Amerigo Announces Q3-2011 Financial Results
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/07/11 -- Amerigo Resources Ltd. (TSX: ARG) -
Amerigo Resources Ltd. ("Amerigo" or the "Company") reported today results for the quarter ended September 30, 2011.
Dr. Klaus Zeitler, Amerigo's President and CEO, commented as follows, "As was the case in Q2-2011, in the third quarter the Company suffered production losses resulting from the strike action by workers for El Teniente's subcontractors and power costs continued to be high due to ongoing drought conditions in Chile. Despite these challenges, revenues for the quarter were close to $42 million and the Company generated operating cash flow of $4.6 million and cash adjusted operating profit of more than $3 million. A one-time loss of approximately $1.5 million in the Company's subsidiary, Minera Valle Central Generacion, S.A. ("MVC Generacion"), and a foreign exchange loss of close to $1.2 million, mostly of an unrealized nature, contributed to a net loss of approximately $1.2 million in the quarter. Although as previously announced the Company will not meet its 2011 production goals, production is expected to meet budgeted levels in Q4-2011."
The El Teniente strike resulted in the loss of approximately 700 tonnes of copper production in July, as the interruption of the flow of fresh tailing to the Company's operations in Chile that began in the second quarter continued into the third quarter. The bad debt expense of $1,534,141 suffered by MVC Generacion resulted from the bankruptcy of a major power customer of the Chilean central grid, and was allocated among MVC Generacion and a number of other energy producers. MVC's share of the bad debt was only 1.7% of the outstanding amount. Finally, the foreign exchange loss of $1,181,474 was due to financial reporting adjustments arising from the sharp decline in the value of the Chilean Peso and the Canadian dollar against the U.S. dollar as of September 30, 2011. Most of the adjustment has reversed as of the date of this release.
During the quarter the Company:
Financial results
Production
Revenue
Costs
Cash and Financing Activities
Investments
Outlook
Dividend Declared
The Company's financial statements are reported under International Financial Reporting Standards ("IFRS") starting in January 2011. The effects of the Company's conversion from Canadian Generally Accepted Accounting Principles ("Canadian GAAP") to IFRS have been identified in Notes 19 of the Company's March 31, 2011 unaudited condensed consolidated interim financial statements, Note 18 of the Company's June 30, 2011 unaudited condensed consolidated interim financial statements and Note 19 of the Company's September 30, 2011 unaudited condensed consolidated financial statements.
Reference is made in this news release to various measures such as cash-adjusted operating profit (operating profit before the effect of non-cash items such as depreciation, amortization and share-based compensation expense), and cash cost and total cost (both of which do not have a standardized meaning but are widely used in the mining industry as performance indicators).
The information in this news release and the Selected Financial Information contained in the following page should be read in conjunction with the Unaudited Condensed Consolidated Interim Financial Statements and Management Discussion and Analysis for the quarter ended September 30, 2011 and the Audited Consolidated Financial Statements and Management Discussion and Analysis for the year ended December 31, 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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Datum: 07.11.2011 - 13:00 Uhr
Sprache: Deutsch
News-ID 84492
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contact information:
Town:
VANCOUVER, BRITISH COLUMBIA
Kategorie:
Mining & Metals
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