Amerigo Resources (ARG) AI Stock Analysis

• Market Cap: C$845.91M
• Dividend Yield: 4.11%
• Average Volume (3M): 492.41K
• Price to Earnings (P/E): 30.8
• Beta (1Y): 1.39
• Revenue Growth: 10.41%
• EPS Growth: -0.23%
• Country: CA
• Employees: 299
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): 0.06
• 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$4.75
• Price Target Upside: -9.75% Downside
• 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$5.50 ▲(4.56% 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

Low leverage & strong equity base

A very low debt-to-equity ratio and a strong equity base increase financial resilience through commodity cycles. High ROE (19.03%) shows efficient capital use, supporting capacity to fund maintenance, technology upgrades, dividends or opportunistic investments without stressing liquidity.

Consistent free cash flow generation

Positive TTM free cash flow growth and healthy FCF-to-net-income ratios indicate the business converts earnings into cash. Durable cash generation supports ongoing dividend payments, debt repayment (already executed) and reinvestment in recovery processes, enhancing long-term sustainability.

High plant availability & safety record

Sustained high availability and a clean safety/environment record reduce unplanned downtime and operational disruption. For a tailings-processing operation, steady throughput is key to margin stability and predictable recoveries, underpinning durable production and cash flow profiles.

Negative Factors

Concentration on El Teniente tailings

Reliance on a single upstream tailings supply creates persistent operational vulnerability. Supply interruptions at El Teniente directly reduce Amerigo's throughput and forced guidance cuts, meaning external accidents, operational changes, or regulatory shifts can materially and repeatedly disrupt production.

Inconsistent revenue growth & cash flow volatility

Revenue and operating cash flow have shown variability, which weakens predictability of funding for capex, dividends and improvements. For a commodity-linked tailings processor, this volatility can constrain strategic investments and raises execution risk during weaker copper cycles.

Rising costs and royalty pressure

Rising tolling and production costs, plus noted potential for royalty scale renegotiation with El Teniente, compress margins and reduce free cash flow leverage. Structural cost increases and higher royalties could persist with higher copper prices, limiting long-term margin expansion.

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

Amerigo Resources presents a strong financial profile with consistent profitability and prudent financial management. The income statement shows healthy margins and recent revenue growth, while the balance sheet reflects low leverage and strong equity. Cash flow generation is positive, though it has seen some fluctuations. The company is well-positioned in the copper industry, but should focus on stabilizing revenue growth and cash flow consistency to mitigate potential risks.

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: 5.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 5.26 is above the 20-day moving average (MA) of 4.54, above the 50-day MA of 3.82, and above the 200-day MA of 2.51, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 91.18 is Negative, neither overbought nor oversold. The STOCH value of 95.24 is Negative, 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$845.91M	30.76	18.67%	4.11%	10.41%	-0.23%
ASCU	62 Neutral	C$1.08B	-79.97	-6.09%	―	―	22.26%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ECU	55 Neutral	C$185.05M	-61.58	-13.14%	―	―	71.30%
FDY	54 Neutral	C$718.18M	-23.35	-48.15%	―	―	-10.32%
CUU	39 Underperform	C$430.41M	-650.00	-0.82%	―	―	36.84%
LA	39 Underperform	C$369.20M	104.04	4.21%	―	―	-41.70%

Amerigo Resources Corporate Events

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.

Amerigo Resources Achieves Debt-Free Status and Boosts Dividend Amid Strong Q3 Results

Amerigo Resources reported strong financial results for Q3-2025, with a net income of $6.7 million and an EBITDA of $18.7 million. The company achieved a significant milestone by fully repaying its corporate debt, allowing it to increase its quarterly dividend by 33% to Cdn$0.04 per share. This financial strength is attributed to a favorable copper price environment and effective cost management, despite lower than expected production. The company’s strategic focus on debt repayment over the past decade has enabled it to return $93.7 million to shareholders, enhancing its market position as a stable and attractive investment in the copper sector.

The most recent analyst rating on (TSE:ARG) stock is a Buy with a C$3.00 price target. To see the full list of analyst forecasts on Amerigo Resources stock, see the TSE:ARG Stock Forecast page.

Amerigo Resources Announces Strategic Operational Update

Amerigo Resources has announced a significant update regarding its operations, which could impact its market positioning and stakeholder interests. The company has made strategic decisions that are expected to enhance its operational efficiency and potentially improve its competitive edge in the industry.

The most recent analyst rating on (TSE:ARG) stock is a Buy with a C$3.00 price target. To see the full list of analyst forecasts on Amerigo Resources stock, see the TSE:ARG Stock Forecast page.

Amerigo Resources Secures Three-Year Labor Agreement with MVC Union

Amerigo Resources Ltd. has announced a new three-year collective labor agreement with the operators’ union at its Minera Valle Central (MVC) operation in Chile. This agreement, effective from October 29, 2025, to October 29, 2028, underscores the company’s commitment to its employees and operational stability, ensuring fair treatment and long-term security for its workforce. The agreement highlights Amerigo’s dedication to maintaining strong, collaborative relationships with its employees, reinforcing its position as an employer of choice in Chile.

The most recent analyst rating on (TSE:ARG) stock is a Buy with a C$3.00 price target. To see the full list of analyst forecasts on Amerigo Resources stock, see the TSE:ARG Stock Forecast page.