TSX:ARG

Stock Analysis Report

Amerigo Resources

Executive Summary

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.


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has Amerigo Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ARG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-25.0%

ARG

3.5%

CA Metals and Mining

-1.5%

CA Market


1 Year Return

-69.7%

ARG

6.8%

CA Metals and Mining

2.5%

CA Market

Return vs Industry: ARG underperformed the Canadian Metals and Mining industry which returned 5.4% over the past year.

Return vs Market: ARG underperformed the Canadian Market which returned 4.5% over the past year.


Shareholder returns

ARGIndustryMarket
7 Day-25.0%3.5%-1.5%
30 Day-32.1%5.0%-0.7%
90 Day-29.4%14.3%1.8%
1 Year-69.7%-69.7%7.5%6.8%5.7%2.5%
3 Year-36.8%-36.8%2.8%1.0%16.8%6.2%
5 Year14.3%14.3%29.1%25.4%32.0%12.8%

Price Volatility Vs. Market

How volatile is Amerigo Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Amerigo Resources undervalued compared to its fair value and its price relative to the market?

0.48x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ARG's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ARG's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ARG is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: ARG is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ARG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ARG is good value based on its PB Ratio (0.6x) compared to the CA Metals and Mining industry average (1.6x).


Next Steps

Future Growth

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

13.0%

Forecasted Materials industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ARG's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if ARG's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if ARG's revenue is forecast to grow faster than the Canadian market.

High Growth Revenue: Insufficient data to determine if ARG's revenue is forecast to grow faster than 20% 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


Next Steps

Past Performance

How has Amerigo Resources performed over the past 5 years?

43.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARG is currently unprofitable.

Growing Profit Margin: ARG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ARG is unprofitable, but has reduced losses over the past 5 years at a rate of 43% per year.

Accelerating Growth: Unable to compare ARG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ARG is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).


Return on Equity

High ROE: ARG has a negative Return on Equity (-9.17%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Amerigo Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ARG's short term assets ($7.2M) do not cover its short term liabilities ($44.2M).

Long Term Liabilities: ARG's short term assets ($7.2M) do not cover its long term liabilities ($86.8M).


Debt to Equity History and Analysis

Debt Level: ARG is debt free.

Reducing Debt: ARG has no debt compared to 5 years ago when its debt to equity ratio was 0.2%.


Balance Sheet

Inventory Level: ARG has a high level of physical assets or inventory.

Debt Coverage by Assets: ARG's debt is not covered by short term assets (assets are -0.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if ARG has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ARG has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%5.6%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ARG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ARG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ARG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ARG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ARG is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ARG's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Aurora Davidson (51yo)

0.2yrs

Tenure

US$966,672

Compensation

Ms. Aurora G. Davidson, B.Sc., CGA, has been the Chief Financial Officer of Amerigo Resources Ltd. since January 1, 2004. She serves as the President & Chief Executive Officer of Amerigo Resources Ltd. sin ...


Leadership Team

NamePositionTenureCompensationOwnership
Klaus Zeitler
Executive Chairman of the Board6.3yrsUS$944.72k1.11% $753.3k
Aurora Davidson
President0.2yrsUS$966.67k0.068% $46.3k
Kimberly Thomas
Corporate Secretary4.1yrsno datano data

4.1yrs

Average Tenure

Experienced Management: ARG's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Klaus Zeitler
Executive Chairman of the Board6.3yrsUS$944.72k1.11% $753.3k
George Ireland
Independent Director7.7yrsUS$176.55k0.78% $530.7k
Robert Gayton
Lead Independent Director6.3yrsUS$222.99k0.10% $68.7k
Sidney P. Robinson
Independent Director16.8yrsUS$187.06k0.45% $306.2k
Alberto Salas
Independent Director8.8yrsUS$174.50k0.045% $30.8k

7.7yrs

Average Tenure

79.5yo

Average Age

Experienced Board: ARG's board of directors are considered experienced (7.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.3%.


Top Shareholders

Company Information

Amerigo Resources Ltd.'s company bio, 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
  • Market Cap: CA$67.789m
  • Shares outstanding: 180.77m
  • Website: https://www.amerigoresources.com

Number of Employees


Location

  • Amerigo Resources Ltd.
  • The Marine Building
  • Suite 1260
  • Vancouver
  • British Columbia
  • V6C 2G8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARGTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1988
RE8DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1988
ARRE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988

Biography

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 Ltd. was founded in 1984 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 00:19
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.