Amerigo Resources (OTCMKTS:ARREF) Shares Gap Up – Still a Buy?

Amerigo Resources Ltd. (OTCMKTS:ARREF) shares gapped up before the market opened on Tuesday . The stock had previously closed at $3.4810, but opened at $3.75. Amerigo Resources shares last traded at $3.5899, with a volume of 29,232 shares traded.

Amerigo Resources Price Performance

The company has a market capitalization of $590.35 million, a P/E ratio of 28.08 and a beta of 1.57. The company has a fifty day moving average price of $2.75 and a 200 day moving average price of $2.09.

Amerigo Resources (OTCMKTS:ARREF) last announced its quarterly earnings results on Wednesday, October 29th. The company reported $0.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.06 by ($0.02). The company had revenue of $52.48 million during the quarter, compared to the consensus estimate of $52.20 million. Amerigo Resources had a return on equity of 19.68% and a net margin of 10.39%. On average, equities research analysts predict that Amerigo Resources Ltd. will post 0.14 earnings per share for the current fiscal year.

Amerigo Resources Increases Dividend

The company also recently declared a dividend, which was paid on Friday, December 19th. Stockholders of record on Monday, December 1st were given a dividend of $0.0288 per share. This is an increase from Amerigo Resources’s previous dividend of $0.02. This represents a dividend yield of 470.0%. The ex-dividend date was Friday, November 28th. Amerigo Resources’s payout ratio is currently 100.00%.

Amerigo Resources Company Profile

Amerigo Resources Ltd. is a Canada-based mineral resource development company focused on copper deposits in Chile. Its primary asset, the Minera Valle Central (MVC) project, recovers copper from tailings produced by Codelco’s Salvador Division and processes the material into copper concentrate. By leveraging existing plant infrastructure and water rights, Amerigo’s MVC operation delivers a lower-impact, cost-effective source of high-grade copper for global markets.

Amerigo holds the operating licence for MVC under a joint-venture framework with Codelco, Chile’s state-owned mining company.