Americas Gold and Silver Corporation (TSX: USA) (NYSE American:
USAS) (“Americas” or the “Company”), a growing North American
precious metals producer, reports consolidated financial and
operational results for the quarter ended September 30, 2022.
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 U.S.
dollars unless otherwise noted.
Highlights
- Revenue of $18.3 million and net loss of $24.6 million for
Q3-2022, or an attributable loss of $0.12 per share1, including a
$13.4 million impairment charge to Relief Canyon. These results
represent an increase of $7.4 million in revenue due to higher
silver equivalent production and an increase in net loss of $6.0
million compared to Q3-2021, mainly due the impairment charge taken
to the property, plant and equipment at Relief Canyon, lower metals
prices, higher cost of sales, higher foreign exchange loss, and
higher income tax expense, offset in part by lower care and
maintenance costs and gain on fair value of metals contract
liability.
- There has been no material change in the Relief Canyon
operations since the suspension of operations in August 2021 and
the mine continues to recover gold from the existing heap while
continuing technical studies. However, the Company determined an
impairment indicator existed at the end of Q3-2022, resulting in an
impairment charge on Relief Canyon's property, plant and equipment
carrying value of $13.4 million based on the decrease in valuation
on market comparable gold equivalent ounces during the
quarter.
- Subsequent to the quarter end, the Company amended certain
terms of its existing RoyCap convertible debt to provide additional
liquidity and ensure the Galena Hoist project can remain on-time
and be fully funded. The Galena Hoist project remains on track with
commissioning scheduled to begin in December 2022.
- The Company previously reported Q3-2022 consolidated
attributable production of approximately 331,000 silver ounces and
1,339,000 silver equivalent2 ounces. Silver production increased by
92% year-over-year and increased 11% quarter-over-quarter. Silver
equivalent production increased by 365% year-over-year and was
comparable quarter-over-quarter.
- Year-to-date, consolidated attributable production totalled
approximately 931,000 silver ounces and 3,957,000 silver equivalent
ounces at a cash cost per silver ounce3 of approximately negative
$0.39 per ounce and consolidated all-in sustaining cost per silver
ounce3 of $7.51 per ounce.
- The Company's 2022 silver production is expected to be at the
lower end of 1.4 – 1.8 million ounces guidance range and at the
higher end of silver equivalent guidance range of 4.8 – 5.2 million
ounces. The Company chose to prioritize mining the base metal rich
Main Zone and delayed production from the higher-grade silver Upper
Zone at the Cosalá Operations given lower silver prices YTD.
Further increases in silver production to a range of 3.4 – 3.8
million ounces and silver equivalent production to 7.0 – 7.4
million ounces are projected for 2024, representing increases of
approximately 425% and 380%, respectively, compared with 2021
production.
“While the entire precious metals industry continues to be
challenged in the current macro environment, the Company is
optimistic for the remainder of 2022 and a strong start to 2023,”
stated Americas President and CEO Darren Blasutti. “With the recent
upward movement in silver prices, coupled with a projected increase
in silver production at both of our operations with San Rafael
expected to mine the higher-grade Upper Zone and the Galena Complex
exploiting more higher-grade silver stopes, the fourth quarter is
expected to be the best silver production quarter of the year. The
completion of the Galena Hoist is projected to add operational
flexibility and significantly increase production at the Galena
Complex moving forward. The Company anticipates a strong finish to
the year in Q4-2022 with silver equivalent production for the year
expected to be meet or exceed the upper end of the guidance range
of 4.8 to 5.2 million ounces.”
Cosalá Operations
The Cosalá Operations had a strong quarter in Q3-2022. During
another full quarter of production in Q3-2022, the Cosalá
Operations produced approximately 186,000 ounces of silver, 9.4
million pounds of zinc and 3.8 million pounds of lead. Cash costs
per silver ounce and all-in sustaining costs per silver ounce were
negative $4.43 and positive $4.35, respectively. Cash costs
increased during the quarter due to lower by-product credits given
lower zinc and lead prices compared to the first half of the
year.
The Company continued to focus in Q3-2022 on mining the
higher-grade zinc and lower-grade silver areas of the Main Zone to
maximize revenue generated by the Cosalá Operations. The Company
expects silver production to increase in Q4-2022 with a growing
contribution from higher-grade silver areas in the Upper Zone of
the San Rafael mine. As a result of mining a higher proportion of
ore from the Main Zone, silver production from the Cosalá
Operations for the year is expected to be at the lower end of the
projected range of 0.7 to 0.9 million silver ounces while zinc and
lead production are expected to be towards the upper end of the
projected ranges of 36 to 40 million pounds and 13 to 15 million
pounds, respectively.
