Amerigo Resources Ltd. Q3 - 2005 earnings increase 40% to US$6.5 million
November 1, 2005
Cash costs fall to US 22 cents per pound from US 60 cents per pound after by-product credits
Dividend of Cdn 4.5 cents per share declared
Moly production up 48%
Significant Events for the Quarter Ended September 30, 2005
VANCOUVER, BRITISH COLUMBIA -- Nov. 1 /CNW/ - Amerigo Resources Ltd. (TSX:ARG) reported results today for the nine-month period ended September 30, 2005. Significant events are as follows:
Net earnings after tax for the quarter ended September 30, 2005 were US$6,503,415, compared to earnings of US$4,635,764 in the immediately preceding quarter. Earnings were higher due to strong molybdenum by-product credits and higher copper prices. Income tax expense in Q3-2005 was $2.4M, of which $700,000 is comprised of income tax provision adjustments for Q1-2005 and Q2- 2005 earnings. Without the tax adjustments, net earnings after tax would have been US$7.2 million. Quarterly basic earnings per share were US$0.08.
Earnings for the nine months ended September 30, 2005 were US$12,783,901, or US$0.17 per share, non-diluted.
Dividend of Cdn 4.5 cents per share declared, consistent with the dividend policy announced on August 5, 2005.
Copper produced in Q3-2005 was 7.59 million pounds, compared to 7.07 million pounds in the preceding quarter, totalling 22.16 million pounds of copper year to date. Copper production is expected to increase further in the fourth quarter.
Molybdenum production in the first full quarter of production was 230,167 pounds, an increase of 48% over the previous quarter. Moly YTD production was 385,893 pounds.
Cash costs before El Teniente royalty continued to decrease significantly to US$0.22/lb in Q3-2005 compared to US$0.60/lb in the preceding quarter and US$0.73/lb in Q3-2004, primarily due to molybdenum by-product credits.
Total costs after royalty, depreciation and accretion were also lower at US$0.57/lb in Q3-2005 compared to US$0.90/lb in the preceding quarter and US$0.92/lb in Q3-2004.
Cash balance was US$12.2M at September 30, 2005 after capital expenditures of US$8.2M in Q3-2005 for copper plant expansion.
The information in this news release and the Selected Financial Information contained in the following page should be read in conjunction with the Consolidated Financial Statements and Management Discussion and Analysis for the quarter ended September 30, 2005, available at the Company’s website at www.amerigoresources.com and at www.sedar.com
Amerigo Resources Ltd. is a Canadian copper and molybdenum producing company forecasting 15,000 tonnes of copper production and 600,000 pounds of molybdenum in 2005 from its MVC operations near Santiago, Chile. Tel: (604) 681-2802; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX
For further information, please contact:
Michael J. Kuta, General Counsel & Secretary
Amerigo Resources Ltd.
The Toronto Stock Exchange has not reviewed nor accepted responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management. Statements contained in this news release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company’s filings with the TSX and on SEDAR. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change.