Amerigo Resources (TSE:ARG)
OTHER OTC:ARG
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Amerigo Resources
(OTC:ARG)
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Rating:74Outperform
Price Target:
C$5.50
▼(-1.61% Downside)
Action:ReiteratedDate:03/26/26
The score is driven by strong financial quality (notably a debt-free balance sheet) and a constructive earnings-call outlook with disciplined capital returns and conservative guidance. Offsetting factors are weaker near-term technical momentum and ongoing commodity-linked volatility (including cost/royalty and settlement-price sensitivity). Valuation is supportive with a mid-range P/E and an above-average dividend yield.
Positive Factors
Debt-free balance sheet
Zero reported total debt and a strong asset/equity base materially reduce financial risk versus peers. This durability gives management flexibility to fund short-payback optimization capex, sustain dividends/buybacks, and absorb commodity swings without levering the business.
Negative Factors
Royalty renegotiation risk
Contractual royalty caps create a structural risk: sustained higher copper prices could force renegotiation or retroactive adjustments, raising future per-unit royalty expenses. That outcome would structurally increase operating costs and reduce long-term margin visibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
Zero reported total debt and a strong asset/equity base materially reduce financial risk versus peers. This durability gives management flexibility to fund short-payback optimization capex, sustain dividends/buybacks, and absorb commodity swings without levering the business.
Read all positive factors
Amerigo Resources (ARG) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$809.56M
Dividend Yield4.11%
Average Volume (3M)814.91K
Price to Earnings (P/E)14.9
Beta (1Y)1.67
Revenue Growth10.41%
EPS Growth-0.23%
CountryCA
Employees299
SectorBasic Materials
Sector Strength58
IndustryCopper
Share Statistics
EPS (TTM)0.14
Shares Outstanding160,946,670
10 Day Avg. Volume846,586
30 Day Avg. Volume814,907
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)4.68
Price to Sales (P/S)2.33
P/FCF Ratio16.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$7.25Price Target Upside29.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.25
Revenue Forecast (FY)C$213.70M
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...
How the Company Makes Money
Amerigo makes money primarily by producing and selling copper concentrate from its MVC operation in Chile. MVC generates revenue by recovering copper from tailings (waste streams) originating from Codelco’s El Teniente mine, then marketing the res...
Amerigo Resources Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial performance for 2025: production exceeded guidance, margins and cash flow improved materially, debt was eliminated, and shareholders received meaningful returns. Management reiterated a conservative, disciplined capital-allocation approach and provided constructive 2026 guidance with targeted optimization projects. Headwinds cited were manageable: a mid-year fresh-tailings supply disruption, higher operating expenses driven by historic tailings processing and a one-time labour signing bonus, rising per-unit total costs and royalty renegotiation risk if sustained copper prices breach contractual caps. Price and settlement timing volatility remain exposures but also present upside as realized prices in early 2026 have been higher than the provisional Q4 mark. Overall, the positive operational resilience, cash generation and balance-sheet improvements outweigh the identified challenges.Positive Updates
Operational Outperformance
MVC produced 62.2 million pounds of copper in 2025, exceeding revised guidance, plus 1.5 million pounds of molybdenum. Plant availability remained above 98% and the operation maintained 4 consecutive years without a lost time accident.
Negative Updates
Interruption to Fresh Tailings Supply
A fatal accident at El Teniente in July disrupted the supply of fresh tailings, forcing increased processing of historic tailings and higher consumption of reagents and power to maintain production targets.
Read all updates
Q4-2025 Updates
Positive
Negative
Operational Outperformance
MVC produced 62.2 million pounds of copper in 2025, exceeding revised guidance, plus 1.5 million pounds of molybdenum. Plant availability remained above 98% and the operation maintained 4 consecutive years without a lost time accident.
Read all positive updates
Company Guidance
Amerigo's 2026 guidance is deliberately conservative and assumes continued operational consistency (including Q1 maintenance work); it forecasts copper production of 63.8 million pounds and molybdenum of 1.5 million pounds, a cash cost of $1.98 per pound, and total CapEx of $17.5 million (including $6.4 million for optimization projects). The company used a budget copper price of $4.80/lb—under which it projects EBITDA of $74.5 million—and disclosed a sensitivity of roughly $4.2 million of EBITDA for every $0.20/lb move in copper. Optimization projects cited include pumping capacity work (payback ~1.9 years), cascade-stage improvements (0.7 years) and rougher-flotation/cleaning-stage work (3 months). Management also noted provisional Q4‑2025 pricing of $5.35/lb (each 10% change ≈ $10.2 million revenue impact for Q1 2026 settlements) and that January realized pricing was ~$5.94/lb (2026 YTD LME ~$5.91/lb as of the call).Amerigo Resources Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
70
Positive
| 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
Negative
5.59
Price Trends
5.57
Negative
4.78
Negative
3.54
Positive
Market Momentum
-0.25
Positive
38.37
Neutral
43.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ARG, the sentiment is Negative. The current price of 5.59 is above the 20-day moving average (MA) of 5.16, above the 50-day MA of 5.57, and above the 200-day MA of 3.54, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 38.37 is Neutral, neither overbought nor oversold. The STOCH value of 43.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ARG.
Amerigo Resources Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$809.56M | 14.93 | 33.30% | 4.11% | 10.41% | -0.23% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | C$1.46B | -39.35 | -5.31% | ― | ― | 22.26% | |
56 Neutral | C$1.17B | -22.07 | -63.51% | ― | ― | -10.32% | |
55 Neutral | C$172.61M | -56.86 | -15.12% | ― | ― | 71.30% | |
44 Neutral | C$369.34M | -449.00 | -1.26% | ― | ― | 36.84% | |
42 Neutral | C$369.26M | -48.09 | -6.57% | ― | ― | -41.70% |
* Basic Materials Sector Average
TSE:ARG
Amerigo Resources
5.03
3.22
178.21%
TSE:FDY
Faraday Copper
4.20
3.37
406.02%
TSE:CUU
Copper Fox Metals
0.63
0.37
142.31%
TSE:LA
Los Andes Copper
12.49
6.09
95.16%
TSE:ECU
Element 29 Resources
1.11
0.73
192.11%
TSE:ASCU
Arizona Sonoran Copper Co.
7.00
4.75
211.11%
Amerigo Resources Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Amerigo Boosts Payouts on Strong 2025 Results and Record Copper Prices
Positive
Feb 25, 2026
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 c...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Amerigo Hits Record Q4 Copper Output, Tops 2025 Guidance and Lifts 2026 Production Target
Positive
Jan 13, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.