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1. Company Snapshot

1.a. Company Description

Amerigo Resources Ltd., through its subsidiary, Minera Valle Central S.A., produces and sells copper and molybdenum concentrates from Codelco's El Teniente underground mine in Chile.The company was formerly known as Golden Temple Mining Corp.and changed its name to Amerigo Resources Ltd.


in March 2002.Amerigo Resources Ltd.was incorporated in 1984 and is headquartered in Vancouver, Canada.

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1.b. Last Insights on ARG

Amerigo Resources Ltd.'s recent performance was driven by strong cash flow generation, with $27.8 million in free cash flow to equity and $68.8 million in annual EBITDA. The company's 2024 net income of $19.2 million and 14th quarterly dividend of $0.03 demonstrate its ability to return value to shareholders. Additionally, Amerigo's 2025 guidance, including a debt-free status by year-end, suggests a positive outlook for the company. The declaration of a $0.03 dividend and return of $21.2 million to shareholders in 2024 further support this sentiment.

1.c. Company Highlights

2. Amerigo Resources Posts Strong Q3 2025 Earnings Amidst Copper Market Volatility

Aurora Davidson, President and CEO of Amerigo Resources, reported that the company generated total revenue of $52.5 million in Q3 2025, driven by stable copper prices and strong moly contributions. Net income was $6.7 million, with earnings per share of $0.04. The company's gross profit was $13 million, a $5.6 million increase from Q3 2024. The actual EPS came out at $0.05653, below estimates of $0.08357. Amerigo's cash cost per pound decreased to $1.80 in Q3 2025 from $1.93 in Q3 2024, indicating improved operational efficiency.

Publication Date: Nov -29

📋 Highlights
  • Operational Resilience:: Production recovered in September after a 31% decline in August due to an accident at El Teniente, with plant availability maintained at 98%.
  • Strong Financial Performance:: Q3 revenue reached $52.5M, driven by stable copper prices ($3.85/lb) and molybdenum contributions, with net income of $6.7M and EPS of $0.04.
  • Debt Repayment Milestone:: $7.5M debt was fully repaid by MVC on October 27, 2025, ending a 10-year transformation period.
  • Copper Market Outlook:: Forecasted 2025 supply deficit of 300,000–500,000 tonnes is expected to push prices higher, with geopolitical factors impacting guidance from major producers.
  • Capital Return Strategy:: Shareholder returns totaled $93.7M over four years, including a 33% dividend increase to CAD 0.04/share, with 50% of freed-up cash allocated to dividends and buybacks.

Operational Highlights

Despite a tragic accident at El Teniente on July 31, which impacted production in August, MVC adjusted its operations to reduce the impact of lower fresh tailings throughput, maintaining high plant availability of 98% and operating without lost time accidents or environmental incidents. The company's ability to recover production in September demonstrates its resilience in the face of challenges.

Copper Market Outlook

Aurora highlighted long-term themes of surging demand and supply constraints in the copper market, with a forecasted copper supply deficit of 300,000 to 500,000 tonnes this year. Geopolitical interference in the marketplace is also a significant factor, with companies such as Antofagasta Minerals and Teck downgrading their 2026 copper guidance. Chile's upcoming general elections may also impact the copper market.

Valuation and Dividend

With a P/E Ratio of 22.55 and a Dividend Yield of 4.24%, Amerigo's shares appear to be reasonably valued. The company's decision to increase the quarterly dividend to CAD 0.04 per share, a 33% increase, demonstrates its commitment to returning value to shareholders. The company's ROE of 19.03% and ROIC of 14.28% indicate strong profitability.

Future Plans

Amerigo plans to allocate 50% of its new cash flow to an increased dividend, with the remaining 50% to be used for other purposes, including performance dividends and buybacks. The company's debt repayment of $7.5 million marks the conclusion of a 10-year period of transformation for Amerigo. Analysts estimate next year's revenue growth at 3.5%, indicating a stable outlook for the company.

