This press release constitutes a "designated
news release" for the purposes of the Company's prospectus
supplement dated May 17, 2021, to its short form base shelf
prospectus dated January 29, 2021.
Americas Gold and Silver Corporation (TSX: USA) (NYSE American:
USAS) (“Americas” or the “Company”), a growing North American
precious metals producer, is pleased to report production for the
second quarter ended June 30, 2022. Production results, outlook and
costs throughout this release production results are based on the
Company’s 100% interest in the Cosalá Operations and 60% interest
in the Galena Complex.
Highlights
- For Q2-2022, consolidated attributable production totalled
approximately 300,000 silver ounces and 1,343,000 silver
equivalent1 ounces. Silver production was unchanged
quarter-over-quarter and increased 115% year-over-year. Silver
equivalent production increased by over 5% quarter-over-quarter and
over 475% year-over-year.
- The Company estimates consolidated Q2-2022 cash cost2 per
silver ounce of negative $0.12 per ounce and consolidated Q2-2022
all-in sustaining cost2 per silver ounce of $7.96 per ounce.
- Silver production is expected to increase into the second half
of 2022 as production ramps-up into the higher-silver grade Upper
Zone of the San Rafael deposit at the Cosalá Operations and the
Galena Hoist project at the Galena Complex is completed.
- Year-to-date, consolidated attributable production totalled
approximately 600,000 silver ounces and 2,618,000 silver equivalent
ounces at a YTD cash cost per silver ounce of approximately
negative $4.84 per ounce and consolidated YTD all-in sustaining
cost per silver ounce of $2.64 per ounce.
- The Company’s silver equivalent production guidance remains at
4.8 to 5.2 million ounces in 2022 with further increases forecast
at 7.0 to 7.4 million ounces in 2024, increases of approximately
240% and 375%, respectively, compared with 2021.
- The Company has a cash and cash equivalents balance of $8.8
million as of June 30, 2022, compared with a cash and cash
equivalents balance of $2.9 million as of December 31, 2021.
“The Company had a strong operating quarter which we expect to
continue for the remainder of 2022,” stated Americas President and
CEO Darren Blasutti. “The second quarter production plan in Mexico
focused on mining the Main Zone at San Rafael to maximize revenue
given the strong zinc prices. We expect to see an appreciable
increase in silver production over the second half of the year as
the Galena Complex plan begins to mine more higher-grade silver
stopes and San Rafael sees increased contribution from the
high-grade silver Upper Zone. As a result of these factors, the
Company expects to be at the higher end of its 2022 guidance of 4.8
to 5.2 million silver equivalent ounces. The balance sheet
continues to improve with a stable cash balance and reduced
debt.”
Consolidated Quarterly Attributable Production*
Q2 – 2022
Q1 – 2022
Q2 – 2021
% Increase
(Q-over-Q)
% Increase
(Y-over-Y)
Silver Production (ounces)
299,227 oz
300,316 oz
138,043 oz
0%
117%
Zinc Production (million pounds)
9.9 Mlbs
9.6 Mlbs
N/A
3%
N/A
Lead Production (million pounds)
6.4 Mlbs
6.4 Mlbs
2.6 Mlbs
0%
146%
Silver Equivalent Production
(ounces)
1,343,061 oz
1,274,470 oz
232,561 oz
5%
478%
* Silver equivalent ounces for Q2-2022,
Q1-2022 and Q2-2021 were calculated based on silver, zinc and lead
realized prices during each respective period throughout this press
release.
Cosalá Operations
The Cosalá Operations produced 128,000 ounces of silver, 3.9
million pounds of lead and 9.9 million pounds of zinc in Q2-2022.
Cash costs per silver ounce and all-in sustaining costs per silver
at the Cosalá Operations have continued to benefit from strong
current zinc and lead prices.
With the strong zinc and lead prices during the quarter coupled
with the decreasing silver price, the Company focused on mining the
higher-grade zinc and lower-grade silver areas of the Main Zone to
maximize the revenue mix generated from the Cosalá Operations. The
Company expects silver production to increase in H2-2022 with a
growing contribution from higher-grade silver areas in the Upper
Zone of the San Rafael mine. Silver production from the Cosalá
Operations for the year is expected to be towards the bottom end of
the forecasted range of 0.7 to 0.9 million silver ounces with the
change in focus to continue to mine the higher-grade zinc Main Zone
and delay mining the higher-grade silver Upper Zone. Zinc
production from the Cosalá Operations is expected to be towards the
upper end of the forecasted range of 36 to 40 million pounds while
lead production is also expected to be towards the upper end of the
forecasted range of 13 to 15 million pounds.
Galena Complex
The Galena Complex attributable production was approximately
171,000 ounces of silver and 2.5 million pounds of lead in Q2-2022.
Silver production is estimated to increase in H2-2022 from a
combination of mining higher tonnage in higher-grade silver copper
stopes. The Company aims to complete the Galena Hoist project in
Q4-2022 which will increase hoisting capacity at the operation in
Q4-2022 and beyond. Cash costs per ounce and all-in sustaining
costs per ounce at the Galena Complex are also anticipated to
improve with the completion of the Galena Hoist project as most of
the operations 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 expected attributable metal production from the
Galena Complex in fiscal 2022 remains unchanged and is estimated to
be 0.7 to 0.9 million silver ounces and 9 to 11 million pounds of
lead.
