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June 14, 2011 at 09:00 AM EDT
Amerigo Announces Q1-2011 Financial Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/14/11 -- Amerigo Resources Ltd. (TSX: ARG) -


--  Revenues of $45.5 million, 53% higher than Q1-2010

--  Quarterly Net Profits of $11.7 million or $0.07 per share

--  Consolidated cash of $37.2 million

Amerigo Resources Ltd. ("Amerigo" or the "Company") reported today results for the quarter ended March 31, 2011.

Dr. Klaus Zeitler, Amerigo's President and CEO, stated, "We are pleased to report that Q1-2011 was an excellent start to the year, as production and financial results continue to be strong. As previously reported, copper and molybdenum production were at the highest levels of any first quarter in Amerigo's history and, despite the fact power costs remain high, the Company generated cash-adjusted operating profit of $9.1 million compared to $5.2 million in Q1-2010. Although June production has been interrupted since last week due to strike activity by workers for El Teniente subcontractors, the outlook remains positive going forward."

Due to strong first quarter production levels, gross profit and operating profits were substantially higher than in Q1-2010. The Company also benefitted from the sale of a portion of its financial investments to record its highest quarterly profit in recent years. The Company:


--  Set new records for first quarter copper and molybdenum production. MVC
    produced 5,051 tonnes of copper, 30% higher than the 3,896 tonnes
    produced in Q1-2010. Copper production from the processing of old
    tailings increased from 1,476 tonnes in Q1-2010 to 2,055 tonnes in Q1-
    2011. Molybdenum production at 212,125 pounds was 20% higher than the
    previous first quarter record of 176,967 pounds produced in Q1-2006.

--  Posted quarterly revenue of $45,515,500, compared to $29,656,765 in Q1-
    2010, a substantial increase due to higher production and stronger
    copper and molybdenum prices.

--  Generated quarterly gross profit of $6,122,073, compared to $3,281,553
    in Q1-2010, and operating profit of $5,247,040, compared to $2,222,207
    in Q1-2010.

--  Posted a quarterly profit after tax of $11,654,286, compared to
    $1,500,292 in Q1-2010.

--  Sold 5,000,000 shares of Candente Copper Corp. ("Candente Copper"),
    resulting in a gain on sale of available-for-sale financial assets of
    $9,750,931, recognized in earnings. As a result, the Company's profit
    before tax for the period increased to $14,809,453, compared to
    $1,831,619 in Q1-2010. The Company continues to hold 5,788,280 shares in
    Candente Copper.

--  Generated quarterly operating cash flow of $8,484,095, compared to
    $3,823,849 in Q1-2010.

--  Held consolidated cash of $37,175,251 and working capital of $35,760,795
    as of March 31, 2011.

--  Made quarterly principal repayments of $3,824,637 on loans outstanding,
    including $1,887,155 to Enami, fully repaying that loan and $1,937,482
    to Chilean banks. Bank debt was $10,701,547 as of March 31, 2011.

--  Paid a semi-annual dividend of Cdn$0.02 per share on May 5, 2011 to
    shareholders of record as of April 22, 2011.

--  Subsequent to quarter end, executed an agreement with El Teniente for
    the treatment of tailings with high oxide content and completed the
    construction of a pilot plant to produce copper from highly oxidized
    tailings at a total cost of approximately $7.6M and a cost to MVC of
    approximately $3.8M.

Financial results

--  Quarterly gross profit was $6,122,073 and profit after tax was
    $11,654,286, compared to gross profit of $3,281,553 and profit after tax
    of $1,500,292 in Q1-2010.

--  Revenue was $45,515,500 compared to $29,656,765 in Q1-2010, due to
    higher production and stronger copper and molybdenum prices. Cost of
    sales was $39,393,427, compared to $26,375,212 in Q1-2010, an increase
    driven by higher power and royalty costs. Royalty costs are based on
    production levels and monthly average copper prices.

Production

--  The Company produced 11.13 million pounds of copper, 30% higher than the
    8.59 million pounds produced in Q1-2010.

--  Molybdenum production was 212,125 pounds, 48% higher than the 143,371
    pounds produced in Q1-2010, mainly as a result of increased processing
    of old tailings and improved recovery rates.

Revenue

--  Revenue increased to $45,515,500 compared to $29,656,765 in Q1-2010 due
    to higher average copper and molybdenum prices and higher production.
    The Company's copper selling price before smelter, refinery and other
    charges was $4.23/lb compared to $3.20/lb in Q1-2010, and the Company's
    molybdenum selling price was $17.21/lb compared to $16.16/lb in Q1-2010.
    Copper sales volume increased 28% and molybdenum sales volume was 35%
    higher than in Q1-2010.

Costs

--  Cash cost (the aggregate of smelter, refinery and other charges,
    production costs net of molybdenum-related net benefits, administration
    and transportation costs) before El Teniente royalty increased to
    $2.33/lb from $1.92/lb in Q1-2010, mainly the result of high power grid
    costs due to an ongoing drought in Chile, and limited operation of the
    Company's power generators in the period.

--  Total cost (the aggregate of cash cost, El Teniente royalty,
    depreciation and accretion) was $3.58/lb compared to $2.97/lb in Q1-
    2010. The increase in total cost resulted from higher cash costs and
    higher El Teniente royalty charges due to stronger copper and molybdenum
    prices.

