Americas Gold and Silver Reports Q2-2024 Results
Americas Gold and Silver (TSX: USA) (NYSE American: USAS) reports consolidated financial and operational results for Q2-2024. Highlights include:
- Consolidated revenue increased 62% to $31.6 million
- Positive EBITDA of $11.1 million and net income of $4.4 million from combined Cosalá and Galena operations
- Consolidated attributable silver production of 0.51 million ounces
- Significant reduction in cash costs to $12.42/oz silver and AISC to $19.58/oz silver
- Record quarterly production at Galena Complex since 2013
- $15 million secured Credit and Offtake Agreement signed for EC120 Project at Cosalá Operations
The company aims to generate over 80% of its revenue from silver production by the end of 2025.
Americas Gold and Silver (TSX: USA) (NYSE American: USAS) riporta risultati finanziari e operativi consolidati per il Q2-2024. I punti salienti includono:
- Aumento del fatturato consolidato del 62%, raggiungendo i 31,6 milioni di dollari
- EBITDA positivo di 11,1 milioni di dollari e utile netto di 4,4 milioni di dollari dalle operazioni combinate di Cosalá e Galena
- Produzione di argento consolidato attribuibile di 0,51 milioni di once
- Significativa riduzione dei costi in contante a 12,42 $/oz di argento e AISC a 19,58 $/oz di argento
- Produzione trimestrale record al Galena Complex dal 2013
- Accordo di Credito e Offtake da 15 milioni di dollari firmato per il Progetto EC120 presso le Operazioni di Cosalá
La compagnia punta a generare oltre l'80% delle sue entrate dalla produzione di argento entro la fine del 2025.
Americas Gold and Silver (TSX: USA) (NYSE American: USAS) informa sobre resultados financieros y operativos consolidados para el Q2-2024. Los aspectos más destacados incluyen:
- Aumento de ingresos consolidados del 62%, alcanzando 31,6 millones de dólares
- EBITDA positivo de 11,1 millones de dólares y ingreso neto de 4,4 millones de dólares de las operaciones combinadas de Cosalá y Galena
- Producción de plata consolidada atribuible de 0,51 millones de onzas
- Reducción significativa en los costos de efectivo a 12,42 $/oz de plata y AISC a 19,58 $/oz de plata
- Producción trimestral récord en el Complejo Galena desde 2013
- Acuerdo de Crédito y Offtake asegurado de 15 millones de dólares firmado para el Proyecto EC120 en las Operaciones de Cosalá
La compañía tiene como objetivo generar más del 80% de sus ingresos de la producción de plata para finales de 2025.
아메리카스 골드 앤 실버 (TSX: USA) (NYSE American: USAS)는 2024년 2분기 기준 통합 재무 및 운영 결과를 보고합니다. 주요 내용은 다음과 같습니다:
- 통합 수익이 62% 증가하여 3,160만 달러에 달함
- 코살라 및 갈레나의 통합 운영에서 긍정적인 EBITDA 1,110만 달러 및 순이익 440만 달러 기록
- 통합과 관련된 은 생산량이 51만 온스
- 은의 현금 비용이 12.42 $/온스, AISC가 19.58 $/온스로 감소
- 2013년 이후 갈레나 복합체의 분기 생산량 기록
- 코살라 운영을 위한 EC120 프로젝트에 대해 1,500만 달러의 신용 및 오프테이크 계약 체결
회사는 2025년 말까지 은 생산에서 80% 이상의 수익을 창출하는 것을 목표로 하고 있습니다.
Americas Gold and Silver (TSX: USA) (NYSE American: USAS) annonce les résultats financiers et opérationnels consolidés pour le Q2-2024. Les points saillants incluent :
- Augmentation du chiffre d'affaires consolidé de 62 %, atteignant 31,6 millions de dollars
- EBITDA positif de 11,1 millions de dollars et bénéfice net de 4,4 millions de dollars des opérations combinées de Cosalá et Galena
- Production d'argent consolidée attribuable de 0.51 million d'onces
- Réduction significative des coûts en espèces à 12,42 $/oz d'argent et AISC à 19,58 $/oz d'argent
- Production record au Complexe Galena depuis 2013
- Accord de crédit et d'achat de 15 millions de dollars signé pour le projet EC120 dans les opérations de Cosalá
L'entreprise vise à générer plus de 80 % de ses revenus à partir de la production d'argent d'ici la fin de 2025.
Americas Gold and Silver (TSX: USA) (NYSE American: USAS) berichtet über konsolidierte Finanz- und Betriebsergebnisse für Q2-2024. Die Höhepunkte umfassen:
- Konsolidierter Umsatz steigerte sich um 62% auf 31,6 Millionen Dollar
- Positives EBITDA von 11,1 Millionen Dollar und Nettogewinn von 4,4 Millionen Dollar aus den kombinierten Aktivitäten von Cosalá und Galena
- Konsolidierte, zuordenbare Silberproduktion von 0,51 Millionen Unzen
- Deutliche Senkung der Barausgaben auf 12,42 $/oz Silber und AISC auf 19,58 $/oz Silber
- Rekordproduktion im Galena-Komplex seit 2013
- Gesichertes Kredit- und Abnahmevereinbarung über 15 Millionen Dollar für das EC120-Projekt in den Cosalá-Betrieben unterzeichnet
Das Unternehmen hat zum Ziel, bis Ende 2025 über 80% seines Umsatzes aus der Silberproduktion zu generieren.
