ARG: Highlights from Our MVC Site Visit
What you need to know:• We visited Amerigo’s MVC processing facility in Rancagua, Chile and were highly impressed with the site and plant, as well as the scale of the operation.
• The copper price increased substantially after Q4, positioning the Company for even stronger cash flow in Q1/25.
• For more information on ARG, you can find all our research on our website here and an interview we hosted with CEO Aurora Davidson, here.
On March 26th, we visited Amerigo Resources’ (ARG:TSX, ARREF:OTC) MVC Processing Facility in Rancagua, Chile. Our primary goal for the site visit was to get a sense of the layout, operational performance, and efficiency of the operation. We also wanted to meet the MVC team to better understand the facility and its operators. We were highly impressed throughout the visit, heightening our conviction in the name going forward. We are maintaining our BUY rating and C$2.50/share target price on Amerigo Resources.
Site Visit Highlights
• During the visit, we toured around all areas of the operation including the historic tailings ponds, the water reservoir, several kilometres of the tailings channel, the processing facility/plant, site offices, and management offices.
• We also had an opportunity to watch a few videos of how the operation works as well as have in depth discussions with MVC management.
• The cleanliness and professionalism on site impressed us and are key attributes to a well-run operation.
• Automation/remote operations are utilized as much as possible, minimizing operator fatigue and reducing safety risks.
• All capex upgrades to the plant have been made and the facility is operating without issue. There is still potential for further plant optimization.
• The partnership with Codelco goes further than initially expected. Operators from both companies work and communicate with each other daily. This partnership creates many benefits for both parties.
Amerigo Resources is engaged in the production of copper and molybdenum concentrates with operations in Chile. Through its subsidiary, Minera Valle Central S.A., Co. has a contract with Chile's state-owned copper producer National Copper Corporation to process the tailings from El Teniente underground copper mine.
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