Amerigo Resources (OTCMKTS:ARREF) Shares Gap Down – Here’s Why

Shares of Amerigo Resources Ltd. (OTCMKTS:ARREF) gapped down before the market opened on Monday. The stock had previously closed at $5.53, but opened at $5.20. Amerigo Resources shares last traded at $5.49, with a volume of 3,419 shares.

Amerigo Resources Price Performance

The stock’s 50 day simple moving average is $5.92 and its two-hundred day simple moving average is $4.88. The stock has a market cap of $892.74 million, a P/E ratio of 12.56 and a beta of 1.62.

Amerigo Resources (OTCMKTS:ARREF) last released its quarterly earnings results on Wednesday, October 28th. The company reported $0.14 earnings per share for the quarter, beating the consensus estimate of $0.06 by $0.08. Amerigo Resources had a net margin of 23.89% and a return on equity of 63.48%. The company had revenue of $84.62 million during the quarter, compared to analysts’ expectations of $74.50 million.

Amerigo Resources Company Profile

Amerigo Resources Ltd. is a Canadian mining company focused on the production of copper and molybdenum. Through its Chilean subsidiary, Minera Valle Central (MVC), the company recovers these metals from fresh and historical tailings generated by Codelco’s El Teniente underground copper mine.

MVC operates near Rancagua, in Chile’s O’Higgins Region, and uses mineral-processing facilities to reprocess tailings and extract additional copper and molybdenum. This approach allows Amerigo to produce metals from previously mined material rather than operating a conventional greenfield mine.

Amerigo acquired its interest in MVC in 2003 and has expanded and improved the operation over time.