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Amerigo posts profit despite lower production, sales, tags

Keywords: Tags  Amerigo Resources, copper, molybdenum, earnings report, Colihues, Klaus Zeitler, Daniel Fitzgerald

NEW YORK — Amerigo Resources Ltd.’s revenue fell in the third quarter due to lower copper and molybdenum sales volumes as well as lower average metal prices.

The Vancouver, British Columbia-based company posted net income of $1.04 million for the three months ended Sept. 30 in contrast to a net loss of $4.19 million in the same period last year despite a 27.8-percent decline in revenue to $31.95 million.

The company’s copper selling price before smelting, refining and other charges averaged $3.19 per pound in the third quarter, down 9.4 percent from $3.52 a year earlier, while the average selling price for molybdenum slid 19.2 percent to $9.41 per pound from $11.64 in the same comparison.

Amerigo produced 11.04 million pounds of copper in the third quarter, down 13.1 percent from 12.7 million pounds a year ago, while molybdenum production of 193,138 pounds was down 40 percent from 321,788 pounds.

A slide at the company’s Colihues Mine in Chile in April impacted the company’s production volumes in the second and third quarters (, Aug. 7).

"Despite ongoing production challenges resulting from the Colihues pit slide in the second quarter and lower copper prices in the quarter, the company’s financial position continued to improve with $4.9 million in cash flow and an increase in the company’s cash balance to $5.4 million at quarter-end," Amerigo chairman and chief executive officer Klaus Zeitler said in a statement. "We expect improved results in the fourth quarter, and our outlook for full-year 2013 production is 45 million pounds of copper." The company also forecast full-year molybdenum production of 800,000 pounds.

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