Amerigo Resources Ltd. (TSX: ARG) has announced positive production results for the quarter ended March 31, 2022 from Minera Valle Central (MVC), the company’s 100% owned operation located near Rancagua, Chile
“We are pleased to report another strong operational quarter with production of 16.5 million pounds of copper at a cash cost of US$1.90 per pound for the first quarter of 2022,” President and CEO, Aurora Davidson, said.
“These results are aligned with our 2022 annual guidance, which incorporates lower Q2 production due to MVC’s annual nine-day maintenance plant shutdown.
“With a quarterly copper price of US$4.64 per pound, US$0.32 higher than the price in the previous quarter, Q1-2022 was a strong start to the year for Amerigo. We look forward to releasing financial results on May 4, 2022 and hosting our quarterly earnings call on May 5, 2022”, Ms. Davidson added.
In Q1-2022, MVC produced 16.5 million pounds (M lbs) of copper at a cash cost of US$1.90 per pound (/lb).
Copper production in the quarter reflects Amerigo’s focus on maximising production from fresh tailings, which accounted for 58% of quarterly copper production. This focus has allowed MVC to reduce processing from Cauquenes with the advantages of preserving water and delaying mineral resource depletion without lowering copper production.
Molybdenum production in the quarter was 0.2 M lbs, trending slightly below guidance mostly due to lower molybdenum content in fresh tailings.
Water reserves at Colihues on March 31, 2022 were 4.5 million cubic meters, in line with projections. Water reserves continue to be sufficient for MVC to maintain the projected Cauquenes tonnage processing for a period of at least eighteen months.
MVC’s annual plant shutdown commenced on April 5 and is currently expected to be completed on April 13, 2022.
MVC’s operations have continued without any significant disruptions due to Covid-19.
MVC’s average copper price in Q1-2022 was US$4.64/lb, compared to US$4.32/lb in Q4-2021.
In Q1-2022, Amerigo returned US$7.5 million to shareholders: US$4.1 million were paid on March 21, 2022, through Amerigo’s increased quarterly dividend of Cdn$0.03 per share, and US$3.4 million were returned through the purchase of 2.4 million common shares for cancellation through Amerigo’s ongoing Normal Course Issuer Bid (NCIB). A further 6.9 million shares remain available for repurchase and cancellation under the NCIB.
For further information please visit: http://www.amerigoresources.com/
