Amerigo Announces Q2-2025 Results & Quarterly Dividend
1 This is a non-IFRS measure. See “Non-IFRS Measures” for further information.
1
July 30, 2025
N.R. 2025-10
Amerigo Announces Q2-2025 Results & Quarterly Dividend
• Q2-2025 Net Income of $7.5 million
• Robust EBITDA1 of $17.8 million and Free Cash Flow to Equity1 of $6.5 million
• 16th Consecutive Quarterly Dividend of Cdn$0.03 Declared
• $7.6 million Returned through Dividends and Share Buybacks in Q2-2025
VANCOUVER, BRITISH COLUMBIA – July 30, 202 5/Amerigo Resources Ltd. (TSX: ARG; OTCQX: ARREF)
(“Amerigo” or the “Company”) is pleased to announce a strong financial performance for the three months
ended June 30, 202 5 (“Q2-2025”). Dollar amounts in this news release are in U.S. dollars unless indicated
otherwise.
Amerigo’s Q2-2025 financial results included net income of $ 7.5 million, earnings per share (“EPS”) of $0.0 5,
EBITDA1 of $17.8 million, operating cash flow from operations before changes in non- cash working capital1 of
$11.9 million a nd free cash flow to equity 1 of $ 6.5 million. In Q2-2025, Amerigo returned $ 3.5 million to
shareholders through its quarterly dividend of Cdn$0.03 per share and $ 4.0 million from the purchase and
cancellation of 3.1 million common shares through a Normal Course Issuer Bid (“NCIB”).
“We are pleased to report strong financial results for the second quarter of 2025. Our operation, Minera Valle
Central (“MVC”), once again met its production, cash cost 1 and safety targets. Building upon th ose
achievements, Amerigo is on track to meet annual guidance and be debt- free by year -end,” said Aurora
Davidson, Amerigo’s President and CEO.
“On the back of MVC’s stellar operational performance and rising copper prices, Amerigo continues to rapidly
return capital to shareholders under the Company’s well-established Capital Return Strategy. In Q2 -2025
alone, Amerigo bought and cancelled 3.1 million shares under its Normal Course Issuer Bid and paid its
fifteenth consecutive quarterly dividend. In the first half of the year, the Company’s free cash flow to equity 1
was $11.3 million, and $12.1 million was returned to shareholders,” she added.
“We continue to expect strong, long-term copper demand around the world. Supportive fundamentals remain
in place, despite trade tensions and the tariff-induced short-term logistical repositioning of significant copper
cathode stocks to the United States . This repositioning has created a historical price arbitrage between the
Comex and LME markets, which we believe will be resolved over time, albeit with continued upward pressure
on copper prices.
1 This is a non-IFRS measure. See “Non-IFRS Measures” for further information.
2
In this macro setting, we believe that Amerigo’s unique business model, which produces copper without a mine
and avoids traditional mining and exploration risks, will continue to shine. With minimal debt and a significant,
consistent return of capital to shareholders, Amerigo provides a clean and unencumbered exposure to the
rising copper prices that we expect will continue,” Ms. Davidson added.
On July 28, 202 5, Amerigo’s Board of Directors declared its sixteenth consecutive quarterly dividend. The
dividend will be in the amount of Cdn$ 0.03 per share, payable on September 19, 202 5, to shareholders of
record as of August 29, 20253. Amerigo designates the entire amount of this taxable dividend to be an “eligible
dividend” for purposes of the Income Tax Act (Canada), as amended from time to time.
Based on Amerigo’s June 30, 2025, share closing price of Cdn$2.17, the Cdn$0.03 quarterly dividend declared
on July 28, 2025, represents an annual dividend yield of 5.53%.
This news release should be read with Amerigo’s interim consolidated financial statements and
Management’s Discussion and Analysis (“MD&A”) for Q2 -2025, available on the Company’s website at
www.amerigoresources.com and on the SEDAR+ website at www.sedarplus.ca.
Highlights and Significant Items
• In Q2 -2025, Amerigo’s posted net income of $7.5 million (Q2 -2024: $9.8 million), driven by copper
production from MVC of 15.5 million pounds (“M lbs”) (Q2-2024: 14.0 M lbs) at an average MVC copper price
of $4.42 per pound (“/lb”) (Q2-2024: $4.39/lb). In Q2-2024, net income was higher as a result of $6.9 million
in positive fair value adjustments to copper revenue receivables from a sharp quarter -on-quarter copper
price appreciation (Q2-2025: $0.7 million).
• EPS in Q2-2025 was $0.05 (Cdn$0.06), compared to $0.06 (Cdn$0.08) in Q2-2024.
