Cash costs fall to US 22 cents per pound from US 60 cents
per pound after by-product credits
Dividend of Cdn 4.5 cents per share declared
Moly production up 48%
-------------------------------------------------------------------------
Significant Events for the Quarter Ended
September 30, 2005
-------------------------------------------------------------------------
VANCOUVER, Nov. 1 /CNW/ - Amerigo Resources Ltd. (TSX:ARG) reported
results today for the nine-month period ended September 30, 2005. Significant
events are as follows:
- Net earnings after tax for the quarter ended September 30, 2005 were
US$6,503,415, compared to earnings of US$4,635,764 in the immediately
preceding quarter. Earnings were higher due to strong molybdenum
by-product credits and higher copper prices. Income tax expense in
Q3-2005 was $2.4M, of which $700,000 is comprised of income tax
provision adjustments for Q1-2005 and Q2-2005 earnings. Without the tax
adjustments, net earnings after tax would have been US$7.2 million.
Quarterly basic earnings per share were US$0.08.
- Earnings for the nine months ended September 30, 2005 were
US$12,783,901, or US$0.17 per share, non-diluted.
- Dividend of Cdn 4.5 cents per share declared, consistent with the
dividend policy announced on August 5, 2005.
- Copper produced in Q3-2005 was 7.59 million pounds, compared to
7.07 million pounds in the preceding quarter, totalling 22.16 million
pounds of copper year to date. Copper production is expected to
increase further in the fourth quarter.
- Molybdenum production in the first full quarter of production was
230,167 pounds, an increase of 48% over the previous quarter. Moly YTD
production was 385,893 pounds.
- Cash costs before El Teniente royalty continued to decrease
significantly to US$0.22/lb in Q3-2005 compared to US$0.60/lb in the
preceding quarter and US$0.73/lb in Q3-2004, primarily due to
molybdenum by-product credits.
- Total costs after royalty, depreciation and accretion were also lower
at US$0.57/lb in Q3-2005 compared to US$0.90/lb in the preceding
quarter and US$0.92/lb in Q3-2004.
- Cash balance was US$12.2M at September 30, 2005 after capital
expenditures of US$8.2M in Q3-2005 for copper plant expansion.
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 September 30, 2005, available at the Company's website
at www.amerigoresources.com and at www.sedar.com
-----------------------------------------
Amerigo Resources Ltd. is a Canadian copper and molybdenum producing
company forecasting 15,000 tonnes of copper production and 600,000 pounds of
molybdenum in 2005 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
THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
----------------------------------------------
All figures are in US Dollars
Consolidated Balance Sheets
Sept. 30, 2005 December 31, 2004
$ $
-----------------------------------
Cash and cash equivalents 12,222,109 8,239,089
Mineral property, plant and equipment 50,873,898 34,479,801
Total assets 77,731,689 48,469,945
-----------------------------------
Total liabilities 18,035,249 11,067,001
Shareholders' equity 59,696,440 37,402,944
Total liabilities and shareholders'
equity 77,731,689 48,469,945
-----------------------------------
Consolidated Statements of Operations
Three months Three months
ended ended
Sept. 30, 2005 Sept. 30, 2004
$ $
-----------------------------------
Copper sales, gross 12,506,851 10,762,727
Net revenue 9,809,460 9,071,903
Cost of sales 1,647,316 5,469,273
Other expenses 288,278 140,034
Non-operating items (1,222,786) (426,184)
Income tax expense 2,418,269 810,800
Minority Interest 174,968 117,329
-----------------------------------
Net earnings 6,503,415 2,960,651
-----------------------------------
-----------------------------------
EPS - Basic 0.0757 0.0463
EPS - Diluted 0.0735 0.0340
Consolidated Statements of Cash Flows
Three months Three months
ended ended
Sept. 30, 2005 Sept. 30, 2004
$ $
-----------------------------------
Net cash provided by operating
activities 7,768,731 3,612,139
Net cash used in investing activities (8,197,486) (3,803,885)
Net cash provided by (used in)
financing activities (2,751,214) 284,021
>>
