Amerigo Resources (ARG) Q4 2025 earnings summary

Executive summary

• Achieved robust operational performance in 2025, with strong free cash flow, full debt elimination, and significant capital returns to shareholders amid high copper price volatility.

• Reported 2025 net income of $35.4 million, EBITDA of $89.8 million, and free cash flow to equity of $37.1 million, reflecting strong operational and financial performance.

• MVC operations produced 62.2 million pounds of copper and 1.5 million pounds of molybdenum, both exceeding revised guidance.

• Maintained plant availability above 98% and achieved four consecutive years without a lost time accident.

• Recognized for minimal environmental footprint and awarded for tailings reprocessing model in Chile.

Financial highlights

• Revenue increased 18% year-over-year to $227.3 million, driven by a 14% higher average copper price of $4.73/lb.

• EBITDA rose 31% to $89.8 million; net income was $35.4 million, and EPS was $0.22 (CAD 0.30).

• Free Cash Flow to Equity increased 33% to $37 million.

• Gross profit grew 48% to $67.2 million; cash cost was $1.93/lb, below guidance, and normalized cash cost was $1.87/lb.

• All debt fully repaid; ended 2025 with $40.3 million in cash and cash equivalents.

Outlook and guidance

• 2026 copper production guidance set at 63.8 million pounds, with molybdenum stable at 1.5 million pounds.

• Cash cost expected at $1.98/lb; CapEx budgeted at $17.65 million, including $6.4 million for optimization projects with rapid paybacks.

• Guidance is deliberately conservative, assuming operational consistency and no aggressive pricing assumptions.

• EBITDA sensitivity: every $0.20/lb increase in copper price adds ~$4.2 million to EBITDA.

• Management remains bullish on copper prices, citing strong market fundamentals and historical price highs entering 2026.