November 3, 2010 / 1:53 PM / 7 years ago

UPDATE 1-Amerigo Q3 profit down on stronger Chilean peso

* Q3 EPS C$0.01 vs est C$0.06

* Revenue up 60 pct on higher production

* Sees Q4 copper production at 13 mln pounds

* Shares down 2 percent

Nov 3 (Reuters) - Chile-focused copper and molybdenum producer Amerigo Resources (ARG.TO) posted a quarterly profit that trailed estimates, hurt by higher-than-anticipated power costs and a stronger Chilean peso.

The Canadian company, whose operating unit Minera Valle Central S.A. has tied up with Chile’s state-owned National Copper Corp, said the fourth quarter was off to a positive start, helped by higher copper prices in October.

For the third quarter, Amerigo earned C$2.3 million, or 1 Canadian cents a share, down from C$3.2 million, or 2 Canadian cents a share, a year ago.

Analysts on average expected the company to earn 6 Canadian cents a share, according to Thomson Reuters I/B/E/S.

Revenue rose 60 percent to C$39.3 million due to higher average copper and molybdenum prices and a rise in production.

Amerigo said it expects to produce 13 million pounds of copper in the fourth quarter. In the third quarter, it produced 13.4 million pounds of copper, up 33 percent from last year.

Amerigo shares, which have gained about 6 percent in value since the company reported higher sales on Oct. 21, were down 2 percent at 86 Canadian cents in early morning trade on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Aradhana Aravindan)

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