Amerigo Announces Q3-2017 Production Results
Amerigo Announces Q3-2017 Production Results
Vancouver, British Columbia--(Newsfile Corp. - October 16, 2017) - Amerigo Resources Ltd. (TSX: ARG) ("Amerigo" or the
"Company") announced today production results for the third quarter of 2017 from Minera Valle Central ("MVC"), the Company's
100% owned operation located near Rancagua, Chile.
Operational Highlights for Q3-2017:
In Q3-2017, MVC produced 15.5 million pounds of copper at a cash cost of $1.69 per pound, pursuant to a tolling agreement
with Codelco's Division El Teniente. Production guidance for 2017 is maintained at 60 to 65 million pounds of copper and 1.5
million pounds of molybdenum, at an annual cash cost of $1.60 to $1.75 per pound.
Construction of MVC's Phase Two expansion project is underway and is on track for completion in Q3-2018 with full production
expected in Q4-2018. The project will increase MVC's production to 85 to 90 million pounds of copper per year, at an estimated
cash cost of $1.40 to $1.60 per pound.
Summary of Production Results for the Most Recent Five Quarters:
Q3-2017
Q2-2017
Q1-2017
Q4-2016
Q3-2016
Fresh tailings
Tonnes processed
11,152,930
10,708,437
10,566,171
9,782,870
11,373,542
Copper grade
0.117%
0.110%
0.120%
0.116%
0.113%
Copper recovery
19.8%
20.8%
16.6%
18.4%
19.7%
Copper produced (millions of
pounds)
5.700
5.403
4.651
4.608
5.571
Historic tailings
Tonnes processed
5,176,546
5,503,942
5,813,239
4,935,260
5,435,474
Copper grade
0.235%
0.253%
0.254%
0.239%
0.236%
Copper recovery
33.0%
33.5%
29.4%
31.1%
34.4%
Copper produced (millions of
pounds)
9.787
10.289
9.594
8.065
9.756
Maricunga toll processing
Copper produced (millions of
pounds)
-
0.570
0.896
0.918
0.700
Total copper produced (millions of pounds)
15.487
16.262
15.141
13.591
16.027
Total copper delivered (millions of pounds)
15.251
16.197
15.175
13.417
15.599
Cash cost ($/pound copper)
1.69
1.53
1.71
1.87
1.60
Release of Financial Results for Q3-2017:
The Company will release Q3-2017 financial results at market open on Wednesday November 8, 2017, followed by an investor
conference call on Thursday November 9, 2017 at 11:00 am Pacific Daylight Time/2:00 pm Eastern Daylight Time.
Conference Call Participation:
To participate in the call, please dial 1-866-225-0198 (Toll-Free North America) and let the operator know you wish to
participate in the Amerigo Resources conference call. Media are invited to attend on a listen-only basis. Following
management's discussion of the quarterly results, the analyst and investment community will be invited to ask questions.
About the Company:
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 at its 100% owned Minera Valle
Central 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; Fax: (604) 682-2802; Web:
www.amerigoresources.com
; Listing: ARG:TSX.
For further information, please contact
:
Rob Henderson, President and CEO
(604) 697-6203
Aurora Davidson, Executive Vice-President and CFO
(604) 697-6207
Cautionary Note Regarding Forward-Looking Information
This news release contains certain forward-looking information and statements as defined in applicable securities laws
(collectively referred to as "forward-looking statements"). These statements relate 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. Although the Company believes that these assumptions were
reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which
are difficult or impossible to predict and are beyond the Company's control, the Company cannot assure that it will achieve or
accomplish the expectations, beliefs or projections described in the forward-looking statements. 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. These forward-looking statements include but are not limited to, statements
concerning:
a forecasted increase in production and a reduction in 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 and other commodities and of
materials we use in our operations;
the demand for and supply of copper 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 our expected ability to meet our obligations
for the next 12 months;
interest and other expenses;
domestic and foreign laws affecting our operations;
our tax position and the tax rates applicable to us;
the timing and costs of construction and tolling/production of, and the
issuance and maintenance of the necessary permits
and other authorizations
required for, our expansion projects, including the expansion for the
Cauquenes deposit and the
timing of ramp-up to full production from Cauquenes;
our ability to procure or have access to financing and 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
our planned capital expenditures (including our plan to upgrade our
existing plant and operations) including the timing and
cost of completion of
our capital projects;
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.
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 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, process upsets and equipment malfunctions; risks associated with labour disturbances and availability of skilled
labour and management; 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 availability of and our ability to obtain both tailings from Codelco's Division El
Teniente's current production and historic tailings from tailings deposit; risks with respect to completion of all phases of the
Cauquenes expansion, the ability of the Company to draw down funds from bank facilities and lines of credit, the availability of
and ability of the Company to obtain adequate funding on reasonable terms for expansions and acquisitions, including all
phases of the Cauquenes expansion; 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 associated with our dependence on third parties for the provision of critical services; risks associated with
non-performance by contractual counterparties; 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 not only to the Company
and its operations, but also to Codelco and its operations. Codelco'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
their operations and in turn have a material effect on the Company.
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 a number of assumptions which may prove to
be incorrect, including, but not limited to, assumptions about:
general business and economic conditions;
interest 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 and other commodities and
products used in our operations;
the ongoing supply of material for processing from Codelco's current
mining operations;
the ability of the Company to profitably extract and process material from
the Cauquenes tailings deposit;
the timing of the receipt of and retention of permits and other regulatory
and governmental approvals;
the availability of and ability of the Company to obtain adequate funding
on reasonable terms for expansions and
acquisitions, Including all phases of
the Cauquenes expansion;
the ability of the Company to draw down funds from bank facilities and
lines of credit;
our costs of production and our production and productivity levels, as
well as those of our competitors;
changes in credit market conditions and conditions in financial markets
generally;
our ability to procure equipment and operating supplies in sufficient
quantities and on a timely basis;
the availability of qualified employees and contractors for our
operations;
our ability to attract and retain skilled staff;
the satisfactory negotiation of collective agreements with unionized
employees;
the impact of changes in foreign exchange rates and capital repatriation
on our costs and results;
engineering and construction timetables and capital costs for our
expansion projects;
costs of closure of various operations;
market competition;
the accuracy of our preliminary economic assessment (including with
respect to size, grade and recoverability) and the
geological, operational and
price assumptions on which these are based;
tax benefits and tax rates;
the outcome of our copper concentrate sales and treatment and refining
charge negotiations;
the resolution of environmental and other proceedings or disputes;
the future supply of reasonably priced power;
our ability to obtain, comply with and renew permits and licenses in a
timely manner; and
our ongoing relations with our employees and entities with which we do
business.
Future production levels and cost estimates assume there are no adverse mining or other events which significantly affect
budgeted production levels.
We caution you that the foregoing list of important factors and assumptions is not exhaustive. Other events or circumstances
could cause our actual results to differ materially from those estimated or projected and expressed in, or implied by, our forward-
looking statements. Except as required by law, we undertake no obligation to update publicly or otherwise revise any forward-
looking statements or the foregoing list of factors, whether as a result of new information or future events or otherwise.