Amerigo Resources Ltd. (TSX: ARG; ARREF:OTC) has unveiled strong financial results for the year and three months ended December 31, 2021.
Amerigo’s annual financial results included net income of US$39.8 million, earnings per share (EPS) of US$0.22, EBITDA1 of US$90.1 million and operating cash flow before changes in working capital of US$69.5 million.
“Amerigo had a robust operational and financial performance in 2021, with record revenue of US$199.6 million, EBITDA of US$90.1 million and net income of US$39.8 million, the highest net income ever recorded by the company. We closed the year with record cash balances and a strong balance sheet,” President and CEO, Aurora Davidson, said.
“Importantly, we completed a debt refinancing in June 2021 that removed prior restrictions on the use of surplus cash and allowed Amerigo to re-establish dividends and initiate programs to repurchase shares for cancellation. Capital repatriation remains a key corporate goal, and we have provided guidance for another year of robust operational performance at our MVC operation in Chile,” added Ms. Davidson.
Q4-2021 financial results included net income of US$8.9 million, EPS of US$0.05, EBITDA of US$24.9 million and operating cash flow before changes in working capital of US$18.3 million.
Highlights and Significant Items
- 2021 net income increased to US$39.8 million (2020: US$6.1 million) due to higher copper production and higher metal prices. Annual EPS was US$0.22 (2020: US$0.03)
- The cpmpany generated US$69.5 million in annual operating cash flow before changes in non-cash working capital1 (2020: US$29.1 million). Annual net operating cash flow was US$93.1 million (2020: US$19.8 million).
- 2021 production was 63.4 million pounds (M lbs) of copper, 13% higher than 2020 production of 56.2 M lbs due to higher tonnage, grade and recoveries from fresh tailings and higher tonnage from Cauquenes.
- 2021 molybdenum production was 1.3 M lbs (2020: 1.4 M lbs) due to lower molybdenum content in fresh tailings.
- At December 31, 2021, MVC had water reserves of 5.8 million cubic meters, which are sufficient to meet the company’s 2022 production guidance of 61.9 M lbs of copper.
- 2021 cash cost1 was $1.75 per pound (“/lb”) (2020: $1.76/lb).
- In 2021, the company’s average copper price was US$4.25/lb (2020: US$2.94/lb) and the company’s average molybdenum price was US$15.01/lb (2020: US$8.19/lb).
- Revenue in 2021 was US$199.6 million (2020: US$126.4 million), including copper tolling revenue of US$181.4 million (2020: US$116.3 million) and molybdenum revenue of US$18.1 million (2020: US$9.5 million).
- Copper tolling revenue is calculated from the company’s gross value of copper produced of US$269.4 million (2020: US$156.6 million) and fair value adjustments to settlement receivables of US$13.1 million (2020: US$11.6 million), less notional items including royalties to Codelco’s El Teniente division of US$78.4 million (2020: US$33.5 million), smelting and refining of US$20.6 million (2020: US$16.7 million) and transportation of US$2.0 million (2020: US$1.8 million).
- In response to its improved cash generating capacity and liquidity, in Q4-2021 the company returned US$11.6 million to shareholders. In 2021, MVC made debt repayments of US$57.8 million (2020: US$9.4 million) and received funds of US$33.8 million from a replacement term loan. Borrowings at year end were US$30.4 million (December 31, 2020: US$53.8 million).
- On December 31, 2021, the company held cash and cash equivalents of US$59.8 million (December 31, 2020: US$14.1 million), restricted cash of US$4.2 million (2020: US$nil) and had working capital of $US24.6 million (December 31, 2020: working capital deficiency of US$6.1 million).
For further information please visit: http://www.amerigoresources.com/
