Operational outperformance and debt elimination: MVC produced 62.2M lb Cu and 1.5M lb Mo in 2025 with >98% availability, maintained output despite a fresh-tailings disruption, and the company repaid all borrowings by year-end.
Strong financials and shareholder returns: revenue rose 18% to $227M, EBITDA increased 31% to $90M and net income was $35.4M, while Amerigo returned $20.4M to shareholders via dividends and buybacks (plus a declared performance dividend of $0.05/sh).
2026 guidance and price sensitivity: management targets 63.8M lb Cu with a cash cost of $1.98/lb and $17.65M capex (including $6.4M of optimizations), and warns that provisional pricing (≈$5.35/lb) creates material settlement exposure—each 10% move equals roughly $10.2M of revenue—and may trigger royalty discussions if high prices persist.
Amerigo Resources (TSE:ARG) executives said 2025 delivered “robust operational performance” and strong cash generation as the company’s Minera Valle Central (MVC) tailings reprocessing operation exceeded updated production guidance, eliminated all debt, and increased shareholder returns despite copper price volatility and a temporary disruption in fresh tailings supply.
President and CEO Aurora Davidson said MVC produced 62.2 million pounds of copper in 2025, exceeding revised guidance, and produced 1.5 million pounds of molybdenum, also ahead of expectations. Plant availability remained above 98%.
Davidson noted that results were achieved despite interruptions to the supply of fresh tailings following a fatal accident at El Teniente in July. She said MVC increased processing of historic tailings to maintain production targets, which she described as evidence of the plant’s flexibility.
On safety, Davidson said MVC recorded four consecutive years without a lost time accident among its employees. She also highlighted MVC’s “circular economy” profile and said the operation received an industry award in Chile recognizing its tailings reprocessing model.
Davidson said the average copper price in 2025 was $4.73 per pound, about 14% higher than 2024. With that price backdrop, she said revenue rose 18% to $227 million, EBITDA increased 31% to $90 million, and free cash flow to equity increased 33% to $37 million.
CFO Carmen Amézquita reported net income of $35.4 million, earnings per share of $0.22 (CAD 0.30), and EBITDA of $89.8 million for the year. Revenue totaled $227.3 million versus $192.8 million in 2024. She said molybdenum revenue increased to $26.5 million from $22.9 million, reflecting higher molybdenum output.
Tolling and production costs increased 9% to $160.1 million, which Amézquita attributed in part to higher power and lime consumption associated with historic tailings processing. Direct labor rose $4.7 million, largely due to a $4 million signing bonus paid in October 2025 tied to a three-year collective labor agreement with MVC’s Operators Union.
Gross profit was $67.2 million, up from $45.4 million in 2024, while G&A expenses were $6.0 million compared with $5.3 million the prior year. Finance expense declined to $1.7 million from $2.2 million, primarily because borrowings were reduced and ultimately repaid. Income tax expense was $22.3 million.
Amézquita said 2025 cash cost was $1.93 per pound (up from $1.89), including $0.06 per pound tied to signing bonuses; excluding that, normalized cash cost was $1.87 per pound. Total cost was $3.81 per pound, up from $3.49, reflecting higher notional royalties and other factors. All-in sustaining costs were $4.02 per pound versus $3.73.
On the balance sheet, the company ended 2025 with $40.3 million in cash and cash equivalents and $10.9 million in working capital. Trade and settlement receivables rose to $34.2 million from $10.0 million, which she said was driven by mark-to-market adjustments, higher-value invoices at year-end, and payment timing. Borrowings at year-end were nil, as the company repaid both its loan and line of credit during the year.
Management emphasized Amerigo’s Capital Return Strategy, which Davidson described as consisting of quarterly dividends, performance dividends, and opportunistic share buybacks.
Amézquita said Amerigo returned $20.4 million to shareholders in 2025, including:
$15.2 million in dividends, including quarterly dividends of $0.03 per share for the first three quarters and $0.04 per share in the fourth quarter
$5.2 million spent to purchase and cancel 4 million common shares under a Normal Course Issuer Bid
With cash at year-end, she said the company declared a performance dividend of $0.05 per share in December, paid in January 2026.
For 2026, Davidson guided to copper production of 63.8 million pounds and molybdenum production of 1.5 million pounds. Cash cost is expected to be $1.98 per pound. Planned capital expenditures total $17.65 million, including $6.4 million of optimization projects that management expects to pay back in the short term.
In Q&A, Davidson said the annual plant maintenance shutdown is split into two parts in 2026, with one completed in January and a second scheduled for March—placing the shutdown activity in Q1. She outlined optimization projects focused on pumping capacity and stability, cascade-stage optimization, and improvements to rougher flotation concentrate transport and cleaner-stage recovery, with paybacks cited at 1.9 years, 0.7 years, and three months, respectively.
Amézquita also discussed provisional pricing on Q4 2025 sales, noting a provisional copper price of $5.35 per pound. Final settlement prices for October, November, and December 2025 sales will be based on average LME prices for January, February, and March 2026, respectively. She said each 10% change from the $5.35 provisional price would result in a $10.2 million revenue change in Q1 2026 related to Q4 2025 production. Davidson added that January’s realized average price was $5.94 per pound, and she pointed to strong realized positive settlement adjustments in January and February, with March still to be determined.
Asked about royalty terms if copper prices remain elevated, Davidson said contractual conditions require discussions with El Teniente after two consecutive months of LME copper prices above specified levels. She said Amerigo has reached out and El Teniente has acknowledged the need for discussions, but talks have not yet occurred. In the interim, she said royalty factors remain provisionally unchanged and would be adjusted retroactively once revised terms are known.
Amerigo Resources Ltd is principally engaged in the production of copper and molybdenum concentrates through its operating subsidiary Minera Valle Central SA The group operates in one segment, the production of copper concentrates with the production of molybdenum concentrates as a by-product. The company geographically operates in Chile and Canada and earns most of its revenue from Chile.
