Want to see TSE:ARG full AI Analyst Report?
Top Page
Amerigo Resources
(TSX:ARG)
Select Model
Select Model
Rating:76Outperform
Price Target:
C$9.00
▲(7.14% Upside)
Action:Reiterated
Date:10/29/26
The score is driven primarily by strong current financial performance (high margins, strong free cash flow, and a debt-free balance sheet) and a very positive earnings update with guidance on track and costs below plan. Valuation is also supportive given a reasonable P/E and very high dividend yield. Offsetting these strengths, technical indicators show soft near-term momentum and the business remains highly sensitive to commodity-price and cost/royalty variability.
Positive Factors
Debt-Free Balance Sheet and Cash Generation
Strong operating and free cash flow, combined with effectively zero debt, gives Amerigo financial flexibility to sustain its facilities, fund selective optimization, and return capital without relying heavily on external financing. Healthy cash conversion also supports resilience through operating or commodity cycles.
Negative Factors
Commodity-Price Cyclicality
Amerigo’s revenue and earnings remain exposed to copper and molybdenum prices because realized metal pricing directly affects concentrate revenue. The historical revenue swings show that strong operating performance may not prevent future cash flow and profitability from fluctuating with commodity conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-Free Balance Sheet and Cash Generation
Strong operating and free cash flow, combined with effectively zero debt, gives Amerigo financial flexibility to sustain its facilities, fund selective optimization, and return capital without relying heavily on external financing. Healthy cash conversion also supports resilience through operating or commodity cycles.
Read all positive factors
Amerigo Resources (ARG) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.27B
Dividend Yield11.03%
Average Volume (3M)801.92K
Price to Earnings (P/E)16.1
Beta (1Y)2.07
Revenue Growth54.30%
EPS Growth272.06%
CountryCA
Employees299
SectorBasic Materials
Sector Strength58
IndustryCopper
Share Statistics
EPS (TTM)0.45
Shares Outstanding161,441,770
10 Day Avg. Volume941,626
30 Day Avg. Volume801,918
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)4.68
Price to Sales (P/S)2.33
P/FCF Ratio16.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$10.00Price Target Upside19.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.25
Revenue Forecast (FY)C$278.30M
Amerigo Resources Business Overview & Revenue Model
Company Description
Amerigo Resources Ltd. specializes in the production and sale of copper and molybdenum concentrates. Operating through its subsidiary, Minera Valle Central S.A., the company sources these materials from Codelco's El Teniente underground mine in Ch...
How the Company Makes Money
Amerigo makes money primarily by selling copper concentrates and molybdenum concentrates produced at MVC. MVC processes fresh tailings (and, historically, reprocesses older tailings) from Codelco’s El Teniente mine to recover additional copper and...
Amerigo Resources Earnings Call Summary
Earnings Call Date:Oct 28, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 24, 2027
Earnings Call Sentiment Positive
The call was strongly positive, with record or sharply improved revenue, net income, cash flow, production efficiency, shareholder returns, and share price performance. Operational reliability, low cash costs, annual guidance tracking, a debt-free balance sheet, and safety and environmental achievements significantly outweighed the limited challenges from heavy rainfall, higher royalty-related total costs, and ongoing DET discussions.Positive Updates
Strong Q3 Copper Production and Operational Reliability
MVC produced 17 million pounds of copper in Q3, up 16% from 14.6 million pounds in Q3 2025. Plant availability was 98.1%, with no reportable safety incidents during the quarter. Year-to-date production reached 48.2 million pounds, representing 76% of annual guidance and ahead of the company's internal target.
Negative Updates
Heavy Rain Reduced Historic Tailings Processing Days
Heavy rainfall, described as potentially the wettest year in recent Chilean history due to the El Niño weather phenomenon, reduced the number of days available to process historic tailings at Cauquenes. Management said it would not take safety risks during heavy rain and that more production days were lost than budgeted, although there was no reported impact to production guidance and year-to-date production remained ahead of internal targets.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Q3 Copper Production and Operational Reliability
MVC produced 17 million pounds of copper in Q3, up 16% from 14.6 million pounds in Q3 2025. Plant availability was 98.1%, with no reportable safety incidents during the quarter. Year-to-date production reached 48.2 million pounds, representing 76% of annual guidance and ahead of the company's internal target.
