Amerigo Resources (ARG) AI Stock Analysis

• Market Cap: $363.36M
• Dividend Yield: 7.11%
• Average Volume (3M): 262.93K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 1.17
• Revenue Growth: 16.16%
• EPS Growth: 35.46%
• Country: CA
• Employees: 299
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Copper
• EPS (TTM): 0.07
• Shares Outstanding: 161,491,270
• 10 Day Avg. Volume: 295,129
• 30 Day Avg. Volume: 262,934
• 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: 0.92
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 7.77
• Enterprise Value/Ebitda: 6.24
• 1Y Price Target: $3.00
• Price Target Upside: 31.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: C$2.50 ▲(9.17% Upside)

Amerigo Resources' strong financial performance and attractive valuation are the most significant factors driving its score. The earnings call provided positive operational insights, although technical indicators suggest some caution. Overall, the company is well-positioned within the copper industry.

Positive Factors

Capital returns

ARG demonstrated continued capital return efforts in Q2, distributing $7.6M to shareholders through its dividends and buyback program.

Debt management

ARG remains on track for its annual guidance and to pay off its debt by year-end, freeing up additional cashflow.

Financial performance

Amerigo reported strong Q2 financial results, generating revenue of $50.8M.

Negative Factors

Cost management

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

Production challenges

Copper produced came in at 15.5Mlbs, lower than expectations due to inclement weather issues and slightly lower copper grade.

Production disruptions

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. is a Canadian mining company focused on the production of copper and molybdenum through its operations in Chile. The company primarily processes copper concentrate from the historic El Teniente mine, one of the largest underground copper mines in the world. Amerigo's operations are marked by their commitment to sustainable mining practices and their focus on maximizing value through efficient resource extraction.

How the Company Makes Money

Amerigo Resources generates revenue primarily through the sale of copper and molybdenum concentrates. The company enters into long-term contracts with major smelters and refiners, which provides a steady revenue stream. Additionally, Amerigo benefits from the rising prices of copper in the global market, which significantly impacts its profitability. The company also engages in cost management and operational efficiency initiatives to enhance its margins. Partnerships with various stakeholders in the mining sector contribute to its operational success and financial stability.

Amerigo Resources Financial Statement Overview

Summary

Amerigo Resources displays strong revenue growth and improved profit margins. The balance sheet is stable with a low debt-to-equity ratio, though a decline in total assets may limit future growth. Cash flow is robust, supporting reinvestment and dividends.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	262.75M	294.99M	157.46M	264.19M	300.58M	178.38M
Gross Profit	42.95M	45.41M	13.86M	28.32M	72.09M	15.39M
EBITDA	53.53M	57.61M	29.98M	45.59M	84.16M	27.98M
Net Income	16.04M	19.24M	3.38M	4.37M	39.82M	6.06M
Balance Sheet
Total Assets	186.50M	205.47M	199.56M	231.18M	269.35M	237.57M
Cash, Cash Equivalents and Short-Term Investments	23.25M	35.86M	17.15M	38.96M	59.79M	7.99M
Total Debt	0.00	3.23M	20.71M	25.91M	33.85M	59.50M
Total Liabilities	83.18M	100.68M	94.71M	112.48M	130.55M	126.89M
Stockholders Equity	103.33M	104.79M	104.85M	118.70M	138.79M	110.68M
Cash Flow
Free Cash Flow	27.23M	50.44M	3.39M	13.82M	81.17M	16.98M
Operating Cash Flow	39.64M	59.78M	20.28M	23.63M	93.13M	19.78M
Investing Cash Flow	-13.01M	-9.34M	-16.89M	-9.81M	-8.10M	-2.72M
Financing Cash Flow	-30.84M	-29.40M	-24.91M	-35.89M	-36.82M	-10.66M

Amerigo Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 2.29 is above the 20-day moving average (MA) of 2.17, above the 50-day MA of 2.16, and above the 200-day MA of 1.82, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.29 is Neutral, neither overbought nor oversold. The STOCH value of 83.88 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	76 Outperform	$363.36M	16.54	14.89%	7.11%	16.16%	35.46%
ASCU	53 Neutral	C$472.77M	―	-5.68%	―	―	12.55%
FDY	48 Neutral	C$314.82M	―	-71.49%	―	―	-15.57%
Sector *	44 Neutral	AU$1.54B	-7.28	-18.84%	4.39%	-0.73%	-40.90%
MARI	43 Neutral	C$1.19B	―	-14.89%	―	―	-104.57%
LA	39 Underperform	C$224.47M	36.70	7.53%	―	―	―
CUU	39 Underperform	C$149.53M	―	-0.82%	―	―	40.00%

Amerigo Resources Corporate Events

Amerigo Resources Resumes Fresh Tailings Processing at MVC

Amerigo Resources Ltd. announced that its Minera Valle Central (MVC) operation in Chile has resumed processing fresh tailings from the El Teniente copper mine after a temporary suspension due to a seismic event. While the mine’s operations are not yet fully normalized, Amerigo is mitigating the impact by increasing the processing of historic tailings, although daily throughput is expected to be lower than initially forecasted.

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 Faces Production Challenges Following El Teniente Mine Incident

Amerigo Resources Ltd. has announced a temporary suspension of fresh tailings processing at its Minera Valle Central (MVC) operation in Chile due to a seismic event that caused a rockfall at Codelco’s El Teniente mine, resulting in the tragic death of six workers. While MVC continues to process historic tailings, the impact on annual production remains uncertain, with an estimated daily loss of 100,000 pounds of copper production, pending the resumption of operations at El Teniente.

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 Faces Production Challenges After El Teniente Mine Incident

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.

Amerigo Resources Reports Strong Q2-2025 Results and Declares Dividend

Amerigo Resources reported strong financial results for Q2-2025, with a net income of $7.5 million and an EBITDA of $17.8 million. The company declared its sixteenth consecutive quarterly dividend and returned $7.6 million to shareholders through dividends and share buybacks. Amerigo’s operations at Minera Valle Central met production and safety targets, and the company is on track to be debt-free by year-end. The rising copper prices and Amerigo’s strategic capital return initiatives position the company favorably in the market, providing a stable investment opportunity for 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.

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.