Effective 2015 and up to 2022, MVC’s production of copper concentrates is being conducted under a tolling agreement with Codelco’s Division El Teniente (DET). Under the agreement, title to the copper concentrates produced by MVC remains with DET and MVC earns tolling revenue, calculated as gross revenue for copper produced at applicable market prices, net of notional items (treatment and refining charges, DET notional royalties and transportation costs).
MVC also has an agreement with Chile’s Minera Maricunga under which MVC purchases Maricunga copper concentrate, dries the material and delivers the blended concentrates through its tolling contract with DET.
As a result of the tolling agreement, Amerigo was required to make changes in the reporting of revenue and costs in its financial statements as of 2015. Revenue is now reported net of notional DET royalties and transportation costs, which were reported as production costs prior to 2015. The changes affect the comparability of revenue and production costs to periods prior to 2015, reducing both revenue and costs, but with no effect on gross margin.
|Years ended December 31,|
|Financial Results (US$ M)|
|Gross profit (loss)||(0.62)||(13.03)||6.58||6.04|
|Net profit (loss)||(7.53)||(16.93)||(10.70)||0.99|
|Operations cash flow||19.41||(26.46)||18.09||19.52|
|Investment cash flow||(8.34)||(54.08)||(11.74)||(13.39)|
|Financing cash flow||(4.66)||72.9||0.26||(1.50)|
|Financial Position (US$ M)|
|Cash and cash equivalents||15.92||9.03||18.31||13.15|