Amerigo Announces Q2-2026 Net Income of $18.3 Million and Declares Quarterly Dividend Q2-2026 Net Income rises to $18.3 million Robust EBITDA 1 of $38.4 million and Free Cash Flow 1 of $21.9 million $41.7 million returned to shareholders YTD under Amerigo's Capital Return Strategy
Amerigo Announces Q2-2026 Net Income of
$18.3 Million and Declares Quarterly Dividend
Q2-2026 Net Income rises to $18.3 million
Robust EBITDA
1
of $38.4 million and Free Cash Flow
1
of $21.9 million
$41.7 million returned to shareholders YTD under Amerigo's Capital Return Strategy
(CRS)
Quarterly Dividend of Cdn$0.04 Declared
Vancouver, British Columbia--(Newsfile Corp. - July 29, 2026) -
Amerigo Resources Ltd. (TSX: ARG)
(OTCQX: ARREF)
("Amerigo" or the "Company") reports financial results for the quarter ended June
30, 2026 ("Q2-2026") and announces the declaration of its quarterly dividend.
Dollar amounts in this
news release are in U.S. dollars unless indicated otherwise.
Amerigo generated net income of $18.3 million, EBITDA
1
of $38.4 million, operating cash flow from
operations before changes in non-cash working capital
1
of $26.7 million and free cash flow
1
of $21.9
million in Q2-2026.
"Q2-2026 was another strong financial quarter for Amerigo. Net income increased to $18.3 million,
EBITDA
1
was $38.4 million, and free cash flow
1
was $21.9 million. Cash cost
1
was $1.74 per pound, or
$1.60 per pound excluding the one-time signing bonus associated with the Minera Valle Central ("MVC")
supervisors' collective agreement. These results demonstrate our ability to convert operating
performance into earnings and cash flow, which we return to shareholders as quickly as possible," said
Aurora Davidson, Amerigo's President and CEO.
"Generating cash flow is only part of the equation. We focus on converting that cash flow into shareholder
value. During the first half of 2026, we returned $41.7 million to shareholders while increasing our cash
balance by $10.0 million to $50.3 million. We also reduced shares outstanding through buybacks,
enhancing per-share value while maintaining balance sheet strength. Since October 2021, Amerigo has
returned $140.2 million to shareholders and reduced shares outstanding by 15.1%."
"While copper prices remain volatile from quarter to quarter, we continue to view the long-term outlook
constructively. Electrification, grid investment and renewable energy development continue to support
demand growth. In contrast, supply growth remains increasingly challenged. For the balance of 2026, our
priorities remain unchanged: safe and reliable operations, disciplined cost management, and
maintaining the strength of our debt-free balance sheet. Flowing from this will be the consistent execution
of our CRS, which will continue to prioritize the immediate return of excess cash to shareholders," Ms.
Davidson concluded.
Amerigo's low sustaining capital requirements support a CRS that deploys quarterly dividends,
performance dividends and share buybacks to quickly return excess cash to shareholders while
maintaining balance sheet strength and financial flexibility.
On July 6, 2026, Amerigo's Board of Directors declared a performance dividend of Cdn$0.18 per share,
the largest in the Company's history, bringing performance dividends declared year-to-date to Cdn$0.34
per share.
On July 27, 2026, the Board declared a quarterly dividend of Cdn$0.04 per share, payable on
September 18, 2026, to shareholders of record as of August 28, 2026. Amerigo designates the full
amount of this taxable dividend as an "eligible dividend" for purposes of the
Income Tax Act
(Canada),
as amended from time to time.
The performance dividend payable on August 6, 2026, and the quarterly dividend payable on September
18, 2026, together represent approximately $25.0 million, or 50% of Q2-2026 ending cash.
Based on Amerigo's June 30, 2026 share price of Cdn$6.14, the quarterly dividend represents an
annualized yield of 2.6%. Including performance dividends declared year-to-date, shareholders have
received a 2026 cash yield of 8.1%, demonstrating the significant contribution of performance dividends
within Amerigo's CRS.
