Full fresh tailings flow restored
US$5.3M dividend declared
VANCOUVER, May 2 /CNW/ - Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or the "Company") reported results for the quarter ended March 31, 2007 today. Significant events are as follows:
- Net earnings after tax for the quarter ended March 31, 2007 were
$5,551,282, 21% higher than earnings of $4,606,768 in Q1-2006 due to
a combination of higher copper prices offsetting lower production.
Even with plant shutdowns in connection with final bridge repairs,
Q1-2007 results were an earnings record for the first quarter.
- Earnings per share for the quarter ended March 31, 2007 were 6 cents
fully diluted, compared to fully diluted earnings per share of
5 cents in Q1-2006.
- Cash flow from operating activities was $6,882,868, or 7 cents per
share in Q1-2007, compared to $4,085,418 or 5 cents per share in Q1-
2006.
- Production in Q1-2007 was 6.33 million pounds of copper and
123,448 pounds of molybdenum, a production decrease of 6% in copper
and 30% in molybdenum from Q1-2006 due to plant shutdowns and low
molybdenum content in fresh tailings. Due to the plant shutdowns MVC
operated only 84% of operating days in the quarter.
- Gross copper selling price was $3.03/lb after settlement adjustments,
compared to an LME average price of $2.69/lb during the quarter.
Realized copper price (copper revenue net of smelter and refinery
charges and including settlement adjustments to prior quarter sales
divided by copper pounds sold in the quarter) was $2.43/lb.
- 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 $1.47/lb in Q1-2007, compared to cash costs of $1.39/lb in Q1-
2006. The increase in cash costs was caused by higher power, smelter
and refinery costs, mitigated by the positive effect of strong
molybdenum by-product credits. Power costs increased substantially
due to higher marginal power surcharges in Chile. Smelter and
refinery costs remained at significantly higher 2006 levels as MVC
was still fulfilling its 2006 copper quota in Q1-2007.
- Total costs (the aggregate of cash costs, El Teniente royalty, MVC
stock-based compensation, depreciation and accretion) for the quarter
ended March 31, 2007 were $2.03/lb compared to $1.85/lb in Q1-2006.
The increase in total costs was driven by higher cash costs and
higher royalty payments to El Teniente due to higher copper prices.
- Capital plant additions in Q1-2007 were $1,747,003, for final work on
the industrial water recovery system, civil works and mill
refurbishing. Cash payments for capital expenditures in the quarter
were $5,532,826 funded from operating cash flow.
- Cash balance was $28,743,136 at March 31, 2007 after payments of
$5,532,826 for capital expenditures.
- Dividend - On February 28, 2007 a dividend of $5,286,918 or
Cdn 6.5 cents per share was declared to shareholders of record as of
March 27, 2007. The dividend was paid on April 4, 2007.
The information in this news release and the Selected Financial Information contained in the following page should be read in conjunction with the unaudited Consolidated Financial Statements and Management Discussion and Analysis for the quarter ended March 31, 2007, which will be available at the Company's website at www.amerigoresources.com and at www.sedar.com.
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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, 2007 AND 2006
All figures are in US Dollars
Consolidated Balance Sheets
March 31, December 31,
2007 2006
$ $
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Cash and cash equivalents 28,743,136 26,574,059
Mineral property, plant and equipment 84,673,071 83,414,103
Other assets 26,213,312 24,315,886
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Total assets 139,629,519 134,304,048
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Total liabilities 26,922,067 23,938,019
Shareholders' equity 112,707,452 110,366,029
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Total liabilities and shareholders' equity 139,629,519 134,304,048
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Consolidated Statements of Operations
Quarter ended Quarter ended
March 31, March 31,
2007 2006
$ $
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Total revenue, net of smelter and refinery
charges 18,171,183 17,037,743
Cost of sales 11,584,810 10,880,690
Other expenses 849,250 798,961
Non-operating items (824,362) (75,770)
Income tax expense 895,255 699,514
Minority Interest 114,948 127,580
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Net earnings 5,551,282 4,606,768
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EPS - Basic 0.06 0.05
EPS - Diluted 0.06 0.05
Consolidated Statements of Cash Flows
Quarter ended Quarter ended
March 31, March 31,
2007 2006
$ $
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Net cash provided by operating activities 6,882,868 4,085,418
Net cash used in investing activities (5,532,826) (17,105,095)
Net cash received from financing activities 489,710 15,595,929
Miscellaneous 329,325 (76,478)
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Net cash inflow during the quarter 2,169,077 2,499,774
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