Amerigo Reports Strong Q2-2026 Operational Results Q2-2026 copper production of 16.9 million pounds; H1-2026 production represents 49% of annual guidance H1-2026 normalized cash cost 1 of $1.70/lb tracking significantly below annual guidance
Amerigo Reports Strong Q2-2026 Operational
Results
Q2-2026 copper production of 16.9 million pounds; H1-2026 production represents 49%
of annual guidance
H1-2026 normalized cash cost
1
of $1.70/lb tracking significantly below annual guidance
of $1.98/lb
$41.7 million returned to shareholders year-to-date under Amerigo's Capital Return
Strategy
Vancouver, British Columbia--(Newsfile Corp. - July 13, 2026) -
Amerigo Resources Ltd. (TSX: ARG)
(OTCQX: ARREF)
("Amerigo" or the "Company") is pleased to announce operational results for the
quarter ended June 30, 2026 ("Q2-2026") from Minera Valle Central ("MVC"), the Company's 100%-
owned operation located near Rancagua, Chile.
Dollar amounts in this news release are in U.S. dollars
("USD") unless indicated otherwise.
"MVC delivered another strong quarter, producing 16.9 million pounds of copper with 99% plant
availability. First-half production and normalized cash costs
1
are tracking ahead of guidance, reflecting
excellent operational execution and strong molybdenum by-product credits. These results position us for
strong full-year 2026 performance," said Aurora Davidson, Amerigo's President and CEO.
"Our business continues to demonstrate the advantages of Amerigo's model: stable production, low
sustaining capital requirements and strong cash generation. Those characteristics and a debt-free
balance sheet allow us to return significant excess cash to shareholders while maintaining financial
strength and flexibility. The record Cdn$0.18 performance dividend declared on July 6, 2026, is an
excellent example of the direct outcome of that approach," Ms. Davidson added.
In Q2-2026, MVC produced 16.9 million pounds ("M lbs") of copper and 0.4 M lbs of molybdenum. This
was achieved by excellent operational execution, 99.0% plant availability and a clean workplace safety
record.
Copper production for the first half of 2026 ("H1-2026") was 31.2 M lbs, outpacing the Company's
internal first-half production target. Production achieved in H1-2026 represents 49% of Amerigo's 2026
copper production guidance of 63.8 M lbs. H1-2026 molybdenum production of 0.7 M lbs is also in line
with Amerigo's annual production guidance of 1.5 M lbs. Amerigo performed its annual maintenance
shutdown in Q1-2026, and the associated production impact is reflected in the H1-2026 production
results and the annual guidance.
In Q2-2026, cash cost
1
was $1.74 per pound ("/lb"), and normalized cash cost
1
was $1.60/lb.
Normalized cash cost
1
excludes the signing bonus associated with a 3-year collective labour agreement
with MVC's supervisors' union, paid in Q2-2026. The collective agreement with the supervisors will cover
the term from January 8, 2027 to January 8, 2030.
H1-2026 cash cost
1
was $1.78/lb and normalized cash cost
1
was $1.70/lb, compared to Amerigo's
normalized cash cost
1
guidance of $1.98/lb. Outperformance over guidance was positively influenced by
strong molybdenum by-product credits, which benefited from rising molybdenum prices in Q2-2026.
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The Company's average molybdenum price in Q2-2026 was $29.15/lb, up from $25.58/lb in Q1-2026.
Provisional Pricing for Q2-2026 Copper Deliveries
Amerigo's copper deliveries are priced for sale on an "M+3", or three-month, basis. This contractual
arrangement creates three pricing steps:
First, monthly deliveries are priced on a provisional basis using the average LME copper price for that
month.
These monthly deliveries are then marked-to-market on a provisional basis at the end of each
reporting period.
Ultimately, each monthly delivery is settled at a final price based on the LME average
copper price for the third month following delivery.
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Final Pricing in Q2-2026 for Q1-2026 Copper Deliveries
During Q2-2026, all final price settlements for MVC's Q1-2026 copper deliveries were positive (final
prices exceeded provisional prices). Q1-2026 copper deliveries were 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.
