Rising copper prices are paying off for this Canadian junior minor, owner of the world’s largest copper operation.

The company has stepped up its output to meet demand from growing global economies as well as electric cars and charging stations. And the stock’s share price has more than doubled for subscribers of Stock Pickers Digest over the past year.

AMERIGO RESOURCES (Toronto symbol ARG; www.amerigoresources.com) processes copper and molybdenum from the waste rock of the El Teniente mine in Chile. That site is the world’s largest copper operation. Amerigo has other deals to process material at the nearby Colihues and Cauquenes copper tailings ponds.

The company gets 94% of its revenue from processing copper. The remaining 6% comes from its output of molybdenum, which is used in steelmaking.

In the three months ended September 30, 2017, Amerigo’s revenue jumped 60.0%, to $37.4 million from $23.4 million. Cash flow was up sharply, to $11.0 million, or $0.06 a share, from $1.7 million, or $0.01 a share, a year earlier.

This year’s gains have come because the company started processing tailings from the new Cauquenes deposit in late 2015. Production has since risen steadily.

In 2016, the company produced 57 million pounds of copper at the El Teniente site. In 2017, production rose to 62.5 million pounds. Amerigo estimates its 2018 copper production at between 65 and 70 million.

Penny Stocks: Chinese government policies help push up price of copper

Copper prices have surged 29% over the last year, to $3.23 U.S. a pound from $2.50. The increase came from stronger global demand. At the same time, copper supply from China was disrupted by the government’s move to clamp down on industrial pollution; a shake-up at two of China’s state-owned mines also limited output.

Last year was most likely the first time in the last 12 years that copper production declined. As a result, rising prices have pushed up shares of Amerigo by 102% since July 2017. It’s uncertain if copper, or Amerigo, can hang on to those gains as new mines open and production growth resumes.

Meanwhile, the company will continue to benefit from rising copper demand from the world’s growing economies, plus increased demand from makers of electric cars and charging stations. Both are big users of copper.

Recommendation in Stock Pickers Digest: Amerigo is a buy for aggressive investors.

For our views on a topic that is attracting plenty of attention from investors, read Ins and outs of Cannabis Stocks (and above all avoid speculative “Pot of Gold” investing).

For our recent report on a Canadian gold stock that has also had a surge, read Early promise causes penny stock to rise.