Read all positive updates
Company Guidance
Amerigo said MVC remains on track to achieve annual production guidance of 63.8 million pounds of copper and 1.5 million pounds of molybdenum; through September 30, 2026, production was 48.2 million pounds of copper, representing 76% of annual guidance and ahead of the internal target, while molybdenum production was 1.15 million pounds and ahead of the pace required to achieve the annual guidance. Year-to-date normalized cash cost was $1.65 per pound, 17% below annual guidance of $1.98 per pound, and year-to-date capital expenditures totaled $12.8 million. At September 30, the provisional copper price used by MVC was $6.55 per pound, and a 10% movement from that level would positively or negatively affect Q3 2026 revenue by approximately $11.2 million relative to Q3 production.Amerigo Resources Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
76
Positive
Cash Flow
79
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 342.35M | 231.30M | 294.99M | 157.46M | 168.05M | 199.55M |
| Gross Profit | 133.35M | 68.27M | 45.41M | 13.86M | 27.92M | 71.68M |
| EBITDA | 151.12M | 85.29M | 57.61M | 29.98M | 45.59M | 84.16M |
| Net Income | 73.62M | 36.05M | 19.24M | 3.38M | 4.37M | 39.82M |
Balance Sheet | ||||||
| Total Assets | 219.81M | 217.34M | 205.47M | 199.56M | 231.18M | 269.35M |
| Cash, Cash Equivalents and Short-Term Investments | 49.75M | 40.24M | 35.86M | 17.15M | 38.96M | 59.79M |
| Total Debt | 0.00 | 0.00 | 10.70M | 20.71M | 25.91M | 33.85M |
| Total Liabilities | 137.08M | 102.43M | 100.68M | 94.71M | 112.48M | 130.55M |
| Stockholders Equity | 82.72M | 114.91M | 104.79M | 104.85M | 118.70M | 138.79M |
Cash Flow | ||||||
| Free Cash Flow | 104.39M | 32.38M | 50.44M | 3.39M | 13.82M | 81.17M |
| Operating Cash Flow | 119.57M | 44.48M | 59.78M | 20.28M | 23.63M | 93.13M |
| Investing Cash Flow | -15.19M | -12.10M | -9.34M | -16.89M | -9.81M | -8.10M |
| Financing Cash Flow | -80.65M | -27.88M | -29.40M | -24.91M | -35.89M | -36.82M |
Amerigo Resources Technical Analysis
Positive
8.40
Price Trends
8.19
Negative
7.43
Positive
6.45
Positive
Market Momentum
-0.24
Positive
47.67
Neutral
41.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ARG, the sentiment is Positive. The current price of 8.4 is above the 20-day moving average (MA) of 8.17, above the 50-day MA of 8.19, and above the 200-day MA of 6.45, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 47.67 is Neutral, neither overbought nor oversold. The STOCH value of 41.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ARG.
Amerigo Resources Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$1.27B | 16.11 | 50.54% | 11.03% | 54.30% | 272.06% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | C$1.29B | -29.86 | -36.55% | 128.75% | ― | -19.67% | |
51 Neutral | C$360.23M | -610.00 | -1.28% | 3.89% | ― | -58.33% | |
51 Neutral | C$364.02M | -45.29 | -9.42% | ― | ― | -324.25% | |
50 Neutral | C$396.44M | -72.66 | -14.87% | ― | ― | -13.58% |
* Basic Materials Sector Average
TSE:ARG
Amerigo Resources
7.77
5.11
191.67%
TSE:FDY
Faraday Copper
4.28
2.10
96.33%
TSE:CUU
Copper Fox Metals
0.59
0.20
51.28%
TSE:LA
Los Andes Copper
11.60
2.90
33.33%
TSE:ECU
Element 29 Resources
2.00
1.00
100.00%
Amerigo Resources Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Amerigo Resources Delivers Strong Q3 and Boosts Shareholder Returns
Positive
Oct 28, 2026
Amerigo posted a strong Q3-2026, with net income rising to $22.7 million, EBITDA of $48.0 million and free cash flow of $28.1 million, driven by record copper prices and MVC’s 17.0 million pounds of copper output at a cash cost of $1.55 per ...
Business Operations and Strategy
Amerigo Resources Responds to Fatal Accident at Codelco El Teniente
Negative
Oct 13, 2026
Amerigo Resources and its Chilean subsidiary Minera Valle Central have expressed deep regret over a tragic accident at Codelco’s El Teniente Division that resulted in the deaths of two contractor workers. The companies extended condolences t...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Amerigo Beats Cost Guidance and Boosts Shareholder Returns on Strong Q3 Output
Positive
Oct 13, 2026
Amerigo Resources reported Q3-2026 copper production of 17.0 million pounds and molybdenum output of 0.4 million pounds from its Minera Valle Central operation in Chile, achieving 98.1% plant availability and no reportable safety incidents. Year-t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.