This news release should be read with Amerigo's interim consolidated financial statements and
Management's Discussion and Analysis ("MD&A") for Q2-2026, available on the Company's website at
www.amerigoresources.com
and on the SEDAR+ website at
www.sedarplus.ca
.
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Highlights and Significant Items
The Company had strong production in Q2-2026, producing 16.9 million pounds ("M lbs") of
copper (Q2-2025: 15.5 M lbs), supported by excellent operational execution, 99.0% plant
availability and a clean workplace safety record. The quarter also benefited from the strongest
quarterly London Metal Exchange ("LME") copper prices on record, resulting in an average copper
price recognized by MVC of $6.16 per pound ("/lb"), compared to $4.42/lb in Q2-2025.
In Q2-2026 net income was $18.3 million (Q2-2025: $7.5 million). Increases of $35.9 million in
gross copper tolling revenue and $4.1 million in molybdenum revenue were offset by increases of
$19.4 million in DET notional copper royalties, $6.4 million in tolling and production costs, $2.0
million in foreign exchange losses, and $8.0 million in income tax expense.
Earnings per share ("EPS") in Q2-2026 was $0.11 (Cdn$0.16), compared to $0.05 (Cdn$0.06) in
Q2-2025.
The Company generated operating cash flow before changes in non-cash working capital
1
of
$26.7 million in Q2-2026, compared to $11.9 million in Q2-2025. Free cash flow
1
was $21.9
million in Q2-2026 (Q2-2025: $10.5 million).
Q2-2026 cash cost
1
was $1.74/lb (Q2-2025: $1.82/lb). The $0.08/lb decrease in cash cost was
primarily due to a $0.21/lb increase in molybdenum by-product credits, driven primarily by a 43%
increase in molybdenum price.
Normalized cash cost
1
, which is cash cost excluding the effect of
the signing bonus paid in the quarter to MVC's supervisors under a three-year collective
agreement, was $1.60/lb.
On June 30, 2026, the Company held cash and cash equivalents of $50.3 million, compared with
$40.3 million in cash and cash equivalents on December 31, 2025. Working capital (current assets
less current liabilities) on June 30, 2026, was $9.7 million compared to $10.9 million on December
31, 2025.
In Q2-2026, Amerigo paid $25.2 million to shareholders, including $18.7 million in performance
dividends, $4.8 million in quarterly dividends and $1.7 million through share buybacks. Year-to-
date 2026 payments to shareholders were $41.7 million, including $24.6 million in performance
dividends, $9.5 million in quarterly dividends and $7.6 million in share buybacks. Amerigo had
295,451 fewer shares outstanding on June 30, 2026, than on December 31, 2025, reflecting the
continued use of share buybacks alongside dividends to enhance per-share value.
On June 30, 2026, Q2-2026 copper deliveries were marked-to-market to an average provisional
price of $6.17/lb. The final prices for April, May and June 2026 copper deliveries will be the
average LME prices for July, August, and September 2026, respectively. A 10% increase or
decrease from the $6.17/lb provisional price used on June 30, 2026, would result in a $10.4 million
change in revenue in the third quarter of 2026 regarding Q2-2026 copper deliveries.
Investor Conference Call on July 30, 2026
Amerigo's quarterly investor conference will be held on Thursday, July 30, 2026, at 11:00 a.m. Pacific
Daylight Time/2:00 p.m. Eastern Daylight Time.
Participants can join by visiting
https://registrations.events/easyconnect/9753925/recGABHSrkSlxMre8/
and entering their name
and phone number. The conference system will then call the participants and place them on the call
instantly.
Alternatively, participants can dial an Operator directly and ask to join the call. Dial 1 (800) 715-9871
(Toll-Free North America) and state that you wish to participate in the Amerigo Resources Q2-2026
Earnings Call.
Interactive Analyst Center
Amerigo's published financial and operational information is available for download in Excel format
through Q4 Inc.'s Interactive Analyst Center ("IAC"). You can access the IAC by visiting
www.amerigoresources.com
,
then selecting Investors > Interactive Analyst Center.
1
This is a non-IFRS measure. See “Non-IFRS Measures” for further information
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. Tel: (604) 681-2802; Web:
www.amerigoresources.com
; (TSX: ARG)
(OTCQX: ARREF).