About Americas Gold and Silver Corporation
Americas Gold and Silver Corporation is a growing precious
metals mining company with multiple assets in North America. The
Company owns and operates the Cosalá Operations in Sinaloa, Mexico,
manages the 60%-owned Galena Complex in Idaho, USA, and is
re-evaluating the Relief Canyon mine in Nevada, USA. The Company
also owns the San Felipe development project in Sonora, Mexico. For
further information, please see SEDAR or www.americas-gold.com.
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, the Company’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; the Company’s production
guidance and anticipated production results for the full year of
2022; the recapitalization plan at 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 anticipated benefits thereof including
increased hoisting capacity at the operations and expected
improvements to cash costs per ounce and all-in sustaining costs
per ounce following such completion; the expected continuity of
full production levels at the Cosalá Operations and the continuity
of legal access for employees and contractors; the expectations
regarding the level of support from the Mexican government with
respect to the long-term stability of Cosalá Operations, and its
ability to maintain such support in the near- and long-term.
Guidance and outlook contained in this press release was prepared
based on current mine plan assumptions with respect to production,
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 the realization of the
anticipated benefits therefrom, and is subject to the risks and
uncertainties outlined below. 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 the Company 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 the Company, these risks and
uncertainties include risks relating to widespread epidemics or
pandemic outbreak including the COVID-19 pandemic; 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
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.
The 2022 and 2024 production outlook expectations set out in
this press release are considered forward-looking statements and
represent management’s good faith estimates or expectations of
future production results as of the date hereof. Outlook is based
upon certain assumptions, including, but not limited to, metal
prices, certain exchange rates, the completion of the
Recapitalization Plan at the Galena Complex on time and on budget,
including the completion of the Galena hoist project and related
engineering by Q4-2022, the Cosalá Operations remaining at full
production and not experiencing any unanticipated work stoppages or
interruptions, the Cosalá Operations accessing higher-grade silver
areas in the Upper Zone of the San Rafael mine staring in the
second half of 2022 and other assumptions. For example, 2022
production outlook includes actual results through [June 30], 2022.
Production estimates include the Galena Complex and assumes the
completion of the Recapitalization Plan on time and on budget.
Assumptions used for purposes of production outlook may prove to be
incorrect and actual results may differ from those anticipated.
Production outlook cannot be guaranteed. As such, investors are
cautioned not to place undue reliance upon production outlook and
forward-looking statements as there can be no assurance that the
plans, assumptions, or expectations upon which they are placed will
occur.
Additional information regarding the factors that may cause
actual results to differ materially from this forward‐looking
information is available in the Company’s filings with the Canadian
Securities Administrators on SEDAR and with the SEC. The Company
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. The Company does not give
any assurance (1) that the Company will achieve its expectations,
or (2) concerning the result or timing thereof. All subsequent
written and oral forward‐looking information concerning the Company
are expressly qualified in their entirety by the cautionary
statements above.
Non-IFRS Financial Measures
This press release makes reference to certain non-IFRS measures,
including certain metrics specific to the industry in which we
operate. These measures are not recognized measures under
International Financial Reporting Standards as issued by the
International Accounting Standards Board (“IFRS”), do not have a
standardized meaning prescribed by IFRS and, therefore, may not be
comparable to similar measures presented by other companies.
Rather, these measures are provided as additional information to
complement those IFRS measures by providing further understanding
of our results of operations from management’s perspective.
Accordingly, these measures are not intended to represent, and
should not be considered as alternatives to net income or other
performance measures derived in accordance with IFRS as measures of
operating performance or operating cash flows or as a measure of
liquidity. In addition to our results determined in accordance with
IFRS, we use non-IFRS measures including cash costs per ounce, all
in sustaining costs per ounce and average realized silver, zinc and
lead prices. We believe these non-IFRS measures provide useful
information to both management and investors in measuring our
financial performance and condition and highlight trends in our
core business that may not otherwise be apparent when relying
solely on IFRS measures. For further information regarding these
non-IFRS measures, please refer to “Non-GAAP and Other Financial
Measures” in our management’s discussion and analysis for the
financial year ended December 31, 2021, which is incorporated by
reference herein and is available on our SEDAR profile at
www.SEDAR.com or the Company’s website at
www.americas-gold.com.
1Silver equivalent ounces for the 2022 guidance, and 2023 and
2024 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 Q2-2022, Q1-2022, Q1-2021 and YTD 2022
were calculated based on silver, zinc and lead realized prices
during each respective period throughout this press release.
2This 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 cost is 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 cost is the cash cost plus
all development, capital expenditures, and exploration spending. A
full reconciliation of these non-GAAP financial measures will be
provided when the Company reports its quarterly results on or
before August 15, 2022.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220718005283/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
Americas Gold and Silver (AMEX:USAS)
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