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Amerigo Resources reported third-quarter results on 28 October, recording US$22.7 million of net income against US$6.7 million a year earlier. Its MVC operation in Chile produced 17.0 million pounds of copper, compared with 14.6 million pounds. Plant availability was 98.1%, and the reported cash-cost measure was US$1.55 per pound.
The company reported EBITDA of US$48.0 million and free cash flow of US$28.1 million. These supplementary non-GAAP measures differ from net income and cash balances. Higher copper-related revenue, settlement adjustments and molybdenum revenue supported profitability, partly offset by royalties, costs and income tax.
Quarter-end cash was US$50.1 million, while working capital showed an US$18.6 million deficit. Amerigo linked the deficit principally to dividends declared but payable after the quarter. A quarterly dividend of C$0.04 per share, declared on 26 October, is payable on 18 December to shareholders recorded on 30 November.
Copper pricing remains provisional for recent deliveries. The US$6.55-per-pound price used at September-end will be settled using subsequent monthly prices. Amerigo estimates that a 10% change would alter fourth-quarter revenue associated with third-quarter production by US$11.2 million. That sensitivity is a conditional calculation, rather than a forecast of a particular price movement.