Q: What is your opinion on this company. They have been around for a long time.
Thank you.
Thank you.
5i Research Answer:
ARG is a small company with extreme leverage to copper. The stock is up big over the last year by nearly 53% and it pays a high yield at 6.7%. Recent quarterly results were very strong driven by copper price strength and cost management. The balance sheet is net cash positive which we like. There is some volatility around earnings and we will note that the dividend was stopped for eight years (2013 to 21). We consider it OK for copper exposure due to the sector and small cap risks.