Canada's Amerigo Q2 net income rises on higher copper prices

Overview

• Canada copper producer's Q2 net income rose to $18.3 mln on higher copper prices

• Q2 EBITDA reached $38.4 mln, supported by increased production and operational execution

• Company returned $41.7 mln to shareholders year-to-date via dividends and buybacks

Outlook

• Amerigo says priorities for 2026 are safe operations, cost management and balance sheet strength

• Company will continue Capital Return Strategy, prioritizing return of excess cash to shareholders

• Amerigo views long-term copper outlook constructively, citing demand growth and challenged supply

Result Drivers

• RECORD COPPER PRICES - Q2 benefited from the strongest quarterly LME copper prices on record, boosting revenue

• HIGHER COPPER OUTPUT - Strong production of 16.9 mln lbs copper, supported by 99% plant availability and strong safety record

• LOWER CASH COSTS - Cash cost per pound fell mainly due to higher molybdenum by-product credits from a 43% increase in molybdenum price

Company press release: ID:nNFC9f6LY7

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the specialty mining metals peer group is "buy."

• Wall Street's median 12-month price target for Amerigo Resources Ltd is C$10.00, about 39.9% above its July 28 closing price of C$7.15

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

• July 29 - Glencore's copper output up 15%, sees strong $3.3 bln marketing EBIT

• July 28 - Canada's First Quantum Q2 adjusted EPS misses estimates on higher costs

• July 29 - UK's Weir Group H1 revenue rises 5% on demand in copper market

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)