VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 08/03/12 — Amerigo Resources Ltd. (TSX: ARG) –
– Q2-2012 Revenues of $40 million and Operating Cash Flow of $3.82 million
– Net Loss of $1 million
– Semi-annual dividend of Cdn$0.02/share paid during the quarter
Amerigo Resources Ltd. („Amerigo“ or the „Company“) reported today results for the quarter ended June 30, 2012 („Q2-2012“).
Dr. Klaus Zeitler, Amerigo-s President and CEO, stated: „MVC continues to show excellent production results. Both copper and molybdenum production in Q2-2012 set new Q2 production records, and the Company remains on course to meet or exceed 2012 production guidance of 50 million pounds of copper. Extremely difficult mining conditions in Colihues resulted in higher extraction costs and lower metal recoveries, both of which adversely affected financial results for the quarter. In addition, net profit was reduced by approximately $1 million due to a non- cash, onetime accounting driven change in labour costs. During the second half of the year we expect mining conditions to improve and believe that power costs will be lower for the rest of the year and even lower in 2013, which will be positive for Amerigo-s bottom line.“
Dr. Zeitler added: „In June 2012 we substantially completed a plant expansion that has represented cash outlays of $29M in the most recent 12-month period and led to a sizable reduction in the Company-s cash balance at the end of the quarter. However, these expenditures include those made in preparation for a significant expansion of production in the next few years, which we believe will beneficially affect Amerigo-s growth path and financial results going forward. Our investment cash flow commitments in the remaining quarters of 2012 will be substantially lower than in the most recent quarter.“
In Q2-2012 the Company:
Financial results
Production
Revenue
Costs
Cash and Financing Activities
Investments
Outlook
The information in this news release and the Selected Financial Information contained in the following page should be read in conjunction with the Unaudited Condensed Consolidated Interim Financial Statements and Management-s Discussion and Analysis for the quarter ended June 30, 2012 and the Audited Consolidated Financial Statements and Management-s Discussion and Analysis for the year ended December 31, 2011, which will be available at the Company-s website at and at .
Amerigo Resources Ltd. is a Canadian junior company producing copper and molybdenum from its MVC operations near Santiago, Chile. Tel: (604) 681-2802; Fax: (604) 682-2802; Web: Listing: ARG:TSX
Statements contained in this news release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company-s filings with the TSX and on SEDAR. Forward-looking statements are based on the beliefs, estimates and opinions of the Company-s management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements if management-s beliefs, estimates or opinions, or other factors, should change.
AMERIGO RESOURCES LTD.
SELECTED FINANCIAL INFORMATION
QUARTERS ENDED JUNE 30, 2012 AND 2011
All figures expressed in US Dollars and presented under IFRS
The Toronto Stock Exchange has not reviewed nor accepted responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.
Contacts: Amerigo Resources Ltd. Dr. Klaus Zeitler President and CEO (604) 218-7013
Amerigo Resources Ltd. (604) 697-6201
