Americas Gold and Silver Corporation (TSX: USA) (NYSE American:
USAS) (“Americas” or the “Company”), a growing North American
precious metals producer, reports consolidated financial and
operational results for the quarter ended September 30, 2024.
This earnings release should be read in conjunction with the
Company’s Management’s Discussion and Analysis, Financial
Statements and Notes to Financial Statements for the corresponding
period, which have been posted on the Americas Gold and Silver
Corporation SEDAR+ profile at www.sedarplus.ca, and on its EDGAR
profile at www.sec.gov, and which are also available on the
Company’s website at www.americas-gold.com. All figures are in U.S.
dollars unless otherwise noted.
Highlights
- On October 9, 2024, the Company announced an agreement to
acquire the remaining 40% interest of the Company’s Galena Complex
("Acquisition Agreement"). In conjunction with the Acquisition
Agreement, the Company announced a bought deal private placement of
subscription receipts completed through the raising of gross
proceeds of C$50 million at an issue price of C$0.40 per
subscription receipt (closed October 30, 2024). The gross proceeds
are being held in escrow pending closing of the Acquisition
Agreement anticipated to be in December 2024.
- Mr. Paul Andre Huet to be appointed Chief Executive Officer
effective November 11, 2024. Mr. Huet will be focused on building a
strong, experienced technical team to unlock the dormant value of
the Galena Complex in pursuit of increased shareholder
returns.
- Increase in revenue due to higher realized prices. Revenue
increased to $21.0 million for Q3-2024 or 31% compared to $18.3
million for Q3-2023, with higher realized silver of $29.71/oz and
zinc of $1.27/lb during the period.
- Consolidated attributable silver production of 0.4 million
ounces with approximately 0.9 million ounces of silver equivalent,
including 8.4 million pounds of zinc and 4.1 million pounds of
lead.
- Increase in net loss to $16.1 million for Q3-2024 (Q3-2023 net
loss of $10.5 million), primarily due to higher loss on fair value
of the gold-based metals contract liability due to higher gold
prices.
- Cash flow used in operating activities [1] decreased to $2.2
million in Q3-2024 (Q3-2023 use of cash of $3.9 million), primarily
due to higher realized silver prices.
- Reduction of cash costs [2] and all-in sustaining costs [2] in
Q3-2024 compared to Q3-2023 to $16.88/oz silver produced and
$25.38/oz silver produced, respectively.
“The quarter was challenging with multiple lost operating days
due to severe weather at the Cosalá Operations and the decision to
focus on development priorities to access high-grade silver ore
early next year at the Galena Complex. The lack of operational
flexibility with only one shaft available for ore and waste
impacted production during the quarter. However, I am thoroughly
excited for the future of the Company,” stated Americas President
and CEO Darren Blasutti. “We have seen a tremendous response from
shareholders following the announcement in October on the
acquisition of the remaining 40% interest in the Galena Complex and
highly successful equity raise to recapitalize this project moving
forward. As a result, the Board of Directors has made the decision
to expediate Paul’s transition to CEO to November 11, 2024,
allowing for a timelier operational strategy to be implemented
aimed at maximizing the Company’s assets moving forward.”
“I am excited to join Americas Gold and Silver and keen to get
to work on the 2025 work plan we have been developing for the
Galena Complex,” stated incoming Americas CEO Paul Andre Huet. “The
Galena Complex is a tremendous operation with huge potential that
has been handcuffed for years due to a lack of proper
capitalization. With the raise that was recently completed, we are
excited to get to work on reviewing the current operation and
building on a solid base to deliver what we believe to be one of
the premier silver mines in the Americas. I would like to thank
Darren Blasutti for his tireless work over the last decade at the
helm of the Company during what has been a very difficult silver
price environment. Darren will remain as President of the Company
and will help me, together with fresh capital and a strong,
technical management team, to deliver a revitalized North American
based silver mining company during a period of exciting increases
in silver prices.”
Consolidated Production
Consolidated attributable silver production during Q3-2024 and
Q3-2023 were comparable at approximately 386,000 ounces and 387,000
ounces, respectively. The Company also produced 8.4 million pounds
of zinc and 4.1 million attributable pounds of lead during Q3-2024.
Consolidated attributable silver equivalent production during
Q3-2024 decreased by 11% compared to Q3-2023 due to higher silver
prices in Q3-2024 compared to Q3-2023 as the Company uses realized
quarterly prices in its equivalency calculations. The Company’s
goal is to generate more than 80% of its revenue from silver
production by the end of 2025 which would be among the silver
industry leaders in percentage revenue from silver.
Consolidated attributable cash costs and all-in sustaining costs
for Q3-2024 were $16.88 per silver ounce and $25.38 per silver
ounce, respectively. Cash costs per silver ounce at the Cosalá
Operations were reduced because of increased by-product credits
from the increased zinc production and prices while Galena Complex
cash costs per silver ounce were negatively impacted by lower
silver production.
