Amerigo Announces 2011 Financial Results
- Net Earnings of $8.7 Million - Operating Cash Flow of $20 Million - Dividends of $6.8 Million Paid in 2011
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/05/12 -- Amerigo Resources Ltd. (TSX: ARG) ("Amerigo" or the "Company") reported today results for the year ended December 31, 2011.
Amerigo's President and CEO, Dr. Klaus Zeitler, stated, "2011 proved to be a challenging year for Amerigo. Although revenues increased by close to 10% to $166 million and the Company generated more than $20 million in operating cash flow, financial results were adversely affected by several onetime events. The Company's subsidiary, MVC, lost more than 2,500 tonnes or close to 10% of its annual copper production as a result of a strike by El Teniente subcontractors in June and July. The Company was also required to make provision for a bad debt expense of more than $1.5 million due to the bankruptcy of a Chilean customer of MVC's power generating subsidiary. MVC's power costs, already at high levels, continued to rise and were more than $5.5 million higher than in 2010 in spite of lower power consumption levels during the year."
Dr. Zeitler continued, "Despite these challenges Amerigo continues to be in a strong financial position, with cash and investments totaling approximately $30 million. The Company reinstated its semi-annual dividend, paying $6.85 million in dividends during the year, and also paid down close to $10 million in debt. Management expects production to improve substantially in 2012, and to meet or exceed 50 million pounds of copper and close to one million pounds of molybdenum. Although power costs remain high at least in the short term, the Company's power situation will change dramatically for the better starting January 1, 2013 when the new fixed rate will result in savings of more than $20 million for each of the five years then remaining on the Company's power contract."
Financial results in 2011 were adversely affected by a number of factors including the loss of approximately 2,500 tonnes of copper production due to the interruption of the flow of fresh tailings to MVC caused by a strike by workers of El Teniente subcontractors in the months of June and July, an increase of $5,529,707 in power costs and a provision for bad debt expense of $1,548,751 in Minera Valle Central Generacion, S.A. ("MVC-Generacion"). In 2011 the Company:
Financial results
Production
Revenue
Costs
Cash and Financing Activities
Dividends
Investments
Outlook
The information in this news release and the Selected Financial Information contained in the following page should be read in conjunction with the Audited Consolidated Financial Statements and Management Discussion and Analysis for the years ended December 31, 2011 and 2010, which will be available at the Company's website at and at .
Amerigo Resources Ltd. is a Canadian junior company producing copper and molybdenum from its MVC operations near Santiago, Chile. Tel: (604) 681-2802; Fax: (604) 682-2802; Web: Listing: ARG:TSX
Statements contained in this news release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company's filings with the TSX and on SEDAR. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change.
The Toronto Stock Exchange has not reviewed nor accepted responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.
Contacts:
Amerigo Resources Ltd.
Dr. Klaus Zeitler
President and CEO
(604) 218-7013
Amerigo Resources Ltd.
(604) 697-6201
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Unternehmensinformation / Kurzprofil:
Datum: 05.03.2012 - 12:30 Uhr
Sprache: Deutsch
News-ID 121432
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contact information:
Town:
VANCOUVER, BRITISH COLUMBIA
Kategorie:
Mining & Metals
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