Amerigo Resources (ARG) AI Stock Analysis

• Market Cap: C$899.28M
• Dividend Yield: 4.11%
• Average Volume (3M): 492.41K
• Price to Earnings (P/E): 32.7
• Beta (1Y): 1.45
• Revenue Growth: 10.41%
• EPS Growth: -0.23%
• Country: CA
• Employees: 299
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): 0.05
• Shares Outstanding: 161,741,270
• 10 Day Avg. Volume: 541,993
• 30 Day Avg. Volume: 492,407
• PEG Ratio: 0.02
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 3.57
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$6.50
• Price Target Upside: 16.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: C$7.00 ▲(25.22% Upside)

Score is driven primarily by strong fundamentals (low leverage, solid margins, positive free cash flow) and a generally positive earnings update (debt elimination and higher dividend). Offsetting the rating are overextended technical conditions (very high RSI/Stoch) and a relatively high P/E, which together raise near-term pullback and valuation risk.

Positive Factors

Debt elimination & dividend increase

Full repayment of $7.5M of debt materially improves financial flexibility and lowers refinancing and interest risk. Combined with a meaningful dividend raise, this indicates durable free cash flow capacity and a commitment to shareholder returns through commodity cycles.

Low leverage and strong ROE

A very low debt-to-equity ratio and double-digit ROE signal conservative capital structure and efficient use of equity. This reduces solvency risk in downturns, preserves investment optionality, and supports sustained capital allocation to operations and returns.

Robust margins and cash generation

Consistent positive free cash flow growth and healthy EBITDA margins demonstrate the operation's ability to convert commodity-linked revenues into cash. This underpins durability of dividends, reinvestment capacity, and resilience against cyclical price swings.

Negative Factors

Supplier concentration: El Teniente tailings

Amerigo's business model depends on purchasing tailings from a single major supplier. Supply interruptions—such as the El Teniente accident that halted fresh tailings—directly reduce throughput and output, creating structural operational and revenue concentration risk.

Inconsistent revenue and cash flow volatility

Historical inconsistency in revenue growth and a decline in operating cash flow from prior peaks suggest earnings and cash conversion are sensitive to throughput, pricing and inventory. This volatility complicates long-term planning and sustaining payout policies.

Risk of higher royalties and rising input costs

Rising copper prices and recent cost increases risk triggering royalty renegotiation with El Teniente and pressure margins through higher input and tolling costs. Structural increases would erode free cash flow and limit capacity for reinvestment or return.

Amerigo Resources Business Overview & Revenue Model

Company Description

Amerigo Resources Ltd., through its subsidiary, Minera Valle Central S.A., produces and sells copper and molybdenum concentrates from Codelco's El Teniente underground mine in Chile. The company was formerly known as Golden Temple Mining Corp. and changed its name to Amerigo Resources Ltd. in March 2002. Amerigo Resources Ltd. was incorporated in 1984 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Amerigo Resources generates revenue primarily through the sale of copper and molybdenum concentrates produced at its MVC operation. The company purchases tailings from the El Teniente mine, which contains valuable metals, and processes them to extract copper and molybdenum. The revenue model is based on the volume of concentrates processed and the prevailing market prices for copper and molybdenum. Key revenue streams include contracts with copper smelters and refiners who purchase the produced concentrates. Additionally, fluctuations in global copper prices significantly impact the company's earnings, as the majority of its revenue is linked to these market prices. Strategic partnerships with mining companies and ongoing investments in technology enhance operational efficiency and contribute to revenue stability.

Amerigo Resources Financial Statement Overview

Summary

Strong overall financial profile supported by low leverage (debt-to-equity 0.068), solid profitability (net margin 7.38%, EBITDA margin 21.74%), and positive free cash flow growth (+9.15% TTM). Main constraints are inconsistent revenue growth and some volatility in operating cash flow versus prior highs.

Income Statement

Amerigo Resources has demonstrated solid revenue growth in the TTM period with a 2.68% increase, following a challenging year with a slight decline. The company maintains healthy profitability with a gross profit margin of 17.99% and a net profit margin of 7.38%. The EBIT and EBITDA margins are strong at 13.32% and 21.74%, respectively, indicating efficient operational management. However, the revenue growth rate has been inconsistent over the years, which could pose a risk if not stabilized.

Balance Sheet

The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.068, indicating prudent leverage management. The return on equity is robust at 19.03%, showcasing effective utilization of shareholder funds. The equity ratio stands at 56.04%, highlighting a solid equity base relative to total assets. Overall, the company exhibits financial stability and low leverage risk.

