower copper production, higher smelter and
refinery costs due to the effect of copper price participation to the
smelter and higher production and maintenance costs overall from a
stronger Chilean peso.
- Total costs (the aggregate of cash costs, El Teniente royalty,
depreciation and accretion) were US$1.50/lb in Q2-2006 compared to
US$0.89/lb in Q2-2005. The increase in total costs was driven by higher
cash costs and higher royalty payments to El Teniente, mainly due to
higher copper prices.
- Capital plant expenditures for the construction of two thickeners and
an industrial water recovery system required to meet upcoming Chilean
environmental regulations and for a pipeline system to allow Colihues
tailings to be processed at MVC and then recycled back into Colihues,
were US$5,818,880 in Q2-2006, funded substantially from operating cash
flow.
- Cash balance was US$18,964,216 at June 30, 2006 after US$5.8M of
capital expenditures and an increase in Amerigo's strategic investment
in Chariot Resources Limited of US$1,018,974, taking Amerigo's interest
in Chariot to approximately 17% of Chariot's issued and outstanding
share capital.
- Dividend - In accordance with Amerigo's stated policy, on July 31, 2006
the Board of Directors of Amerigo declared a semi-annual dividend of
CDN 4.5 cents per share, payable on September 1, 2006 to shareholders
of record as of August 18, 2006. A dividend of CDN 4.5 cents per share
was paid by Amerigo on April 7, 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 quarter ended June 30, 2006, 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 JUNE 30, 2006 and JUNE 30, 2005
All figures are in US Dollars
Consolidated Balance Sheets
June 30, December 31,
2006 2005
$ $
---------------------------
Cash and cash equivalents 18,964,216 12,953,516
Mineral property, plant and equipment 64,515,887 52,725,600
Total assets 121,312,857 87,239,450
---------------------------
---------------------------
Total liabilities 28,826,013 23,948,597
Shareholders' equity 92,486,844 63,290,853
---------------------------
Total liabilities and shareholders' equity 121,312,857 87,239,450
---------------------------
---------------------------
Consolidated Statements of Operations
Qtr ended Qtr ended
June 30, June 30,
2006 2005
$ $
---------------------------
Total revenue, net of smelter and refinery
charges 27,482,949 12,768,609
Cost of sales 12,569,363 7,778,173
Other expenses 709,873 650,498
Non-operating items (704,893) (878,155)
Income tax expense 2,343,065 421,514
Minority Interest 120,933 160,815
---------------------------
Net earnings 12,444,608 4,635,764
---------------------------
---------------------------
EPS - Basic 0.1322 0.0607
EPS - Diluted 0.1285 0.0525
Consolidated Statements of Cash Flows
Qtr ended Qtr ended
June 30, June 30,
2006 2005
$ $
---------------------------
Net cash provided by operating activities 10,208,246 2,202,756
Net cash used in investing activities (6,837,854) (4,643,315)
Net cash provided by financing activities (113,449) 8,778,358
>>
