Amerigo Resources (TSE:ARG)
TSX:ARG
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Amerigo Resources
(TSX:ARG)
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Rating:81Outperform
Price Target:
C$8.00
▲(20.30% Upside)
Action:Reiterated
Date:05/03/26
The score is driven primarily by strong financial performance (debt-free balance sheet, high recent margins/ROE, and solid free cash flow) and a constructive technical uptrend (price above major moving averages, positive MACD). Valuation is reasonable with a ~3% yield, and the latest earnings call was broadly positive with conservative guidance and clear optimization plans, tempered by cost/royalty and copper-price settlement volatility risks.
Positive Factors
Debt-free balance sheet
A zero-debt balance sheet materially reduces financial risk and interest obligations, giving Amerigo durable financial flexibility to fund short-payback optimization projects, sustain shareholder returns, and withstand lower copper-price periods without forced deleveraging or liquidity stress.
Negative Factors
Royalties renegotiation risk
Potential renegotiation of capped royalty formulas creates a structural cost uncertainty: if elevated copper prices persist, higher or retroactive royalties could materially raise long‑term per‑unit costs and compress sustainable margins across future cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A zero-debt balance sheet materially reduces financial risk and interest obligations, giving Amerigo durable financial flexibility to fund short-payback optimization projects, sustain shareholder returns, and withstand lower copper-price periods without forced deleveraging or liquidity stress.
Read all positive factors
Amerigo Resources (ARG) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.05B
Dividend Yield4.11%
Average Volume (3M)784.43K
Price to Earnings (P/E)9.9
Beta (1Y)1.89
Revenue Growth29.10%
EPS Growth162.15%
CountryCA
Employees299
SectorBasic Materials
Sector Strength58
IndustryCopper
Share Statistics
EPS (TTM)0.29
Shares Outstanding160,946,670
10 Day Avg. Volume835,296
30 Day Avg. Volume784,433
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$8.50Price Target Upside27.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.25
Revenue Forecast (FY)C$223.90M
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:Aug 05, 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
92
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 308.76M | 231.30M | 294.99M | 157.46M | 168.05M | 199.55M |
| Gross Profit | 84.85M | 68.27M | 45.41M | 13.86M | 27.92M | 71.68M |
| EBITDA | 102.47M | 85.29M | 57.61M | 29.98M | 45.59M | 84.16M |
| Net Income | 47.13M | 36.05M | 19.24M | 3.38M | 4.37M | 39.82M |
Balance Sheet | ||||||
| Total Assets | 212.51M | 217.34M | 205.47M | 199.56M | 231.18M | 269.35M |
| Cash, Cash Equivalents and Short-Term Investments | 57.16M | 40.24M | 35.86M | 17.15M | 38.96M | 59.79M |
| Total Debt | 0.00 | 0.00 | 10.70M | 20.71M | 25.91M | 33.85M |
| Total Liabilities | 93.57M | 102.43M | 100.68M | 94.71M | 112.48M | 130.55M |
| Stockholders Equity | 118.94M | 114.91M | 104.79M | 104.85M | 118.70M | 138.79M |
Cash Flow | ||||||
| Free Cash Flow | 71.60M | 32.38M | 50.44M | 3.39M | 13.82M | 81.17M |
| Operating Cash Flow | 82.38M | 44.48M | 59.78M | 20.28M | 23.63M | 93.13M |
| Investing Cash Flow | -10.78M | -12.10M | -9.34M | -16.89M | -9.81M | -8.10M |
| Financing Cash Flow | -41.60M | -27.88M | -29.40M | -24.91M | -35.89M | -36.82M |
Amerigo Resources Technical Analysis
Positive
6.65
Price Trends
5.68
Positive
5.52
Positive
4.12
Positive
Market Momentum
0.29
Negative
56.48
Neutral
78.02
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 6.65 is above the 20-day moving average (MA) of 6.33, above the 50-day MA of 5.68, and above the 200-day MA of 4.12, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 56.48 is Neutral, neither overbought nor oversold. The STOCH value of 78.02 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | C$1.05B | 9.92 | 42.44% | 4.11% | 29.10% | 162.15% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
55 Neutral | C$1.57B | -27.79 | -39.74% | ― | ― | 0.40% | |
55 Neutral | C$1.72B | -10.74 | -15.03% | ― | ― | -120.73% | |
53 Neutral | C$420.40M | -48.09 | -6.57% | ― | ― | -194.27% | |
52 Neutral | C$469.00M | -449.00 | -1.26% | ― | ― | -72.73% | |
48 Neutral | C$200.60M | -64.33 | -14.07% | ― | ― | 71.04% |
* Basic Materials Sector Average
TSE:ARG
Amerigo Resources
6.28
4.65
285.99%
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Amerigo Resources Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Amerigo Lifts Payouts on Record Copper Prices and Lower Costs in Q1-2026
Positive
Apr 13, 2026
Amerigo Resources reported that MVC produced 14.3 million pounds of copper and 0.32 million pounds of molybdenum in Q1-2026, completing a planned 10-day maintenance shutdown without incidents while maintaining its annual production guidance. The o...
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...
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.