NEW YORK Amerigo
Resources Ltd. is conducting a "detailed economic review of
molybdenum production under current prices" given the "minimal
profitability" of its molybdenum operations in the first
quarter, it said.
The Vancouver, British Columbia,
company has cut its output guidance for 2013, with a recent
slide in one of the working areas at its Colihues Mine meaning
that extraction rates and grades will be lower than thought for
the second and third quarters.
"Copper production is now
expected to be at the lower end of our previously announced
guidance of 45 (million) to 50 million pounds, and guidance for
molybdenum has been revised downward to 700,000 pounds for
2013," chief operating officer Rob Henderson said.
The company posted net income of
$3.2 million, up 40.2 percent from $2.3 million a year earlier,
despite revenue that fell 14.5 percent to $43.2 million from
Revenue was weighed down by
lower copper and molybdenum sales volumes and lower average
metals prices, Amerigo said. Average copper selling prices fell
to $3.52 per pound for the three months ended March 31 from
$3.55 per pound in the year-ago quarter, while the average
molybdenum selling prices dropped to $11.34 per pound from
$14.10 per pound.
Molybdenum output of 258,301
pounds in the first quarter rose 19.4 percent from 216,292
pounds a year earlier; and copper output topped 12.8 million
pounds, down 7.6 percent from nearly 13.9 million pounds.
Amerigo produces copper and
molybdenum under a long-term partnership with Santiago,
Chile-based Corporación Nacional del Cobre Chile
(Codelco) by means of processing fresh and old tailings from
the El Teniente Mine in Chile.