Amerigo Resources Ltd. (TSX: ARG; OTCQX: ARREF) (“Amerigo” or the
“Company”) is pleased to announce that it has received approval
from the Toronto Stock Exchange (the “TSX”) to proceed with a new
normal course issuer bid (the “NCIB”).
The NCIB will commence on December 2, 2024, and
may continue until December 1, 2025, or at such earlier time as the
NCIB is completed or terminated at the Company's option.
Under the NCIB, Amerigo may purchase for
cancellation up to 12,000,000 common shares of the Company (the
“Shares”), approximately 10% of Amerigo’s public float as of
November 26, 2024. As of November 26, 2024, there were 164,532,844
issued and outstanding Shares of the Company, of which 120,238,264
were forming the public float. All Shares purchased under the NCIB
will be purchased in accordance with the requirements of the
TSX.
“The NCIB is one of the three main tools we use
to return capital to shareholders, and we have renewed our ability
to buy back shares for cancellation for another year,” said Aurora
Davidson, Amerigo’s President and CEO. “Since we launched Amerigo’s
Capital Return Policy three years ago, we are pleased to report
that we have retired more than 21.6 million Shares1. Over the next
12 months, we will continue opportunistically utilizing the NCIB,
depending on copper prices and market conditions. At a minimum, we
intend to buy back enough Shares to eliminate annual shareholder
dilution,” added Ms. Davidson.
Amerigo’s average daily trading volume (“ADTV”)
for the six months ending October 31, 2024, was 249,238 Shares.
Therefore, the new NCIB’s daily purchase limit will be 62,309
Shares, 25% of ADTV. However, once per calendar week, Amerigo may
make one block purchase that exceeds the daily purchase
restriction.
Under the NCIB, Shares may be purchased in open
market transactions on the TSX at the prevailing market price at
the time of such trade. All Shares purchased under the NCIB will be
cancelled.
Under Amerigo’s previous NCIB, which commenced
on December 2, 2023, and will expire on December 1, 2024, Amerigo
received TSX approval to purchase up to 10,900,000 Shares in open
market transactions on the TSX. As of the date of this release,
Amerigo had repurchased and cancelled 1,436,754 Shares at a
weighted average purchase price of Cdn$1.76 per Share under that
earlier NCIB.
Amerigo has a high-yield2 Capital Return
Strategy that uses quarterly dividends, performance dividends and
share buybacks to consistently return capital to shareholders.
Amerigo believes that the opportunistic purchase of Shares under
NCIBs is an appropriate use of available funds and is accretive to
the value of Amerigo’s Shares. The NCIB is in line with Amerigo’s
long-term commitment to creating value for Amerigo’s
shareholders.
Amerigo will determine the actual number of
shares purchased under the NCIB and the timing of such purchases.
There cannot be any assurance as to how many Shares, if any, will
ultimately be acquired by the Company.
1 Capital returned to
shareholdersThe table below summarizes the capital
returned to shareholders since Amerigo’s Capital Return Strategy
was implemented in October 2021.
(Expressed in millions) |
|
|
|
|
|
|
|
Shares Repurchased |
Dividends Paid |
Total |
|
$ |
$ |
$ |
2021 |
8.8 |
2.8 |
11.6 |
2022 |
12.3 |
15.8 |
28.1 |
2023 |
2.6 |
14.6 |
17.2 |
2024 |
1.8 |
15.8 |
17.6 |
|
25.5 |
49.0 |
74.5 |
2 Dividend
yieldThe annual yield at the time of this news release is
9.4% based on four quarterly dividends of Cdn$0.03 per share each
and the July 8, 2024, Performance Dividend of Cdn$0.04, divided
over Amerigo’s November 26, 2024 closing share price of
Cdn$1.71.
About Amerigo and Minera Valle Central
(“MVC”)
Amerigo Resources Ltd. is an innovative copper
producer with a long-term relationship with Corporación Nacional
del Cobre de Chile (“Codelco”), the world’s largest copper
producer.
Amerigo produces copper concentrate and
molybdenum concentrate as a by-product at the MVC operation in
Chile by processing fresh and historic tailings from Codelco’s El
Teniente mine, the world's largest underground copper mine. Tel:
(604) 681-2802; Web: www.amerigoresources.com; TSX: ARG; OTCQX:
ARREF.
Contact Information
Aurora
Davidson |
Graham
Farrell |
President and CEO |
Investor Relations |
(604) 697-6207 |
(416) 842-9003 |
ad@amerigoresources.com |
Graham@49northir.ca |
Forward-Looking Information
Forward-looking information (“forward-looking
statements”) is included in this news release. These
forward-looking statements are identified by the use of terms such
as “anticipate”, “believe”, “could”, “estimate”, “expect”,
“intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, and
“should” and similar terms and phrases, including references to
assumptions. Such statements may involve, but are not limited to,
Amerigo’s plans, objectives, expectations and intentions, including
Amerigo’s objectives and expectations regarding the number of
shares that Amerigo may purchase under the NCIB, Amerigo’s return
of capital policy and other comments concerning strategies,
expectations, planned operations or future actions.
These forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such statements. Inherent in forward-looking
statements are risks and uncertainties beyond Amerigo’s ability to
predict or control, including risks that may affect Amerigo’s
operating or capital plans; risks generally encountered in the
permitting and development of mineral projects such as unusual or
unexpected geological formations, negotiations with government and
other third parties, unanticipated metallurgical difficulties,
delays associated with permits, approvals and permit appeals,
ground control problems, adverse weather conditions, process upsets
and equipment malfunctions; risks associated with labour
disturbances and availability of skilled labour and management;
risks related to the potential impact of global or national health
concerns, and the inability of employees to access sufficient
healthcare; government or regulatory actions or inactions;
fluctuations in the market prices of Amerigo’s principal
commodities, which are cyclical and subject to substantial price
fluctuations; risks created through competition for mining projects
and properties; risks associated with lack of access to markets;
risks associated with availability of and Amerigo’s ability to
obtain both tailings from Codelco’s Division El Teniente’s current
production and historic tailings from tailings deposits; risks with
respect to the ability of Amerigo to draw down funds from lines of
credit and the availability of and ability of Amerigo to obtain
adequate funding on reasonable terms for expansions and
acquisitions; mine plan estimates; risks posed by fluctuations in
exchange rates and interest rates, as well as general economic
conditions; risks associated with environmental compliance and
changes in environmental legislation and regulation; risks
associated with Amerigo’s dependence on third parties for the
provision of critical services; risks associated with
non-performance by contractual counterparties; title risks; social
and political risks associated with operations in foreign
countries; risks of changes in laws affecting Amerigo’s operations
or their interpretation, including foreign exchange controls; and
risks associated with tax reassessments and legal proceedings. Many
of these risks and uncertainties apply to Amerigo and its
operations and Codelco and its operations. Codelco’s ongoing mining
operations provide a significant portion of the materials Amerigo
processes and its resulting metals production. Therefore, these
risks and uncertainties may also affect their operations and have a
material effect on Amerigo.
Actual results and developments are likely to
differ materially from those expressed or implied by the
forward-looking statements in this news release. Such statements
are based on several assumptions which may prove to be incorrect,
including, but not limited to, assumptions about:
- general business and economic
conditions;
- interest and currency exchange
rates;
- changes in commodity and power
prices;
- acts of foreign governments and the
outcome of legal proceedings;
- the supply and demand for,
deliveries of, and the level and volatility of prices of copper,
molybdenum and other commodities and products used in our
operations;
- the ongoing supply of material for
processing from DET’s current mining operations;
- the grade and projected recoveries
of tailings processed by MVC;
- the ability of the Company to
profitably extract and process material from the historic tailings
deposit;
- the timing of the receipt of and
retention of permits and other regulatory and governmental
approvals;
- our costs of production and our
production and productivity levels, as well as those of our
competitors;
- changes in credit market conditions
and conditions in financial markets generally;
- our ability to procure equipment
and operating supplies in sufficient quantities and on a timely
basis;
- the availability of qualified
employees and contractors for our operations;
- our ability to attract and retain
skilled staff;
- the satisfactory negotiation of
collective agreements with unionized employees;
- the impact of changes in foreign
exchange rates and capital repatriation on our costs and
results;
- engineering and construction
timetables and capital costs for our expansion projects;
- costs of closure of various
operations;
- market competition;
- tax benefits and tax rates;
- the outcome of our copper
concentrate sales and treatment and refining charge
negotiations;
- the resolution of environmental and
other proceedings or disputes;
- the future supply of reasonably
priced power;
- average recoveries for fresh and
historic tailings;
- our ability to obtain, comply with
and renew permits and licenses in a timely manner; and
- Our ongoing relations with our
employees and entities we do business with.
Future production levels and cost estimates
assume no adverse mining or other events significantly affecting
budgeted production levels.
Climate change is a global issue that could pose
challenges that could affect the Company's future operations. This
could include more frequent and intense droughts followed by
intense rainfall. In the last several years, Central Chile has had
drought conditions and also rain episodes of significant magnitude.
The Company’s operations are sensitive to water availability and
the reserves required to process projected historic tailings
tonnage.
Although the Company believes that these
assumptions were reasonable when made, they are inherently subject
to significant uncertainties and contingencies that are difficult
or impossible to predict and are beyond the Company’s control.
Therefore, the Company cannot assure that it will achieve or
accomplish the expectations, beliefs, or projections described in
the forward-looking statements.
The preceding list of important factors and
assumptions is not exhaustive. Other events or circumstances could
cause our results to differ materially from those estimated,
projected, and expressed in or implied by our forward-looking
statements. You should also consider the matters discussed under
Risk Factors in the Company`s Annual Information Form. The
forward-looking statements contained herein speak only as of the
date of this news release. Except as required by law, we undertake
no obligation to revise any forward-looking statements or the
preceding list of factors, whether due publicly or otherwise, to
new information or future events.
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