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, 2025 (GLOBE NEWSWIRE) -- 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, 2025 ("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 $0.05, EBITDA1 of $17.8 million, operating cash flow from operations before changes in non-cash working capital1 of $11.9 million and free cash flow to equity1 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 cost1 and safety targets. Building upon those 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 equity1 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.

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, 2025, 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, 2025, 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.

 

 

 

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

 

 

 

 

 

 

 

 

 

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.

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.

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

 

 

Summary Consolidated Statements of Financial Position

 

 

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