Contact Information
Aurora Davidson
Graham Farrell
President and CEO
Investor Relations
(604) 697-6207
(416) 842-9003
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1
Non-IFRS Measures
This news release includes five non-IFRS measures: (i) EBITDA, (ii) operating cash flow before changes
in non-cash working capital, (iii)
free cash flow ("FCF"),
(iv) cash cost and (v) normalized 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 depreciation expense to the Company's gross profit.
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(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.
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(iii)
Free cash flow refers to operating cash flow before changes in non-cash working capital, less capital
expenditures. FCF represents the amount of cash generated by the Company in a reporting period that
can be used to pay for potential distributions to the Company's shareholders and any additional taxes
triggered by the repatriation of funds from Chile to Canada to fund these distributions.
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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 and is calculated by dividing cash cost by the number of pounds
of copper produced.
Normalized cash cost excludes the cost per pound paid to MVC's workers as signing bonuses under 3-
year collective labour agreements.
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2
Capital returned to shareholders
The table below summarizes the capital returned to shareholders since Amerigo's CRS was
implemented in October 2021.
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3
Dividend dates
A performance dividend of Cdn$0.18 per share will be paid on August 6, 2026, to shareholders of
record as of July 13, 2026. Under the "T+1 settlement cycle", the Company's shares commenced trading
ex-dividend at the opening of trading on July 13, 2026, 2026. Shareholders purchasing Amerigo shares
on or after the ex-dividend date will not receive this dividend, as it will be paid to selling shareholders.
Shareholders who purchased Amerigo shares before the ex-dividend date will receive the dividend.
A dividend of Cdn$0.04 per share will be paid on September 18, 2026, to shareholders of record as of
August 28, 2026. 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 28, 2026. 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.
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 prices 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.
Q1-2026 copper deliveries had been marked-to-market on March 31, 2026 at an average price of
$5.70/lb, and were settled at the LME average monthly copper prices for April, May and June 2026, as
follows:
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Q2-2026 copper deliveries were marked to market on June 30, 2026, at an average price of $6.17/lb
and will be settled at the LME average prices for July, August and September 2026.
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Cautionary Statement Regarding Forward-Looking Information
This news release contains certain "forward-looking information" as defined under applicable securities
laws (collectively referred to as "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 is intended to
identify forward-looking statements. These forward-looking statements include, but are not limited to,
statements concerning:
forecasted production and cash cost for 2026;
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, and our expected ability to fully deploy all tools of
our CRS;
domestic and foreign laws affecting our operations;
our tax position and the tax rates applicable to us;
our ability to comply with Line of Credit
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; 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 uncertainties 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
formations, 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; 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 related to availability of and our
ability to obtain both tailings DET current production and historic tailings from tailings deposit; the
availability of and ability of the Company to obtain adequate funding on reasonable terms for expansions
and acquisitions; mine plan estimates; risks posed by fluctuations in exchange rates and interest rates,
as well as general economic conditions; risks associated with environmental compliance and changes in
environmental legislation and regulation; risks related to our dependence on third parties for the
provision of critical services; risks associated with non-performance by contractual counterparties; risks
related to supply chain disruptions; title risks; social and political risks associated with operations in
foreign countries; risks of changes in laws affecting our operations or their interpretation, including
foreign exchange controls; and risks associated with tax reassessments and legal proceedings. Many of
these risks and uncertainties apply to the Company and its operations, as well as DET and its
operations. DET's ongoing mining operations provide a significant portion of the materials the Company
processes and its resulting metals production. Therefore, these risks and uncertainties may also affect
the Company's operations and have a material effect.
Actual results and developments are likely to differ and may differ materially from those expressed or
implied by the forward-looking statements contained in this news release. Such statements are based
on several assumptions which may prove to be incorrect, including, but not limited to, assumptions
about:
general business and economic conditions;
interest and currency exchange rates;
changes in commodity and power prices;
acts of foreign governments and the outcome of legal proceedings;
the supply and demand for, deliveries of, and the level and volatility of prices of copper,
molybdenum and other commodities and products used in our operations;