Amerigo’s Buyback Bet: A Signal of Confidence in Copper’s Future

VANCOUVER, BC – November 28, 2025 – In a move that speaks volumes about its financial discipline and bullish outlook, Amerigo Resources Ltd. announced the renewal of its Normal Course Issuer Bid (NCIB), reinforcing a commitment to shareholder returns that sets it apart in the mining sector. The plan to repurchase up to 11.7 million shares is far more than a routine financial maneuver; it is the latest and most decisive chapter in a multi-year strategic narrative focused on converting operational success directly into shareholder value.

This transaction is not happening in a vacuum. It comes as Amerigo enjoys a position of significant financial strength and as the global copper market flashes strong bullish signals, creating a potent combination for the innovative copper producer.

A Disciplined Strategy of Shareholder Returns

Since 2021, Amerigo has meticulously executed a multi-faceted Capital Return Strategy that has become central to its investor identity. The renewal of the NCIB is a key pillar of this framework, which balances consistent income with opportunistic rewards. The strategy rests on three components: a stable quarterly dividend (currently Cdn$0.04 per share), performance dividends triggered by high copper prices and excess cash, and the accretive power of share buybacks.

The results of this approach are substantial. Since its implementation, the company has returned a total of $93.7 million to its shareholders, comprising $63.1 million in dividends and $30.6 million used to repurchase and cancel over 25.6 million shares. The primary goal of the buyback program, as stated by the company, is to offset dilution and maintain a stable share count, which in turn enhances earnings per share and overall equity value for remaining holders.

“Amerigo’s Capital Return Strategy continues to deliver tangible value to the Company’s shareholders,” said Aurora Davidson, Amerigo’s President and CEO, in the company's official announcement. “With the renewal of the Normal Course Issuer Bid, we reaffirm our commitment to disciplined capital allocation... The renewal of the NCIB allows Amerigo to continue to opportunistically repurchase shares, guided by copper prices, market conditions, and our expectation of strong cash flow.”

Riding the Coming Copper Wave

Amerigo's confidence to double down on shareholder returns is directly tied to the increasingly bright outlook for its primary commodity. The global copper market is widely expected to enter a period of structural deficit, driven by surging demand from the green energy transition and technological advancements. Electric vehicles, which use up to four times more copper than traditional cars, along with massive investments in renewable energy grids and the booming power requirements of AI data centers, are creating a demand profile that supply is struggling to match.

Market analysts are forecasting significant supply shortfalls, with some projecting a deficit of over 400,000 tonnes by 2026. This supply-demand imbalance has led to aggressive price targets, with major financial institutions like J.P. Morgan forecasting copper could average over $12,000 per metric ton in 2026. By renewing its NCIB, Amerigo's management is signaling its belief that these strong market fundamentals will translate into robust cash flow, providing ample capacity to fund buybacks without compromising operational integrity.

A Fortress Balance Sheet Enables Generosity

The decision to allocate capital to buybacks is made not out of speculation, but from a position of exceptional financial health. A key milestone was achieved in October 2025 when Amerigo fully repaid all its corporate debt, entering a new strategic phase with a zero-debt balance sheet. This deleveraging dramatically reduces financial risk and frees up cash flow that would have otherwise been directed to servicing debt.

The company’s recent financial performance underscores this strength. In the third quarter of 2025, Amerigo generated $11.1 million in free cash flow to equity and ended the period with a healthy $28 million cash position, comfortably above its self-imposed minimum threshold of $25 million required to secure dividend stability. This robust financial foundation is the engine that powers the entire capital return program, assuring investors that the shareholder-friendly policies are both sustainable and prudent.

A Distinct Path in the Mining Sector

Amerigo's strategy is particularly noteworthy when contrasted with trends in the broader mining industry. Many large, diversified miners are pivoting away from buybacks, instead directing capital towards massive growth projects and acquisitions to secure future production in a competitive environment. This industry-wide shift makes Amerigo’s steadfast focus on shareholder returns a distinct outlier.

The company can afford this unique position because of its innovative business model. Rather than engaging in capital-intensive exploration and mine development, Amerigo produces copper by processing fresh and historic tailings from Codelco’s El Teniente, the world’s largest underground copper mine. This model requires significantly lower sustaining capital, allowing the company to convert a larger portion of its revenue into free cash flow.

Furthermore, the decision to proceed with the NCIB comes after the implementation of a new 2% Canadian federal tax on share buybacks in 2024. That Amerigo is willing to incur this additional cost demonstrates management’s conviction that repurchasing its shares at current market prices is a superior use of capital and highly accretive to long-term shareholder value.

By renewing its buyback program, Amerigo is sending an unambiguous message. It is a company confident in its unique operational niche, fortified by a debt-free balance sheet, and strategically positioned to capitalize on a powerful updraft in the copper market. For investors navigating the commodities landscape, Amerigo's latest move is less a simple transaction and more a clear, strategic roadmap for value creation in the years ahead.