Amerigo Resources Clocks 42% Profit Growth In Q1

Amerigo Resources LTD ARG ARREF reported a first-quarter net income of $15.5 million, an increase of 42.4% year-over-year, and EPS of $0.09 (C$0.11).
Revenue for the quarter was $53.8 million, an increase of 10% Y/Y, including copper tolling revenue of $50.4 million and molybdenum revenue of $3.4 million.
EBITDA of $26.4 million (+13.3% Y/Y) and free cash flow to equity of $17.9 million.
The company generated operating cash flow before changes in non-cash working capital of $20.6 million in Q1 compared to $20.0 million a year ago.
Quarterly net operating cash flow was $21.4 million, compared to $28.1 million a year ago. Free cash flow to equity was $17.9 million vs. $12.6 million in 1Q21.
The company stated that financial performance is very sensitive to changes in copper prices. A 10% increase or decrease from the $4.64/lb provisional price would result in a $7.6 million change in revenue in Q2-2022 in respect of Q1-2022 production.
Amerigo returned $7.6 million to shareholders in the quarter. The company held cash and equivalents of $71.1 million as of March 31, 2022.
Dividend: Amerigo declared a quarterly dividend of C$0.03 per share, payable on June 20, 2022, to shareholders of record as of May 30, 2022.
Price Action: ARG shares are trading higher by 1.25% at C$1.64 on TSX, and ARREF is higher by 0.79% at $1.27 on the last check Wednesday.

Earnings Calendar