Amerigo Resources (ARG) AI Stock Analysis

• Market Cap: C$382.69M
• Dividend Yield: 6.75%
• Average Volume (3M): 229.15K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 1.17
• Revenue Growth: 32.13%
• EPS Growth: N/A
• Country: CA
• Employees: 299
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Copper
• EPS (TTM): 0.03
• Shares Outstanding: 161,474,400
• 10 Day Avg. Volume: 207,396
• 30 Day Avg. Volume: 229,146
• PEG Ratio: -0.91
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.37
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 5.21
• Enterprise Value/Ebitda: 1.16
• 1Y Price Target: C$3.01
• Price Target Upside: 26.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: C$2.50 ▲(5.49%Upside)

Amerigo Resources is well-positioned financially with strong cash flow and stable balance sheet metrics. Technical indicators show positive momentum, although caution is due to overbought signals. Valuation is attractive with a solid dividend yield. Strong earnings call guidance and positive corporate events further bolster the outlook, despite potential risks from modest net margins and asset declines.

Positive Factors

Capital Return

ARG demonstrated continued capital return efforts, distributing $7.6M to shareholders through its dividends and buyback program.

Copper Prices

The increase in copper prices positions the company for stronger cash flow.

Debt Management

Amerigo remains on track for its annual guidance and to pay off its debt by year-end, potentially increasing cash flow available for shareholders.

Negative Factors

Cash Costs

Cash costs came in at $2.22/lb, above our estimate of $1.88/lb.

Production Challenges

Copper production was lower than estimated due to a scheduled annual maintenance shutdown, affecting operations more than anticipated.

Amerigo Resources Business Overview & Revenue Model

Company Description

Amerigo Resources Ltd. (ARG) is a Canadian company engaged in the production of copper and other valuable metals. Operating primarily in the mining and metals sector, the company focuses on the extraction and processing of copper, with its main operations based in Chile. Amerigo Resources primarily produces copper concentrate and molybdenum as by-products, leveraging its expertise in sustainable mining practices and strategic partnerships.

How the Company Makes Money

Amerigo Resources makes money through the extraction and sale of copper concentrate, which is produced from tailings, the materials left over after the initial processing of ore. The company's primary revenue stream comes from its MVC (Minera Valle Central) operations in Chile, where it processes tailings from the El Teniente mine, one of the world's largest underground copper mines. Revenue is generated through long-term agreements with major mining companies that provide a stable supply of tailings for processing. Additionally, the company earns income from the sale of molybdenum, a by-product of its copper production, which is used in various industrial applications. Strategic partnerships with local and international stakeholders also play a critical role in the company's ability to maintain and expand its operations.

Amerigo Resources Financial Statement Overview

Summary

Amerigo Resources demonstrates consistent revenue growth and improved profitability margins. The balance sheet is strong, with low leverage and robust cash flow generation, supporting reinvestment and dividends. However, modest net profit margins and declining total assets suggest room for improvement.

Income Statement

The company has demonstrated consistent revenue growth over recent periods, showing a significant recovery in total revenue from 2023 to the TTM (Trailing-Twelve-Months). Gross profit margin and net profit margin have improved as well, indicating effective cost management. However, the net profit margin remains relatively modest, suggesting potential room for further profitability improvements.

Balance Sheet

Amerigo Resources maintains a strong equity base with a healthy equity ratio, reflecting financial stability. The debt-to-equity ratio is low, indicating conservative leverage practices. However, the decrease in total assets may pose a risk to future growth potential if not addressed.