--  Power costs were $12,215,928 ($0.1928/kwh) compared to $8,040,576
    ($0.1479/kwh) in Q1-2010. The increase in power costs was mostly the
    result of higher power grid costs due to an ongoing drought in Chile,
    mitigated by a contract price ceiling with MVC's energy provider that
    was lower than actual current marginal energy costs in the quarter, and
    by the contribution from the operation of one of the Company's power
    generators. Power costs were $1.04/lb in Q1-2011, compared to $0.94/lb
    in Q1-2010.

--  Another factor affecting cash and total costs was a reduction of
    $0.15/lb in molybdenum by-product credits in Q1-2011. In Q1-2010, by-
    product credits were substantially higher due to positive molybdenum
    pricing adjustments to prior quarters' sales.

Cash and Financing Activities

--  Cash balance was $37,175,251 at March 31, 2011 compared to $35,044,797
    at December 31, 2010.

Investments

--  Payments for capital expenditures were $3,357,557, compared to
    $2,953,714 in Q1-2010. Capital expenditures incurred in Q1-2011 totaled
    $5,148,616 (Q1-2010: $2,096,676).

--  The Company's investments in Candente Copper Corp. ("Candente Copper)",
    Candente Gold Corp. ("Candente Gold") and Los Andes Copper Ltd. ("Los
    Andes") had aggregate fair values of $15,644,233 at March 31, 2011
    (December 31, 2010: $25,583,511), after the sale of 5,000,000 Candente
    Copper shares in Q1-2011. The Company received $10,405,571 from the sale
    of Candente Copper shares, which resulted in a gain of $9,750,931
    recognized in quarterly profit.

Outlook

--  Production in fiscal 2011 is expected to be about 50 million pounds of
    copper and approximately one million pounds of molybdenum. Power costs
    have continued to be high during Q2-2011. Power costs in the second half
    of 2011 will depend on the normalization of weather conditions.

We note that the Company's financial statements are reported under International Financial Reporting Standards ("IFRS") for the first time this quarter. The effects of the Company's conversion from Canadian Generally Accepted Accounting Principles ("Canadian GAAP") to IFRS have been identified in Note 19 of the Company's March 31, 2011 unaudited condensed consolidated interim financial statements.

Reference is made in this news release to various measures such as cash-adjusted operating profit (operating profit before the effect of non-cash items such as depreciation, amortization and share-based compensation expense), and cash cost and total cost (both of which do not have a standardized meaning but are widely used in the mining industry as performance indicators).

The information in this news release and the Selected Financial Information contained in the following page should be read in conjunction with the Unaudited Condensed Consolidated Financial Statements and Management Discussion and Analysis for the quarter ended March 31, 2011 and the Audited Consolidated Financial Statements and Management Discussion and Analysis for the year ended December 31, 2010, 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.

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 LTD.
SELECTED FINANCIAL INFORMATION

QUARTERS ENDED MARCH 31, 2011 AND 2010
All figures expressed in US Dollars and presented under IFRS


Consolidated Statements of Financial Position
                                                    March 31,   December 31,
                                                        2011           2010
                                                           $              $
                                             ------------------------------
Cash and cash equivalents                         37,175,251     35,044,797
Mineral property, plant and equipment            138,895,584    140,673,643
Other assets                                      61,511,314     58,654,614
                                             ------------------------------

Total assets                                     237,582,149    234,673,054
                                             ------------------------------
                                             ------------------------------

Total liabilities                                 75,068,869     72,664,206
Shareholders' equity                             162,513,280    162,008,848
                                             ------------------------------

Total liabilities and shareholders' equity       237,582,149    234,673,054
                                             ------------------------------
                                             ------------------------------


Consolidated Statements of Comprehensive Income
                                               Quarter ended  Quarter ended
                                                    March 31,      March 31,
                                                        2011           2010
                                                           $              $
                                             ------------------------------
Total revenue, net of smelter and refinery
 charges                                          45,515,500     29,656,765
Cost of sales                                    (39,393,427)   (26,375,212)
Other expenses                                      (875,033)    (1,059,346)
Non-operating gains( losses), net                  9,562,413       (390,588)
Income tax expense                                (3,155,167)      (331,327)
                                             ------------------------------
Profit for the period                             11,654,286      1,500,292
Other comprehensive income (loss)                (11,697,684)    (2,042,568)
                                             ------------------------------
Comprehensive income (loss)                          (43,398)      (542,276)
                                             ------------------------------

EPS- Basic and Diluted                                  0.07           0.01


Consolidated Statements of Cash Flows
                                               Quarter ended  Quarter ended
                                                    March 31,      March 31,
                                                        2011           2010
                                                           $              $
                                             ------------------------------
Net cash provided by (used in) operating
 activities                                         (191,808)       (54,200)
Net cash provided by (used in) investing
 activities                                        7,069,379     (2,953,714)
Net cash provided by (used in) financing
 activities                                       (3,803,043)     9,562,564
                                             ------------------------------
Net cash inflow during the period                  3,074,528      6,554,650
                                             ------------------------------
                                             ------------------------------

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.

Contacts:
Amerigo Resources Ltd.
Dr. Klaus Zeitler
President and CEO
(604) 218-7013

Amerigo Resources Ltd.
(604) 681-2802
(604) 682-2802 (FAX)
www.amerigoresources.com

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