Q2 - 2005 earnings increase 181% to US$4.6M with commencement of moly production
Announces interim dividend of Cdn 4.5 cents per share
Cash costs lower at US 60 cents per pound
AMERIGO RESOURCES LTD. (Vancouver, British Columbia) reported results of the six-month period ended June 30, 2005 today. Significant events are as follows:
Net earnings after tax for the quarter ended June 30, 2005 were US$4,635,764 compared to earnings of US$1,644,722 in the immediately preceding quarter. Earnings were higher due to strong molybdenum by-product credits and strong copper prices.
An interim dividend of Cdn 4.5 cents per share was declared.
Earnings for the six months ended June 30, 2005 were US$6,280,486, or US$0.09 nondiluted.
Copper produced in Q2-2005 was 7.07 million pounds, compared to 7.50 million pounds of copper produced in the preceding quarter, totalling 14.57 million pounds of copper year to date. Copper production is expected to increase in the third quarter.
Molybdenum production in the quarter was 155,726 pounds, for essentially two months of production.
Cash costs before El Teniente royalty were significantly lower at US$0.60 per pound in Q2 - 2005 compared to US$0.91/lb in the preceding quarter and US$0.59/lb in Q2-2004, primarily due to molybdenum by-product credits.
Total costs after royalty, depreciation and accretion were lower at US$0.90 per pound in Q2 - 2005 compared to US$1.14/lb in the preceding quarter and US$0.78/lb in Q2-2004.
Cash balances increased significantly to US$15.2M at June 30, 2005 after capital expenditures of US$4.6M in Q2-2005 related to the copper plant expansion. Cash increased by US$8.4M in the quarter from the exercise of virtually all the outstanding warrants of the Company.
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 period ended June 30, 2005, which will be 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:
Klaus Zeitler, President
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.