Aurora Davidson CEO AMERIGO RESOURCES
What is Amerigo Resources' sustainable business model?
Our model is simple: generate additional economic value from recovering copper from waste material. We are working with the end product of another company’s process and extracting value. How do you assess the supply and demand fundamentals of copper?
Miners that have been producing copper for decades are facing lower ore grades, water restrictions, deeper operations, and higher environmental compliance costs. In our industry, we cannot just turn on a switch to put more mined supply into the market. It will take decades to reach step-ups in copper supply. Concurrently with this scenario where concentrate supply is stressed, there is an emerging new stream of demand for copper from electrification and decarbonization.
The copper concentrate market is so constrained that any disruption in supply causes a significant flip in the market. In October 2023, analysts said there would be a surplus in 2024. The disruptions in Panama and news from major producers declaring lower expected production output turned the market from a projected surplus to a projected deficit. This cascades down into the TCRC market. Smelters do not believe they will have the necessary supply of concentrate, leading to a drop in TCRCs. TCRCs have fallen rapidly on the spot market as smelters compete for supply. How is Amerigo Resources strategizing its financial operations?
We have a simple, streamlined, and transparent business model. We must work safely, produce copper, and do it economically. In the last few years, we have reduced our debt substantially. We undertook US$100 million worth of debt to finance the Cauquenes expansion. By year-end 2024, we will be down to US$11.5 million in debt. After our regular investments and debt reduction, surplus operating cash is being distributed to shareholders. What are Amerigo’s goals?
Our goal is to keep on top of the regulatory framework, look at worldwide best practices, and ensure we operate daily as efficiently and safely as possible.
John MacKenzie CEO CAPSTONE COPPER
What were recent operational highlights from Mantos Blancos and Mantoverde?
Mantos Blancos is an operating, open-pit copper-silver mine located in the Antofagasta province and sits ~900 m above sea level. Mantos Blancos has been in operation since 1960, and we recently completed a major growth initiative to process higher grade sulphides. We produced almost 50,000 t of copper in 2023, and we have guided for 53,000 t in 2024 as we ramp-up our sulphide and unlock the full capabilities of our 20,000 t/d plant.
Mantoverde is an operating, open-pit copper-gold mine in the Atacama region of Chile, 45 km from the coast and ~880 m above sea level. The mine is currently transitioning from its historic oxide mining to sulphide copper mining, which is known as the Mantoverde Development Project (MVDP). In 2023, we largely completed construction of the US$870 million MVDP, and we are now in the commissioning and ramp-up phase. In 2023 we produced 35,000 t of copper at Mantoverde, and we have guided for copper production in 2024 of around 68,000 t. At full rates, we expect Mantoverde to produce close to 120,000 t/y, before factoring in our next growth phase. What is the importance of Capstone Copper’s Chilean operations receiving the Copper Mark?
The Copper Mark is a powerful advocate for transparency and accountability and reinforces our values on responsible production. We take pride in the achievements of our Chilean operations, and we are actively striving to replicate this success across our portfolio in the Americas. Can you discuss the Santo Domingo project?
We are working on an updated feasibility study for Santo Domingo that contemplates producing over 100,000 t/y of copper.
We are also evaluating a district cobalt counter-current ion exchange plant for Mantoverde – Santo Domingo that may unlock cobalt production from the region, with the potential to become one of the largest and lowest cost battery grade cobalt producers in the world.