tiprankstipranks
Trending News
More News >
Amerigo Resources (TSE:ARG)
TSX:ARG
Advertisement

Amerigo Resources (ARG) AI Stock Analysis

Compare
95 Followers

Top Page

TSE:ARG

Amerigo Resources

(TSX:ARG)

Select Model
Select Model
Select Model
Outperform 77 (OpenAI - 4o)
Rating:77Outperform
Price Target:
C$3.50
▲(17.06% Upside)
Amerigo Resources demonstrates strong financial performance and technical indicators, supported by a fair valuation and positive earnings call highlights. The company's ability to manage debt and increase dividends is a significant strength. However, production challenges and cost increases present potential risks. Overall, the stock is well-positioned within the copper industry, with a positive outlook.
Positive Factors
Debt Elimination
Eliminating debt enhances financial flexibility, allowing for reinvestment and dividend increases, strengthening long-term financial health.
Increased Dividend
A higher dividend reflects strong cash flow and commitment to shareholder returns, indicating confidence in sustained financial performance.
Stable Financial Performance
Consistent income and cash flow generation demonstrate operational efficiency and resilience, supporting long-term business sustainability.
Negative Factors
Production Impact
Production disruptions can affect revenue and operational efficiency, posing risks to meeting output targets and financial projections.
Increased Costs
Rising costs can pressure margins and profitability, potentially impacting the company's ability to maintain competitive pricing and financial health.
Potential for Increased Royalties
Higher royalties could increase operational expenses, affecting profitability and financial planning, especially if copper prices remain volatile.

Amerigo Resources (ARG) vs. iShares MSCI Canada ETF (EWC)

Amerigo Resources Business Overview & Revenue Model

Company DescriptionAmerigo Resources Ltd. is a Canadian mining company focused on the production of copper and molybdenum through its operations in Chile. The company primarily processes copper concentrate from the historic El Teniente mine, one of the largest underground copper mines in the world. Amerigo's operations are marked by their commitment to sustainable mining practices and their focus on maximizing value through efficient resource extraction.
How the Company Makes MoneyAmerigo Resources generates revenue primarily through the sale of copper and molybdenum concentrates. The company enters into long-term contracts with major smelters and refiners, which provides a steady revenue stream. Additionally, Amerigo benefits from the rising prices of copper in the global market, which significantly impacts its profitability. The company also engages in cost management and operational efficiency initiatives to enhance its margins. Partnerships with various stakeholders in the mining sector contribute to its operational success and financial stability.

Amerigo Resources Earnings Call Summary

Earnings Call Date:Oct 29, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Positive
Amerigo Resources demonstrated strong financial performance in Q3 2025, achieving significant milestones such as debt elimination and a dividend increase. However, challenges such as the production impact from the El Teniente accident and increased costs were noted. Despite these issues, the overall outlook remains positive with stable copper prices and strong operational metrics.
Q3-2025 Updates
Positive Updates
Debt Elimination
On October 27, MVC fully repaid its outstanding debt, which totaled $7.5 million at the end of September. This marks the conclusion of a transformational 10-year period for Amerigo and provides additional free cash flow capacity.
Increased Dividend
The Board of Directors increased the quarterly dividend paid to shareholders to CAD 0.04 per share, a 33% increase from the prior dividend, reflecting the company's financial strength and commitment to returning value to shareholders.
Stable Financial Performance
Amerigo reported a net income of $6.7 million and generated operating cash flow of $12.4 million for Q3 2025. The company also maintained a high plant availability of 98% and operated without lost time accidents or environmental incidents.
Strong Revenue and Copper Prices
Total revenue for the third quarter was $52.5 million, supported by stable copper prices and strong molybdenum contributions. The LME copper prices averaged $4.44 per pound in Q3, peaking at $4.51 per pound in September.
Negative Updates
Production Impact from El Teniente Accident
An accident at El Teniente led to MVC ceasing to receive fresh tailings for 10 days, causing a decline in monthly production in August. Copper production guidance had to be adjusted from 62.9 million pounds to a range of 60 million to 61.5 million pounds.
Increased Costs
Tolling and production costs increased by 4% from Q3 2024 to Q3 2025. Costs related to lime, inventory adjustments, and DET moly royalties also saw increases.
Potential for Increased Royalties
With copper prices rising, there is the potential for renegotiation of the royalty scale with El Teniente, which could impact financial outcomes.
Company Guidance
During the Amerigo Resources Q3 2025 earnings call, it was announced that the company adjusted its copper production guidance from 62.9 million pounds to a range of 60 million to 61.5 million pounds due to a temporary suspension of fresh tailings at MVC following an accident at El Teniente. Despite this, Amerigo maintained a high plant availability of 98% and reported a strong financial performance with a total revenue of $52.5 million. The company posted a net income of $6.7 million and earnings per share of $0.04, supported by stable LME copper prices averaging $4.44 per pound, up from $4.32 in the previous quarter. Amerigo's operating cash flow was $12.4 million, and it achieved a cash cost of $1.80 per pound, lower than the previous quarter, maintaining its annual cash cost guidance of $1.93 per pound. The company also reported significant developments in October, including the full repayment of $7.5 million in outstanding debt, allowing for a 33% increase in the quarterly dividend to CAD 0.04 per share. Additionally, Amerigo signed a 3-year collective agreement with its operators' union, further strengthening its operational stability.

