Amerigo Announces Reduced Q4-2013 Power Charges
February 11, 2014 at 07:30 AM EST
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 11, 2014) - Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or the "Company") announced today that the Company's Q4-2013 power costs will be $0.112/kwh, compared to $0.154/kwh as reported in its January 24, 2014 press release.
Q4-2013 power costs include a retroactive sub-transmission line charge for the years 2011-2013 that required complex calculations involving data from Chile's National Energy Commission, the central power grid operating network and the Company's power supplier published in late 2013. The $3.7 million ($0.057/kwh) original estimate of the retroactive charge has been recalculated to be $0.98 million ($0.015/kwh) after careful scrutiny by Amerigo and its power consultants.
Q4-2013 power charges without the retroactive charge were $0.097/kwh.
For 2014 this sub-transmission line charge is estimated to be approximately $310,000 or $0.001/kwh.
The Company received the original estimate of the retroactive charge at the time the Q4-2013 production release was being finalized. Subsequently management together with our power consultants reviewed the calculations and determined that the initial estimate was incorrect. The revised amount of $0.112/kwh for Q4-2013 power costs will be reported in Amerigo's 2013 financial statements.
The Company will release its 2013 annual financial results at market open on Wednesday February 26, 2014, and will provide further clarification during the investor conference call to be held on Thursday February 27, 2014 at 11:00 am Pacific Standard Time/2:00 pm Eastern Standard Time.
To participate in the call, please dial the following number:
1-866-226-1792 (Toll-Free North America)
Please let the operator know you wish to participate in the Amerigo Resources conference call.
Media are invited to attend on a listen-only basis.
Following management's discussion of the quarterly results, the analyst and investment community will be invited to ask questions.
Amerigo Resources Ltd. produces copper and molybdenum under a long term partnership with the world's largest copper producer, Codelco, by means of processing fresh and old tailings from the world's largest underground copper mine, El Teniente near Santiago, Chile. Tel: (604) 681-2802; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: (TSX:ARG)
Certain of the information and statements contained herein that are not historical facts, constitute "forward-looking information" within the meaning of the Securities Act (British Columbia), Securities Act (Ontario) and the Securities Act (Alberta) ("Forward-Looking Information"). Forward-Looking Information is often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend"; statements that an event or result is "due" on or "may", "will", "should", "could", or might" occur or be achieved; and, other similar expressions. More specifically, Forward-Looking Information contained herein includes, without limitation, information concerning future tailings production volumes and the Company's copper and molybdenum production, all of which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such Forward-Looking Information;
including, without limitation, material factors and assumptions relating to, and risks and uncertainties associated with, the supply of tailings from El Teniente and extraction of tailings from the Colihues tailings impoundment, the achievement and maintenance of planned production rates, the evolving legal and political policies of Chile, the volatility in the Chilean economy, military unrest or terrorist actions, metal price fluctuations, governmental relations, the availability of financing for activities when required and on acceptable terms, the estimation of mineral resources and reserves, current and future environmental and regulatory requirements, the availability and timely receipt of permits, approvals and licenses, industrial or environmental accidents, equipment breakdowns, availability of and competition for future mineral acquisition opportunities, availability and cost of insurance, labour disputes, land claims, the inherent uncertainty of production and cost estimates, currency fluctuations, expectations and beliefs of management and other risks and uncertainties, including those described under Risk Factors in the Company's Annual Information Form and in Management's Discussion and Analysis in the Company's financial statements. Such Forward-Looking Information is based upon the Company's assumptions regarding global and Chilean economic, political and market conditions and the price of metals, including copper and molybdenum, and future tailings production volumes and the Company's copper and molybdenum production. Among the factors that have a direct bearing on the Company's future results of operations and financial conditions are changes in project parameters as plans continue to be refined, interruptions in the supply of fresh tailings from El Teniente, further delays in the extraction of tailings from the Colihues tailings impoundment, a change in government policies, competition, currency fluctuations and restrictions and technological changes, among other things. Should one or more of any of the aforementioned risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the Forward-Looking Information. Accordingly, readers are advised not to place undue reliance on Forward-Looking Information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise Forward-Looking Information, whether as a result of new information, future events or otherwise.
Amerigo Resources Ltd.
Dr. Klaus Zeitler
Chairman & CEO
(604) 218-7013 or (604) 697-6201
Amerigo Resources Ltd.
(604) 682-2802 (FAX)