Welcome!

News Feed Item

Amerigo Announces 2013 Financial Results

- Revenues of $143.6 million

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/26/14 -- Amerigo Resources Ltd. (TSX: ARG) ("Amerigo" or the "Company") reported today results for the year ended December 31, 2013.

Amerigo's Chairman and CEO, Dr. Klaus Zeitler, stated "We are pleased to announce that 2013 was a positive year financially for Amerigo, with revenues in excess of $143 million and operating cash flow of $19 million. The Company ended the year with more than $13 million in cash and free of long term debt, and is now well positioned to proceed with the Cauquenes expansion project. Negotiations for the formal agreements granting the Company the rights to the Cauquenes tailings deposit and extending its fresh tailings contract from 2021 to 2037 are in their final stages, we anticipate receiving required environmental approvals by the end of the current quarter and the due diligence process in respect of the loan for the majority of the capital cost of the expansion project is well underway. As a result, we continue to expect to break ground on the Cauquenes expansion during Q2. The Company's guidance for 2014 is for production of 45 million pounds of copper and 800,000 pounds of molybdenum, with cash costs projected to be between $2.15 and $2.25 per pound of copper."



Comparative Annual Overview
----------------------------------------------------------------------------
                                       Years ended December 31,
                                     2013       2012     Change
                                                              $          %
----------------------------------------------------------------------------
Copper produced, million pounds      45.7       51.7       (6.0)       (12%)
Copper sold, million pounds          45.4       51.6       (6.2)       (12%)
Molybdenum produced, pounds       809,057  1,057,717   (248,660)       (24%)
Molybdenum sold, pounds           797,444  1,170,703   (373,259)       (32%)
Percentage of copper production
 from old tailings                     40%        47%                   (7%)
Revenue (thousands)               143,592    181,761    (38,169)       (21%)
Cost of sales (1) (thousands)     137,556    182,851    (45,295)       (25%)
El Teniente royalty costs
 (thousands)                       33,815     43,874    (10,059)       (23%)
Gross profit (loss) (thousands)     6,036     (1,090)     7,126        654%
Net profit ( loss) (thousands)        993     (8,192)     9,185        112%
Operating cash flow (thousands)    19,136     12,284      6,852         56%
Cash flow paid for plant
 expansion (thousands) (2)        (13,391)   (23,708)    10,317        (44%)
Cash and cash equivalents
 (thousands)                       13,148      9,250      3,898         42%
Bank debt (thousands)                   -      1,483     (1,483)      (100%)
Average realized copper price
 per pound                           3.32       3.58      (0.26)        (7%)
Cash cost per pound (3)              2.08       2.46      (0.38)       (15%)
Total cost per pound (3)             3.22       3.62      (0.40)       (11%)
----------------------------------------------------------------------------
(1) Includes El Teniente royalty costs
(2) Excluding working capital changes
(3) Cash and total costs are non-GAAP measures, refer to the
Company's MD&A for a reconciliation to cost of sales .

Financial results


--  Revenue was $143.6 million compared to $181.8 million in 2012. Revenues
    decreased 21% due to lower copper and molybdenum sales and lower metal
    prices.
--  Cost of sales was $137.6 million, compared to $182.9 million in 2012, a
    decrease of 25%, driven by lower production and reduced power costs
    mainly as a result of the change in the
    Company's power contract from a variable to a lower fixed rate.
--  Gross profit was $6 million, compared to gross loss of $1.1 million in
    2012.
--  Net profit was $1 million compared to a net loss of $8.2 million in
    2012.

Production


--  The Company produced 45.7 million pounds of copper, 12% lower than the
    51.7 million pounds produced in 2012.
--  Molybdenum production was 809,057 pounds, 24% lower than the 1,057,717
    pounds produced in 2012.
--  Production was adversely affected by a mine slide and pit wall failure
    in the Colihues deposit during April 2013 and by low process plant
    recoveries from both fresh tailings and Colihues.

Revenue


--  Revenue decreased to $143.6 million from $181.8 million in 2012. The
    Company's selling prices fell from $3.58/lb in 2012 to $3.32/lb for
    copper and from $12.64/lb to $10.13/lb for molybdenum, and copper and
    molybdenum sales volume decreased 12% and 32%, respectively, from 2012
    levels.

