Amerigo Resources Ltd. (ARG:TSX)

  • Amerigo has a stellar capital return policy, currently offering a 7.4% dividend yield. The Company has returned C$0.62/share in the form of dividends and buybacks to shareholders since 2021.

  • ARG has a strategic contract with a world-class asset, Codelco’s El Teniente, and is highly leveraged to the copper price.

  • ARG trades at only 2.4x/2.5x 2024E/2025E EBITDA despite its long-term track record of creating shareholder value.

Investment Summary

Company Description

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.

Research

Amerigo Resources: 
Management Interview
January 20, 2025