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Saturday, Dec 2, 2023
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


Americas Gold and Silver cuts year-over-year net loss by 25%

Silver production increased by 17 per cent in the third quarter, totalling approximately 0.39 million ounces

Americas Gold and Silver reduces year over year net loss by 25%
Exploration drilling at Cosala. Image via Americas Gold and Silver.

In spite of production setbacks, Americas Gold and Silver (TSX: USA) (NYSE American: USAS) reduced its net loss by 25 per cent from USD$14.1 million in the third quarter of 2022 to USD$10.5 million for this year.

The company said on Wednesday that its Galena Complex experienced a five day production stall due to planned five-day electrical shutdown and mobile equipment availability issues. The Cosalá Operations had two weeks of various mill outages due to heavy rain and tailings work during the quarter.

The Galena Complex generated higher silver production and benefited from an increased silver price in the third quarter of 2023, resulting in revenue of USD$18.3 million. However, the Cosalá Operations experienced a decline in base metal production and significantly lower zinc prices during the same period, which offset these gains. This revenue figure was identical to that of the third quarter of last year, which also stood at USD$18.3 million.

Production in the fourth quarter of 2023 has been strong so far despite the setbacks. The company produced over 190,000 ounces of attributable silver produced in October and anticipates that production in November and December will exceed that of October.

The production guidance for 2023 remains unchanged, but the company anticipates being at the lower end of both the consolidated attributable silver production range of 2.2 to 2.6 million ounces and the consolidated attributable silver equivalent production range of 5.5 to 6.0 million ounces at budgeted prices.

Consolidated attributable silver production increased by 17 per cent in the third quarter, totalling approximately 0.39 million ounces, compared to approximately 0.33 million ounces in the same time last year.

“The operations had strong silver production in October which is expected to continue for the balance of the year, positioning the company to meet the lower end of its full year silver production targets following a difficult Q3-2023,” said Americas President and CEO Darren Blasutti.

During the quarter, attributable cash costs were USD$19.01 per ounce of silver produced, and all-in sustaining costs were USD$29.55 per ounce of silver produced. Cash costs were negatively impacted in the quarter by a combined production loss of 19 days, lower zinc prices, and the appreciation of the Mexican peso.

The company has a cash position of $890,000 and offers shareholder equity of $83 million.

Read more: Calibre Mining secures largest undeveloped gold resource in Atlantic Canada through $345M Marathon Gold merger

Read more: Calibre Mining reports record year-to-date earnings in Q3 financials

Production guidance for 2023 remains unchanged

After the quarter ended, the Americas Gold and Silver initiated discussions with interested metal traders to secure concentrate prepayment financing for the capital requirements of the El Cajón and Zone 120 silver-copper project at the Cosalá Operations. The company anticipates the financing to be finalized before the end of 2023.

The company chose Moran Mining and Tunnelling Limited to complete the Galena Shaft repair work. Moran will start fabricating the necessary work platforms in their shop and expects to be on-site in early to mid-January. The repair work is projected to be finished by the end of first quarter of 2024.

Americas Gold and Silver faced challenges in the third quarter of 2023 but managed to reduce its net loss by 25 per cent. While the Galena Complex saw increased silver production and prices, the Cosalá Operations experienced setbacks. Nevertheless, the company’s fourth quarter has started well, and the company expects continued growth.


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