Cash Flow

Cash flow analysis reveals a positive trajectory with a 9.15% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is 0.79, and the free cash flow to net income ratio is 0.72, indicating adequate cash generation relative to net income. However, the operating cash flow has decreased from previous highs, suggesting potential volatility in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	269.79M	294.99M	157.46M	168.05M	199.55M	178.38M
Gross Profit	48.53M	45.41M	13.86M	27.92M	71.68M	15.39M
EBITDA	58.20M	57.61M	29.98M	45.59M	84.16M	27.98M
Net Income	19.92M	19.24M	3.38M	4.37M	39.82M	6.06M
Balance Sheet
Total Assets	191.00M	205.47M	199.56M	231.18M	269.35M	237.57M
Cash, Cash Equivalents and Short-Term Investments	28.16M	35.86M	17.15M	38.96M	59.79M	7.99M
Total Debt	7.26M	10.70M	20.71M	25.91M	33.85M	59.50M
Total Liabilities	84.02M	100.68M	94.71M	112.48M	130.55M	126.89M
Stockholders Equity	106.98M	104.79M	104.85M	118.70M	138.79M	110.68M
Cash Flow
Free Cash Flow	29.73M	50.44M	3.39M	13.82M	81.17M	16.98M
Operating Cash Flow	41.02M	59.78M	20.28M	23.63M	93.13M	19.78M
Investing Cash Flow	-11.29M	-9.34M	-16.89M	-9.81M	-8.10M	-2.72M
Financing Cash Flow	-25.52M	-29.40M	-24.91M	-35.89M	-36.82M	-10.66M

Amerigo Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ARG, the sentiment is Positive. The current price of 5.59 is below the 20-day moving average (MA) of 5.63, above the 50-day MA of 4.64, and above the 200-day MA of 2.82, indicating a bullish trend. The MACD of 0.40 indicates Positive momentum. The RSI at 59.27 is Neutral, neither overbought nor oversold. The STOCH value of 36.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ARG.

Amerigo Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARG	72 Outperform	C$899.28M	32.71	18.67%	4.11%	10.41%	-0.23%
ASCU	62 Neutral	C$1.16B	-85.61	-6.09%	―	―	22.26%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ECU	55 Neutral	C$194.38M	-64.74	-13.14%	―	―	71.30%
FDY	54 Neutral	C$806.69M	-25.39	-48.15%	―	―	-10.32%
LA	52 Neutral	C$516.58M	-115.20	4.21%	―	―	-41.70%
CUU	39 Underperform	C$436.23M	-575.00	-0.82%	―	―	36.84%

Amerigo Resources Corporate Events

Amerigo Hits Record Q4 Copper Output, Tops 2025 Guidance and Lifts 2026 Production Target

Amerigo Resources reported record quarterly copper output in Q4 2025 of 18.9 million pounds and full-year copper production of 62.2 million pounds, surpassing its revised guidance despite operational headwinds from reduced fresh tailings following an accident at El Teniente. Molybdenum production also beat expectations at 1.5 million pounds, cash costs came in below normalized guidance, and MVC ran with 98.4% plant availability, no lost-time accidents and no environmental incidents, underscoring operational resilience and the benefits of recent optimization projects. The company kept 2025 capex below its approved budget with no cost overruns, became debt-free after repaying $11.5 million in debt, returned $20.3 million to shareholders via dividends and buybacks, and ended the year with $40.3 million in cash, while issuing 2026 guidance for higher copper output of 63.8 million pounds and steady molybdenum production, marking the sixth consecutive year of increased production guidance and reinforcing its growth and capital-return profile.

The most recent analyst rating on (TSE:ARG) stock is a Buy with a C$5.50 price target. To see the full list of analyst forecasts on Amerigo Resources stock, see the TSE:ARG Stock Forecast page.

Amerigo Resources Declares Performance Dividend Amid Strong 2025 Financials

Amerigo Resources has declared a performance dividend of Cdn$0.05 per share, bringing the total dividends declared in 2025 to Cdn$0.18 per share. This move is part of Amerigo’s Capital Return Strategy, which has been fully deployed in 2025, including the retirement of 3.97 million shares. The performance dividend reflects the company’s strong operating performance and ability to share the benefits of high copper prices with shareholders, while maintaining a debt-free balance sheet and disciplined capital allocation.

The most recent analyst rating on (TSE:ARG) stock is a Buy with a C$4.50 price target. To see the full list of analyst forecasts on Amerigo Resources stock, see the TSE:ARG Stock Forecast page.

Amerigo’s MVC Wins 2025 Circular Awards for Sustainability

Amerigo Resources’ Minera Valle Central (MVC) operation in Chile has been awarded the 2025 Circular Awards in the Energy Challenge category, recognizing its efforts in sustainability and circular economy practices. The award was given for MVC’s Energy and Environmental Liabilities Transformation project, which focuses on recovering copper and molybdenum from tailings, enhancing energy efficiency, and applying circular economy principles, thus reducing environmental impact and contributing to industrial decarbonization.

The most recent analyst rating on (TSE:ARG) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Amerigo Resources stock, see the TSE:ARG Stock Forecast page.