Americas Gold and Silver Corporation Reports Full-Year 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.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
-
Revenue increased to
$89.6 million for 2023 or 5% compared to$85.0 million for 2022, resulting from higher silver production, offset by lower mill throughput, lower base metal production, and lower realized zinc price during the year. -
A net loss of
$38.2 million for 2023, or an attributable loss of$0.16 per share, including a$6.0 million impairment and$3.2 million care and maintenance charge at theRelief Canyon property. The net loss represents a decrease in net loss of$7.0 million compared to 2022. - The Company previously reported that 2023 consolidated attributable silver production increased by 56% totalling approximately 2.04 million ounces compared with approximately 1.31 million ounces in 2022.
-
Consolidated attributable cash costs of
$13.21 /oz silver produced[1] and all-in sustaining costs of$20.44 /oz silver produced[1] during the year. -
The Company is in the final stages of negotiation with a global metal trader to provide concentrate prepayment financing for the capital requirements at its 100%-owned El Cajón and Zone 120 silver-copper project ("
EC120 Project ") at the Cosalá Operations. The Company expects to close this financing in Q2-2024 with the goal to be producing higher-grade silver-copper concentrates by the end of 2024. -
On
March 27, 2024 , the Company closed its previously announced equity offerings for gross proceeds ofC$7,800,000 with net proceeds to be used for working capital requirements at the Company’s CosaláOperations and Galena Complex , and for general and administrative purposes.
“Silver production during 2023 increased by 56% year-over-year which represents the Company’s first step in increasing its production to more silver-copper mineralization at the Company’s two producing mines,” stated Americas President and CEO
Cosalá Operations
The Cosalá Operations produced approximately 1.1 million ounces of silver, 11.5 million pounds of lead and 34.1 million pounds of zinc, compared with approximately 0.6 million ounces of silver, 15.3 million pounds of lead and 39.3 million pounds of zinc in 2022. Silver production for the year increased 73% as the Company focused on higher grade silver areas given the increase in silver prices and lower zinc prices.
Cash costs per silver ounce increased during the year to
The Company is in final discussions with a metal trader to provide concentrate prepayment financing options for the capital requirements at the
The Galena Complex’s attributable silver production increased to 0.9 million silver ounces in 2023 compared to approximately 0.7 million silver ounces in 2022, or 41% higher year-over-year. Lead production for 2023 was 9.1 million pounds compared with 9.3 million pounds in 2022.
All-in sustaining costs decreased to
The Galena Shaft Repair project is expected to recommence in Q3-2024 and is contracted to be completed by Moran Mining & Tunneling. In Q4-2023, the
- Hole 49-703: 20,147 g/t silver and 5.9% copper (20,842 g/t silver equivalent[2]) over 2.1 m[3]
This hole represents one of the highest-grade intercepts since the Company commenced the Galena Complex Recapitalization Program in 2019. The hole is less than 30 meters from existing mine infrastructure which should enable the Company to exploit this area quickly and generate additional silver production in the near term following some additional delineation drilling.
About
Annual Filings
Consistent with prior years, the auditors' report received from its independent public accounting firm on its audited financial statements for the fiscal year ended
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
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
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
__________________________
1 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 Produced(a) |
||
|
2023 |
2022 |
Cost of sales ('000) |
|
|
Less non-controlling interests portion ('000) |
(15,253) |
(12,388) |
Attributable cost of sales ('000) |
59,039 |
51,952 |
Non-cash costs ('000) |
712 |
(1,723) |
Direct mining costs ('000) |
|
|
Smelting, refining and royalty expenses ('000) |
21,163 |
24,050 |
Less by-product credits ('000) |
(53,927) |
(73,274) |
Cash costs ('000) |
|
|
Divided by silver produced (oz) |
2,043,053 |
1,308,201 |
Cash costs/Ag oz produced ($/oz) |
|
|
Reconciliation of Cosalá Operations Cash Costs/Ag Oz Produced |
||
|
2023 |
2022 |
Cost of sales ('000) |
|
|
Non-cash costs ('000) |
1,145 |
(1,348) |
Direct mining costs ('000) |
|
|
Smelting, refining and royalty expenses ('000) |
17,556 |
20,580 |
Less by-product credits ('000) |
(45,556) |
(64,710) |
Cash costs ('000) |
|
|
Divided by silver produced (oz) |
1,098,612 |
636,246 |
Cash costs/Ag oz produced ($/oz) |
|
|
Reconciliation of Galena Complex Cash Costs/Ag Oz Produced |
||
|
2023 |
2022 |
Cost of sales ('000) |
|
|
Non-cash costs ('000) |
(721) |
(625) |
Direct mining costs ('000) |
|
|
Smelting, refining and royalty expenses ('000) |
6,011 |
5,784 |
Less by-product credits ('000) |
(13,951) |
(14,274) |
Cash costs ('000) |
|
|
Divided by silver produced (oz) |
1,574,068 |
1,119,925 |
Cash costs/Ag oz produced ($/oz) |
|
|
Reconciliation of Consolidated All-In Sustaining Costs/Ag Oz Produced (a) |
||
|
2023 |
2022 |
Cash costs ('000) |
|
|
Capital expenditures ('000) |
12,460 |
9,031 |
Exploration costs ('000) |
2,308 |
2,569 |
All-in sustaining costs ('000) |
|
|
Divided by silver produced (oz) |
2,043,053 |
1,308,201 |
All-in sustaining costs/Ag oz produced ($/oz) |
|
|
Reconciliation of Cosalá Operations All-In Sustaining Costs/Ag Oz Produced |
||
|
2023 |
2022 |
Cash costs ('000) |
|
|
Capital expenditures ('000) |
7,129 |
3,649 |
Exploration costs ('000) |
835 |
1,296 |
All-in sustaining costs ('000) |
|
|
Divided by silver produced (oz) |
1,098,612 |
636,246 |
All-in sustaining costs/Ag oz produced ($/oz) |
|
|
Reconciliation of Galena Complex All-In Sustaining Costs/Ag Oz Produced |
||
|
2023 |
2022 |
Cash costs ('000) |
|
|
Capital expenditures ('000) |
8,885 |
8,970 |
Exploration costs ('000) |
2,455 |
2,122 |
All-in sustaining costs ('000) |
|
|
Galena Complex Recapitalization Plan costs ('000) |
4,264 |
6,608 |
All-in sustaining costs with Galena Recapitalization Plan ('000) |
|
|
Divided by silver produced (oz) |
1,574,068 |
1,119,925 |
All-in sustaining costs/Ag oz produced ($/oz) |
|
|
All-in sustaining costs with Galena Recapitalization/Ag oz produced ($/oz) |
|
|
(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% |
2 Silver equivalent grade for drill intercepts were calculated using metal prices of |
|
3 Meters represent “True Width” which is calculated for significant intercepts only and is based on orientation axis of core across the estimated dip of the vein. |
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For more information:
VP,
416-874-1708
President and CEO
416‐848‐9503
Source: