Americas Gold and Silver Reports Q1-2024 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
Highlights
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Revenue decreased to
$19.5 million for Q1-2024 or 12% compared to$22.1 million for Q1-2023, resulting from lower realized zinc price at the Cosalá Operations and lower silver and lead production from theGalena Complex , offset by higher silver production from the Cosalá Operations. -
A net loss of
$16.2 million for Q1-2024, or an attributable loss of$0.07 per share representing an increase in net loss of$5.7 million compared to Q1-2023, primarily due to lower net revenue, higher cost of sales, and higher loss on non-cash derivatives related to the convertible debenture, offset in part by lower interest and financing expense. - As previously reported, Q1-2024 attributable silver production was 0.48 million ounces compared with approximately 0.50 million ounces in Q1-2023. The Company also produced approximately 8.0 million attributable pounds of zinc and 4.0 million attributable pounds of lead during Q1-2024.
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Production from the Cosalá Operations was strong as the operation benefitted from above budgeted silver grades and recoveries.
The Galena Complex production was slightly below budget as focus during the quarter was re-allocated to lateral development to access the new mining areas in theUpper Country Lead Zone veins between 2400 and 2800 levels. This silver-lead area commenced ore production subsequent to quarter end and will provide 4,000-5,000 tons per month of base load silver-lead production for the next several years. -
Consolidated attributable cash costs of
$20.53 /oz silver produced[1] and all-in sustaining costs of$29.20 /oz silver produced[1] during the quarter. -
The Company expects to close on a financing with a metal trader for the anticipated initial capital requirements of the 100%-owned
EC120 Project at the Cosalá Operations in Q2-2024 with the goal of producing higher-grade silver-copper concentrates in early 2025. The 2019 Preliminary Feasibility Study for theEC120 Project forecasted average annual metal production of 2.5 million ounces of silver and 4.5 million pounds of copper with a total of over 12 million ounces of silver and 23.0 million pounds of copper over a mine life of approximately 5 years.
“I am optimistic about the remainder of the year despite an expected, but lower production quarter. Increasing silver and base metals prices coupled with expected higher silver production from the
Cosalá Operations
The Cosalá Operations produced approximately 295,000 ounces of silver, 2.8 million pounds of lead and 8.0 million pounds of zinc in Q1-2024, compared with approximately 265,000 ounces of silver, 2.7 million pounds of lead and 7.2 million pounds of zinc in Q1-2023. Silver and zinc production increased by over 10% year-over-year while lead production was essentially unchanged.
With the current higher silver and copper price, the Company decided to expedite the development of its 100%-owned
The Company expects to close in Q2-2023 on a financing with an international metal trader to provide financing for the anticipated initial capital requirements at the
Cash costs per silver ounce increased in the quarter to
Attributable production from the 60% owned
Cash costs increased to
About
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
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) |
||
|
Q1-2024 |
Q1-2023 |
Cost of sales ('000) |
|
|
Less non-controlling interests portion ('000) |
(3,426) |
(3,959) |
Attributable cost of sales ('000) |
16,249 |
13,520 |
Non-cash costs ('000) |
82 |
279 |
Direct mining costs ('000) |
|
|
Smelting, refining and royalty expenses ('000) |
4,343 |
5,242 |
Less by-product credits ('000) |
(10,779) |
(13,457) |
Cash costs ('000) |
|
|
Divided by silver produced (oz) |
481,936 |
499,677 |
Cash costs/Ag oz produced ($/oz) |
|
|
Reconciliation of Cosalá Operations Cash Costs/Ag Oz Produced |
||
|
Q1-2024 |
Q1-2023 |
Cost of sales ('000) |
|
|
Non-cash costs ('000) |
(348) |
292 |
Direct mining costs ('000) |
|
|
Smelting, refining and royalty expenses ('000) |
3,849 |
4,188 |
Less by-product credits ('000) |
(9,782) |
(10,839) |
Cash costs ('000) |
|
|
Divided by silver produced (oz) |
295,278 |
265,121 |
Cash costs/Ag oz produced ($/oz) |
|
|
Reconciliation of Galena Complex Cash Costs/Ag Oz Produced |
||
|
Q1-2024 |
Q1-2023 |
Cost of sales ('000) |
|
|
Non-cash costs ('000) |
716 |
(21) |
Direct mining costs ('000) |
|
|
Smelting, refining and royalty expenses ('000) |
823 |
1,757 |
Less by-product credits ('000) |
(1,661) |
(4,364) |
Cash costs ('000) |
|
|
Divided by silver produced (oz) |
311,096 |
390,927 |
Cash costs/Ag oz produced ($/oz) |
|
|
Reconciliation of Consolidated All-In Sustaining Costs/Ag Oz Produced (a) |
||
|
Q1-2024 |
Q1-2023 |
Cash costs ('000) |
|
|
Capital expenditures ('000) |
3,531 |
2,419 |
Exploration costs ('000) |
646 |
427 |
All-in sustaining costs ('000) |
|
|
Divided by silver produced (oz) |
481,936 |
499,677 |
All-in sustaining costs/Ag oz produced ($/oz) |
|
|
Reconciliation of Cosalá Operations All-In Sustaining Costs/Ag Oz Produced |
||
|
Q1-2024 |
Q1-2023 |
Cash costs ('000) |
|
|
Capital expenditures ('000) |
1,474 |
1,183 |
Exploration costs ('000) |
123 |
119 |
All-in sustaining costs ('000) |
|
|
Divided by silver produced (oz) |
295,278 |
265,121 |
All-in sustaining costs/Ag oz produced ($/oz) |
|
|
Reconciliation of Galena Complex All-In Sustaining Costs/Ag Oz Produced |
||
|
2023 |
Q1-2023 |
Cash costs ('000) |
|
|
Capital expenditures ('000) |
3,428 |
2,060 |
Exploration costs ('000) |
871 |
514 |
All-in sustaining costs ('000) |
|
|
Galena Complex Recapitalization Plan costs ('000) |
- |
2,565 |
All-in sustaining costs with Galena Recapitalization Plan ('000) |
|
|
Divided by silver produced (oz) |
311,096 |
390,927 |
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%
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VP,
416-874-1708
President and CEO
416‐848‐9503
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