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Amerigo Reports 2nd Quarter Operating Profit of US$618,198 for first 2 months of MVC Ownership
10.14.2003
AMERIGO RESOURCES LTD. (Vancouver, British Columbia) reported its second quarter results today. Highlights are as follows:
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Net Earnings after tax for the second quarter were US$537,313 up from a loss of US$45,384 in the previous corresponding quarter.
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Amerigo acquired the Chilean MVC copper property on July 3, 2003. As Amerigo has a February year end, the second quarter is the period June 1 to August 31, 2003. Accordingly this report includes only 2 months of Operating results from MVC
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Amerigo produced and sold 4.72 million pounds of Copper in the months of July and August, for a cash cost of 58.7c per pound, and a total cost of 61.7c per pound.
The average copper price received in July was 77c per pound, and for August 78.5c per pound. -
Copper production for July and August represent an annualized rate of approximately 13,000 tonnes, up 18% on production rates prior to Amerigo’s acquisition.
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Operating cashflow from MVC for the 2 months reported in the quarter was US$768,556.
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Earnings per share were US1.25c (Canadian 1.67c) for essentially 2 months of operations.
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US Dollar Reporting - due to the change in the Amerigo asset base, all future financial reports will be expressed in US dollars.
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Production expansion plans remain on track to achieve an annualized production rate of approximately 15,000 tonnes of refined copper, up from 11,000 tonnes or a 36% increase.
The additional classification and flotation equipment has been ordered and is expected to be fully commissioned by January 2004, at a cost of US$1.5million, significantly below the original budget of US$ 3.0million. -
Further production increases-Preliminary planning is well underway for Stage 2 of the expansion which will increase annual copper production to approximately 20,000 tonnes in 2005. Both stages of expansion positions Amerigo well to take advantage of expected increases in the Copper price due to strong demand from China and improving economies in other parts of Asia, the US, and Europe.
This production increase will be generated from increased production from the Colihues tailings project from the present 2000 tonnes of plant feed per day trial operation to a fully commercial rate of 10,000 tonnes per day.
Further studies are planned for 2004 to examine the potential to increase production from Colihues beyond this rate.
Complete financial statements may be found with the Company’s filings on SEDAR.
Amerigo Resources Ltd. is a Canadian junior copper production company currently producing approximately 13,000 tonnes of copper per annum from its MVC operations near Santiago, Chile. Amerigo is also exploring for Olympic Dam style copper-gold deposits on four properties in the Sault Ste. Marie area of Ontario, Canada. Tel: (604) 681-2802; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX-V
For further information, please contact:
Jeffrey Giesbrecht, Secretary (604) 697-6201
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Click here to view Consolidated Financial Statements