Amerigo Resources Financial Statement Overview

Summary
Amerigo Resources demonstrates strong cash flow generation and stable balance sheet metrics. The income statement reflects solid revenue growth and improving profitability, although further enhancements in net margins would be beneficial.
Income Statement
75
Positive
The company has demonstrated consistent revenue growth over recent periods, showing a significant recovery in total revenue from 2023 to the TTM (Trailing-Twelve-Months). Gross profit margin and net profit margin have improved as well, indicating effective cost management. However, the net profit margin remains relatively modest, suggesting potential room for further profitability improvements.
Balance Sheet
70
Positive
Amerigo Resources maintains a strong equity base with a healthy equity ratio, reflecting financial stability. The debt-to-equity ratio is low, indicating conservative leverage practices. However, the decrease in total assets may pose a risk to future growth potential if not addressed.
Cash Flow
80
Positive
The company exhibits robust cash flow generation, with a strong operating cash flow to net income ratio. Free cash flow has shown consistent growth, which supports potential reinvestment and dividend distribution. The free cash flow to net income ratio is also favorable, underscoring efficient cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue262.75M294.99M157.46M264.19M300.58M178.38M
Gross Profit42.95M45.41M13.86M28.32M72.09M15.39M
EBITDA53.53M57.61M29.98M45.59M84.16M27.98M
Net Income16.04M19.24M3.38M4.37M39.82M6.06M
Balance Sheet
Total Assets186.50M205.47M199.56M231.18M269.35M237.57M
Cash, Cash Equivalents and Short-Term Investments23.25M35.86M17.15M38.96M59.79M7.99M
Total Debt0.003.23M20.71M25.91M33.85M59.50M
Total Liabilities83.18M100.68M94.71M112.48M130.55M126.89M
Stockholders Equity103.33M104.79M104.85M118.70M138.79M110.68M
Cash Flow
Free Cash Flow27.23M50.44M3.39M13.82M81.17M16.98M
Operating Cash Flow39.64M59.78M20.28M23.63M93.13M19.78M
Investing Cash Flow-13.01M-9.34M-16.89M-9.81M-8.10M-2.72M
Financing Cash Flow-30.84M-29.40M-24.91M-35.89M-36.82M-10.66M

Amerigo Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.99
Price Trends
50DMA
2.59
Positive
100DMA
2.36
Positive
200DMA
2.05
Positive
Market Momentum
MACD
0.11
Negative
RSI
61.21
Neutral
STOCH
74.15
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 2.99 is above the 20-day moving average (MA) of 2.84, above the 50-day MA of 2.59, and above the 200-day MA of 2.05, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 61.21 is Neutral, neither overbought nor oversold. The STOCH value of 74.15 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$482.86M17.5918.67%3.92%10.41%-0.23%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
53
Neutral
C$623.84M-49.37-5.68%12.55%
48
Neutral
C$503.61M-16.61-71.49%-15.57%
43
Neutral
C$1.23B-47.42-14.89%-104.57%
39
Underperform
C$223.64M-320.83-0.82%36.84%
39
Underperform
C$252.53M73.524.21%-41.70%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ARG
Amerigo Resources
2.99
1.36
83.10%
TSE:FDY
Faraday Copper
2.01
1.10
120.88%
TSE:MARI
Marimaca Copper
10.40
6.16
145.28%
TSE:CUU
Copper Fox Metals
0.39
0.11
42.59%
TSE:LA
Los Andes Copper
8.55
0.49
6.08%
TSE:ASCU
Arizona Sonoran Copper Co.
3.51
2.13
154.35%

Amerigo Resources Corporate Events

Amerigo Resources Reports Strong Q3-2025 Results
Oct 31, 2025

Amerigo Resources Ltd. is a copper producer operating in the mining sector, known for its innovative approach to processing tailings from the El Teniente mine in Chile. The company recently announced its Q3-2025 financial results, highlighting a net income of $6.7 million and an EBITDA of $18.7 million. Notably, Amerigo achieved full debt repayment in October 2025 and increased its quarterly dividend by 33%.

