Amerigo Posts Net Income of $22.7 Million as Copper Prices and Production Rise in Q3
Key Facts
Amerigo Resources reported net income of $22.7 million in the third quarter of 2026, compared with $6.7 million in the same period last year, according to the company’s statement published via Newsfile. Earnings before interest, taxes, depreciation and amortization were $48.0 million, while free cash flow was $28.1 million. Earnings rose alongside an increase in copper production to 17.0 million pounds from 14.6 million a year earlier. The company’s average realized copper price also rose to $6.55 per pound from $4.54 in the third quarter of 2025. The results reflect a combination of higher production and improved prices, alongside changes in operating costs, royalties and taxes.
The company said the improvement in net income was mainly driven by higher copper processing revenue, positive copper-related adjustments and increased molybdenum revenue. It said these factors were partially offset by higher nominal copper royalties payable to DET, as well as increased processing and production costs and income tax. Operating cash flow before non-cash working capital changes rose to $30.5 million, compared with $12.4 million in the third quarter of 2025. Free cash flow also climbed to $28.1 million from $11.1 million a year earlier. These cash flows provide context for the company’s shareholder payments during the period, which exceeded what it paid in the first nine months of the previous year.
The company’s MVC operation in Chile produced 17.0 million pounds of copper and 0.4 million pounds of molybdenum in the third quarter, with plant availability at 98.1%. In the nine months ended September 30, copper production reached 48.2 million pounds, equivalent to 76% of annual guidance of 63.8 million pounds. Year-to-date molybdenum production was 1.15 million pounds, compared with annual guidance of 1.5 million pounds. The company said year-to-date molybdenum production was ahead of annual guidance. Despite a decline in processing time for historical tailings due to heavy rainfall, the chief executive said cumulative production remained ahead of the internal target. These figures come after nine months of the fiscal year and ahead of the investor conference scheduled for the day after the results announcement.
Copper cash costs were $1.55 per pound in the third quarter, down $0.25 from $1.80 in the same period last year. The company attributed the decline mainly to higher molybdenum by-product credits, which reduced costs by $0.12 per pound, as molybdenum prices rose 34% from the comparable period. Lower lime costs, by $0.07 per pound, also contributed to the reduction. The average molybdenum price was $32.38 per pound in the third quarter, compared with $29.15 in the second quarter. Year to date through September 30, cash costs were $1.70 per pound, or $1.65 on an adjusted basis, against adjusted annual guidance of $1.98. The adjusted measure excludes a signing bonus for a three-year collective bargaining agreement with the MVC supervisors’ union, which the company paid in May 2026.
Amerigo paid $27.8 million to shareholders in the third quarter, including $20.4 million in performance dividends and $4.5 million in quarterly dividends, as well as $2.9 million in share buybacks. Total payments in the nine months through September 30 were $69.5 million, comprising $45.0 million in performance dividends, $14.0 million in quarterly dividends and $10.5 million in buybacks. After paying a performance dividend of C$0.21 per share on October 14, year-to-date shareholder returns reached $93.9 million as of that date. On October 26, the board declared a quarterly dividend of C$0.04 per share. The dividend is payable on December 18 to shareholders of record on November 30, 2026. Since launching its capital return strategy in October 2021, the company has returned $168.0 million to shareholders and reduced its shares outstanding by 15.4%.
The company had a cash balance of $50.1 million on September 30, but reported a working capital deficit of $18.6 million. It had recorded a working capital surplus of $10.9 million on December 31, 2025. Amerigo attributed the deficit mainly to dividends declared and payable after the quarter ended. These figures put the announced shareholder payments in the context of liquidity and short-term obligations at the end of September. Before the results announcement, Amerigo shares rose 6.93% at the close of trading in Toronto on October 27. EL7 data also showed copper closing at $6.6483 per pound on October 28, the day after the results announcement.
The company scheduled its quarterly investor conference for October 29, 2026, at 11:00 a.m. Pacific Daylight Time, or 2:00 p.m. Eastern Daylight Time. The conference comes one day after the third-quarter results announcement. The event is expected to provide a regular presentation of financial and operating results, along with details of the dividend declared on October 26. The dividend payment date remains December 18, with eligibility limited to shareholders of record on November 30. The production and cost data in the results cover the period through September 30, while the reported year-to-date shareholder returns include the performance dividend paid on October 14.