Cosalá Operations
The Company focused on increasing silver while maintaining base
metal production from the San Rafael Main and Upper Zones to
maximize its revenue and cash flow generation to benefit from the
recent increase in silver and zinc prices as the mine prepares for
its next evolution of operations in the EC120 silver-copper
deposit. Silver production increased in Q3-2024 by 8% to
approximately 192,000 ounces of silver compared to approximately
178,000 ounces of silver in Q3-2023 primarily due to increased
tonnage offset by lower recoveries. Production during the quarter
was impacted primarily by heavy rains and other factors which
caused the mill to be shut down for 10.5 days. Silver production is
expected to increase in Q4-2024 with more predictable weather and
further into 2025 as the development into EC120 progresses with the
operation continuing to batch higher development grade ore through
the mill.
Production of base metals decreased to 8.4 million pounds of
zinc and 2.6 million pounds of lead in Q3-2024, compared to 9.0
million pounds of zinc, and 2.8 million pounds of lead in Q3-2023
which was similarly impacted by the 10.5 missed operating days as
noted above.
Cash costs per silver ounce decreased during the quarter to
$7.12 per ounce from $14.42 per ounce in Q3-2023 due primarily to
increased silver production, and higher by-product credits from a
higher zinc realized price during the period.
Galena Complex
The Galena Complex produced approximately 323,000 ounces of
silver in Q3-2024 compared to approximately 349,000 ounces of
silver in Q3-2023 (a 7% decrease in silver production), and 2.6
million pounds of lead in Q3-2024, compared to 3.1 million pounds
of lead in Q3-2023 (a 15% decrease in lead production). Cash costs
increased to $26.54 per ounce silver in Q3-2024 from $22.91 per
ounce silver in Q3-2023 due to decreased silver production, with an
increase in all-in sustaining costs due to an increase in capital
expenditures.
Tonnage and silver production both decreased during Q3-2024
primarily due to a focus on development during the quarter which
included continued work on the 55-179 decline to develop deeper
higher-grade production stopes which will drive long-term
production goals, as well as equipment issues and changes to mining
sequence and design. Tonnage was also negatively impacted by the
build up of waste rock caused by continued hoisting limitations due
to the delay in repairs to the Galena shaft.
About Americas Gold and Silver Corporation
Americas Gold and Silver Corporation is a high-growth precious
metals mining company with multiple assets in North America. The
Company owns and operates the Cosalá Operations in Sinaloa, Mexico,
manages the 60%-owned Galena Complex in Idaho, USA, and is
re-evaluating the Relief Canyon mine in Nevada, USA. The Company
also owns the San Felipe development project in Sonora, Mexico. For
further information, please see SEDAR+ or
www.americas-gold.com.
Technical Information and Qualified Persons
The scientific and technical information relating to the
Company’s material mining properties contained herein has been
reviewed and approved by Chris McCann, P.Eng., Vice President,
Technical Services of the Company. The Company’s current Annual
Information Form and the NI 43-101 Technical Reports for its
mineral properties, all of which are available on SEDAR+ at
www.sedarplus.ca, and EDGAR at www.sec.gov, contain further details
regarding mineral reserve and mineral resource estimates,
classification and reporting parameters, key assumptions and
associated risks for each of the Company’s material mineral
properties, including a breakdown by category.
All mining terms used herein have the meanings set forth in
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects (“NI 43-101”), as required by Canadian securities
regulatory authorities. These standards differ from the
requirements of the SEC that are applicable to domestic United
States reporting companies. Any mineral reserves and mineral
resources reported by the Company in accordance with NI 43-101 may
not qualify as such under-SEC standards. Accordingly, information
contained in this news release may not be comparable to similar
information made public by companies subject to the SEC’s reporting
and disclosure requirements.
