Amerigo profit falls on high power costs

Mon May 7, 2012 8:41am EDT
 
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(Reuters) - Canadian copper and molybdenum producer Amerigo Resources ARG.TO reported a lower first-quarter profit, hurt by high power costs due to a drought in Chile.

The Chile-focused company's profit fell to $2.3 million or 1 cent per share, from $11.7 million, or 7 cents per share, a year ago.

Revenue for the quarter rose 11 percent to $50.5 million.

Amerigo's copper production rose 25 percent to 13.88 million pounds. The company produced 216,292 pounds of molybdenum in the quarter, up 2 percent from last year.

The company's MVC project in Chile produces copper and molybdenum concentrates from the tailings of the world's largest underground copper mine, El Teniente, operated by Codelco CODEL.UL.

Last month, Amerigo said it expected higher power costs resulting from the drought in Chile to hurt its financial results.

Shares of Amerigo closed at 77 Canadian cents on Friday on the Toronto Stock Exchange.

(Reporting by Maneesha Tiwari in Bangalore; Editing by Maju Samuel)