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Capital Return Strategy ("CRS")
Amerigo's low sustaining capital requirements allow a significant portion of operating cash flow to be
directed to shareholder returns while preserving balance sheet strength.
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. H1-2026
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.
As of June 30, 2026, Amerigo's cash position was $50.3 million. On July 6, 2026, Amerigo declared a
performance dividend of Cdn$0.18 per share, representing approximately $20.5 million, payable on
August 6, 2026, to shareholders of record as of July 13, 2026.
Since implementing its CRS in October 2021, Amerigo has returned $140.2 million to shareholders
through dividends and share buybacks while reducing shares outstanding by 15.1% and maintaining a
strong financial position.
Amerigo's CRS consists of three mechanisms: quarterly dividends, performance dividends, and share
buybacks. These mechanisms provide shareholders with a consistent return on invested capital and
enable the rapid transfer of the benefits of rising copper prices to Amerigo's shareholders.
The performance dividend declared on July 6, 2026, is the largest in the Company's history and brings
total performance dividends declared year-to-date to Cdn$0.34 per share. The declaration reflects both
the strength of Amerigo's operating performance and the Board's continued commitment to distributing
excess cash under the CRS framework.
Release of Q2-2026 financial results on July 29, 2026
Amerigo will release its Q2-2026 financial results at the market open on Wednesday, July 29, 2026.
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 Virtua's Interactive Analyst Center ("IAC"). You can access the IAC by visiting
www.amerigoresources.com
and selecting Investors > Interactive Analyst Center.
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
President and CEO
(604) 697-6207
Graham Farrell
Investor Relations
(416) 842-9003
1
Non-IFRS Measures
This news release references cash cost and normalized cash cost, which are non-IFRS measures.
Non-IFRS performance measures are included in Amerigo's news releases 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.
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.
The Company reconciles performance measures against IFRS measures every quarter when financial
results are reported. Reconciliations are included in the Company's quarterly earnings release and
Management's Discussion and Analysis.
Cautionary Note 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 of 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;
the ongoing supply of material for processing from Codelco's current mining operations at the El
Teniente mine, including the ramp-up of El Teniente's operations under the Safe and Progressive
Restart of Operations plan following the tunnel collapse at the El Teniente mine in July 2025;
the grade and projected recoveries of tailings processed by MVC;
the ability of the Company to profitably extract and process material from the historic tailings
deposit;
the timing of the receipt and retention of permits and other regulatory and governmental approvals;
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;
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;
rainfall in the vicinity of MVC continuing to trend towards normal levels;
average recoveries for fresh and historic tailings;
our ability to obtain, comply with and renew permits and licenses in a timely manner; and
our ongoing relations with our employees and entities we do business with.
Future production levels and cost estimates assume no additional adverse mining or other events
affecting budgeted production levels.
Climate change is a global issue that could pose challenges that could affect the Company's future
operations. This could include more frequent and more intense droughts, followed by heavy rainfall.
Central Chile has experienced both drought and significant rain in recent years. The Company's
operations are sensitive to water availability and the reserves required to process projected historic
tailings tonnage.
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.
The preceding list of important factors and assumptions is not exhaustive. Other events or circumstances
could cause our results to differ materially from those estimated, projected, and expressed in or implied
by our forward-looking statements. You should also consider the matters discussed under
the Risk
Factors section in the Company's
Annual Information Form. The forward-looking statements contained
herein speak only as of the date of this news release. Except as required by law, we undertake no
obligation to revise any forward-looking statements or the preceding list of factors, whether due to
publicly available information or otherwise, in light of new information or future events.
Future-oriented financial information ("FOFI") or financial outlooks included in this news release are
based on the assumptions set out in the Company's 2026 Budget, which was prepared in accordance
with the Company's accounting policies. FOFI has been included in this news release to provide context
to the Company's 2026 guidance and may not be appropriate for other purposes.
1
This is a non-IFRS measure. See “Non-IFRS Measures” for further information.
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