Amerigo Resources (TSX:ARG): Assessing Valuation After Announced Special Dividend for January 2026

Amerigo Resources (TSX:ARG) just declared a special dividend of CAD 0.05 per share, payable January 15, 2026, with both the ex dividend and record dates set for December 17, adding an extra cash kicker for shareholders.

See our latest analysis for Amerigo Resources.

The special dividend lands on top of a powerful run, with Amerigo’s 30 day share price return of 32.21 percent feeding into a 169.38 percent year to date surge and a standout 183.23 percent one year total shareholder return that signals strong, building momentum.

If this kind of move has your attention, it could be a good moment to broaden your search and discover fast growing stocks with high insider ownership.

With the share price already rocketing and analysts seeing only modest upside from here, the key question now is whether Amerigo still trades below its true worth or if the market is already pricing in future growth.

Price to earnings of 25.4x: Is it justified?

Amerigo Resources trades on a price to earnings ratio of 25.4 times at its last close of CA$4.31, sitting below peers but above the wider industry.

The price to earnings multiple compares the current share price with the company’s per share earnings. It is a direct barometer of how much investors are paying for each dollar of profit in a capital intensive sector like metals and mining.

Against a peer average multiple of 43.6 times, Amerigo looks inexpensive on earnings, suggesting the market is assigning a lower premium to its current profit base despite strong recent share price performance.

However, compared with the broader Canadian metals and mining industry average of 21.4 times, its 25.4 times multiple represents a richer valuation, implying investors are still paying a noticeable premium for Amerigo’s earnings relative to many other miners.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-earnings of 25.4x (ABOUT RIGHT)

However, investors still face risks, including potential volatility in copper prices and operational challenges in Chile that could quickly cool sentiment around Amerigo’s growth story.

Find out about the key risks to this Amerigo Resources narrative.

Another view on value

Our DCF model presents a much more aggressive outlook, with Amerigo’s fair value estimated at around CA$14.65 per share. This implies the stock could be about 70.6 percent undervalued compared with its CA$4.31 price. If that gap is even half right, how long can it remain?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Amerigo Resources for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 911 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Amerigo Resources Narrative

If you see things differently or would rather dig into the numbers yourself, you can shape a complete narrative in just a few minutes: Do it your way.

A great starting point for your Amerigo Resources research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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