June 14, 2011 / 2:16 PM / in 7 years

UPDATE 1-Amerigo Resources Q1 profit jumps on higher copper, molybdenum prices

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June 14 (Reuters) - Amerigo Resources’ first-quarter profit jumped nearly eight-fold, driven by higher copper and molybdenum prices and sale of a part of its financial investments.

The copper and molybdenum producer, which suspended its Minera Valle Central operations in Chile due to strike by workers of subcontractors at the El Teniente mine, said power costs have continued to remain high during the second quarter.

Power costs in the second half will depend on normalization of weather conditions, the company said in a statement.

For the January-March quarter, net profit rose to $11.7 million, or 7 cents a share, from $1.5 million, or 1 cent a share, a year ago.

Total revenue, net of smelter and refinery charges, jumped 53 percent to $45.5 million.

The company produced 11.13 million pounds of copper, up 30 percent from the year-ago period. Molybdenum production rose 48 percent at 212,125 pounds.

It still sees fiscal 2011 production of about 50 million pounds of copper and about one million pounds of molybdenum, the company said.

Amerigo shares were up at C$1.00 on Tuesday morning on the Toronto Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Sriraj Kalluvila)

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