Amerigo Resources Ltd.

Section1: Company Overview and Fundamental Insights

1.1 Company Overview:

Amerigo Resources Ltd. (TSX: ARG) is principally engaged in the production of copper and molybdenum concentrates through its operating subsidiary Minera Valle Central S.A. The group operates in one segment, the production of copper concentrates with the production of molybdenum concentrates as a by-product. The company geographically operates in Chile and Canada and earns most of its revenue from Chile.

Kalkine’s Penny Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~36.72% of the total shareholding. Aegis Financial Corporation and Ireland (George R) hold a maximum stake in the company at ~­­­13.17% and ~7.47%, respectively.

1.4 Key Metrics:

In FY 2024, the company reported decent growth in its financials on the back of healthy MVC’s copper price, which is a key positive. Additionally, the company also achieved elevated cash flows, demonstrating its resilience and agility.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates: The image below provides a summary of the company's recent actions; specifically, it revealed information about its Q1 2025 production numbers from Minera Valle Central.

2.2 Insights on FY 2024 Financial Performance:

Section 3: Key Risks, Company Outlook: 

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

The stock has witnessed an upside of ~2.94% and a downside of ~8.38% over the last 1 week and 1 month respectively. Moreover, the stock is trading below the average 52-week high price of CAD 2.05 and 52-week low price of CAD 1.50, providing an opportunity to accumulate the stock.

4.2 Fundamental Valuation

Valuation Methodology: EV/EBITDA Multiple Based Relative Valuation (Illustrative)

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on April 30, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement. 

Note 5: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavorable movement in the stock prices.