Amerigo Announces Q4 2011 Production Results and Provides 2012 Production Guidance
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/27/12 -- Amerigo Resources Ltd. (TSX: ARG) ('Amerigo' or the 'Company') is pleased to announce production results for the fourth quarter of 2011 from Minera Valle Central ('MVC'), the Company's operations located near Rancagua, Chile. MVC produced 12.09 million pounds of copper and 195,729 pounds of molybdenum during the three months ended December 31, 2011, for a total of 43.7 million pounds of copper and 785,068 pounds of molybdenum for the full year.
Dr. Klaus Zeitler, Amerigo's President and CEO, stated, 'We are pleased to report that Q4-2011 copper production continued to increase from the prior two quarters which were adversely affected by strike action of workers for El Teniente's contractors, and that December copper production of 4.63 million pounds was the highest monthly amount for the year. Although molybdenum production of 195,729 pounds was lower than budget for the quarter, the 785,068 pounds produced in 2011 represented a new annual production record. As a result, we believe 2012 production should meet or exceed the Company's targets of 50 million pounds of copper and close to one million pounds of molybdenum.'
Key operating and sales metrics are shown below.
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Production Metrics: Q4-2010 Q1-2011 Q2-2011 Q3-2011 Q4-2011
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Copper Production (million lbs) 13.11 11.15 9.45 11.01 12.09
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Molybdenum Production (lbs) 244,912 212,125 190,917 186,297 195,729
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Ore milled (Tonnes 000's) 14,045 14,168 11,363 13,390 15,485
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Copper Grade (%) 0.150 0.146 0.148 0.148 0.154
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Copper Recovery (%) 28.24 24.36 25.43 25.26 22.92
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Molybdenum Grade in copper
concentrates (%) 0.70 0.72 0.78 0.69 0.69
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Molybdenum Recovery (%) 79.70 77.5 76.0 71.2 68.4
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Sales Metrics: Q4-2010 Q1-2011 Q2-2011 Q3-2011 Q4-2011
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Copper sales(1) (Million lbs) 13.07 10.88 9.32 10.80 12.42
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Copper price at end of period
($US/lb) 4.42 4.18 4.22 3.23 3.43
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Prior period copper sales
subject to final pricing
during period (Million lbs) _ 0.45 3.57 1.33 0.87
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Average final settlement price
for prior period copper sales
($US/lb) _ 4.4759 4.2897 4.362 3.3328
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Company's Recorded Copper Price
($US/lb)(2) 3.75 4.24 3.97 3.93 3.40
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Molybdenum sales (lbs) 222,533 185,404 195,006 148,940 164,059
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Molybdenum price at end of
period ($US/lb) 16.020 16.900 15.880 14.340 13.413
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Power Costs (per kwh) $0.1729 $0.1982 $0.2067 $0.1790 $0.1813
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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 periods' sales and after hedging. 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 Q4-2011 financial results at market open on Monday March 5, 2012 and will hold an investor conference call to discuss the results on Tuesday March 6, 2012 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: 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 dated March 31, 2008, and in each subsequent Management's Discussion and Analysis. 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
(604) 218-7013
Amerigo Resources Ltd.
(604) 697-6201
www.amerigoresources.com