ARG: Strong Cashflow in Q4; High Copper Price Setting Up Q1
What you need to know:• Amerigo reported Q4 & 2025 financial results, generating revenue of $50.8M (+12% YoY) vs. our expectation of $53.2M, driven by the lower copper price. EBITDA was $19.5M vs. $17.3M expected while OCF was $13.8M vs. $13.5M expected.
• Annual results were also very strong, with revenue increasing 22% and adjusted EBITDA increasing 99%; exceeding annual guidance.
• The copper price increased substantially after the quarter, positioning the Company for even stronger cash flow in Q1/25.
Amerigo Resources (ARG:TSX, ARREF:OTC) reported Q4 financial results that were in line with our expectations, missing on revenue but beating on EBITDA. The quarter was driven by 12% YoY production growth and increasing gross margins to 27%. We also recently published a management interview with CEO Aurora Davidson, watch it here. We are maintaining our BUY rating and C$2.50/share target price on Amerigo Resources.
Amerigo will be hosting its Q4 investor conference call on February 27th, 2025, at 11:00am PST (2:00pm EST). Investors interested in joining can do so by clicking here or dialling 1-888-510-2154.
Q4 Highlights
• Copper produced came in at 18.3Mlbs compared to our estimate of 18.3Mlbs (pre-reported). This represents 12% YoY growth. Moly produced came in at 0.33Mlbs, in line with our expectations.
• Revenue was $50.8M compared to our expectation of $53.2M, representing 20% YoY growth. The realized copper price was $4.06/lb, which has increased significantly subsequent to the quarter. The miss was driven by the copper price being lower than our model.
• Gross margin came in at 27% vs. our estimate of 21%. While this figure has been volatile on a quarterly basis, it was 24% annually vs. 9% last year.
• EBITDA of $19.5M (38% margin) compared to our estimate of $17.3M and $11.2M in Q4/23 (26% margin). Cash costs came in at $1.89/lb and AISC came in at $3.62/lb.
• OCF (before working capital) came in at $13.8M (27% of revenue) compared to our estimate of $13.5M and $8.8M in Q4/23 (21% of revenue).
• Capex was $1.8M and ARG paid down $4M in debt (net of new debt issued), resulting in FCFF of $12.0M and FCFE of $8.0M.
• ARG ended the quarter with $40.3M in cash and $10.7M in debt.
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.
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.