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Friday, Sep 22, 2023
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


Americas Gold and Silver reports 21% YoY revenue growth in Q2

The increase was due to higher silver and lead production from its Galena and Cosala operations

Americas Gold and Silver reports 21% YoY revenue growth in Q2
Exploration drilling at Cosala complex. Photo via Americas Gold and Silver.

Americas Gold and Silver Corporation (TSX: USA) (NYSE American: USAS) year-over-year revenue grew by 21 per cent to $24.2 million for the second quarter this year thanks to higher silver and lead production from its Galena and Cosala operations.

On Thursday, the company released its operational results for the quarter that ended June 30 this year and recorded a cash total of $2.9 million generated from operations which is an increase of $2.9 million.

As for losses, the company saw $7.1 million for the second quarter, which is an attributable loss of $0.03 per share. This marks a decrease in net loss of $2.2 million from the last quarter thanks to net revenue of $4.2 million.

In the second quarter of 2023, there was a remarkable 92 per cent year-over-year surge in consolidated attributable silver production, reaching about 0.57 million ounces in comparison to the approximately 0.30 million ounces achieved in the same period of 2022. Concurrently, consolidated attributable silver equivalent production for this year’s quarter stood at approximately 1.3 million ounces, mirroring the output of the second quarter last year.

During this quarter, the attributable cash costs for producing one ounce of silver were $10.0, while the all-in-sustaining costs were $16.7 per ounce, with the former being adversely affected by lower zinc prices and an increase in the value of the Mexican peso.

Looking ahead, the production outlook for 2023 remains unaltered, with expectations of consolidated attributable silver equivalent production falling in the range of 5.5 to 6 million ounces, and consolidated attributable silver production is anticipated to witness a remarkable increase of over 80 per cent from 2022, ranging between 2.2 to 2.6 million ounces.

Read more: Americas Gold and Silver loses 32% less revenue in Q2 than Q1

Read more: Biden-Harris administration wants mining companies to pay gold and copper royalties

Cosala and Galena had strong quarters

During the second quarter, Cosalá Operations excelled, producing 335,000 ounces of silver, 3.2 million pounds of lead, and 9.6 million pounds of zinc—a substantial leap from Q2-2022’s 128,000 ounces of silver, 3.9 million pounds of lead, and 9.9 million pounds of zinc. This boost was driven by higher-grade silver areas in the Upper Zone of the San Rafael mine.

However, costs were impacted negatively due to lower lead and zinc prices and a stronger Mexican peso. Looking forward to 2023, silver production is expected to reach 1.2-1.4 million ounces, thanks to the high-grade silver areas and sourcing from the EC120 deposit.

The Galena Complex, in which the company holds a 60 per cent stake, had a strong quarter producing 238,000 ounces of silver and 2.7 million pounds of lead, up from the second quarter’s 171,000 ounces of silver and 2.5 million pounds of lead.

The increase mainly came from silver-copper areas at the 3700 Level. Costs improved, with cash costs at $17.74 per silver ounce and all-in sustaining costs at $24.74 per silver ounce. The completion of the Galena Hoist project is expected to further cut costs. The hoist is operational, and remaining shaft repairs are underway, not expected to impact 2023 production. This project will boost production, flexibility, and economics for the company.

Read more: Calibre Mining expands high-grade gold mineralization zones within Limon mine complex

Read more: Calibre Mining reports record breaking sales and increased net income in Q2

“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,” stated 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.  Developing into the EC120 deposit allows for greater revenue optimization to constantly changing metal prices and increases silver optionality,” Blasutti said.

The company has multiple assets in North America including the Cosala and Galena complex and is reevaluating the Relief Canyon mine in Nevada. It also owns the San Felipe development project in Sonora, Mexico.

Company stock went up by 1.92 per cent to $0.53 on the Toronto Stock Exchange.


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