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ARG

Amerigo Resources TSX:ARG Stock Report

Last Price

CA$1.19

Market Cap

CA$197.6m

7D

-0.8%

1Y

-11.2%

Updated

15 Aug, 2022

Data

Company Financials +
ARG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance3/6
Financial Health6/6
Dividends5/6

ARG Stock Overview

Amerigo Resources Ltd., through its subsidiary, Minera Valle Central S.A., produces and sells copper and molybdenum concentrates from Codelco’s El Teniente underground mine in Chile.

Amerigo Resources Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Amerigo Resources
Historical stock prices
Current Share PriceCA$1.19
52 Week HighCA$2.01
52 Week LowCA$1.09
Beta2.87
1 Month Change5.31%
3 Month Change-31.61%
1 Year Change-11.19%
3 Year Change91.94%
5 Year Change60.81%
Change since IPO-77.55%

Recent News & Updates

Jul 03
We Think Amerigo Resources (TSE:ARG) Can Manage Its Debt With Ease

We Think Amerigo Resources (TSE:ARG) Can Manage Its Debt With Ease

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Shareholder Returns

ARGCA Metals and MiningCA Market
7D-0.8%0.9%2.5%
1Y-11.2%-14.4%1.0%

Return vs Industry: ARG exceeded the Canadian Metals and Mining industry which returned -14.3% over the past year.

Return vs Market: ARG underperformed the Canadian Market which returned 0.7% over the past year.

Price Volatility

Is ARG's price volatile compared to industry and market?
ARG volatility
ARG Average Weekly Movement7.3%
Metals and Mining Industry Average Movement11.5%
Market Average Movement10.6%
10% most volatile stocks in CA Market18.9%
10% least volatile stocks in CA Market4.3%

Stable Share Price: ARG is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ARG's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1984n/aAurora Davidsonhttps://www.amerigoresources.com

Amerigo Resources Ltd., through its subsidiary, Minera Valle Central S.A., produces and sells copper and molybdenum concentrates from Codelco’s El Teniente underground mine in Chile. The company was formerly known as Golden Temple Mining Corp. and changed its name to Amerigo Resources Ltd. in March 2002.

Amerigo Resources Fundamentals Summary

How do Amerigo Resources's earnings and revenue compare to its market cap?
ARG fundamental statistics
Market CapUS$153.16m
Earnings (TTM)US$27.73m
Revenue (TTM)US$187.49m

5.5x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARG income statement (TTM)
RevenueUS$187.49m
Cost of RevenueUS$130.37m
Gross ProfitUS$57.13m
Other ExpensesUS$29.40m
EarningsUS$27.73m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.17
Gross Margin30.47%
Net Profit Margin14.79%
Debt/Equity Ratio20.8%

How did ARG perform over the long term?

See historical performance and comparison

Dividends

10.0%

Current Dividend Yield

61%

Payout Ratio

Does ARG pay a reliable dividends?

See ARG dividend history and benchmarks
When do you need to buy ARG by to receive an upcoming dividend?
Amerigo Resources dividend dates
Ex Dividend DateAug 30 2022
Dividend Pay DateSep 20 2022
Days until Ex dividend14 days
Days until Dividend pay date35 days

Does ARG pay a reliable dividends?

See ARG dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is ARG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ARG?

Other financial metrics that can be useful for relative valuation.

ARG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA1.8x
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

How does ARG's PE Ratio compare to its peers?

ARG PE Ratio vs Peers
The above table shows the PE ratio for ARG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average4.9x
FAR Foraco International
3.3xn/aCA$162.0m
GEO Geodrill
5.4xn/aCA$113.3m
S Sherritt International
1.7x-14.3%CA$166.9m
MNTO Minto Metals
9xn/aCA$138.5m
ARG Amerigo Resources
5.5x3.8%CA$197.6m

Price-To-Earnings vs Peers: ARG is expensive based on its Price-To-Earnings Ratio (5.5x) compared to the peer average (4.9x).


