Innovative, Long Term Copper Producer in Chile
Amerigo’s 100% owned MVC operation in Chile has been producing copper concentrates since 1992 by processing fresh and historic tailings from Codelco’s El Teniente mine, the world’s largest underground copper mine. In 2019, MVC expects to produce 80 to 85 million pounds of copper at a cash cost of $1.30 to 1.45/lb Cu.
Amerigo has successfully completed the development of the historic high grade Cauquenes tailings deposit. This investment has enabled MVC to produce substantially more copper at lower cash cost to at least 2037. The Cauquenes Phase One project was completed in December 2015 and the Cauquenes Phase Two project was completed in December 2018. In exchange for the tailings rights granted to MVC, El Teniente is entitled to a royalty on the copper produced by MVC, determined through a sliding scale formula tied to the London Metal Exchange copper price.
Wood Mackenzie, a leading expert in copper markets, forecasts improving copper prices up to a peak of $3.90 per pound in 2021 and a long term copper price in the region of $3.30 per pound*.
*Source: Wood Mackenzie, December 2018, global copper long-term outlook Q4 2018.