Amerigo Resources (ARG) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $9.8M, reversing a prior year loss, with EBITDA of $22.3M and free cash flow to equity of $6.7M, driven by higher copper prices and cost management, despite planned maintenance and weather impacts.

• Cash on hand increased to $28.7M, debt reduced to $14.4M, and working capital deficiency dropped to $1.5M from $12.3M at year-end 2023.

• First performance dividend of CAD 0.04 per share declared, plus a regular quarterly dividend of CAD 0.03 per share, resulting in a 10.3% yield, and all capital return tools now active.

• Annual copper production guidance reaffirmed at 62.4M lbs.

• Capital return to shareholders in Q2 2024 totaled $3.6M.

Financial highlights

• Q2 2024 net income was $9.8M, EPS $0.06 (CAD 0.08), and operating cash flow before working capital changes was $14.3M.

• Revenue rose to $51.6M in Q2 2024 from $32M in Q2 2023, with gross copper revenue at $63M and molybdenum revenue at $6.4M.

• Cash and cash equivalents increased to $28.7M as of June 30, 2024.

• Tolling and production costs decreased to $35.1M from $35.3M year-over-year.

• All-in sustaining cost was $4.20/lb, down from $4.44/lb in Q2 2023.

Outlook and guidance

• Annual copper production guidance remains at 62.4M lbs, with normal operations expected for the second half of 2024.

• CapEx for 2024 projected at $12–$13M, significantly lower than the prior year.

• Management anticipates continued strength in copper prices despite short-term corrections.