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ARG: Performance Dividend; Likely More to Come

What you need to know:
• Amerigo announced a performance dividend in the amount of C$0.05/share, payable on January 15th, 2026.
• This news prompts us to remind investors of the impressive capital return strategy that ARG has built, and we highlight ARG’s performance since the inception of this strategy.
• We remind readers, ARG paid off all of its remaining debt subsequent to the Q3 announcement (one of its 2025 objectives).
• Amerigo also increased its quarterly dividend by 33% to C$0.04/share, now representing a 4.1% yield.

This morning, Amerigo Resources (ARG:TSX, ARREF:OTC) announced is will issue a performance dividend in the amount of C$0.05/share, payable on January 15th, 2026. This comes as the Company’s second performance dividend since the inception of its Capital Return Strategy (CRS). This brings the total dividends declared in 2025 to C$0.18/share. Having fully repaid its remaining debt and with copper prices holding strong, we expect 2026 to be a year in which the CRS can show its true value. We remind investors that as part of ARG’s Q3/25 results, it increased the quarterly dividend by 33% to C$0.04/share. We are maintaining our BUY rating and increasing our target price to C$4.75/share (previously C$3.50/share) on ARG.

Capital Return Strategy
Since ARG’s business does not require growth capital, the Company defined an industry-leading capital return strategy to return capital to shareholders. This strategy utilizes three main levels to both effectively return capital to shareholders but also reward shareholders when market dynamics support it (for example, high copper prices). These three levers include:

• Quarterly Dividends (safe, predictable, paid each quarter)
• Performance Dividends (flexible)
• Share Buybacks (NCIB – recently renewed)

Since invoking the CRS strategy in 2021, Amerigo’s total return rivals that of growth of value peers (Figure 1). Over that period, ARG has returned $63.1M in dividends, $30.6M in buybacks (~21M shares).