Cautionary Statement on Forward-Looking Information:
This news release contains “forward-looking information” within
the meaning of applicable securities laws. Forward-looking
information includes, but is not limited to, Americas’
expectations, intentions, plans, assumptions and beliefs with
respect to, among other things, estimated and targeted production
rates and results for gold, silver and other metals, the expected
prices of gold, silver and other metals, as well as the related
costs, expenses and capital expenditures; production from the
Galena Complex and Cosalá Operations, including the expected number
of producing stopes and production levels; the expected timing and
completion of required development and the expected operational and
production results therefrom, including the anticipated
improvements to production rates and cash costs per silver ounce
and all-in sustaining costs per silver ounce; statements relating
to Americas’ EC120 Project; and statements relating to
implementation of, and the impact of new management on, the planned
recapitalization of Galena Complex. Guidance and outlook references
contained in this press release were prepared based on current mine
plan assumptions with respect to production, development, costs and
capital expenditures, the metal price assumptions disclosed herein,
and assumes no further adverse impacts to the Cosalá Operations
from blockades or work stoppages, and completion of the shaft
repair and shaft rehab work at the Galena Complex on its expected
schedule and budget, the realization of the anticipated benefits
therefrom, and is subject to the risks and uncertainties outlined
below. The ability to maintain cash flow positive production at the
Cosalá Operations, which includes the EC120 Project, through
meeting production targets and at the Galena Complex through
implementing the Galena Recapitalization Plan, including the
completion of the Galena shaft repair and shaft rehab work on its
expected schedule and budget, allowing the Company to generate
sufficient operating cash flows while facing market fluctuations in
commodity prices and inflationary pressures, are significant
judgments in the consolidated financial statements with respect to
the Company’s liquidity. Should the Company experience negative
operating cash flows in future periods, the Company may need to
raise additional funds through the issuance of equity or debt
securities. Often, but not always, forward-looking information can
be identified by forward-looking words such as “anticipate”,
“believe”, “expect”, “goal”, “plan”, “intend”, “potential’,
“estimate”, “may”, “assume” and “will” or similar words suggesting
future outcomes, or other expectations, beliefs, plans, objectives,
assumptions, intentions, or statements about future events or
performance. Forward-looking information is based on the opinions
and estimates of Americas as of the date such information is
provided and is subject to known and unknown risks, uncertainties,
and other factors that may cause the actual results, level of
activity, performance, or achievements of Americas to be materially
different from those expressed or implied by such forward-looking
information. With respect to the business of Americas, these risks
and uncertainties include risks relating to widespread epidemics or
pandemic outbreak, actions that have been and may be taken by
governmental authorities to contain such epidemic or pandemic or to
treat its impact and/or the availability, effectiveness and use of
treatments and vaccines (including the effectiveness of boosters);
interpretations or reinterpretations of geologic information;
unfavorable exploration results; inability to obtain permits
required for future exploration, development or production; general
economic conditions and conditions affecting the industries in
which the Company operates; the uncertainty of regulatory
requirements and approvals; potential litigation; fluctuating
mineral and commodity prices; the ability to obtain necessary
future financing on acceptable terms or at all; the ability to
operate the Company’s projects; and risks associated with the
mining industry such as economic factors (including future
commodity prices, currency fluctuations and energy prices), ground
conditions, illegal blockades and other factors limiting mine
access or regular operations without interruption, failure of
plant, equipment, processes and transportation services to operate
as anticipated, environmental risks, government regulation, actual
results of current exploration and production activities, possible
variations in ore grade or recovery rates, permitting timelines,
capital and construction expenditures, reclamation activities,
labor relations or disruptions, social and political developments,
risks associated with generally elevated inflation and inflationary
pressures, risks related to changing global economic conditions,
and market volatility, risks relating to geopolitical instability,
political unrest, war, and other global conflicts may result in
adverse effects on macroeconomic conditions including volatility in
financial markets, adverse changes in trade policies, inflation,
supply chain disruptions and other risks of the mining industry.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated, or
intended. Readers are cautioned not to place undue reliance on such
information. Additional information regarding the factors that may
cause actual results to differ materially from this forward‐looking
information is available in Americas’ filings with the Canadian
Securities Administrators on SEDAR+ and with the SEC. Americas does
not undertake any obligation to update publicly or otherwise revise
any forward-looking information whether as a result of new
information, future events or other such factors which affect this
information, except as required by law. Americas does not give any
assurance (1) that Americas will achieve its expectations, or (2)
concerning the result or timing thereof. All subsequent written and
oral forward‐looking information concerning Americas are expressly
qualified in their entirety by the cautionary statements above.
________________________
1 This metric is a non-GAAP financial measure or ratio. The
Company uses the financial measure “net cash generated from
operating activities” because it understands that, in addition to
conventional measures prepared in accordance with IFRS, certain
investors and analysts use this information to evaluate the
Company’s liquidity, operational efficiency, and short-term
financial health.
This is a financial measure disclosed in the Company’s
statements of cash flows determined as cash generated from
operating activities, after changes in non-cash working capital
items.