Business Operations and StrategyDividendsFinancial Disclosures
Amerigo Resources Achieves Debt-Free Status and Boosts Dividend Amid Strong Q3 Results
Positive
Oct 29, 2025

Amerigo Resources reported strong financial results for Q3-2025, with a net income of $6.7 million and an EBITDA of $18.7 million. The company achieved a significant milestone by fully repaying its corporate debt, allowing it to increase its quarterly dividend by 33% to Cdn$0.04 per share. This financial strength is attributed to a favorable copper price environment and effective cost management, despite lower than expected production. The company’s strategic focus on debt repayment over the past decade has enabled it to return $93.7 million to shareholders, enhancing its market position as a stable and attractive investment in the copper sector.

The most recent analyst rating on (TSE:ARG) stock is a Buy with a C$3.00 price target. To see the full list of analyst forecasts on Amerigo Resources stock, see the TSE:ARG Stock Forecast page.

Business Operations and Strategy
Amerigo Resources Announces Strategic Operational Update
Positive
Oct 23, 2025

Amerigo Resources has announced a significant update regarding its operations, which could impact its market positioning and stakeholder interests. The company has made strategic decisions that are expected to enhance its operational efficiency and potentially improve its competitive edge in the industry.

The most recent analyst rating on (TSE:ARG) stock is a Buy with a C$3.00 price target. To see the full list of analyst forecasts on Amerigo Resources stock, see the TSE:ARG Stock Forecast page.

Business Operations and Strategy
Amerigo Resources Secures Three-Year Labor Agreement with MVC Union
Positive
Oct 23, 2025

Amerigo Resources Ltd. has announced a new three-year collective labor agreement with the operators’ union at its Minera Valle Central (MVC) operation in Chile. This agreement, effective from October 29, 2025, to October 29, 2028, underscores the company’s commitment to its employees and operational stability, ensuring fair treatment and long-term security for its workforce. The agreement highlights Amerigo’s dedication to maintaining strong, collaborative relationships with its employees, reinforcing its position as an employer of choice in Chile.

The most recent analyst rating on (TSE:ARG) stock is a Buy with a C$3.00 price target. To see the full list of analyst forecasts on Amerigo Resources stock, see the TSE:ARG Stock Forecast page.

Business Operations and StrategyDividendsFinancial Disclosures
Amerigo Resources Reports Q3-2025 Results Amid Operational Challenges
Neutral
Oct 8, 2025

Amerigo Resources reported its Q3-2025 operational results, highlighting a copper production of 14.6 million pounds. The company faced challenges due to an accident at the El Teniente mine, which affected fresh tailings throughput and led to a projected annual copper production shortfall of 2% to 5% below guidance. Despite these challenges, Amerigo maintained stable daily production and plans to eliminate its remaining debt by the end of 2025. The company returned $3.5 million to shareholders in dividends during the quarter, and its cash cost guidance remains unchanged.

The most recent analyst rating on (TSE:ARG) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Amerigo Resources stock, see the TSE:ARG Stock Forecast page.

Business Operations and Strategy
Amerigo Resources Resumes Fresh Tailings Processing at MVC
Neutral
Aug 13, 2025

Amerigo Resources Ltd. announced that its Minera Valle Central (MVC) operation in Chile has resumed processing fresh tailings from the El Teniente copper mine after a temporary suspension due to a seismic event. While the mine’s operations are not yet fully normalized, Amerigo is mitigating the impact by increasing the processing of historic tailings, although daily throughput is expected to be lower than initially forecasted.

The most recent analyst rating on (TSE:ARG) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Amerigo Resources stock, see the TSE:ARG Stock Forecast page.

Business Operations and Strategy
Amerigo Resources Faces Production Challenges Following El Teniente Mine Incident
Negative
Aug 6, 2025

Amerigo Resources Ltd. has announced a temporary suspension of fresh tailings processing at its Minera Valle Central (MVC) operation in Chile due to a seismic event that caused a rockfall at Codelco’s El Teniente mine, resulting in the tragic death of six workers. While MVC continues to process historic tailings, the impact on annual production remains uncertain, with an estimated daily loss of 100,000 pounds of copper production, pending the resumption of operations at El Teniente.

The most recent analyst rating on (TSE:ARG) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Amerigo Resources stock, see the TSE:ARG Stock Forecast page.

Business Operations and Strategy
Amerigo Resources Faces Production Challenges After El Teniente Mine Incident
Negative
Aug 6, 2025

Amerigo Resources Ltd. has temporarily suspended the processing of fresh tailings at its Minera Valle Central (MVC) operation in Chile due to a seismic event that caused a rockfall at the El Teniente mine, owned by Codelco. This incident resulted in the tragic death of six workers and led to the suspension of operations at El Teniente, impacting Amerigo’s copper production. The company will continue processing historic tailings, but the effect on annual production remains uncertain and depends on when El Teniente resumes operations. The current estimated daily loss of copper production is 100,000 pounds, highlighting the potential impact on Amerigo’s operations and stakeholders.

The most recent analyst rating on (TSE:ARG) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Amerigo Resources stock, see the TSE:ARG Stock Forecast page.

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.Date of analysis: Nov 05, 2025