Amerigo Reports Q3-2026 Production of 17.0 Million Pounds and Cash Cost1 of $1.55/lb

Amerigo Resources Ltd. (ARG) released operational results for its 100%-owned Minera Valle Central (MVC) operation near Rancagua, Chile, on October 13, 2026. This announcement serves as an operational update rather than a financial earnings release; the company’s Q3-2026 financial statements and Management’s Discussion & Analysis are scheduled for October 28, 2026, with an investor call set for October 29, 2026.

During the third quarter of 2026, MVC produced 17.0 million pounds of copper and 0.4 million pounds of molybdenum, with plant availability recorded at 98.1%. The company reported no reportable safety incidents for the period.

Year-to-date production for the first nine months of 2026 totaled 48.2 million pounds of copper, which the company stated was ahead of its internal target and represented 76% of its 63.8 million pound annual guidance. Molybdenum production reached 1.15 million pounds, described as ahead of the 1.5 million pound annual guidance.

Q3-2026 cash costs were reported at $1.55 per pound. Year-to-date cash costs stood at $1.70 per pound, while normalized cash costs were $1.65 per pound after excluding a supervisors' union signing bonus paid in May 2026. This compares to a 2026 normalized cash cost guidance of $1.98 per pound, representing a 16.7% gap. Management attributed this cost outperformance to higher molybdenum by-product credits, driven by an average Q3 molybdenum price of $32.38 per pound, up from $29.15 per pound in Q2-2026, as well as higher copper production.

Regarding capital returns, Amerigo paid $27.8 million in Q3-2026, comprising $20.4 million in performance dividends, $4.5 million in quarterly dividends, and $2.9 million in buybacks. Year-to-date capital returns totaled $69.5 million, consisting of $45.0 million in performance dividends, $14.0 million in quarterly dividends, and $10.5 million in buybacks. Since the launch of the Capital Return Strategy (CRS) in October 2021, cumulative returns have reached $168.0 million, reducing shares outstanding by 15.4%.

The company reported cash holdings of $50.1 million as of September 30, 2026, and reaffirmed its debt-free balance sheet. A Canadian dollar 0.21 per share performance dividend, valued at approximately $24.5 million and declared on September 14, 2026, is payable on October 14, 2026. This payment is a restatement of a previously announced corporate action rather than new information contained in this release.

Additionally, a three-year collective agreement with MVC’s supervisors' union has been confirmed for the term from January 8, 2027, to January 8, 2030. The release provided no revenue, EBITDA, free cash flow, All-In Sustaining Costs (AISC), or royalty cost lines, functioning solely as a cost-and-volume scorecard.

Amerigo Resources Ltd. (ARG) reported an operational quarter that largely repeated previous trends, with cash costs continuing to outperform guidance. The company’s Q3 cash cost came in at $1.55/lb, following Q1 costs of $1.82/lb and a first-half normalized cost of $1.70/lb. These figures reinforce the company’s cost discipline but do not represent new market-moving information.

Production remained on its expected trajectory, with 76% of annual guidance achieved through the first three quarters. This performance mirrors the 49% progress recorded through the first half, against a pro-rata benchmark of 50%. Copper production in Q3 reached 17.0 million pounds, a 0.6% increase from Q2’s 16.9 million pounds and a 16.4% rise compared to 14.6 million pounds in Q3 2025.

The release noted that heavy rain reduced the number of days available to process historic tailings. While operationally absorbed, the disclosure highlights the asset’s sensitivity to weather, as Central Chile has experienced alternating periods of drought and heavy rainfall.

The report omitted several items previously flagged by management. There was no mention of the DET/Codelco royalty renegotiation, which the Q2 2026 MD&A stated was under review as average copper prices exceeded $4.80 per pound since October 2025. Additionally, the report did not address capex creep, which had risen to $19.1 million in the prior quarter.

A Cdn$0.21 performance dividend, declared on September 14, 2026, was restated in the release. Since the prior earnings report on July 29, 2026, when the stock closed at Cdn$6.73, the shares reached an all-time high of Cdn$9.10 on September 25, 2026, before settling at Cdn$8.41. The market has already priced in the operational beat, with the stock rising 35% during that period.

Amerigo Resources Ltd. (TSX: ARG; OTCQX: ARREF) is a Vancouver-headquartered copper producer whose sole operating asset is Minera Valle Central (MVC), a 100%-owned tailings reprocessing facility located near Rancagua, Chile. The company operates under a tolling-style relationship with Codelco and its El Teniente division (DET), processing historic and fresh tailings generated by Codelco's El Teniente underground copper mine. The facility produces copper concentrate and molybdenum concentrate.

Production history from the investor presentation shows output of 63.4 Mlb Cu in 2021, 64.0 Mlb in 2022, 57.6 Mlb in 2023, 64.6 Mlb in 2024, and 62.2 Mlb in 2025. The 2023 figure was impacted by historic flooding. For 2026, guidance stands at 63.8 Mlb Cu and approximately 1.5 Mlb Mo. Actual 2025 production of 62.2 Mlb was below 2024’s 64.6 Mlb; the "sixth consecutive year of increased production guidance" claim in the Q2-2026 MD&A refers to guidance, not realized output.

Recovery rates have been recorded at 98.0% in 2021, 98.8% in 2022, 91.2% in 2023, 96.7% in 2024, and 98.4% in 2025.

The asset is located in Chile, a well-established mining jurisdiction with a history of royalty and tax policy volatility. The arrangement involves a state-owned counterparty with substantial leverage. ESG positioning includes sourcing 100% of copper from tailings, utilizing approximately 95% renewable electricity, maintaining low Scope 1 and 2 intensity, and achieving high water recycling. The presentation notes inclusion in the Global X Copper Miners ETF (COPX).

Management includes Executive Chairman and founder Dr. Klaus Zeitler, who founded Amerigo in 2003, served as the first CEO of Inmet Mining, and was a former director at Teck and Cominco. President and CEO Aurora Davidson has held her position since 2003 and is a CPA/CGA. CFO Carmen Amezquita has served since 2020. Christian Cáceres, a metallurgical engineer who joined MVC in 1993, has been General Manager of MVC since 2015. The board maintains an independent majority with separate Audit, Governance and EHS committees.

No investment bank research, analyst estimates, or peer multiples were provided in the materials.