Q2-2025 Q2-2024
$ $
MVC's copper price ($/lb)4 4.42 4.39
Revenue ($ millions) 50.8 51.6
Net income ($ millions) 7.5 9.8
EPS ($) 0.05 0.06
EPS (Cdn) 0. 06 0.08
EBITDA1 ($ millions) 17.8 22. 3
Operating cash flow before changes in non-cash working capital1 ($ millions) 11.9 14. 3
FCFE1 ($ millions) 6.5 6 .7
June 30, 2025 Dec. 31, 2024
Cash ($ millions) 23.3 35. 9
Restricted cash ($ millions) 0.9 4.4
Borrowings ($ millions) 7.0 10.7
Shares outstanding at end of period (millions) 161.5 164.5
1 This is a non-IFRS measure. See “Non-IFRS Measures” for further information.
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• The Company generated operating cash flow before changes in non- cash working capital1 of $11.9 million
in Q2-2025, compared to $14.3 million in Q2 -2024. The Company’s quarterly net operating cash flow was
$6.3 million (Q2 -2024: $23.8 million) after changes in working capital in the period, most notably a $9.5
million reduction in current income tax liabilities associated with MVC’s final 2024 income tax payment and
reductions of $2.1 million in trade and other receivables.
• Free cash flow to equity1 was $6.5 million in Q2-2025 (Q2-2024: $6.7 million), after debt repayments of $4.0
million (Q2-2024: $4.2 million) and capital expenditures (“Capex”) payments of $1.4 million (Q2-2024: $3.4
million).
• In Q2-2025, Amerigo returned $7.6 million to shareholders (Q2-2024: $3.6 million). This included $3.5 million
returned to shareholders through Amerigo’s regular quarterly dividend of Cdn$0.03 per share (Q2-2024: $3.6
million or Cdn$0.03 per share) and $4.0 million from the purchase and cancellation of 3.1 million common
shares through a NCIB (Q2-2024: $nil).
• Q2-2025 cash cost1 was $1.82/lb (Q2-2024: $1.96/lb). The $0.14/lb reduction in cash cost was primarily due
to a $0.19/lb decrease in smelting and refining charges, in response to the current annual benchmark, offset
by a $0.03/lb increase in lime cost and a $0.03/lb increase in other direct costs.
• On June 30, 2025, the Company held cash and cash equivalents of $23.3 million (December 31, 2024: $35.9
million), restricted cash of $0.9 million (December 31, 2024: $4.4 million), and its working capital deficiency
was $5.4 million, down from a working capital deficiency of $6.5 million on December 31, 2024.
• The Company’s financial performance is sensitive to changes in copper prices. MVC’s Q2-2025 provisional
copper price was $4.42/lb. The final prices for April, May, and June 2025 sales will be based on the average
London Metal Exchange (“LME”) prices for July, August, and September 2025, respectively. A 10% increase
or decrease from the $4.42/lb provisional price used on June 30, 2025, would result in a $6.9 million change
in revenue in Q3-2025 regarding Q2-2025 production4.
Investor Conference Call on July 31, 2025
Amerigo’s quarterly investor conference call will occur on Thursday, July 31, 2025, at 11:00 a.m. Pacific Daylight
Time/2:00 p.m. Eastern Daylight Time.
Participants can join by visiting https://emportal.ink/3UvPORS and entering their name and phone number.
The conference system will then call the participants and place them instantly into the call. Alternatively,
participants can dial directly to be entered into the call by an Operator. Dial 1 -888-510-2154 (Toll-Free North
America) and state they wish to participate in the Amerigo Resources Q2-2025 Earnings Call.
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Interactive Analyst Center
Amerigo's public financial and operational information is available for download in Excel format through
Virtua’s Interactive Analyst Center (“IAC”). You can access the IAC by visiting www.amerigoresources.com
under Investors > Interactive Analyst Center.
About Amerigo and Minera Valle Central (“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. Tel: (604) 681-2802; Web: www.amerigoresources.com; ARG:TSX; OTCQX: ARREF.
