Amerigo Resources Could Return More Cash With Rosy Prospects For Copper
- This analysis assigns a “Hold” rating to shares of Amerigo Resources Ltd. a copper and molybdenum producer in Chile, the world's leading copper producer.
- Amerigo Resources processes fresh and historic tailings from former mining operations at the underground El Teniente mine in Chile. El Teniente is owned by Codelco, a Chilean state-owned company.
- The free cash flow to pay dividends and share buybacks, the key drivers of the share price, will benefit from rising copper prices, growing production and cooling costs.
- Copper prices are also a key driver for Amerigo. Green strategies including electrification, electric cars, AI data centers, and solar panels, as well as the Chinese stimulus packages for the Dragon economy, are expected to drive up copper prices.
- Amerigo Resources should remain in the portfolio with a long-term perspective and add shares on the dips. Until a dip forms, investors may want to continue holding shares.
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A “Hold” Rating for Amerigo Resources Ltd.
This analysis assigns a “Hold” rating to shares of Amerigo Resources Ltd. (OTCQX:ARREF), the same rating I previously gave in my last analysis from August.
Based in Vancouver, Canada, the company Amerigo Resources is a
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