Reconciliation of Net Cash Generated
from Operating Activities
Q3-2024
Q3-2023
Cash used in operating activities
('000)
($2,153)
($3,882)
Changes in non-cash working capital items
('000)
2,107
4,610
Net cash generated from (used in)
operating activities (‘000)
($46)
$728
2 This metric is a non-GAAP financial measure or ratio. The
Company uses the financial measures, “Cash Cost”, “Cash Cost/Ag Oz
Produced”, “All-In Sustaining Cost”, and “All-In Sustaining Cost/Ag
Oz Produced” in accordance with measures widely reported in the
silver mining industry as a benchmark for performance measurement
and because it understands that, in addition to conventional
measures prepared in accordance with IFRS, certain investors and
analysts use this information to evaluate the Company’s underlying
earnings, cash costs and total costs of operations. EBITDA is net
income less interest, taxes, depreciation and amortization. Cash
costs are determined on a mine-by-mine basis and include mine site
operating costs such as mining, processing, administration,
production taxes and royalties which are not based on sales or
taxable income calculations, while all-in sustaining costs is the
cash costs plus all development, capital expenditures, and
exploration spending.
Reconciliation of Consolidated Cash
Costs/Ag Oz Produced(a, b)
Q3-2024
Q3-2023
Cost of sales ('000)
$18,957
$17,984
Less non-controlling interests portion
('000)
(4,238)
(3,614)
Attributable cost of sales ('000)
14,719
14,370
Non-cash costs ('000)
1,076
16
Direct mining costs ('000)
$15,796
$14,386
Smelting, refining and royalty expenses
('000)
3,141
5,549
Less by-product credits ('000)
(12,428)
(12,583)
Cash costs ('000)
$6,509
$7,352
Divided by silver produced (oz)
385,564
386,615
Cash costs/Ag oz produced ($/oz)
$16.88
$19.01
Reconciliation of Cosalá Operations
Cash Costs/Ag Oz Produced(b)
Q3-2024
Q3-2023
Cost of sales ('000)
$8,364
$8,949
Non-cash costs ('000)
1,203
11
Direct mining costs ('000)
$9,567
$8,960
Smelting, refining and royalty expenses
('000)
2,911
4,420
Less by-product credits ('000)
(11,113)
(10,820)
Cash costs ('000)
$1,365
$2,560
Divided by silver produced (oz)
191,739
177,503
Cash costs/Ag oz produced ($/oz)
$7.12
$14.42
Reconciliation of Galena Complex Cash
Costs/Ag Oz Produced
Q3-2024
Q3-2023
Cost of sales ('000)
$10,593
$9,035
Non-cash costs ('000)
(212)
8
Direct mining costs ('000)
$10,381
$9,043
Smelting, refining and royalty expenses
('000)
383
1,882
Less by-product credits ('000)
(2,192)
(2,939)
Cash costs ('000)
$8,572
$7,986
Divided by silver produced (oz)
323,043
348,521
Cash costs/Ag oz produced ($/oz)
$26.54
$22.91
Reconciliation of Consolidated All-In
Sustaining Costs/Ag Oz Produced (a, b)
Q3-2024(b)
Q3-2023
Cash costs ('000)
$6,508
$7,352
Capital expenditures ('000)
2,693
3,434
Exploration costs ('000)
586
640
All-in sustaining costs ('000)
$9,787
$11,426
Divided by silver produced (oz)
385,564
386,615
All-in sustaining costs/Ag oz produced
($/oz)
$25.38
$29.55
Reconciliation of Cosalá Operations
All-In Sustaining Costs/Ag Oz Produced(b)
Q3-2024
Q3-2023
Cash costs ('000)
$1,365
$2,560
Capital expenditures ('000)
654
2,077
Exploration costs ('000)
113
198
All-in sustaining costs ('000)
$2,132
$4,835
Divided by silver produced (oz)
191,739
177,503
All-in sustaining costs/Ag oz produced
($/oz)
$11.12
$27.24
Reconciliation of Galena Complex All-In
Sustaining Costs/Ag Oz Produced
Q3-2024
Q3-2023
Cash costs ('000)
$8,572
$7,986
Capital expenditures ('000)
3,399
2,263
Exploration costs ('000)
788
737
All-in sustaining costs ('000)
$12,579
$10,759
Galena Complex Recapitalization Plan costs
(‘000)
-
275
All-in sustaining costs with Galena
Recapitalization Plan (‘000)
$12,579
$11,261
Divided by silver produced (oz)
323,043
348,521
All-in sustaining costs/Ag oz produced
($/oz)
$39.50
$31.52
All-in sustaining costs with Galena
Recapitalization Plan/Ag oz produced ($/oz)
$39.50
$32.31
(a)
Throughout this press release,
consolidated production results and consolidated operating metrics
are based on the attributable ownership percentage of each
operating segment (100% Cosalá Operations and 60% Galena
Complex).
(b)
Throughout this press release,
silver production, silver equivalent production, and cost per ounce
measurements during fiscal 2024 include EC120 Project
pre-production from the Cosalá Operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241107044193/en/
For more information: Stefan Axell VP, Corporate
Development & Communications Americas Gold and Silver
Corporation 416-874-1708
Americas Gold and Silver (AMEX:USAS)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
Americas Gold and Silver (AMEX:USAS)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024