Price to Earnings Ratio vs Industry

How does ARG's PE Ratio compare vs other companies in the CA Metals and Mining Industry?

Price-To-Earnings vs Industry: ARG is good value based on its Price-To-Earnings Ratio (5.5x) compared to the Canadian Metals and Mining industry average (10.1x)


Price to Earnings Ratio vs Fair Ratio

What is ARG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ARG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.5x
Fair PE Ratio9x

Price-To-Earnings vs Fair Ratio: ARG is good value based on its Price-To-Earnings Ratio (5.5x) compared to the estimated Fair Price-To-Earnings Ratio (9x).


Share Price vs Fair Value

What is the Fair Price of ARG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ARG (CA$1.19) is trading below our estimate of fair value (CA$3.37)

Significantly Below Fair Value: ARG is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Amerigo Resources forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


3.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARG's forecast earnings growth (3.8% per year) is above the savings rate (1.6%).

Earnings vs Market: ARG's earnings (3.8% per year) are forecast to grow slower than the Canadian market (7.9% per year).

High Growth Earnings: ARG's earnings are forecast to grow, but not significantly.

Revenue vs Market: ARG's revenue is expected to decline over the next 3 years (-1.3% per year).

High Growth Revenue: ARG's revenue is forecast to decline over the next 3 years (-1.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ARG's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Amerigo Resources performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


40.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ARG has high quality earnings.

Growing Profit Margin: ARG's current net profit margins (14.8%) are lower than last year (19.7%).


Past Earnings Growth Analysis

Earnings Trend: ARG has become profitable over the past 5 years, growing earnings by 40.7% per year.

Accelerating Growth: ARG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ARG had negative earnings growth (-23.4%) over the past year, making it difficult to compare to the Metals and Mining industry average (-15.8%).


Return on Equity

High ROE: ARG's Return on Equity (21.3%) is considered high.


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Financial Health

How is Amerigo Resources's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ARG's short term assets ($66.3M) exceed its short term liabilities ($55.4M).

Long Term Liabilities: ARG's short term assets ($66.3M) exceed its long term liabilities ($62.9M).


Debt to Equity History and Analysis

Debt Level: ARG has more cash than its total debt.

Reducing Debt: ARG's debt to equity ratio has reduced from 73.9% to 20.8% over the past 5 years.

Debt Coverage: ARG's debt is well covered by operating cash flow (248.5%).

Interest Coverage: ARG's interest payments on its debt are well covered by EBIT (56.3x coverage).


Balance Sheet


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Dividend

What is Amerigo Resources's current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


10.05%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 16 2022Ex Dividend DateAug 30 2022Dividend Pay DateSep 20 202221 days from Ex DividendBuy in the next 14 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ARG's dividend (10.05%) is higher than the bottom 25% of dividend payers in the Canadian market (1.82%).

High Dividend: ARG's dividend (10.05%) is in the top 25% of dividend payers in the Canadian market (5.3%)


Stability and Growth of Payments

Stable Dividend: ARG's dividend payments have been volatile in the past 10 years.

Growing Dividend: ARG's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (61.5%), ARG's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (30.1%), ARG's dividend payments are well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Aurora Davidson (54 yo)

2.67yrs

Tenure

US$762,909

Compensation

Ms. Aurora G. Davidson, B.Sc., CGA, has been a Director of Amerigo Resources Ltd. since May 05, 2020 and also served as its Chief Financial Officer since January 1, 2004 until May 2020. She serves as the P...


Leadership Team

Experienced Management: ARG's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: ARG's board of directors are seasoned and experienced ( 10.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ARG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Amerigo Resources Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Amerigo Resources Ltd.
  • Ticker: ARG
  • Exchange: TSX
  • Founded: 1984
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Implied Market Cap: CA$197.561m
  • Shares outstanding: 166.02m
  • Website: https://www.amerigoresources.com

Number of Employees


Location

  • Amerigo Resources Ltd.
  • The MNP Tower
  • 9th floor
  • Vancouver
  • British Columbia
  • V6E 0C3
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.