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
You are moving to the Cloud. The question is not if, it’s when. Now that your competitors are in the cloud and lapping you, your “when” better hurry up and get here. But saying and doing are two different things. In his session at @DevOpsSummit at 18th Cloud Expo, Robert Reeves, CTO of Datical, explained how DevOps can be your onramp to the cloud. By adopting simple, platform independent DevOps strategies, you can accelerate your move to the cloud. Spoiler Alert: He also makes sure you don’t...
President Obama recently announced the launch of a new national awareness campaign to "encourage more Americans to move beyond passwords – adding an extra layer of security like a fingerprint or codes sent to your cellphone." The shift from single passwords to multi-factor authentication couldn’t be timelier or more strategic. This session will focus on why passwords alone are no longer effective, and why the time to act is now. In his session at 19th Cloud Expo, Chris Webber, security strateg...
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, shared the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
"We are a custom software development, engineering firm. We specialize in cloud applications from helping customers that have on-premise applications migrating to the cloud, to helping customers design brand new apps in the cloud. And we specialize in mobile apps," explained Peter Di Stefano, Vice President of Marketing at Impiger Technologies, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
The idea of comparing data in motion (at the sensor level) to data at rest (in a Big Data server warehouse) with predictive analytics in the cloud is very appealing to the industrial IoT sector. The problem Big Data vendors have, however, is access to that data in motion at the sensor location. In his session at @ThingsExpo, Scott Allen, CMO of FreeWave, discussed how as IoT is increasingly adopted by industrial markets, there is going to be an increased demand for sensor data from the outermos...
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Between 2005 and 2020, data volumes will grow by a factor of 300 – enough data to stack CDs from the earth to the moon 162 times. This has come to be known as the ‘big data’ phenomenon. Unfortunately, traditional approaches to handling, storing and analyzing data aren’t adequate at this scale: they’re too costly, slow and physically cumbersome to keep up. Fortunately, in response a new breed of technology has emerged that is cheaper, faster and more scalable. Yet, in meeting these new needs they...
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.