Amerigo Resources Ltd. (TSX: ARG) (ARREF: OTC) is pleased to announce production results for the quarter ended June 30, 2021 from Minera Valle Central, the Company’s 100% owned operation located near Rancagua, Chile.
In Q2-2021, MVC produced 15.0 million pounds (“M lbs”) of copper at a cash cost1 of $1.81 per pound and 0.3 M lbs of molybdenum.
Q2-2021 copper production was at 96% of guidance2 (YTD-2021: 98% of guidance2). Molybdenum production in Q2-2021 was at 84% of guidance2 (YTD-2021: 93% of guidance2), negatively affected by lower moly grade in the sector of Cauquenes tailings processed during the quarter. MVC will be working in higher moly grade sectors in H2-2021, and Amerigo maintains its annual production guidance of 61.0 million pounds of copper and 1.5 million pounds of molybdenum.
|Tonnes per day||129,153||128,238||136,011||119,285||119,435|
|Copper produced (M lbs)||7.37||7.03||7.17||6.68||6.66|
|Tonnes per day||54,026||55,457||54,541||54,292||35,875|
|Copper produced (M lbs)||7.61||8.47||9.28||8.00||6.31|
|Copper produced (M lbs)||14.99||15.50||16.45||14.68||12.97|
|Copper delivered (M lbs)||15.13||15.11||15.90||14.92||13.70|
|Cash cost ($/lb)||1.81||1.88||1.65||1.80||1.72|
|Molybdenum produced (M lbs)||0.33||0.40||0.50||0.37||0.35|
|Molybdenum sold (M lbs)||0.33||0.36||0.50||0.37||0.36|
Q2-2020 cash cost of $1.81/lb was 5% lower than the Company’s latest cash cost guidance of $1.90/lb3 due to stronger molybdenum by-product credits due to an increase in molybdenum prices during the quarter.
During Q2-2021, MVC made debt repayments of $9.0 million and on June 30, 2021, MVC completed a restructuring of its debt facilities. On June 30, 2020, the Company’s cash balance was $53 million and outstanding bank debt was $35 million.
1 Cash cost is a non-GAAP financial performance measure. Refer to “Alternative Performance Measures” at the end of this press release.
2 Annual production guidance provided in Amerigo’s news release of January 14, 2021.
3 Updated cash cost guidance provided in Amerigo’s Q1-2021 MD&A.
MVC’s average copper price in Q2-2021 was $4.44/lb, compared to $4.08/lb in Q1-2021.
“We are pleased to report another strong operational quarter at MVC, coupled with robust copper prices. The teams in Canada and Chile have made significant progress during the first half of the year to strengthen Amerigo’s financial position, including restructuring the Company’s debt facilities. We look forward to releasing Q2-2021 financial results on August 11, 2021,” said Aurora Davidson, Amerigo’s President and CEO.
Release of Q2-2021 financial results on August 11, 2021
Amerigo will release Q2-2021 financial results at market open on Wednesday, August 11, 2021.
About Amerigo and MVC
Amerigo Resources Ltd. is an innovative copper producer with a long-term relationship with Corporación Nacional del Cobre de Chile (“Codelco”), the world’s largest copper producer.
Amerigo produces copper concentrate and molybdenum concentrate as a by-product at the MVC operation in Chile by processing fresh and historic tailings from Codelco’s El Teniente mine, the world’s largest underground copper mine.
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We acknowledge the [financial] support of the Government of Canada.