by Marie de Waite
Amerigo Resources Ltd. has forecast copper production by 2022 compared to last year and expects higher cash costs.
The miner’s 2021 copper production rose about 13% and topped Amerigo’s guidance.
On its guidance:
Amerigo expects to produce 61.9 million pounds of copper and 1.2 million pounds of molybdenum in 2022.
The company has pegged the 2022 cash cost for copper at $1.90 per pound, driven by higher market-driven treatment and refinery fees.
“Amerigo also expects an increase in steel prices that will affect grinding costs ($0.04/lb), estimated low moly by-product credits ($0.02/lb) and an estimated increase of all other costs ($0.02/lb). lb).”
Guidance includes the average market copper price of $3.90 per pound, the average molybdenum market price of $17 per pound and the Chilean peso exchange rate at US$800. A 10% change in the price of molybdenum could have a 3 cents-pound effect on the cash cost, and a 10% change in the peso-to-dollar rate could have a 7 cents-a-pound effect on the cash cost, Amerigo said. .
On copper in 2021:
“We are pleased to report annual copper production of 63.4 million pounds,” said President and Chief Executive Aurora Davidson.
“Annual copper production was up 4% above guidance, due to higher fresh tail tonnage and grades,” Amerigo said.
Production from fresh tailings accounted for 45% of copper production in the first quarter, which increased to 55% in the fourth quarter, the company said.
“To the extent that a high percentage of production comes from fresh tails, historical tails are exhausted at a lower rate,” Amerigo said.
Production was up from £56.2 million in 2020.
Cash cost was $1.75 per pound, lower than the company’s guidance of $1.79 per pound.
On molybdenum in 2021:
Amerigo produced 1.3 million pounds of molybdenum, down from 1.4 million pounds in 2020.
“Annual molybdenum production was 11% below guidance, driven by the low molybdenum content found in fresh tails.”
Write to Mary de Wet at [email protected]