Americas Gold and Silver Reports Q2-2023 Results
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.sedar.com, 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
Highlights
-
Revenue of
for Q2-2023 representing an increase of$24.2 million (or$4.2 million 21% ) compared to Q2-2022 primarily due to higher silver and lead production from the Galena Complex and higher silver production from the Cosalá Operations, partially offset by lower realized zinc prices. -
Cash generated from operating activities1 improved by
compared Q2-2022, before changes in non-cash working capital items.$2.9 million -
A net loss of
for Q2-2023, or an attributable loss of$7.1 million per share2 representing a decrease in net loss of$0.03 compared to Q2-2022, primarily due to higher net revenue of$2.2 million offset in part by higher cost of sales of$4.2 million and lower realized zinc prices.$2.8 million - The Company successfully installed the Galena Hoist which is now operational as of the end of Q2-2023 with only shaft repair remaining before final certification can be obtained. The Company has fully inspected the shaft with a LIDAR survey showing less than a few hundred feet of the shaft requiring more extensive repair. These repairs are on-going and are expected to be completed in Q4-2023.
-
Q2-2023 consolidated attributable silver production increased by
92% year-over-year totalling approximately 0.57 million ounces compared with approximately 0.30 million ounces in Q2-2022. Consolidated attributable silver equivalent3 production in Q2-2023 was approximately 1.3 million ounces compared with 1.3 million ounces in Q2-2022. -
Attributable cash costs of
/oz silver produced4 and all-in sustaining costs of$10.00 /oz silver produced4 during the quarter. Cash costs were negatively impacted in the quarter by lower zinc prices and an appreciation in the Mexican peso.$16.78 -
Production guidance for 2023 remains unchanged with consolidated attributable silver equivalent production expected to range between 5.5 – 6.0 million ounces and consolidated attributable silver production expected to increase by over
80% from 2022 and range between 2.2 – 2.6 million ounces. -
The Company closed the second tranche of the convertible debenture with Delbrook Capital, one of the Company’s largest shareholders, with the receipt of the remaining
C subsequent to the quarter end.$4.0 million
“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.”
Cosalá Operations
The Cosalá Operations produced approximately 335,000 ounces of silver, 3.2 million pounds of lead and 9.6 million pounds of zinc in Q2-2023, compared to approximately 128,000 ounces of silver, 3.9 million pounds of lead and 9.9 million pounds of zinc in Q2-2022, benefitting from more production from the higher-grade silver areas in the Upper Zone of the
Silver production from the Cosalá Operations in 2023 is expected to be between 1.2 – 1.4 million ounces, benefitting from more production from the higher-grade silver areas in the Upper Zone of the
Galena Complex
Attributable production from the
During the quarter, the Company successfully installed the Galena Hoist and it is now operational. The Company is focused on finishing the remaining shaft repair work, which is not expected to impact production guidance for the Galena Complex in 2023. The Company has fully inspected the shaft with a LIDAR survey showing less than a few hundred feet of the shaft requiring more extensive repair. These repairs are on-going and are expected to be completed in Q4-2023. The Galena Hoist will support plans to increase production, improve operational flexibility and improve operational economics.
About Americas Gold and Silver Corporation
Americas Gold and Silver Corporation is a high-growth precious metals mining company with multiple assets in
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 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 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
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,
1 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 |
||||||||
|
Q2-2023 |
Q2-2022 |
||||||
Cash generated from (used in) operating activities (‘000) |
$ |
642 |
|
$ |
(2,312 |
) |
||
Changes in non-cash working capital items (‘000) |
|
(6,586 |
) |
|
9,284 |
|
||
Net cash generated from (used in) operating activities (‘000) |
$ |
(5,944 |
) |
$ |
6,972 |
|
2 The Company uses the financial measure “net loss per share” 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.
Net loss per share is consolidated net loss divided by the weighted average number of common shares outstanding during the period.
