Amerigo Announces Q1-2025 Results & Quarterly Dividend

Core Insights - Amerigo Resources Ltd. reported a net income of $3.3 million for Q1-2025, a decrease from $4.3 million in Q1-2024, with earnings per share (EPS) of $0.02 compared to $0.03 in the previous year [2][8][11] - The company achieved an EBITDA of $15.2 million, up from $13.6 million in Q1-2024, and generated a free cash flow to equity of $4.8 million, down from $7.3 million in the same quarter last year [2][9][11] - A quarterly dividend of Cdn$0.03 per share was declared, marking the fifteenth consecutive quarterly dividend, with a total of $4.6 million returned to shareholders through dividends and share buybacks [6][7][11] Financial Performance - The average copper price for MVC in Q1-2025 was $4.42 per pound, compared to $3.95 per pound in Q1-2024, contributing to the company's revenue of $44.2 million, slightly down from $44.9 million year-over-year [8][11] - Operating cash flow before changes in non-cash working capital was $11.6 million, an increase from $10.2 million in Q1-2024, while net cash used in operating activities was $1.9 million, down from $4.5 million [2][11][17] - The cash cost per pound of copper produced increased to $2.22 in Q1-2025 from $1.96 in Q1-2024, primarily due to lower production levels [11][26] Shareholder Returns - In Q1-2025, Amerigo returned $4.6 million to shareholders, which included $3.5 million through dividends and $1.1 million from share repurchases [2][11][27] - The annual dividend yield based on the closing share price of Cdn$1.91 was calculated at 6.3% [7][11] Operational Insights - The company experienced a 17.5% decrease in copper production, with 13.2 million pounds produced in Q1-2025 compared to 16.0 million pounds in Q1-2024, attributed to the timing of the annual maintenance shutdown [11][12] - The maintenance shutdown was completed in Q1-2025, which is part of the normal operational cycle and has been factored into the annual production guidance of 62.9 million pounds of copper [3][4][11] Market Context - The company noted that the markets' response to shifting global trade patterns has led to short-term copper price volatility, but the year-to-date average London Metal Exchange copper price remains higher than the previous year's average [5][11] - The company aims to eliminate its remaining minimal debt by the end of the year, supported by the rising copper prices [5][11]