Cash Flow

The company exhibits robust cash flow generation, with a strong operating cash flow to net income ratio. Free cash flow has shown consistent growth, which supports potential reinvestment and dividend distribution. The free cash flow to net income ratio is also favorable, underscoring efficient cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	294.99M	157.46M	264.19M	300.58M	178.38M
Gross Profit	45.41M	13.86M	28.32M	72.09M	15.39M
EBITDA	57.61M	29.98M	45.59M	84.16M	27.98M
Net Income	19.24M	3.38M	4.37M	39.82M	6.06M
Balance Sheet
Total Assets	205.47M	199.56M	231.18M	269.35M	237.57M
Cash, Cash Equivalents and Short-Term Investments	35.86M	17.15M	38.96M	59.79M	7.99M
Total Debt	3.23M	20.71M	25.91M	33.85M	59.50M
Total Liabilities	100.68M	94.71M	112.48M	130.55M	126.89M
Stockholders Equity	104.79M	104.85M	118.70M	138.79M	110.68M
Cash Flow
Free Cash Flow	50.44M	3.39M	13.82M	81.17M	16.98M
Operating Cash Flow	59.78M	20.28M	23.63M	93.13M	19.78M
Investing Cash Flow	-9.34M	-16.89M	-9.81M	-8.10M	-2.72M
Financing Cash Flow	-29.40M	-24.91M	-35.89M	-36.82M	-10.66M

Amerigo Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 2.37 is above the 20-day moving average (MA) of 2.21, above the 50-day MA of 1.98, and above the 200-day MA of 1.76, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 75.62 is Negative, neither overbought nor oversold. The STOCH value of 82.32 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	78 Outperform	C$382.69M	15.52	17.43%	6.75%	32.13%	―
ASCU	53 Neutral	C$415.62M	―	-7.46%	―	―	1.26%
FDY	48 Neutral	C$250.73M	―	-85.57%	―	―	5.34%
Sector *	44 Neutral	C$999.92M	-6.64	-13.68%	1.83%	17.55%	-32.71%
MARI	43 Neutral	C$1.05B	―	-13.43%	―	―	-83.79%
LA	39 Underperform	C$186.08M	30.42	7.53%	―	―	―
CUU	39 Underperform	C$138.03M	―	-0.82%	―	―	42.11%

Amerigo Resources Corporate Events

Amerigo Resources Exceeds Q2-2025 Production Expectations Amid Rising Copper Prices

Amerigo Resources reported better-than-expected operational results for Q2-2025, with copper production reaching 15.5 million pounds and molybdenum production at 0.39 million pounds. The company maintained its production and cash cost guidance for the year, benefiting from rising copper prices, which have supported its strategy of reducing debt and returning capital to shareholders. In Q2-2025, Amerigo returned $7.6 million to shareholders through dividends and share buybacks, contributing to a total of $12.1 million returned in the first half of the year. The company’s Capital Return Strategy has been effective since its implementation, providing consistent returns to shareholders and reducing outstanding shares.

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.

Amerigo Resources Strengthens Board with Ignacio Cruz Appointment

Amerigo Resources Ltd. has appointed Ignacio Cruz to its board of directors, bringing over forty years of experience in the Chilean mining, energy, and civil society sectors. Cruz’s extensive background includes leadership roles in major organizations such as TECHO International and Colbún S.A., as well as significant experience in the mining sector with Antofagasta Minerals. His expertise in strategic management, sustainability, and stakeholder engagement is expected to enhance Amerigo’s operations and long-term value creation.

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.

Amerigo Resources Reports Strong Q1-2025 Financial Results Amid Maintenance Shutdown

Amerigo Resources Ltd. reported a strong financial performance in Q1-2025, with a net income of $3.3 million and an EBITDA of $15.2 million. Despite a 17.5% decrease in copper production due to the timing of its annual maintenance shutdown, the company maintained its annual production guidance and returned $4.6 million to shareholders through dividends and share buybacks. The company highlighted the impact of rising copper prices on its financial strategy, focusing on debt elimination and shareholder returns.

Amerigo Resources Reports Favorable AGM Voting Results

Amerigo Resources Ltd. announced the results of its 2025 Annual General Meeting, where shareholders voted in favor of all business items, including the election of all director nominees. The meeting saw 68,548,449 common shares voted, representing 41.70% of the total outstanding shares. This outcome reflects strong shareholder support and positions the company for continued stability and growth in its operations.

Amerigo Resources Announces Correction to Q1-2025 Financial Results Release Date

Amerigo Resources Ltd. has corrected the date for the release of its Q1-2025 financial results, now scheduled for May 7, 2025, instead of the previously announced May 5, 2025. The company will hold its Annual General Meeting on May 5, 2025, and an investor conference call on May 8, 2025. This correction ensures stakeholders are accurately informed about the company’s financial reporting schedule, maintaining transparency and effective communication with investors.