Americas Gold and Silver Corporation (TSX: USA) (NYSE: USAS) lost $7.1 million for Q2, 2023, which is down from $10.5 million the previous quarter, representing a 32 per cent decrease in revenue lost.
This is attributed to the higher net revenue offset in part by higher sales costs of $2.8 million and lower zinc prices, the company reported in its Q2 financial and operational results released on Monday.
Americas made $24.2 million in revenue for Q2, 2023, representing a 9.5 per cent increase over the $22.1 million it made in Q1. The company attributes this increase to the higher silver and lead production from the Galena Complex, and the higher silver production from the Cosalá Operations.
The company’s cash position also declined 51 per cent from Q1, 2023, from $3.3 million to $1.6 million.
Despite these numbers the production guidance for 2023 remains unchanged. Americas Gold and Silver expects consolidated attributable silver equivalent production to fall within the range of 5.5 million to six million ounces.
Additionally, consolidated attributable silver production is projected to witness a significant increase of over 80 percent from the levels recorded in 2022. This growth is expected to result in a range of 2.2 million to 2.6 million ounces of consolidated attributable silver production for the year.
Read more: Americas Gold and Silver reports 92% YoY silver production increase
Read more: Americas Gold and Silver loses $10.5M in Q1 due to shutdown
Americas completes convertible debenture with Delbrook Capital
During the recent period, the company successfully concluded the second tranche of the convertible debenture with Delbrook Capital.
“Production in the second half of the year is expected to be higher than the first half of the year and the company remains on track to meet its 2023 production guidance,” said Americas President and CEO Darren Blasutti.
“The company has also made the decision to source higher-grade silver copper ore from the EC120 deposit at the Cosalá operations, starting later this month. The decision is a result of expected higher silver and copper prices relative to zinc prices going forward.”
During Q2, 2023, the Cosalá Operations demonstrated robust performance by producing around 335,000 ounces of silver, 3.2 million pounds of lead, and 9.6 million pounds of zinc. This contrasts with the previous quarter, where production amounted to roughly 265,000 ounces of silver, 2.7 million pounds of lead, and 7.2 million pounds of zinc. The upswing in production was attributed to heightened activity in the higher-grade silver segments within the Upper Zone of the San Rafael mine.
In terms of financial metrics, the cash cost and all-in sustaining cost for the period stood at $4.51 per silver ounce and $11.10 per silver ounce, respectively.
Additionally, the development of the EC120 deposit holds the promise of optimizing revenue amid the dynamic fluctuations in metal prices. This initiative not only aligns with the company’s objective of revenue maximization but also augments the flexibility to capitalize on evolving silver market conditions.
Read more: Calibre Mining reports record breaking sales and increased net income in Q2
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Production at the Galena Complex increased over Q1
In Q2, production from the Galena Complex reached approximately 238,000 ounces of silver and 2.7 million pounds of lead. This demonstrates a 1.2 per cent increase compared Q1’s numbers, which were approximately 235,000 ounces of silver and 2.8 million pounds of lead.
The slight increase in silver production can be largely attributed to the silver-copper areas on the 3700 Level, which played a pivotal role in driving the total silver grade processed beyond 400 g/t during the quarter. In terms of financial metrics, the cash cost and all-in sustaining cost stood at $17.74 per silver ounce and $24.74 per silver ounce, respectively.
During the same period, the company achieved a milestone by successfully installing the Galena Hoist, which is now operational. The company’s immediate focus lies in the completion of the remaining shaft repair work.
This ongoing repair work is not expected to impact the production guidance set for the Galena Complex in 2023. Through a comprehensive LIDAR survey, the company has fully inspected the shaft, revealing that only a limited portion, measuring less than a few hundred feet, requires more extensive repair.
These repair efforts are anticipated to conclude in Q4, 2023. Importantly, the operationalization of the Galena Hoist is set to bolster the company’s objectives, including increasing production rates, enhancing operational flexibility, and improving the overall economics of operations.
Shares of Americas Gold and Silver dipped 5.8 per cent to $0.49 on Tuesday on the Toronto Stock Exchange.
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Calibre breaks gold sales records
Vancouver-based junior gold explorer Calibre Mining (TSX: CXB) (OTCQX: CXBMF) also released its financial results for Q2, 2023. It achieved exceptional gold sales figures, attributed to its effective cost-reduction strategies and successful underground mining operations in Nicaragua and Nevada.
The company sold around 69,000 ounces, resulting in a net income of $139.3 million during the quarter. This performance marked a 6 percent upswing from the previous quarter’s sales of 65,000 ounces.
Additionally, the company expanded its operational capacity by inaugurating a fourth open pit mine. This development was coupled with the successful implementation of efficient ore transportation from the Eastern Borosi mine to the Libertad mill.
Shares of Calibre 0.6 per cent to $1.54 on Tuesday on the Toronto Stock Exchange.
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