Amerigo Resources (OTCMKTS:ARREF) Shares Gap Down – Should You Sell?

Amerigo Resources Ltd. (OTCMKTS:ARREF)’s share price gapped down prior to trading 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 changing hands.

Amerigo Resources Stock Up 1.7%

The company has a market cap of $915.99 million, a price-to-earnings ratio of 12.89 and a beta of 1.68. The business has a fifty day simple moving average of $5.91 and a 200 day simple moving average of $4.90.

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

About Amerigo Resources

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.