Amerigo’s 100% owned MVC operation in Chile produces copper (and molybdenum as a by-product) by processing fresh and historic tailings from Codelco’s El Teniente mine.
Amerigo is a historical copper producer (MVC has been producing copper concentrates since 1992) with a strategic relationship with Codelco, the world’s largest copper producer. MVC’s contractual rights to process fresh and historic tailings from El Teniente run to 2037.
Amerigo’s business model is built on US$300 million of investment since 2003 when Amerigo bought MVC. The operational objectives are to maximize production from fresh and historic tailings and manage costs to maximize margin. MVC has low sustaining capex requirements (US$6 million per year) and predictable EBITDA and cash flow.
Amerigo is a pure copper play producer, highly levered to the copper price, poised to meet an annual production target of 61 million pounds of copper in 2021, and expected to generate EBITDA of US$61 million at a copper price of US$4 per pound.
Amerigo has a robust ESG profile, producing copper which is the pillar of the emerging green economy, with operations driven to minimize environmental impact, foster a circular economy and reduce tailings footprints and environmental risk. Starting in 2020, all the electricity used at MVC is being supplied from renewable sources.