Amerigo Resources (ARG) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income was $2.8M, reversing a $5.8M loss in Q3 2023, with EBITDA of $13.3M and free cash flow to equity of $5.9M, driven by a 46% increase in copper production to 16.3M lbs and higher copper prices.

• $8.5M was paid in dividends, including the first performance dividend, and cash position at quarter end was $25.1M.

• Maintained robust cost management and operational performance, with no environmental or lost-time incidents.

Financial highlights

• Q3 2024 revenue was $45.4M, up from $30.3M in Q3 2023, driven by higher copper deliveries and prices; average copper price was $4.22/lb, up from $3.76/lb.

• Operating cash flow before working capital changes was $8.9M, up from $2.6M in Q3 2023; net cash flow for the quarter was $10.5M.

• Cash and cash equivalents stood at $25.1M as of September 30, 2024, up from $16.2M at year-end 2023.

• Earnings per share for Q3 2024 was $0.02; year-to-date EPS was $0.10.

Outlook and guidance

• 2024 production and cost guidance reaffirmed, with expectations to meet or exceed targets; operations are outperforming internal guidance.

• 2025 copper price consensus is positive, with forecasts averaging $4.42/lb and some estimates as high as $4.65/lb.

• CapEx for 2025 expected to be consistent with 2024, with no major projects planned.

• A 10% change in copper price could impact Q4 2024 revenue by $7M.