Amerigo Announce Q1 2018 Financial Results
Time:Fri, 11 May 2018 05:07:24 +0800
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Amerigo Resources announced that financial results for the three months ended March 31, 2018, including an update on production results. According to the press release, the company posted revenue of USD 33.9 million and net income of USD 1.2 million. Cash of USD 5.9 million was generated from operations before working capital changes. At March 31, 2018, cash balance was USD 29.9 million. The Cauquenes phase two expansion project in central Chile at the MVC operation was 51 % complete at quarter end, on time and budget.
Mr Rob Henderson president and chief executive officer of Amerigo, said that “MVC’s robust production results together with stronger metal prices have improved our financial position and our focus is to safely complete our expansion to 85 – 90 million pounds of copper per year on budget in Q4 2018.”
Financial Results
1. Revenue was USD 33.9 million, including copper revenue of USD 29.5 million and molybdenum and other revenue of USD 4.4 million.
2. Copper revenue is calculated from MVC’s gross value of copper produced of USD 45.9 million less notional items including DET royalties of USD 10.8 million, smelting and refining of USD 5.0 million and transportation of USD 0.6 million.
3. In Q1-2018, MVC’s copper price was USD 3.09 per pound and MVC’s molybdenum price was USD 12.12/lb.
4. Tolling and production costs were USD 28.7 million, driven by higher power, lime and grinding media costs. Unit tolling and production costs were USD 1.98/lb.
5. Cash cost before DET notional copper royalties and DET molybdenum royalties increased to USD 1.77/lb due to higher production costs offset by higher molybdenum by-product credits.
6. Total cost(a non-GAAP measure equal to the aggregate of cash cost, DET notional copper royalties and DET molybdenum royalties of USD 0.80/lb and depreciation of USD 0.25/lb) increased to USD 2.83/lb, due to higher DET notional royalties from higher metal prices.
7. Gross profit was USD 5.2 million. Net income was USD 1.2 million.
8. Earnings per share were USD 0.01
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9. The Company generated operating cash flow before changes in non-cash working capital of USD 5.9 million.