3. NewsRoom

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Amerigo’s Minera Valle Central (MVC) Receives Prestigious 2025 Circular Awards in Chile

Dec -02

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Amerigo Resources Renewing Normal Course Issuer Bid

Nov -28

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Amerigo Renews Normal Course Issuer Bid (“NCIB”)

Nov -28

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TSX Penny Stock Gems: Happy Belly Food Group Among 3 Exciting Picks

Nov -27

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Is Amerigo Resources Ltd.'s (TSE:ARG) Recent Stock Performance Influenced By Its Fundamentals In Any Way?

Nov -27

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Amerigo Resources Ltd (ARREF) Q3 2025 Earnings Call Highlights: Strong Financial Performance ...

Nov -05

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Amerigo Resources (TSX:ARG) Margin Compression Reinforces Concerns Over Slower Growth, Discounted Valuation

Oct -31

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TSX Penny Stocks Under CA$500M Market Cap To Watch

Oct -29

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.75%)

6. Segments

Copper

Expected Growth: 12%

Amerigo Resources' 12% growth in copper production is driven by increased mining rates at its flagship operation, MVC, and higher copper prices. Additionally, the company's focus on cost reduction and operational efficiencies has contributed to improved margins. Strong demand from the renewable energy and electric vehicle sectors also supports copper prices, further boosting Amerigo's growth.

Molybdenum

Expected Growth: 10%

Amerigo Resources' 10% growth in Molybdenum is driven by increasing demand from the steel industry, particularly in China, coupled with supply constraints due to mine closures and production disruptions. Additionally, the company's efficient operations and cost management strategies have enabled it to capitalize on higher prices, further boosting growth.

7. Detailed Products

Copper

A highly conductive and malleable metal used in various industrial applications, including electrical wiring, plumbing, and architecture.

Molybdenum

A hard, silver-white, chemically active metal used in high-temperature and high-stress applications.

Gold

A highly valued, corrosion-resistant, and ductile metal used in jewelry, coins, and electronics.

Silver

A highly conductive, malleable, and corrosion-resistant metal used in electronics, solar panels, and medicine.

8. Amerigo Resources Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Amerigo Resources Ltd. faces moderate threat from substitutes due to the availability of alternative copper sources and recycling technologies.

Bargaining Power Of Customers

Amerigo Resources Ltd. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Amerigo Resources Ltd. relies on a few key suppliers for critical inputs, giving them some bargaining power, but the company's size and diversification mitigate this risk.

Threat Of New Entrants

The copper mining industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to challenge Amerigo Resources Ltd.'s position.

Intensity Of Rivalry

The copper mining industry is highly competitive, with many established players, leading to intense rivalry and pricing pressure on Amerigo Resources Ltd.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 16.50%
Debt Cost 20.21%
Equity Weight 83.50%
Equity Cost 20.21%
WACC 20.21%
Leverage 19.75%

11. Quality Control: Amerigo Resources Ltd. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Westlake Chemical Partners

A-Score: 7.3/10

Value: 9.2

Growth: 3.1

Quality: 7.5

Yield: 10.0

Momentum: 4.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Amerigo Resources

A-Score: 6.6/10

Value: 5.3

Growth: 6.4

Quality: 5.9

Yield: 9.0

Momentum: 8.0

Volatility: 5.0

1-Year Total Return ->

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Imperial Metals

A-Score: 6.2/10

Value: 7.0

Growth: 9.0

Quality: 7.4

Yield: 0.0

Momentum: 10.0

Volatility: 3.7

1-Year Total Return ->

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Stelco Holdings

A-Score: 4.5/10

Value: 3.8

Growth: 6.1

Quality: 5.8

Yield: 5.0

Momentum: 5.0

Volatility: 1.0

1-Year Total Return ->

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Taseko Mines

A-Score: 4.0/10

Value: 4.3

Growth: 5.8

Quality: 2.1

Yield: 0.0

Momentum: 9.0

Volatility: 3.0

1-Year Total Return ->

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Ero Copper

A-Score: 3.9/10

Value: 5.1

Growth: 3.4

Quality: 6.0

Yield: 0.0

Momentum: 5.0

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.88$

Current Price

3.88$

Potential

-0.00%

Expected Cash-Flows