Here’s Our Pick Of The Month July 2007

Article Excerpt

AMERIGO RESOURCES $2.71 (Toronto symbol ARG; SI Rating: Speculative) (604-681-2802; www.amerigoresources.com; Shares outstanding: 94.5 million; Market cap: $256.2 million) has a contract with Codelco, Chile’s state-owned copper producer, to process the tailings from El Teniente, the world’s largest underground copper mine. Tailings are the waste rock produced in the mining process. The contract runs at least through 2021. Amerigo has a further agreement with Codelco to process a supplementary source of material from the nearby Colihues tailings pond. Amerigo now produces about 30 million pounds of copper and over 900,000 pounds of molybdenum per year from the Codelco/Colihues tailings re-treatment operation. Amerigo also has a 26% interest in TSX-listed Nikos Explorations, with a market value of around $3 million. Nikos is focused on exploring for gold in the former Soviet Union. In the three months ended March 31, 2007, Amerigo’s revenues rose 6.7%, to $18.2 million from $17 million a year earlier. (All figures except share price in U.S. dollars.) Earnings rose 20.5%,…