Amerigo Resources ( (ARREF) ) has released its Q1 earnings. Here is a breakdown of the information Amerigo Resources presented to its investors.
Protect Your Portfolio Against Market Uncertainty
- Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter.
- Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox.
Amerigo Resources Ltd., a copper producer in partnership with Codelco, operates in the mining sector, focusing on processing tailings from the El Teniente mine in Chile. In its Q1-2025 earnings report, Amerigo Resources announced a net income of $3.3 million, with an EBITDA of $15.2 million and a free cash flow to equity of $4.8 million. The company declared a quarterly dividend of Cdn$0.03 per share, marking its fifteenth consecutive dividend payout.
Key financial metrics for the quarter included an operating cash flow of $11.6 million, despite a decrease in copper production due to the annual maintenance shutdown. The average copper price was $4.42 per pound, higher than the previous year, contributing to the company’s efforts to reduce debt. Amerigo returned $4.6 million to shareholders through dividends and share buybacks, reflecting its active Capital Return Strategy.
The company’s financial performance was impacted by a 17.5% decrease in copper production compared to the previous year, primarily due to the timing of the maintenance shutdown. Despite this, the company maintained strong cash flow and continued its focus on cost control and production guidance. The cash cost per pound increased to $2.22 from $1.96 in the previous year, influenced by lower production levels.
Looking ahead, Amerigo Resources remains committed to its production targets and cost management strategies. The management anticipates continued volatility in copper prices but remains optimistic about achieving its annual guidance and further reducing debt by year-end.