Costs


--  Cash cost (a non-GAAP measure equal to the aggregate of smelting,
    refining and other charges, production costs net of molybdenum-related
    net benefits, administration and transportation costs, see the Company's
    MD&A) before El Teniente royalty was $2.08/lb, compared to $2.46/lb in
    2012. Cash costs decreased mostly as a result of lower power costs.
--  Total cost (a non-GAAP measure equal to the aggregate of cash cost, El
    Teniente royalty, depreciation and accretion, see the Company's MD&A)
    was $3.22/lb compared to $3.62/lb in 2012, as a result of lower cash
    cost and El Teniente royalties.
--  Power costs in 2013 were $23.8 million ($0.0939/kwh) compared to $50.7
    million ($0.1895/kwh) in 2012, Similar lower power costs are expected at
    least to December 31, 2017, the end of the term of MVC's current power
    contract
--  Total El Teniente royalties were $33.8 million in 2013, compared to
    $43.9 million in 2012, due to lower production and metal prices.

Cash and Financing Activities


--  Cash balance was $13.1 million at December 31, 2013 compared to $9.2
    million at December 31, 2012.

Investments


--  Cash payments for capital expenditures ("Capex") were $13.4 million
    compared to $23.7 million in 2012. Capex payments have been funded from
    operating cash flow and cash at hand.
--  Capex incurred in 2013 totaled $10.4 million (2012: $22.2 million) and
    included project investments in connection with Cauquenes engineering
    and permitting ($3.6 million) and sustaining Capex projects ($6.8
    million).
--  The Company's investments in Candente Copper Corp. and Los Andes Copper
    Ltd. had an aggregate fair value of $3.2 million at December 31, 2013
    (December 31, 2012: $4.1 million).

Outlook


--  In 2014 MVC is expected to produce approximately 45 million pounds of
    copper and 800,000 pounds of molybdenum, not accounting for the
    Company's Cauquenes expansion. In addition, the tolling contract with
    Minera Maricunga is expected to contribute a further 2 million pounds of
    copper. The 2014 production budget anticipates continued low grades in
    Colihues as the area to be mined contains recent DET tailings deposited
    in 2006.
--  Cash cost is projected to be between $2.15/lb and $2.25/lb in 2014.
--  2014 Sustaining Capex at MVC is estimated to be approximately $3.8
    million. Capex for the Cauquenes expansion project is estimated to be
    approximately $140 million (see the
    Company's MD&A).

The information in this news release and the Selected Financial Information contained in the following page should be read in conjunction with the Audited Consolidated Financial Statements and Management's Discussion and Analysis for the years ended December 31, 2013 and 2012, which will be available at the Company's website at www.amerigoresources.com and at www.sedar.com.

Amerigo Resources Ltd. produces copper and molybdenum under a long term partnership with the world's largest copper producer, Codelco, by means of processing fresh and old tailings from the world's largest underground copper mine, El Teniente near Santiago, Chile. Tel: (604) 681-2802; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX

Certain of the information and statements contained herein that are not historical facts, constitute "forward-looking information" within the meaning of the Securities Act (British Columbia), Securities Act (Ontario) and the Securities Act (Alberta) ("Forward-Looking Information"). Forward-Looking Information is often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend"; statements that an event or result is "due" on or "may", "will", "should", "could", or might" occur or be achieved; and, other similar expressions. More specifically, Forward-Looking Information contained herein includes, without limitation, information concerning future tailings production volumes and the Company's copper and molybdenum production, all of which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such Forward-Looking Information; including, without limitation, material factors and assumptions relating to, and risks and uncertainties associated with, the supply of tailings from El Teniente and extraction of tailings from the Colihues tailings impoundment, the achievement and maintenance of planned production rates, the evolving legal and political policies of Chile, the volatility in the Chilean economy, military unrest or terrorist actions, metal price fluctuations, governmental relations, the availability of financing for activities when required and on acceptable terms, the estimation of mineral resources and reserves, current and future environmental and regulatory requirements, the availability and timely receipt of permits, approvals and licenses, industrial or environmental accidents, equipment breakdowns, availability of and competition for future mineral acquisition opportunities, availability and cost of insurance, labour disputes, land claims, the inherent uncertainty of production and cost estimates, currency fluctuations, expectations and beliefs of management and other risks and uncertainties, including those described under Risk Factors in the Company's Annual Information Form and in Management's Discussion and Analysis in the Company's financial statements.

