Press release from Marketwire
Amerigo Announces Q3-2013 Production Results
Tuesday, October 15, 2013
Amerigo Announces Q3-2013 Production Results08:00 EDT Tuesday, October 15, 2013
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 15, 2013) - Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or the "Company") is pleased to announce production results for the third quarter of 2013 from Minera Valle Central ("MVC"), the Company's operations located near Rancagua, Chile. MVC produced 11.035 million pounds of copper and 0.193 million pounds of molybdenum during the three months ended September 30, 2013.
Dr. Klaus Zeitler, Amerigo's Chairman and CEO, stated, "Q3-2013 copper production was 16% higher than Q2-2013, and is expected to show continued improvement in Q4-2013. Discussions are ongoing with respect to both the finalization of the formal agreement and the debt financing for the Cauquenes expansion project."
Rob Henderson, Amerigo's President and Chief Operating Officer, added, "With MVC's improved operational performance and strong focus on efficiency and cost reduction, our production outlook for the year remains at the lower end of 45-50 million pounds of copper. We are continuing to optimize the Cauquenes feasibility study and we believe that we will receive the environmental approvals for Cauquenes within the next three months."
Key operating and sales metrics are shown below.
|Copper Production (million lbs)||11.035||9.550||12.834||13.561||12.701|
|Molybdenum Production (million lbs)||0.193||0.176||0.258||0.291||0.322|
|Ore milled (Tonnes 000's)||14,604||13,464||13,502||14,727||14,139|
|Copper Grade (%)||0.159||0.158||0.160||0.155||0.149|
|Copper Recovery (%)||21.5||20.3||27.0||27.0||27.3|
|Power Costs (per kwh)||$0.080||$0.086||$0.097||$0.185||$0.166|
|Copper Sales1 (Million lbs)||10.856||9.437||12.482||13.712||13.024|
|Company's Recorded Copper Price ($US/lb)2||3.19||3.40||3.52||3.52||3.52|
|Molybdenum Sales (million lbs)||0.205||0.178||0.241||0.286||0.338|
|Company's Recorded Molybdenum Price ($US/lb)||9.41||11.00||11.34||11.08||11.64|
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 release Q3-2013 financial results at market open on Friday November 8, 2013 and will hold an investor conference call to discuss the results on Tuesday November 12, 2013 at 11:00 am Pacific Standard Time/2:00 pm Eastern Standard 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: TSX:ARG.
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, 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Amerigo Resources Ltd.
Dr. Klaus Zeitler
Chairman and CEO
Amerigo Resources Ltd.