Q3-2024 Copper Production of 16.3 million pounds, Outperforming Guidance

Q3-2024 cash cost¹ of $1.93 per pound, Outperforming Guidance

Current Copper Prices Rising in Response to Global Stimulus

$8.5 million in Quarterly and Performance Dividends Paid in Q3-2024

Amerigo Resources Ltd. (TSX: ARG) (OTCQX: ARREF) is pleased to announce production results for the quarter ended September 30, 2024 from Minera Valle Central, the Company’s 100% owned operation located near Rancagua, Chile. Dollar amounts in this news release are in U.S. dollars unless indicated otherwise.

“MVC delivered a strong quarter with copper production of 16.3 million pounds, outperforming guidance. The Company’s quarterly cash cost of $1.93 per pound was again lower than expected, and Amerigo’s quarterly copper price in the third quarter was $4.22 per pound. This combination of excellent operational performance, controlled costs and high copper prices translates into robust financial performance, permitting the Company to continue implementing its Capital Return Strategy,” said Aurora Davidson, Amerigo’s President and CEO.

“Amerigo’s Capital Return Strategy was designed so shareholders can quickly benefit from a quarter like this. We will continue to deploy all three mechanisms in the Strategy with maximum flexibility, as we expect copper prices to continue strengthening due to fundamental supply and demand issues. We are off to a great start in Q4, as copper prices are well above the quarterly average prices we have received throughout 2024,” she added.

In Q3-2024, MVC produced 16.3 million pounds of copper, with 70% of production coming from fresh tailings and 0.3 M lbs of molybdenum. MVC’s plant availability was 97%.

During the nine months ended September 30, 2024 (“YTD-2024”), MVC produced 46.2 M lbs of copper and 1.0 M lbs of molybdenum. YTD-2024 production results are trending ahead of Amerigo’s annual production guidance of 62.4 M lbs of copper and 1.2 M lbs of molybdenum.

Amerigo’s cash cost¹ in Q3-2024 was $1.93 per pound (“/lb”), and YTD-2024 normalized cash cost¹ was $1.93/lb, both below the Company’s 2024 cash cost¹ guidance of $2.08/lb. YTD-2024 normalized cash cost¹ excludes $0.02/lb paid to MVC’s supervisors in January 2024 as the signing bonus of a 3-year collective labour agreement.

On September 30, 2024, MVC’s water reserves were over 10.0 million cubic meters, sufficient to maintain projected historic tailings processing rates for at least eighteen months, the Company’s maximum forecast horizon.

Amerigo’s quarterly copper price in Q3-2024 was $4.22/lb, compared to $4.39/lb in Q2-2024. The Company’s molybdenum price was $21.39/lb, compared to $21.11/lb in Q2-2024.

In Q3-2024, Amerigo paid shareholders $8.5 million in dividends, bringing YTD-2024 dividend payments to $15.8 million.

On September 30, 2024, Amerigo’s cash position was $25.1 million ($8.9 million higher than December 31, 2023), and restricted cash was $6.7 million ($0.4 million higher than December 31, 2023). Outstanding bank debt was $15.5 million, $5.8 million lower than December 31, 2023.

Capital Return Strategy

Since implementing its Capital Return Strategy in September 2021, Amerigo has returned a total of $72.7 million to shareholders, $49.0 million through quarterly and performance dividends and $23.7 million through share buybacks, reducing by 11.1% the number of common shares outstanding at the inception of the Strategy.

Amerigo’s Strategy consists of three mechanisms: quarterly dividends, performance dividends, and share buybacks. These mechanisms ideally provide shareholders with a consistent return on invested capital and quickly transfer the benefits of rising copper prices to Amerigo’s shareholders.

Release of Q3-2024 financial results on October 30, 2024

Amerigo will release Q3-2024 financial results at the market open on Wednesday, October 30, 2024.

About Amerigo and MVC

Amerigo is an innovative copper producer with a long-term relationship with Corporación Nacional del Cobre de Chile 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.