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Investor Insights

This summary was created by AI, based on 3 opinions in the last 12 months.

Amerigo Resources (ARG-T) has garnered positive insights from analysts despite a history of financial challenges, including past dividend cuts. The company shows strong financial performance, being cash flow positive since 2015 and boasting a net cash positive balance sheet. Experts indicate that, with a low earnings multiple of 8X and expected EPS growth of over 10%, the stock appears attractive, especially given the recent 52% increase in value over the past year. However, concerns surrounding growth and the small-cap nature of the company present risks that prospective investors should weigh carefully. Analysts also point out that Amerigo's reliance on copper prices and energy costs could lead to volatility in margins, but the company has successfully managed costs and continues to reward shareholders with substantial cash flows.

Consensus
Positive
Valuation
Undervalued
PARTIAL BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We think ARG is doing the right things. Debt was an issue in prior cycles, and it has cut/eliminated its dividend in the past. Now, it is in strong financial shape and very cheap at 8X earnings. It has been cash flow positive since 2015. It only has one (sponsored) analyst, but should grow EPS by 10%+ this year. Insiders own 13% and have been small buyers in the past six months. The stock is cheap, but so is the sector. New growth concerns have emerged. Still, the stock is up 15% YTD and 52% in a year. Its small size is still a risk, but for those looking beyond the current cycle it looks good, especially now that the balance sheet has been taken care of. 
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HOLD

Copper extraction from re-processing tailings. A play on both copper and energy prices. Does well when energy prices are low and copper high. Margins get squeezed when energy prices rise or copper prices decline. Nice habit of paying out substantial amounts of free cashflow.

PARTIAL BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

ARG is a small company with extreme leverage to copper. The stock is up big over the last year by nearly 53% and it pays a high yield at 6.7%. Recent quarterly results were very strong driven by copper price strength and cost management. The balance sheet is net cash positive which we like. There is some volatility around earnings and we will note that the dividend was stopped for eight years (2013 to 21). We consider it OK for copper exposure due to the sector and small cap risks. 
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PAST TOP PICK

(A Top Pick May 11/21, Up 10%) Believes copper demand will continue to rise (EV vehicles etc.) Opportunity to expand into other mine locations available. Will continue to hold stock and expects stock price to increase.

TOP PICK
No price target A copper producer that flies under the radar operating, operating in Chile. They get the tailings from the world's largest copper mine and then they produce copper from it. Thet spent $300 million to build this project. They're hugely leveraged to copper. They continue to process more. They guide 62 millions pounds for 2022. Anytime the copper price rises, their cash levels greatly rise. There's little research on this name, but he sees huge upside.
DON'T BUY
He wishes he had bought this a while ago at 25-cents, because the stock has flown. Now, it's done so well that he can't buy it now.
COMMENT

Great management team. One issue he has always had is that it is very low grade, at 0.3 grams per ton. Last year they had some issues with some transition ore they were going through. When they were mining this, their recoveries were not as high as they had hoped. He would really like to see them with some higher grade projects.

DON'T BUY

Great company, but doesn’t like gold right now. There are only 2 commodities that he is currently excited about right now, natural gas and uranium. Uranium has been plunging. The problem with gold is that it is trading sideways. When a commodity is trading sideways, it is not an easy place to make money.

DON'T BUY

Great management team and have done a super job of running the operations they have in Mexico. He is not a shareholder because of their low grade deposits. With a low grade, you have to be very conscious about costs and if there are any disruptions, these can be problematic.

WEAK BUY
Basically reprocesses tailing streams from the largest copper mine in Chile. Not his preferred choice as a copper play.
BUY
Molly price has been good and copper has been strong. Quite optimistic on the price of Molly. This stock had a few problems before the recession, which they have resolved. They are starting to benefit from the higher prices of the commodities. Chile is relatively safe.
DON'T BUY
Always seems to have things happening to it. In Chile, electricity shuts down and costs go through the roof. Doesn’t have the kind of leverage of other companies on molybdenum.
BUY ON WEAKNESS
Molybdenum and copper. When the market stops correcting in about 2 to 4 weeks you should be able to find a very attractive entry point. ($0.64)
COMMENT
(Market Call Minute.) Nervous about the price of copper but the company is priced at about 20% of replacement costs, which is a bargain so he can't bring himself to sell.
BUY
Reprocess tailings from a big copper producer in Chile. Likes of valuation. Pretty good growth profile. Wouldn't be surprised to see them reinstate the dividend they cut.
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Amerigo Resources(ARG-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 4

Stockchase rating for Amerigo Resources is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Amerigo Resources(ARG-T) Frequently Asked Questions

What is Amerigo Resources stock symbol?

Amerigo Resources is a Canadian stock, trading under the symbol ARG-T on the Toronto Stock Exchange (ARG-CT). It is usually referred to as TSX:ARG or ARG-T

Is Amerigo Resources a buy or a sell?

In the last year, 4 stock analysts published opinions about ARG-T. 2 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Amerigo Resources.

Is Amerigo Resources a good investment or a top pick?

Amerigo Resources was recommended as a Top Pick by on . Read the latest stock experts ratings for Amerigo Resources.

Why is Amerigo Resources stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Amerigo Resources worth watching?

4 stock analysts on Stockchase covered Amerigo Resources In the last year. It is a trending stock that is worth watching.

What is Amerigo Resources stock price?

On 2025-04-01, Amerigo Resources (ARG-T) stock closed at a price of $1.915.