Reconciliation of Net Loss per Share |
||||||||
|
Q2-2023 |
Q2-2022 |
||||||
Consolidated net loss ('000) |
$ |
(7,091 |
) |
$ |
(9,278 |
) |
||
Divided by weighted average number of common shares outstanding |
|
211,454,795 |
|
|
180,795,755 |
|
||
Net loss per share |
$ |
(0.03 |
) |
$ |
(0.05 |
) |
3 Silver equivalent ounces for Q2-2023 and Q2-2022 were calculated based on all metals production at average realized silver, zinc, and lead prices during each respective period throughout this press release. Silver equivalent ounces for the 2023 guidance and 2024 outlook references were calculated based on
4 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 cash costs and total costs of operations. 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 Produced1 |
||||||||
|
Q2-2023 |
Q2-2022 |
||||||
Cost of sales ('000) |
$ |
20,357 |
|
$ |
16,552 |
|
||
Less non-controlling interests portion ('000) |
|
(3,759 |
) |
|
(3,440 |
) |
||
Attributable cost of sales ('000) |
|
16,598 |
|
|
13,112 |
|
||
Non-cash costs ('000) |
|
(822 |
) |
|
71 |
|
||
Direct mining costs ('000) |
$ |
15,776 |
|
$ |
13,183 |
|
||
Smelting, refining and royalty expenses ('000) |
|
5,867 |
|
|
6,447 |
|
||
Less by-product credits ('000) |
|
(15,901 |
) |
|
(20,440 |
) |
||
Cash costs ('000) |
$ |
5,742 |
|
$ |
(810 |
) |
||
Divided by silver produced (oz) |
|
573,382 |
|
|
299,228 |
|
||
Cash costs/Ag oz produced ($/oz) |
$ |
10.00 |
|
$ |
(2.72 |
) |
||
|
||||||||
Reconciliation of Cosalá Operations Cash Costs/Ag Oz Produced |
||||||||
|
Q2-2023 |
Q2-2022 |
||||||
Cost of sales ('000) |
$ |
10,959 |
|
$ |
7,953 |
|
||
Non-cash costs ('000) |
|
(793 |
) |
|
20 |
|
||
Direct mining costs ('000) |
$ |
10,166 |
|
$ |
7,973 |
|
||
Smelting, refining and royalty expenses ('000) |
|
4,839 |
|
|
5,485 |
|
||
Less by-product credits ('000) |
|
(13,493 |
) |
|
(18,055 |
) |
||
Cash costs ('000) |
$ |
1,512 |
|
$ |
(4,597 |
) |
||
Divided by silver produced (oz) |
|
334,992 |
|
|
127,803 |
|
||
Cash costs/Ag oz produced ($/oz) |
$ |
4.51 |
|
$ |
(35.97 |
) |
||
|
||||||||
Reconciliation of Galena Complex Cash Costs/Ag Oz Produced |
||||||||
|
Q2-2023 |
Q2-2022 |
||||||
Cost of sales ('000) |
$ |
9,398 |
|
$ |
8,599 |
|
||
Non-cash costs ('000) |
|
(49 |
) |
|
85 |
|
||
Direct mining costs ('000) |
$ |
9,349 |
|
$ |
8,684 |
|
||
Smelting, refining and royalty expenses ('000) |
|
1,713 |
|
|
1,603 |
|
||
Less by-product credits ('000) |
|
(4,012 |
) |
|
(3,975 |
) |
||
Cash costs ('000) |
$ |
7,050 |
|
$ |
6,312 |
|
||
Divided by silver produced (oz) |
|
397,316 |
|
|
285,707 |
|
||
Cash costs/Ag oz produced ($/oz) |
$ |
17.74 |
|
$ |
22.09 |
|
||
Reconciliation of Consolidated All-In Sustaining Costs/Ag Oz Produced 1 |
||||||||
|
Q2-2023 |
Q2-2022 |
||||||
Cash costs ('000) |
$ |
5,742 |
|
$ |
(810 |
) |
||
Capital expenditures ('000) |
|
3,209 |
|
|
2,138 |
|
||
Exploration costs ('000) |
|
672 |
|
|
278 |
|
||
All-in sustaining costs ('000) |
$ |
9,619 |
|
$ |
1,606 |
|
||
Divided by silver produced (oz) |
|
573,382 |
|
|
299,228 |
|
||
All-in sustaining costs/Ag oz produced ($/oz) |
$ |
16.78 |
|
$ |
5.37 |
|
||
Reconciliation of Cosalá Operations All-In Sustaining Costs/Ag Oz Produced |
||||||||
|
Q2-2023 |
Q2-2022 |
||||||
Cash costs ('000) |
$ |
1,512 |
|
$ |
(4,597 |
) |
||
Capital expenditures ('000) |
|
1,896 |
|
|
1,022 |
|
||
Exploration costs ('000) |
|
312 |
|
|
266 |
|
||
All-in sustaining costs ('000) |
$ |
3,720 |
|
$ |
(3,309 |
) |
||
Divided by silver produced (oz) |
|
334,992 |
|
|
127,803 |
|
||
All-in sustaining costs/Ag oz produced ($/oz) |
$ |
11.10 |
|
$ |
(25.89 |
) |
||
Reconciliation of Galena Complex All-In Sustaining Costs/Ag Oz Produced |
||||||||
|
Q2-2023 |
Q2-2022 |
||||||
Cash costs ('000) |
$ |
7,050 |
|
$ |
6,312 |
|
||
Capital expenditures ('000) |
|
2,181 |
|
|
1,860 |
|
||
Exploration costs ('000) |
|
599 |
|
|
20 |
|
||
All-in sustaining costs ('000) |
$ |
9,830 |
|
$ |
8,192 |
|
||
Galena Complex Recapitalization Plan costs ('000) |
|
1,648 |
|
|
2,308 |
|
||
All-in sustaining costs with Galena Recapitalization Plan ('000) |
$ |
11,478 |
|
$ |
10,500 |
|
||
Divided by silver produced (oz) |
|
397,316 |
|
|
285,707 |
|
||
All-in sustaining costs/Ag oz produced ($/oz) |
$ |
24.74 |
|
$ |
28.67 |
|
||
All-in sustaining costs with Galena Recapitalization/Ag oz produced ($/oz) |
$ |
28.29 |
|
$ |
36.75 |
|
1 Throughout this press release, consolidated production results and consolidated operating metrics are based on the attributable ownership percentage of each operating segment (
View source version on businesswire.com: https://www.businesswire.com/news/home/20230814896815/en/
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
Source: Americas Gold and Silver Corporation