Author: Atrium Research September 14, 2026
Ben Pirie | Equity Research Analyst | [email protected] | 647-688-9661
Nicholas Cortellucci, CFA | Equity Research Analyst | [email protected] | 647-391-3314
PLEASE REVIEW THE DISCLOSURES AT THE BOTTOM OF THE PAGE
What you need to know:
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ARG announced a C$0.21/share performance dividend bringing the total 2026 performance dividends to C$0.55/share.
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The 2026 dividends represent an ~8.6% yield when including ARG’s quarterly dividends.
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Since 2021 ARG has returned $161.3M to shareholders through dividends and buybacks ($190.5M when today’s performance dividend and the quarterly dividend announced on July 27th, 2026 are paid).
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We recently published an interview with CEO Aurora Davidson, watch it here.
This morning, Amerigo Resources (ARG:TSX, ARREF:OTC) announced that its board has declared a performance dividend of C$0.21/share. This alone equates to a 2.5% yield and represents ARG’s third and largest performance dividend of the year, returning C$0.55/share to shareholders in total. We are maintaining our BUY rating and our target price of C$10.00/share on Amerigo Resources.
The dividend is payable on October 14th to shareholders of record on September 21st. This is tied to the elevated copper price which should lead to strong cashflow generation for the Company. Our expectations for Q3 can be found below. As a reminder, the performance dividend is a flexible component of the CRS where ARG returns excess cash to shareholders while maintaining its elite balance sheet. ARG declared a C$0.18/share performance dividend in July and a C$0.16/share performance dividend in April, making the total dividend yield 8.6% (including the quarterly dividends).
Q3 Preview
Amerigo will be reporting Q3 operational results in early October and financial results in late October. Our expectations are the following (unchanged):
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Copper produced of 16.2Mlbs (+11% YoY), comprised of 9.1Mlbs from fresh tailings and 7.1Mlbs from historical tailings. Molybdenum produced of 0.4Mlbs.
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Revenue of $66.3M (+26% YoY) assuming a copper price of $6.05/lb (spot is currently much higher) and 33% royalties.
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Gross margin of 37%, translating to EBITDA of $30.7M (46% margin) and OCF (before WC) of $22.9M.
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Capex of $4.7M and FCFF of $18.2M.
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ARG bought back 177.6K shares through its NCIB in July at an average price of $6.22/share, equating to 0.1% of its shares outstanding. No share repurchased have been disclosed for August.
Our Take
Capital Return Strategy Continues to Flex its Muscles
ARG prides itself on its aggressive Capital Return Strategy (CRS) whereby capital is returned to shareholders via quarterly dividends, performance dividends, and share buybacks. As mentioned above, including today’s dividend and the quarterly dividend announced in July, ARG has returned $190.5M to shareholders since 2021. Today’s announcement further exemplifies this commitment and highlights the substantial cashflow generation in periods of elevated copper prices. If prices sustain, or continue to rise, we expect performance dividends to be a regular occurrence.
We reiterate that the performance dividends are a key differentiator relative to peers. As a result, ARG has been rewarded with its stock greatly outperforming broader markets, being up 84% YTD vs. the COPX up just 22%.
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Atrium Research Ratings System
BUY: The stock is expected to generate returns of over 20% over the next 24 months.
HOLD: The stock is expected to generate returns of 0-20% over the next 24 months.
SELL: The stock is expected to generate negative returns over the next 24 months.
NOT RATED (N/R): Atrium does not provide research coverage on the respective company.
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