Americas Gold and Silver Corporation (TSX: USA) (NYSE American:
USAS) (“Americas” or the “Company”), a growing North American
precious metals producer, is pleased to provide its Q3-2023
production results.
- Q3-2023 consolidated attributable silver production rose 17%
totalling approximately 0.39 million ounces compared with
approximately 0.33 million ounces in Q3-2022.
- Consolidated attributable silver equivalent1 production in
Q3-2023 was approximately 1.0 million ounces compared with
approximately 1.3 million ounces in Q3-2022. The reported silver
equivalent production was impacted by higher silver prices and
lower zinc prices in Q3-2023 versus Q3-2022 as the Company uses
realized quarterly prices in its calculations. These price changes
negatively impacted the silver equivalent production calculation by
approximately 0.3 million ounces in Q3-2023 compared to
Q3-2022.
- Production was negatively impacted early in the quarter by a
5-day electrical shutdown at the Galena Complex to allow necessary
hoist switchgear upgrades, as well as mobile equipment
availability. The Cosalá Operations had various mill outages
totalling 14 days due to heavy rain and tailings work.
- The Cosalá Operations has grown its ore stockpile to
approximately 25,000 tonnes from zero at the beginning of the year.
Further, mining has begun in the transition zone between the San
Rafael Upper Zone and Zone 120 with approximately 10,000 tonnes
mined to-date. The Company expects to realize an increase in silver
production in the near term due the higher-grade silver areas in
the Upper Zone and the transition zone.
- Production is expected to be the highest in Q4-2023 for
calendar 2023 with both operations now accessing their highest
silver grades for the year.
- Production guidance for 2023 remains unchanged but the Company
expects to be at lower end of both the consolidated attributable
silver production range of 2.2 and 2.6 million ounces and
consolidated attributable silver equivalent production range of 5.5
and 6.0 million ounces.
“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,”
stated Americas President and CEO Darren Blasutti. “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.”
Consolidated Attributable Production*
Q3-2023
Q3-2022
% Increase (Decrease)
(Y-over-Y)
Silver Production (ounces)
0.39 Moz
0.33 Moz
17%
Zinc Production (pounds)
9.0 Mlbs
9.4 Mlbs
(5%)
Lead Production (pounds)
4.7 Mlbs
5.9 Mlbs
(20%)
Silver Equivalent Production
(ounces)
1.0 Moz
1.3 Moz
(26%)
* Silver equivalent ounces for Q3-2023 and
Q3-2022 were calculated based on silver, zinc and lead realized
prices during each respective period throughout this press release.
Guidance numbers were based on $22.00/oz silver, $1.45/lb zinc and
$1.00/lb lead.
Attributable production from the 60% owned Galena Complex was
approximately 209,000 ounces of silver and 1.8 million pounds of
lead in Q3-2023, compared to approximately 145,000 ounces of silver
and 2.1 million pounds of lead in Q3-2022. Towards the end of
Q3-2023, the Galana Complex was unable to maintain targeted ore
production due to mine mobile equipment availability. The issue has
been largely resolved and, while improvements were too late to
positively impact Q3-2023 results, October has had a strong start.
The Company has found a specialized contractor that it will engage
in November to repair the badly damaged few hundred feet of the
Galena shaft.
The Cosalá Operations produced approximately 178,000 ounces of
silver, 2.8 million pounds of lead and 9.0 million pounds of zinc
in Q3-2023, compared with approximately 186,000 ounces of silver,
3.8 million pounds of lead and 9.4 million pounds of zinc in
Q3-2022. Production during the quarter was negatively impacted by a
cumulative 14 days of lost mill operating time due to heavy
rainfall and tailings maintenance. The majority of the decrease in
silver equivalent production compared to the prior year period is a
result of 25% higher realized silver prices and 25% lower realized
zinc prices, impacting the calculation by 0.3 million ounces.
Production is expected to increase in Q4-2023 benefiting from the
higher-grade silver areas in the Upper Zone of the San Rafael mine
and stockpiled production from the Zone 120 deposit.
The Company’s production is expected to come in at the lower of
end of 2023 guidance of attributable consolidated silver equivalent
production between 5.5 and 6.0 million ounces and attributable
consolidated silver production between 2.2 and 2.6 million
ounces.
In connection with contemplated amendments to the existing
convertible debentures held by funds managed by Delbrook Capital
Advisors (“Debentures”) to provide an additional $2,000,000 in
principal amount, the Company has agreed to amend the terms of its
existing warrants held by funds managed by Delbrook Capital
Advisors and affiliates (an aggregate of 3,500,000 common share
purchase warrants, “Warrants”) to amend the exercise price from
C$0.80 per warrant to C$0.55 per Warrant, a premium of 25% to
October 27, 2023 closing price of C$0.44. The Warrants expire on
June 21, 2026, and contain customary anti-dilution provisions, as
well as customary blocker language regarding becoming a control
person without required shareholder and TSX approvals. The
amendments will be effective upon the entry into definitive
documentation, and no earlier than November 13, 2023.
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
operation of the Company’s material operating mining properties
contained herein has been reviewed and approved by Daren Dell,
P.Eng., Chief Operating Officer of the Company. The Company’s
current Annual Information Form and the NI 43-101 Technical Reports
for its other material mineral properties, all of which are
available on SEDAR at www.sedar.com, 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, including
the expected production levels and potential additional mineral
resources thereat; the expected timing and completion of the Galena
Hoist project and the expected operational and production results
therefrom, including the anticipated improvements to the cash costs
per silver ounce and all-in sustaining costs per silver ounce at
the Galena Complex following completion; and mining and processing
operations at the Cosalá Operations continuing, including expected
production levels and the continuity of legal access for employees
and contractors; 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 adverse impacts to operations from the COVID-19
pandemic, no further adverse impacts to the Cosalá Operations from
blockades or work stoppages for any reason, and completion of the
Galena Hoist project on its expected schedule and budget, and 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
through meeting production targets and at the Galena Complex
through implementing the Galena Recapitalization Plan, including
the completion of the Galena Hoist project 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 including the
COVID-19 pandemic, including the emergence of new strains and/or
the resurgence of COVID-19, actions that have been and may be taken
by governmental authorities to contain the COVID-19 pandemic or to
treat its impact and/or the availability, effectiveness and use of
treatments and vaccines (including the effectiveness of boosters);
the impact of COVID-19 on our workforce, suppliers and other
essential resources and what effect those impacts, if they occur,
would have on our business, including our ability to access goods
and supplies, the ability to transport our products and impacts on
employee productivity, the risks in connection with the operations,
cash flow and results of the Company relating to the unknown
duration and impact of the COVID-19 pandemic; 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 Silver equivalent ounces for the 2023 guidance references were
calculated based on $22.00/oz silver, $1.00/lb lead and $1.45/lb
zinc throughout this press release. Silver equivalent ounces for
production in Q3-2023 and Q3-2022 were calculated based on silver,
zinc and lead realized prices during the period throughout this
press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231030280568/en/
For more information: Stefan Axell VP, Corporate
Development & Communications Americas Gold and Silver
Corporation 416-874-1708 Darren Blasutti President and CEO Americas
Gold and Silver Corporation 416‐848‐9503
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