Amerigo Resources Faces Production Challenges After El Teniente Mine Incident

The latest update is out from Amerigo Resources ( (TSE:ARG) ).

Amerigo Resources Ltd. has temporarily suspended the processing of fresh tailings at its Minera Valle Central (MVC) operation in Chile due to a seismic event that caused a rockfall at the El Teniente mine, owned by Codelco. This incident resulted in the tragic death of six workers and led to the suspension of operations at El Teniente, impacting Amerigo’s copper production. The company will continue processing historic tailings, but the effect on annual production remains uncertain and depends on when El Teniente resumes operations. The current estimated daily loss of copper production is 100,000 pounds, highlighting the potential impact on Amerigo’s operations and stakeholders.

The most recent analyst rating on (TSE:ARG) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Amerigo Resources stock, see the TSE:ARG Stock Forecast page.

Spark’s Take on TSE:ARG Stock

According to Spark, TipRanks’ AI Analyst, TSE:ARG is a Outperform.

Amerigo Resources presents a compelling investment case due to its strong financial performance, attractive valuation, and positive corporate actions. Technical analysis indicates some caution, but overall sentiment remains favorable, supported by effective cost management and shareholder returns.

To see Spark’s full report on TSE:ARG stock, click here.

More about Amerigo Resources

Amerigo Resources Ltd. is an innovative copper producer with a long-term relationship with Codelco, the world’s largest copper producer. Amerigo produces copper concentrate and molybdenum concentrate as a by-product at the MVC operation in Chile by processing fresh and historic tailings from Codelco’s El Teniente mine, the world’s largest underground copper mine.

Average Trading Volume: 229,797

Technical Sentiment Signal: Strong Buy

Current Market Cap: C$352.1M

For a thorough assessment of ARG stock, go to TipRanks’ Stock Analysis page.