Contact Information
Aurora Davidson Graham Farrell
President and CEO Investor Relations
(604) 697-6207 (416) 842-9003
[email protected] [email protected]
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June 30, December 31,
2025 2024
$ thousands $ thousands
Cash and cash equivalents 23,253 35,864
Restricted cash 876 4,449
Property, plant and equipment 138,652 143,708
Other assets 23,722 21,450
Total assets 186,503 205,471
Total liabilities 83,177 100,682
Shareholders' equity 103,326 104,789
Total liabilities and shareholders' equity 186,503 205,471
2025 2024
$ thousands $ thousands
Revenue 50,846 51,602
Tolling and production costs (38,697) (35,109)
Other expenses (1,542) (797)
Finance expense (419) (353)
Income tax expense (2,644) (5,576)
Net income 7,544 9,767
Other comprehensive (loss) income (430) 42
Comprehensive income 7,114 9,809
Earnings per share - basic & diluted 0.05 0.06
2025 2024
$ thousands $ thousands
Cash flow from operating acitivities 11,869 14,315
Changes in non-cash working capital (5,525) 9,490
Net cash from operating activities 6,344 23,805
Net cash used in investing activities (1,357) (3,384)
Net cash used in financing activities (9,414) (6,001)
Net (decrease) increase in cash and cash equivalents (4,427) 14,420
Effect of foreign exchange rates on cash 22 515
Cash and cash equivalents, beginning of period 27,658 13,801
Cash and cash equivalents, end of period 23,253 28,736
Summary Consolidated Statements of Financial Position
Summary Consolidated Statements of Income and Comprehensive Income
Three months ended June 30,
Summary Consolidated Statements of Cash Flows
Three months ended June 30,
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1 Non-IFRS Measures
This news release includes f ive non-IFRS measures: (i) EBITDA, (ii) operating cash flow before changes in non -cash working
capital, (iii) free cash flow to equity (“FCFE”), (iv) free cash flow (“FCF”) and (v) cash cost.
These non-IFRS performance measures are included in this news release because they provide key performance measures used
by management to monitor operating performance, assess corporate performance, and plan and assess the overall effectiveness
and efficiency of Amerigo’s operations. These performance measures are not standardized financial measures under
International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting
Standards”), and, therefore, amounts presented may not be comparable to similar financial measures disclosed by other
companies. These performance measures should not be considered in isolation as a substitute for performance measures in
accordance with IFRS Accounting Standards.
(i) EBITDA refers to earnings before interest, taxes, depreciation, and administration and is calculated by adding d epreciation
expense to the Company’s gross profit.
(ii) Operating cash flow before changes in non-cash working capital is calculated by adding back the decrease or subtracting the
increase in changes in non-cash working capital to or from cash provided by operating activities.
(iii) Free cash flow to equity (“FCFE”) refers to operating cash flow before changes in non- cash working capital , less capital
expenditures, plus new debt issued less debt repayments. FCFE represents the amount of cash generated by the Company
in a reporting period that can be used to pay for the following:
a) potential distributions to the Company’s shareholders and
b) any additional taxes triggered by the repatriation of funds from Chile to Canada to fund these distributions.
Free cash flow (“FCF”) refers to FCFE plus repayments of borrowings.
(Expressed in thousands) Q2-2025 Q2-2024
$ $
Operating cash flow before changes in non-cash working capital 11,869 14,315
Deduct:
Cash used to purchase plant and equipment (1,357) (3,384)
Repayment of borrowings, net of new debt issued (4,000) (4,244)
Free cash flow to equity 6,512 6,687
Add:
Repayment of borrowings, net of new debt issued 4,000 4,244
Free cash flow 10,512 10,931
(Expressed in thousands) Q2-2025 Q2-2024
$ $
G
ross profit 12,149 16,493
Add:
Depreciation and amortization 5,686 5,821
EBITDA 17,835 22,314
(Expressed in thousands) Q2-2025 Q2-2024
$ $
Net cash provided by operating activities 6,344 23,805
Add (deduct):
Changes in non-cash working capital 5,525 (9,490)
Operating cash flow before non-cash working capital 11,869 14,315
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(iv) Cash cost is a performance measure commonly used in the mining industry that is not defined under IFRS. Cash cost is the
aggregate of smelting and refining charges, tolling/production costs net of inventory adjustments and administration costs,
net of by -product credits. Cash cost per pound produced is based on pounds of copper produced a nd is calculated by
dividing cash cost by the number of pounds of copper produced.
(Expressed in thousands) Q2-2025 Q2-2024
$ $
Tolling and production costs 38,697 35,109
Add (deduct):
Smelting and refining charges 3,554 5,791
Transportation costs 407 374
Inventory adjustments (367) (548)
By-product credits (7,023) (6,399)
Depreciation and amortization (5,686) (5,821)
DET royalties - molybdenum (1,299) (1,056)
Cash cost 28,283 27,450
Copper tolled (M lbs) 15.52 13.98
Cash cost ($/lb) 1.82 1.96
2 Capital returned to shareholders
The table below summarizes the capital returned to shareholders since the implementation of Amerigo’s Capital Return
Strategy in October 2021.