- Consolidated revenue increased 62% to $31.6 million in Q2-2024
- Positive EBITDA of $11.1 million and net income of $4.4 million from combined operations
- Significant reduction in cash costs to $12.42/oz silver and AISC to $19.58/oz silver
- Record quarterly production at Galena Complex with 560,000 ounces of silver
- $15 million secured Credit and Offtake Agreement signed for EC120 Project
- Decrease in silver production at Cosalá Operations
- Consolidated net loss of $4.0 million or $0.02 per share in Q2-2024
- Relief Canyon project still facing recovery challenges, requiring further study
Insights
The Q2-2024 results for Americas Gold and Silver show significant improvement, with consolidated revenue increasing by
The company's focus on transitioning to over
However, investors should note the ongoing challenges at Relief Canyon and the need to refinance existing convertible debentures. Overall, the quarter shows promising operational improvements and strategic positioning in the silver market.
The standout performance this quarter comes from the Galena Complex, which achieved its highest quarterly production since 2013 with approximately 560,000 ounces of silver. This
At Cosalá, the strategic shift to focus on higher-grade zinc areas in response to market prices demonstrates operational flexibility. The expedited development of the EC120 Project is a key move, with potential to significantly increase silver and copper production from 2025 onwards. The projected annual output of 2.5 million ounces of silver and 4.5 million pounds of copper from this project could substantially alter the company's production profile.
The consideration of a CIL plant for Relief Canyon shows proactive problem-solving, but investors should be cautious as this represents an additional capital requirement with uncertain outcomes. Overall, the company's pivot towards silver-focused production aligns well with current market trends and could position it favorably if silver prices remain strong.
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
Highlights
-
Consolidated revenue increased to
for Q2-2024 or$31.6 million 62% compared to for Q1-2024 due to higher realized commodity prices and increased silver production at the Galena Complex, offset slightly by lower silver production from the Cosalá Operations.$19.5 million -
Positive earnings before interest, taxes, depreciation and amortization (“EBITDA”) and net income from combined Cosalá and Galena operations of
[1] and$11.1 million , respectively, compared with negative EBITDA from those combined operations of$4.4 million and a net loss of$1.5 million in Q1-2024.$6.3 million -
Decrease in consolidated net loss to
or$4.0 million per share for Q2-2024 (Q1-2024 consolidated net loss of$0.02 or$16.2 million per share), primarily due to higher net revenue from higher silver and zinc prices.$0.08 -
As previously reported, Q2-2024 consolidated attributable silver production of 0.51 million ounces. The Company also produced 8.9 million pounds of zinc and 4.4 million attributable pounds of lead during Q2-2024. Significant reduction of consolidated attributable cash costs to
/oz silver produced[1] and all-in sustaining costs (“AISC”) to$12.42 /oz silver produced[1] in Q2-2024, representing decreases of approximately$19.58 40% and35% , respectively, compared with Q1-2024. -
Galena Complex quarterly production was the highest on record since 2013 with silver production of approximately 560,000 ounces on a
100% basis as the operation benefitted from production from mining areas in the Upper Country Lead Zone between 2400 and 2800 levels and a strong quarter from the 52-198 Silver Hanging Wall Vein. -
On August 14, 2024, the Company signed a
secured Credit and Offtake Agreement for the capital requirements of the Board-approved EC120 Project at its Cosalá Operations with the goal of solely producing higher-grade silver-copper concentrates in Q3-2025.$15 million - The Company commenced negotiations with current convertible debenture holders and potential new investors to extend the term of the existing facilities.
“Q2-2024 was a strong quarter for the Company and an initial demonstration of what our operating assets can deliver as we transition to over
Consolidated Production
Consolidated attributable silver production in Q2-2024 was approximately 506,000 ounces. Quarterly silver production in Q2-2024 remained on a steady upward trend and is expected to continue with increased working faces at the Galena Complex as well as the exploitation of EC120 Project at the Cosalá Operations. The EC120 Project has already started contributing to production with small amounts of development ore and will continue to ramp up through to achieving commercial production in Q3-2025. The Company also produced 8.9 million pounds of zinc and 4.4 million attributable pounds of lead during Q2-2024. The Company’s goal is to generate more than
Consolidated attributable cash costs and all-in sustaining costs for Q2-2024 were
Galena Complex
The Galena Complex produced approximately 560,000 ounces of silver on a
The Galena Complex benefitted from the recent horizontal development work in the Upper Country Lead Zone between the 2400 and 2800 Levels which allowed the operation to access additional working areas which is expected to continue to benefit the operation in subsequent quarters and a strong contribution from the 52-198 Silver Hanging Wall Vein. Development work on the 3700 Level is expected to be completed in Q3-2024 and is expected to contribute to high-grade silver production thereafter.