Galena Complex
Attributable production from the Galena Complex was
approximately 145,000 ounces of silver and 2.1 million pounds of
lead in Q3-2022. Silver production was lower than anticipated in
Q3-2022. In Q3-2022, production out of two high production stopes
on the 5200 level was slowed by unexpected poor quality cemented
backfill which required some remedial work (now completed). Silver
production is expected to increase in Q4-2022 as new higher-grade
silver copper stopes come on-line.
Cash costs per silver ounce and all-in sustaining costs
(excluding the Galena Hoist project) per silver were $28.51 and
$37.00, respectively. Cash costs per silver ounce and all-in
sustaining costs per silver ounce at the Galena Complex are
anticipated to improve significantly with the completion of the
Galena Hoist project as most of the operating costs are fixed and
are expected to decrease on a per silver ounce basis assuming
expected higher silver and lead production beyond 2022.
The outlook for attributable metal production from the Galena
Complex in fiscal 2022 remains unchanged and is expected to be 0.7
to 0.9 million silver ounces and 9 to 11 million pounds of
lead.
The Company anticipates installation of the Galena Hoist before
the end of November with commissioning to commence in December
2022. All concrete pours for the project are complete, electrical
installation has commenced and all major hoist components have been
delivered to site. The Galena Hoist will increase hoisting capacity
at the operation and improve operational flexibility for the
remainder of Galena’s mine life.
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 Relief Canyon mine in Nevada, USA,
the Cosalá Operations in Sinaloa, Mexico and manages the 60%-owned
Galena Complex in Idaho, 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 Gold and
Silver’s 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; mining and processing operations at the
Cosalá Operations continuing, including expected production levels
and the continuity of legal access for employees and contractors;
the Company’s production, development plans and performance
expectations at the Relief Canyon Mine, including the timing and
conclusions of the technical studies, data compilation and analysis
occurring at Relief Canyon intended to address metallurgical
challenges at Relief Canyon and the potential for reassessment of
the remaining carrying value of the Relief Canyon asset; and any
statements regarding the impairment of mining interests and
subsequent recovery or in-creased impairments taken. Guidance and
outlook contained in this press release was 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, 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 Q3-2022
condensed interim 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 Gold and Silver 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 Gold
and Silver to be materially different from those expressed or
implied by such forward-looking information. With respect to the
business of Americas Gold and Silver, 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; 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.
The potential effects of the COVID-19 pandemic on our business and
operations are unknown at this time, including the Company’s
ability to manage challenges and restrictions arising from COVID-19
in the communities in which the Company operates and our ability to
continue to safely operate and to safely return our business to
normal operations. The impact of COVID-19 on the Company is
dependent on a number of factors outside of its control and
knowledge, including the effectiveness of the measures taken by
public health and governmental authorities to combat the spread of
the disease, global economic uncertainties and outlook due to the
disease, and the evolving restrictions relating to mining
activities and to travel in certain jurisdictions in which it
operates. 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 Gold and Silver’s filings with
the Canadian Securities Administrators on SEDAR and with the SEC.
Americas Gold and Silver 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 Gold and Silver does not give any assurance (1) that
Americas Gold and Silver will achieve its expectations, or (2)
concerning the result or timing thereof. All subsequent written and
oral forward‐looking information concerning Americas Gold and
Silver are expressly qualified in their entirety by the cautionary
statements above.
_________________ 1 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
Q3-2022
Q3-2021
YTD-2022
YTD-2021
Consolidated net loss ('000)
$(24,657)
$(18,603)
$(34,231)
$(128,185)
Divided by weighted average number of
common shares outstanding
184,892,109
144,515,250
179,574,331
135,301,385
Net loss per share
$(0.13)
$(0.13)
$(0.19)
$(0.95)
2 Silver equivalent ounces for the 2022 guidance and 2004
outlook references were calculated based on $22.00/oz silver,
$0.95/lbs lead and $1.30/lbs zinc throughout this press release.
Silver equivalent ounces for Q3-2022, Q2-2022 and prior periods in
fiscal 2021 were calculated based on all metals production at
average realized silver, zinc, and lead prices during each
respective period throughout this press release.
3 This metric is a non-GAAP financial measure or ratio. The
Company uses the financial measures “Cash Costs”, “Cash Costs/Ag Oz
Produced”, “All-In Sustaining Costs”, and “All-In Sustaining
Costs/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
Q3-2022
Q3-20212
YTD-2022
YTD-20212
Cost of sales ('000)
$17,434
-
$50,540
-
Less non-controlling interests portion
('000)
(3,599)
-
(10,517)
-
Attributable cost of sales ('000)
13,835
-
40,023
-
Non-cash costs ('000)
(18)
-
(1,743)
-
Direct mining costs ('000)
$13,817
-
$38,280
-
Smelting, refining and royalty expenses
('000)
5,687
-
17,761
-
Less by-product credits ('000)
(16,187)
-
(56,402)
-
Cash costs ('000)
$3,317
-
$(361)
-
Divided by silver produced (oz)
331,304
-
930,848
-
Cash costs/Ag oz produced ($/oz)
$10.01
-
$(0.39)
-
Reconciliation of Cosalá Operations
Cash Costs/Ag Oz Produced
Q3-2022
Q3-20212
YTD-2022
YTD-20212
Cost of sales ('000)
$8,435
-
$24,247
-
Non-cash costs ('000)
231
-
(1,190)
-
Direct mining costs ('000)
$8,666
-
$23,057
-
Smelting, refining and royalty expenses
('000)
4,929
-
15,113
-
Less by-product credits ('000)
(14,419)
-
(49,785)
-
Cash costs ('000)
$(824)
-
$(11,615)
-
Divided by silver produced (oz)
186,062
-
440,632
-
Cash costs/Ag oz produced ($/oz)
$(4.43)
-
$(26.36)
-
Reconciliation of Galena Complex Cash
Costs/Ag Oz Produced
Q3-2022
Q3-20212
YTD-2022
YTD-20212
Cost of sales ('000)
$8,999
-
$26,293
-
Non-cash costs ('000)
(415)
-
(922)
-
Direct mining costs ('000)
$8,584
-
$25,371
-
Smelting, refining and royalty expenses
('000)
1,264
-
4,414
-
Less by-product credits ('000)
(2,947)
-
(11,028)
-
Cash costs ('000)
$6,901
-
$18,757
-
Divided by silver produced (oz)
242,070
-
817,026
-
Cash costs/Ag oz produced ($/oz)
$28.51
-
$22.96
-
Reconciliation of Consolidated All-In
Sustaining Costs/Ag Oz Produced 1
Q3-2022
Q3-20212
YTD-2022
YTD-20212
Cash costs ('000)
$3,317
-
$(361)
-
Capital expenditures ('000)
2,340
-
6,101
-
Exploration costs ('000)
526
-
1,248
-
All-in sustaining costs ('000)
$6,183
-
$6,988
-
Divided by silver produced (oz)
331,304
-
930,848
-
All-in sustaining costs/Ag oz produced
($/oz)
$18.66
-
$7.51
-
Reconciliation of Cosalá Operations
All-In Sustaining Costs/Ag Oz Produced
Q3-2022
Q3-20212
YTD-2022
YTD-20212
Cash costs ('000)
$(824)
-
$(11,615)
-
Capital expenditures ('000)
1,153
-
2,546
-
Exploration costs ('000)
479
-
1,179
-
All-in sustaining costs ('000)
$808
-
$(7,890)
-
Divided by silver produced (oz)
186,062
-
440,632
-
All-in sustaining costs/Ag oz produced
($/oz)
$4.35
-
$(17.91)
-
Reconciliation of Galena Complex All-In
Sustaining Costs/Ag Oz Produced
Q3-2022
Q3-20212
YTD-2022
YTD-20212
Cash costs ('000)
$6,901
-
$18,757
-
Capital expenditures ('000)
1,979
-
5,925
-
Exploration costs ('000)
78
-
115
-
All-in sustaining costs ('000)
$8,958
-
$24,797
-
Galena Complex Recapitalization Plan costs
('000)
2,858
-
6,713
-
All-in sustaining costs with Galena
Recapitalization Plan ('000)
$11,816
-
$31,510
-
Divided by silver produced (oz)
242,070
-
817,026
-
All-in sustaining costs/Ag oz produced
($/oz)
$37.00
-
$30.35
-
All-in sustaining costs with Galena
Recapitalization Plan/Ag oz produced ($/oz)
$48.81
-
$38.57
-
1 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% Galena Complex).
2 Production results are nil for the Cosalá Operations from
Q2-2020 through Q3-2021 due to it being placed under care and
maintenance effective February 2020 as a result of the illegal
blockade and exclude the Galena Complex due to suspension of
certain operating metrics during the Galena Recapitalization Plan
implementation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221111005148/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
Americas Gold and Silver (AMEX:USAS)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Americas Gold and Silver (AMEX:USAS)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024