(Expressed in millions)
Shares repurchased Dividends Paid Total
$ $ $
2021 8.8 2.8 11.6
2022 12.3 15.8 28.1
2023 2.6 14.6 17.2
2024 1.8 19.4 21.2
2025 5.1 7.0 12.1
30.6 59.6 90.2
3 Dividend dates
A dividend of Cdn$0.03 per share will be paid on September 19, 2025, to shareholders of record as of August 29, 2025. Under the
“T+1 settlement cycle”, the Company’s shares will commence trading on an ex-dividend basis at the opening of trading on August
29, 2025. Shareholders purchasing Amerigo shares on or after the ex-dividend date will not receive this dividend, as it will be paid
to the selling shareholders. Shareholders purchasing Amerigo shares before the ex-dividend date will receive the dividend.
4 MVC’s copper price
MVC’s copper price is the average notional copper price for the period before smelting and refining, DET notional copper
royalties, transportation costs and excluding settlement adjustments to prior period sales.
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MVC’s pricing terms are based on the average LME copper price of the third month following the delivery of copper concentrates
produced under the DET tolling agreement (“M+3”). This means that when final copper p rices are not yet known , they are
provisionally marked to market at the end of each month based on the progression of the LME-published average monthly M and
M+3 prices. Provisional prices are adjusted monthly using this consistent methodology until they are settled.
Q1-2025 copper deliveries were marked to market on March 31, 2025 , at an average price of $ 4.42/lb and were settled in Q2-
2025 as follows:
• January 2025 sales settled at the April 2025 LME average price of $4.17/lb
• February 2025 sales settled at the May 2025 LME average price of $4.32/lb
• March 2025 sales settled at the June 2025 LME average price of $4.46/lb
Q2-2025 copper deliveries were marked to market on June 30, 2025, at an average price of $4.42/lb and will be settled at the LME
average prices for July, August, and September 2025.
Cautionary Statement Regarding Forward-Looking Information
This news release contains certain “forward -looking information” as such term is defined under applicable securities laws
(collectively called "forward-looking statements"). This information relates to future events or the Company’s future performance.
All statements other than statements of historical fact are forward -looking statements. The use of any of the words "anticipate",
"plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "should", "believe" and similar expressions
are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements
concerning:
• forecasted production and operating costs;
• our strategies and objectives;
• our estimates of the availability and quantity of tailings and the quality of our mine plan estimates;
• prices and price volatility for copper, molybdenum and other commodities and materials we use in our operations;
• the demand for and supply of copper, molybdenum and other commodities and materials that we produce, sell and use;
• sensitivity of our financial results and share price to changes in commodity prices;
• our financial resources and financial condition;
• interest and other expenses;
• domestic and foreign laws affecting our operations;
• our tax position and the tax rates applicable to us;
• our ability to comply with our loan covenants;
• the production capacity of our operations, our planned production levels and future production;
• potential impact of production and transportation disruptions;
• hazards inherent in the mining industry causing personal injury or loss of life, severe damage to or destruction of property
and equipment, pollution or environmental damage, claims by third parties and suspension of operations
• estimates of asset retirement obligations and other costs related to environmental protection;
• our future capital and production costs, including the costs and potential impact of complying with existing and proposed
environmental laws and regulations in the operation and closure of our operations;
• repudiation, nullification, modification or renegotiation of contracts;
• our financial and operating objectives;
• our environmental, health and safety initiatives;
• the outcome of legal proceedings and other disputes in which we may be involved;
• the outcome of negotiations concerning metal sales, treatment charges and royalties;
• disruptions to the Company's information technology systems, including those related to cybersecurity;
• our dividend policy, including the security of the quarterly dividends and our Capital Return Strategy; and
• general business and economic conditions, including, but not limited to, our assessment of strong market fundamentals
supporting copper prices.
These forward- looking statements involve known and unknown risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in such statements. Inherent in forward -looking statements are risks
and u ncertainties beyond our ability to predict or control, including risks that may affect our operating or capital plans; risks
generally encountered in the operation, permitting and development of mineral projects such as unusual or unexpected
geological for mations, negotiations with government and other third parties, unanticipated metallurgical difficulties, delays
associated with permits, approvals and permit appeals, ground control problems, adverse weather conditions (including, but not
limited, to heavy rains), process upsets and equipment malfunctions; risks associated with labour disturbances and availability of
skilled labour and management; risks related to the potential impact of global or national health concerns; government or
regulatory actions or inactions, including, but not limited to, the imposition of tariffs on the importation of copper; fluctuations in
the market prices of our principal commodities, which are cyclical and subject to substantial price fluctuations; risks created
through competition for mining projects and properties; risks associated with lack of access to markets; risks associated with