Cash costs decreased to
Cosalá Operations
The Cosalá Operations decreased silver production in Q2-2024 by
With the current higher silver and copper price, the Company decided to expedite the development of its
On August 14, 2024, the Company signed a
Relief Canyon
With the recent significant rise in gold prices, the Company continues to research possible solutions to increase recoveries at the project including the possibility of improvements through a
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 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
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 ; and statements relating to Americas’ EC120 Project, including expected approvals, the availability of advances under the credit facility, execution and timing and capital expenditures required to develop such project and reach production thereat, and expectations regarding its ability to rely in existing infrastructure, facilities, and equipment. 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
_______________________________
1 This metric is a non-GAAP financial measure or ratio. The Company uses the financial measures “EBITDA”, “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) |
||
|
Q2-2024 |
Q1-2024 |
Cost of sales ('000) |
|
|
Less non-controlling interests portion ('000) |
(4,040) |
(3,426) |
Attributable cost of sales ('000) |
15,935 |
16,249 |
Non-cash costs ('000) |
(486) |
152 |
Direct mining costs ('000) |
|
|
Smelting, refining and royalty expenses ('000) |
4,416 |
4,343 |
Less by-product credits ('000) |
(13,578) |
(10,790) |
Cash costs ('000) |
|
|
Divided by silver produced (oz) |
505,932 |
483,920 |
Cash costs/Ag oz produced ($/oz) |
|
|
Reconciliation of Cosalá Operations Cash Costs/Ag Oz Produced(b) |
||
|
Q2-2024 |
Q1-2024 |
Cost of sales ('000) |
|
|
Non-cash costs ('000) |
(227) |
(278) |
Direct mining costs ('000) |
|
|
Smelting, refining and royalty expenses ('000) |
3,573 |
3,849 |
Less by-product credits ('000) |
(11,905) |
(9,783) |
Cash costs ('000) |
|
|
Divided by silver produced (oz) |
169,728 |
297,262 |
Cash costs/Ag oz produced ($/oz) |
|
|
Reconciliation of Galena Complex Cash Costs/Ag Oz Produced |
||
|
Q2-2024 |
Q1-2024 |
Cost of sales ('000) |
|
|
Non-cash costs ('000) |
(432) |
716 |
Direct mining costs ('000) |
|
|
Smelting, refining and royalty expenses ('000) |
1,405 |
823 |
Less by-product credits ('000) |
(2,789) |
(1,661) |
Cash costs ('000) |
|
|
Divided by silver produced (oz) |
560,340 |
311,096 |
Cash costs/Ag oz produced ($/oz) |
|
|
Reconciliation of Consolidated All-In Sustaining Costs/Ag Oz Produced (a,b) |
||
|
Q2-2024(b) |
Q1-2024 |
Cash costs ('000) |
|
|
Capital expenditures ('000) |
2,994 |
3,938 |
Exploration costs ('000) |
626 |
646 |
All-in sustaining costs ('000) |
|
|
Divided by silver produced (oz) |
505,932 |
483,920 |
All-in sustaining costs/Ag oz produced ($/oz) |
|
|
Reconciliation of Cosalá Operations All-In Sustaining Costs/Ag Oz Produced(b) |
||
|
Q2-2024 |
Q1-2024 |
Cash costs ('000) |
|
|
Capital expenditures ('000) |
968 |
1,881 |
Exploration costs ('000) |
250 |
123 |
All-in sustaining costs ('000) |
|
|
Divided by silver produced (oz) |
169,728 |
297,262 |
All-in sustaining costs/Ag oz produced ($/oz) |
|
|
Reconciliation of Galena Complex All-In Sustaining Costs/Ag Oz Produced |
||
|
Q2-2024 |
Q1-2024 |
Cash costs ('000) |
|
|
Capital expenditures ('000) |
3,377 |
3,428 |
Exploration costs ('000) |
627 |
871 |
All-in sustaining costs ('000) |
|
|
Divided by silver produced (oz) |
560,340 |
311,096 |
All-in sustaining costs/Ag oz produced ($/oz) |
|
|
Reconciliation of EBITDA from Cosalá Operations and Galena Complex |
||
|
Q2-2024 |
Q1-2024 |
Net income (loss) from Cosalá and Galena ('000) |
|
|
Less interest and financing expense from Cosalá and Galena ('000) |
183 |
184 |
Less income tax expense (recovery) from Cosalá and Galena ('000) |
286 |
(15) |
Less depletion and amortization from Cosalá and Galena ('000) |
6,278 |
4,620 |
EBITDA from Cosalá and Galena ('000) |
|
|
(a) |
Throughout this press release, consolidated production results and consolidated operating metrics are based on the attributable ownership percentage of each operating segment ( |
(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/20240815347605/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
Source: Americas Gold and Silver Corporation
FAQ
What was Americas Gold and Silver's (USAS) silver production in Q2-2024?
How much did Americas Gold and Silver's (USAS) revenue increase in Q2-2024?
What was the Galena Complex's silver production in Q2-2024?