Amerigo Resources (ARG) AI Stock Analysis

• Market Cap: C$994.65M
• Dividend Yield: 4.11%
• Average Volume (3M): 969.03K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 1.40
• Revenue Growth: 10.41%
• EPS Growth: -0.23%
• Country: CA
• Employees: 299
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): 0.14
• Shares Outstanding: 160,946,670
• 10 Day Avg. Volume: 761,359
• 30 Day Avg. Volume: 969,033
• PEG Ratio: 0.18
• Price to Book (P/B): 4.68
• Price to Sales (P/S): 2.33
• P/FCF Ratio: 16.62
• 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$7.25
• Price Target Upside: 29.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.25
• Revenue Forecast (FY): C$212.80M

• Rating: 75 Outperform
• Price Target: C$7.00 ▲(25.22% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by strong financial health (notably zero debt and improving profitability) and supportive technical momentum (price above key moving averages with positive MACD). Offsetting these positives are a demanding valuation (high P/E) and earnings sensitivity from reduced production guidance and cost/royalty risks highlighted on the latest earnings call.

Positive Factors

Low leverage / debt elimination

Full repayment of MVC's $7.5M debt materially reduces leverage and interest burden, improving financial flexibility. Durable impact: more free cash flow available for dividends, reinvestment or buffering commodity volatility, strengthening balance sheet over the medium term.

Strong profitability and margins

Consistent mid-to-high operating and EBITDA margins indicate an efficient tolling/process business model that converts concentrate volumes into healthy cash profits. These margin levels sustain resilience to copper price swings and support ongoing dividend capacity over coming quarters.

Operational stability and labour agreement

98% plant availability plus a multi-year collective agreement lower operational disruption risk and labor uncertainty. This structural stability supports predictable throughput and cash generation, improving medium-term production visibility and planning for capital allocation.

Negative Factors

Dependence on El Teniente tailings

Amerigo's processing model depends on feed from a single large supplier; interruptions at El Teniente directly cut production and guidance. This single-source dependency is a structural operational risk that can recur and materially affect volumes and revenue over multiple quarters.

Royalty renegotiation risk with higher prices

As copper prices rise, counterparty pressure to adjust royalty terms can increase operating costs permanently. A higher or restructured royalty would compress margins and free cash flow on a structural basis, reducing the company's ability to fund dividends and reinvest without offsetting productivity gains.

Rising costs and cash flow variability

Higher tolling and production costs, along with noted operating cash flow variability, signal cost pressure that can persist through inflationary cycles or supply-cost changes. Sustained cost increases would erode margins and make cash generation less predictable over the medium term.

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

Financial strength is supported by a very strong balance sheet (zero total debt in TTM and solid returns on equity), alongside improved TTM profitability. Offsetting this, cash conversion is only moderate (operating cash flow and free cash flow below net income in TTM) and results have been cyclical, increasing earnings durability risk.

Income Statement

Profitability has strengthened meaningfully into TTM (Trailing-Twelve-Months), with healthy operating profitability (about 13% operating margin) and improved net profitability (about 7%). The business also shows strong top-line expansion in the most recent period, but results have been cyclical over the past several years (notably weaker profitability in 2022–2023 versus the very strong 2021), which is a key risk for earnings durability.

Balance Sheet

Balance sheet quality is a clear strength: leverage is low, and TTM (Trailing-Twelve-Months) total debt is reported at zero, while equity and total assets remain solid. Returns on shareholder capital are strong (around 19% in TTM (Trailing-Twelve-Months)), though the company has seen periods of much lower returns in prior years, underscoring commodity/operating sensitivity.

Cash Flow

Cash generation is positive with solid free cash flow in TTM (Trailing-Twelve-Months), but cash conversion is not consistently strong: operating cash flow is below net income in TTM (Trailing-Twelve-Months) and free cash flow is also below net income, indicating weaker cash realization versus accounting profits. Cash flow performance has improved sharply from the low levels seen in 2022–2023, but year-to-year volatility remains a consideration.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	231.30M	294.99M	157.46M	168.05M	199.55M
Gross Profit	68.27M	45.41M	13.86M	27.92M	71.68M
EBITDA	85.29M	57.61M	29.98M	45.59M	84.16M
Net Income	36.05M	19.24M	3.38M	4.37M	39.82M
Balance Sheet
Total Assets	217.34M	205.47M	199.56M	231.18M	269.35M
Cash, Cash Equivalents and Short-Term Investments	40.24M	35.86M	17.15M	38.96M	59.79M
Total Debt	0.00	10.70M	20.71M	25.91M	33.85M
Total Liabilities	102.43M	100.68M	94.71M	112.48M	130.55M
Stockholders Equity	114.91M	104.79M	104.85M	118.70M	138.79M
Cash Flow
Free Cash Flow	32.38M	50.44M	3.39M	13.82M	81.17M
Operating Cash Flow	44.48M	59.78M	20.28M	23.63M	93.13M
Investing Cash Flow	-12.10M	-9.34M	-16.89M	-9.81M	-8.10M
Financing Cash Flow	-27.88M	-29.40M	-24.91M	-35.89M	-36.82M

Amerigo Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 5.86, above the 50-day MA of 5.45, and above the 200-day MA of 3.22, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 58.45 is Neutral, neither overbought nor oversold. The STOCH value of 72.89 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	75 Outperform	C$994.65M	20.38	32.23%	4.11%	10.41%	-0.23%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ASCU	59 Neutral	C$1.84B	-130.71	-6.09%	―	―	22.26%
ECU	55 Neutral	C$192.82M	-65.26	-13.14%	―	―	71.30%
FDY	54 Neutral	C$1.37B	-44.10	-48.15%	―	―	-10.32%
LA	52 Neutral	C$415.97M	-94.24	4.21%	―	―	-41.70%
CUU	47 Neutral	C$465.31M	-421.05	-0.82%	―	―	36.84%

Amerigo Resources Corporate Events

Amerigo Boosts Payouts on Strong 2025 Results and Record Copper Prices

Amerigo Resources reported strong 2025 results, with net income of $35.4 million, EBITDA of $89.8 million and free cash flow to equity of $37.1 million, supported by higher copper and molybdenum revenues despite slightly lower copper output. The company returned $20.4 million to shareholders through dividends and buybacks, eliminated its debt, and declared an eighteenth consecutive quarterly dividend of Cdn$0.04 per share, reinforcing its fully deployed capital return strategy amid historically high copper prices.

Copper production from Minera Valle Central reached 62.2 million pounds in 2025, alongside 1.5 million pounds of molybdenum, while Q4-2025 net income climbed to $17.9 million on strong margins. Management remains optimistic on copper’s long-term fundamentals and plans to prioritize reliability and asset integrity to sustain free cash flow generation, positioning Amerigo to continue channeling rising copper price leverage into direct returns to shareholders.

The most recent analyst rating on (TSE:ARG) stock is a Hold with a C$6.50 price target. To see the full list of analyst forecasts on Amerigo Resources stock, see the TSE:ARG Stock Forecast page.

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.