Net Income: $2.8 million for Q3 2024.
EBITDA: $13.3 million for Q3 2024.
Free Cash Flow to Equity: $5.9 million for Q3 2024.
Dividend Payments: $8.5 million paid in Q3 2024.
Cash Position: $25.1 million at the end of Q3 2024.
Copper Production: 16.3 million pounds in Q3 2024, a 46% increase from Q3 2023.
Average Copper Price: $4.22 per pound in Q3 2024.
Gross Copper Revenue: $68.8 million in Q3 2024.
Copper Tolling Revenue: $40.2 million in Q3 2024.
Molybdenum Revenue: $5.2 million in Q3 2024.
Total Revenue: $45.4 million in Q3 2024.
Tolling and Production Costs: $38.1 million in Q3 2024.
Cash Cost: $1.93 per pound in Q3 2024.
Total Cost: $3.54 per pound in Q3 2024.
All-in Sustaining Cost: $3.72 per pound in Q3 2024.
Operating Cash Flow: $8.9 million before changes in non-cash working capital in Q3 2024.
Net Cash Flow: $10.5 million generated in Q3 2024.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Amerigo Resources Ltd (ARREF) reported strong financial results for Q3 2024, with a net income of $2.8 million and EBITDA of $13.3 million.
The company declared its 13th consecutive quarterly dividend, highlighting a consistent return to shareholders.
Copper production increased by 46% compared to Q3 2023, reaching 16.3 million pounds, driven by improved operations at El Teniente.
The average copper price received was $4.22 per pound, contributing to a gross copper revenue of $68.8 million.
Amerigo’s cash cost decreased to $1.93 per pound, below the annual guidance, indicating effective cost management.
The average copper price in Q3 2024 was lower than in Q2 2024, resulting in $3.3 million in negative price settlement adjustments.
Amerigo’s financial performance is highly sensitive to copper prices, which can fluctuate significantly.
The company experienced a working capital deficiency of $4.9 million as of September 30, 2024.
Despite strong production, the company faces external risks such as weather impacts and dependency on El Teniente’s throughput and grades.
A new federal tax in Canada on share buybacks could impact the company’s capital return strategy.
Q: What are the major factors that can cause production to fluctuate in a quarter? A: The major factors include the throughput and grades from El Teniente, which are significant drivers outside of our control. We have full control over Cauquenes, which is the processing of old tailings, and we layer that on top of what we receive from El Teniente. El Teniente operations performed well in Q3 and are expected to continue doing so, aligning with Codelco’s production recovery guidance. – Aurora Davidson, President and CEO
