Americas Gold and Silver Corporation (TSX: USA) (NYSE American: USAS) reported a 17 per cent increase in silver production year-over-year for Q3 despite setbacks during the quarter.
On Monday, the precious metals company released its production results for the quarter ending Sept. 30.
Despite the rise in attributable silver production, Americas’ consolidated attributable silver equivalent production dropped by 30 per cent YoY at the end of the quarter to 1 million ounces. The company attributes this to higher silver prices and lower zinc prices this year.
Americas expects to achieve the low end of its production guidance for both silver and silver equivalent production in 2023. The company anticipates having its best quarterly production rate in Q4 this year.
Production in Q3 was slowed by a five-day electrical shutdown for hoist switchgear upgrades at the Galena complex and 14 days of mill outages at the company’s Cosalá operations because of tailings work and heavy rain.
Table via Americas Gold and Silver
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In Q3 this year, the company produced 209,000 ounces of silver and 1.8 million pounds of lead from the Galena complex, a 44 per cent rise and 16.6 per cent decrease YoY respectively. Americas had superior silver production in Q2 this year, which increased by 92 per cent YoY to 570,000 ounces.
Americas says the availability of mobile equipment at the mine made targeted ore production difficult to attain near the end of the quarter. However, that issue has since been resolved.
Approximately 300 feet of the shaft at Galena is badly damaged, but the company says it has found a contractor that will be completing repairs next month. The company had a fatality at the Galena complex this April when an underground worker was struck by falling ground.
Americas has a 60 per cent stake in the Galena complex and the Canadian investor Eric Sprott holds a 40 per cent share.
The Cosalá operations produced less silver, lead and zinc in Q3 than the third quarter of 2022. This drop can be linked to the two weeks of lost mill operating time. The drop in silver equivalent production this year is attributable to 25 per cent higher realized silver prices.
Americas expects production to increase in Q4 because of high-grade silver areas being mined at the San Rafael mine.
“October production has started out strongly and the company is confident that Q4-2023 will be its strongest silver production quarter following a challenging operating quarter in Q3-2023,” said Darren Blasutti, CEO of Americas.
“The company is undertaking numerous operating decisions to increase both its overall silver production and its percentage of revenue generated from silver at the two operations in the coming quarters as it is anticipating much stronger silver prices in 2024,” he added.
The price of silver rose substantially in the summer of 2020 by over $10 and has not dropped significantly since. Currently, silver is worth $31.48 per ounce.
rowan@mugglehead.com