Such Forward-Looking Information is based upon the Company's assumptions regarding global and Chilean economic, political and market conditions and the price of metals, including copper and molybdenum, and future tailings production volumes and the Company's copper and molybdenum production. Among the factors that have a direct bearing on the Company's future results of operations and financial conditions are changes in project parameters as plans continue to be refined, interruptions in the supply of fresh tailings from El Teniente, further delays in the extraction of tailings from the Colihues tailings impoundment, a change in government policies, competition, currency fluctuations and restrictions and technological changes, among other things. Should one or more of any of the aforementioned risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the Forward-Looking Information. Accordingly, readers are advised not to place undue reliance on Forward-Looking Information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise Forward-Looking Information, whether as a result of new information, future events or otherwise.

AMERIGO RESOURCES LTD. SELECTED FINANCIAL INFORMATION

YEARS ENDED DECEMBER 31, 2013 AND 2012

All figures expressed in US Dollars and presented under IFRS


Consolidated Statements of Financial Position
                                                 December 31,  December 31,
                                                         2013          2012
                                                            $             $
                                                ----------------------------
Cash and cash equivalents                              13,148         9,250
Property, plant and equipment                         116,601       138,337
Other assets                                           56,360        56,829
                                                ----------------------------

Total assets                                          186,109       204,416
                                                ----------------------------

Total liabilities                                      64,370        72,218
Shareholders' equity                                  121,739       132,198
                                                ----------------------------

Total liabilities and shareholders' equity            186,109       204,416
                                                ----------------------------

Consolidated Statements of Comprehensive Income
 (Loss)
                                                   Year ended    Year ended
                                                 December 31,  December 31,
                                                         2013          2012
                                                            $             $
                                                ----------------------------
Total revenue, net of smelter and refinery
 charges                                              143,592       181,761
Cost of sales                                        (137,556)     (182,851)
Other expenses                                         (4,236)       (3,751)
Finance expense                                          (626)       (1,056)
Income tax expense                                       (181)       (2,295)
                                                ----------------------------
Profit (loss) for the year                                993        (8,192)
Other comprehensive (loss) income                     (11,504)        7,214
                                                ----------------------------
Comprehensive loss                                    (10,511)         (978)
                                                ----------------------------

EPS (LPS) - Basic and Diluted                            0.01         (0.05)


Consolidated Statements of Cash Flows
                                                 December 31,  December 31,
                                                         2013          2012
                                                            $             $
                                                ----------------------------
Net cash provided by operating activities              19,523        22,726
Net cash used in investing activities                 (13,391)      (23,708)
Net cash (used in) financing activities                (1,497)      (10,193)
                                                ----------------------------
Net cash inflow (outflow)                               4,635       (11,175)
                                                ----------------------------

Contacts:
Amerigo Resources Ltd.
Dr. Klaus Zeitler
Chairman & CEO
(604) 218-7013 or (604) 697-6201

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

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today the Docker Meets Kubernetes – Intro into the Kubernetes World, being held June 9, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Register for 'Docker Meets Kubernetes Workshop' Here! This workshop led by Sebastian Scheele, co-founder of Loodse, introduces participants to Kubernetes (container orchestration). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, participants learn ...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
Unless you don’t use the internet, don’t live in California, or haven’t been paying attention to the recent news… you should be aware that self-driving cars are on their way to becoming a reality. I have seen them – they are real. If you believe in the future reality of self-driving cars, then continue reading on. If you don’t believe in the future possibilities, then I am not sure what to do to convince you other than discuss the very real changes that will roll out with the consumer producti...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., will focus on real world deployments of DDoS mitigation strategies in every layer of the network. He will give an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He will also outline what we have found in our experience managing and running thousands of Linux and Unix managed service platforms and what specifically c...