Amerigo Announces Q1-2013 Copper Production Results
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/15/13 -- Amerigo Resources Ltd. (TSX: ARG) ("Amerigo" or the "Company") is pleased to announce production results for the first quarter of 2013 from Minera Valle Central ("MVC"), the Company's operations located near Rancagua, Chile. MVC produced 12.834 million pounds of copper and 0.258 million pounds of molybdenum during the three months ended March 31, 2013.
Dr. Klaus Zeitler, Amerigo's President and CEO, stated, "We are pleased to report excellent Q1-2013 production results from MVC. Although copper production during the quarter was lower than the record production of Q1-2012, molybdenum production was 19% higher and the Company is on track to meet or exceed announced 2013 guidance of 45-50 million pounds of copper and one million pounds of molybdenum. Power costs for the quarter were $0.097 per kwh or less than one-half of the Q1-2012 level, and we expect these lower costs to continue to positively affect the Company's financial results through to December 31, 2017, the end of the term of the Company's current power contract."
Rob Henderson, Amerigo's Chief Operating Officer, added, "MVC is continuing to increase the extraction rates at Colihues and, as previously announced, the lower grades experienced in Q1-2013 are anticipated to improve in Q3-2013 as the extraction zone extends deeper into the deposit."
Key operating and sales metrics are shown below.
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Production Metrics: Q1-2013 Q4-2012 Q3-2012 Q2-2012 Q1-2012
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Copper Production
(million lbs) 12.834 13.561 12.701 11.570 13.877
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Molybdenum Production (million
lbs) 0.258 0.291 0.322 0.229 0.216
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Ore milled (Tonnes 000's) 13,502 14,727 14,139 13,631 13,617
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Copper Grade (%) 0.160 0.155 0.149 0.156 0.168
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Copper Recovery (%) 27.0 27.0 27.3 24.7 27.5
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Power Costs (per kwh) $0.097 $0.185 $0.166 $0.195 $0.215
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Sales Metrics: Q1-2013 Q1-2012 Q4-2011 Q3-2011 Q2-2011
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Copper Sales(1) (Million lbs) 12.482 13.712 13.024 10.762 14.080
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Company's Recorded Copper
Price ($US/lb)(2) 3.52 3.52 3.52 3.74 3.55
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Molybdenum Sales (million lbs) 0.241 0.286 0.338 0.243 0.304
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Company's Recorded Molybdenum
Price ($US/lb) 11.34 11.08 11.64 14.02 14.10
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(1) Copper sales per the Company's records, which may differ from copper
sales per the smelter. All differences between Company and smelter
records for a quarter will be recorded as settlement adjustments in
subsequent quarters until settled.
(2) Copper price recorded for the Company's financial statements for the
quarter before smelter and refinery charges and settlement adjustments
to prior quarters' sales. The Company calculates this number by
dividing quarterly dollar sales as recorded in its financial statements
(calculated based on copper deliveries per the smelter) over quarterly
copper sales per the Company's own records.
The Company will also release Q1-2013 financial results at market open on Thursday May 9, 2013 and will hold an investor conference call to discuss the results on Friday May 10, 2013 at 11:00 am Pacific Daylight Time/2:00 pm Eastern Daylight Time.
To participate in the call, please dial the following number:
1-866-226-1792 (Toll-Free North America)
Please 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.
Amerigo Resources Ltd. produces copper and molybdenum under a long term partnership with the world's largest copper producer, Codelco, by means of processing fresh and old tailings from the world's largest underground copper mine, El Teniente near Santiago, Chile. Tel: (604) 681-2802; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX
Certain of the information and statements contained herein that are not historical facts, constitute "forward-looking information" within the meaning of the Securities Act (British Columbia), Securities Act (Ontario) and the Securities Act (Alberta) ("Forward-Looking Information"). Forward-Looking Information is often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend"; statements that an event or result is "due" on or "may", "will", "should", "could", or might" occur or be achieved; and, other similar expressions. More specifically, Forward-Looking Information contained herein includes, without limitation, information concerning future tailings production volumes and the Company's copper and molybdenum production, all of which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such Forward-Looking Information; including, without limitation, material factors and assumptions relating to, and risks and uncertainties associated with, the supply of tailings from El Teniente and extraction of tailings from the Colihues tailings impoundment, the achievement and maintenance of planned production rates, the evolving legal and political policies of Chile, the volatility in the Chilean economy, military unrest or terrorist actions, metal price fluctuations, favourable governmental relations, the availability of financing for activities when required and on acceptable terms, the estimation of mineral resources and reserves, current and future environmental and regulatory requirements, the availability and timely receipt of permits, approvals and licenses, industrial or environmental accidents, equipment breakdowns, availability of and competition for future mineral acquisition opportunities, availability and cost of insurance, labour disputes, land claims, the inherent uncertainty of production and cost estimates, currency fluctuations, expectations and beliefs of management and other risks and uncertainties, including those described under Risk Factors in the Company's Annual Information Form and in Management's Discussion and Analysis in the Company's financial statements.
Such Forward-Looking Information is based upon the Company's assumptions regarding global and Chilean economic, political and market conditions and the price of metals, including copper and molybdenum, and future tailings production volumes and the Company's copper and molybdenum production. Among the factors that have a direct bearing on the Company's future results of operations and financial conditions are changes in project parameters as plans continue to be refined, interruptions in the supply of fresh tailings from El Teniente, further delays in the extraction of tailings from the Colihues tailings impoundment, a change in government policies, competition, currency fluctuations and restrictions and technological changes, among other things. Should one or more of any of the aforementioned risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the Forward-Looking Information. Accordingly, readers are advised not to place undue reliance on Forward-Looking Information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise Forward-Looking Information, whether as a result of new information, future events or otherwise.
Contacts:
Amerigo Resources Ltd.
Dr. Klaus Zeitler
President and CEO
(604) 218-7013
Amerigo Resources Ltd.
(604) 697-6201
www.amerigoresources.com