Amerigo may exceed 2012 output target

Fri Jan 27, 2012 10:41am EST
 
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(Reuters) - Canadian copper and molybdenum producer Amerigo Resources Ltd ARG.TO, which was hit by a strike at its El Teniente mine in Chile, said it expects to meet or exceed its production targets for this year.

Amerigo shares rose as much as 13 percent to 93 Canadian cents on Friday morning on the Toronto Stock Exchange.

The company's production from its only operational project, Minera Valle Central in Chile, should meet or exceed its targets of 50 million pounds of copper and close to one million pounds of molybdenum, Amerigo said in a statement.

It had produced 43.7 million pounds of copper and 785,068 pounds of molybdenum in 2011.

The company also announced a recovery in production levels in the fourth quarter, after two quarters of lower output due to the labor strike.

In the fourth quarter, copper production fell by about 8 percent to 12.09 million pounds and molybdenum output declined about a fifth to 195,729 pounds. However, the numbers were higher than those of the two preceding quarters which were affected by the strike.

Amerigo'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.

(Reporting by Arnav Das Sharma in Bangalore; Editing by Sreejiraj Eluvangal)