VANCOUVER, BRITISH COLUMBIA — (Marketwired) — 11/08/13 — Amerigo Resources Ltd. (TSX: ARG) („Amerigo“ or the „Company“) reported today results for the quarter ended September 30, 2013.
Amerigo-s Chairman and CEO, Dr. Klaus Zeitler, stated „Despite ongoing production challenges resulting from the Colihues pit slide in Q2 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. We expect improved results in Q4, and our outlook for full year 2013 production is 45 million pounds of copper. We are also pleased to report that due diligence is proceeding with BBVA relating to the financing for the Cauquenes expansion project, and that we are continuing to work on the finalization of the Cauquenes formal agreement.“
Rob Henderson, President and COO, added, „The cost control measures initiated this year are having a positive impact on operating results, with Q3 cash costs at $1.93/lb which are 25% lower than the 2012 Q3 cash costs. Total capex for 2013, including the Cauquenes expansion, is anticipated to be $11 million which is less than half of the capex incurred in 2012.“
(1) Includes El Teniente royalty costs
(2, 3) Cash cost and total cost per pound are non-GAAP measures . Please refer to the September 30, 2013 Company-s MD&A for a reconciliation of these measures to GAAP
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 three and nine months ended September 30, 2013 and the Audited Consolidated Financial Statements and Management-s Discussion and Analysis for the year ended December 31, 2012, which will be available at the Company-s website at and at .
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: 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, 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 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.
AMERIGO RESOURCES LTD. SELECTED FINANCIAL INFORMATION
QUARTERS ENDED SEPTEMBER, 2013 AND 2012
All figures expressed in US Dollars and presented under IFRS
Contacts: Amerigo Resources Ltd. Dr. Klaus Zeitler Chairman & CEO (604) 218-7013 or (604) 697-6201
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