Americas Gold and Silver: Balanced Earnings Call Insights

Americas Gold And Silver Corporation ((TSE:USA)) has held its Q1 earnings call. Read on for the main highlights of the call.

The recent earnings call for Americas Gold and Silver Corporation presented a balanced sentiment, highlighting both significant achievements and notable challenges. While the company celebrated production increases, financial growth, and strategic advancements like index inclusion, these positives were tempered by issues such as increased net loss and high production costs.

Production Increase

Americas Gold and Silver reported a substantial increase in silver production, with a total of 446,000 ounces for Q1 2025, marking an 80,000-ounce rise compared to the previous quarter. This boost underscores the company’s efforts to enhance its production capabilities and leverage favorable market conditions.

Financial Stability and Growth

The company achieved a 12% increase in revenue, reaching $23.5 million compared to Q1 2024. This growth was primarily driven by higher realized metal prices, reflecting the company’s ability to capitalize on market opportunities and improve its financial standing.

Galena Complex Achievements

The Galena team demonstrated excellence by securing first place and two second places at the 2025 Enforcement Mine Rescue Competition. Additionally, significant progress on infrastructure projects, including new haul trucks and ventilation upgrades, highlights the company’s commitment to operational improvements.

Exploration Success

A major highlight was the discovery of the high-grade silver-copper 034 vein, with intercepts including 983 grams per tonne silver over 3.44 meters. This discovery is estimated to yield 1.2 to 1.5 million silver ounces and 750,000 to 800,000 pounds of copper, showcasing the company’s exploration prowess.

Inclusion in Key Index

Americas Gold and Silver’s inclusion in the Solactive Global Miners Silver Total Return Index (SIL) resulted in the acquisition of 11.2 million shares by the ETF. This strategic move enhances the company’s visibility and investor appeal.

Net Loss

Despite the positive developments, the company reported a net loss of $19 million in Q1 2025, up from $16 million in Q1 2024. This increase was attributed to higher corporate G&A expenses and the impact of metal prices on liabilities.

High Costs

The cost of sales per silver equivalent ounce produced was $25.23, with cash costs slightly over $25 per ounce and all-in sustaining costs at $35.67 per ounce. These high production costs present a challenge for the company’s profitability.

Lower Silver Production at Cosalá

Silver production at Cosalá was lower compared to the same period last year due to sourcing from lower-grade silver areas, highlighting a need for strategic adjustments in resource management.

Forward-Looking Guidance

Looking ahead, Americas Gold and Silver is on a promising growth trajectory, supported by a $50 million financing deal and increased silver production. The company plans to ramp up the EC120 project in Mexico and target high-grade silver-copper veins at Galena, aiming to capitalize on strong silver market conditions. Additionally, a focus on reducing liabilities by $34 million indicates a strategic approach to enhancing operational efficiencies.

In conclusion, the earnings call for Americas Gold and Silver Corporation painted a picture of both progress and challenges. While the company made significant strides in production and financial growth, it faces hurdles in terms of net loss and production costs. Nevertheless, with strategic initiatives and forward-looking plans, the company is poised for potential growth in the coming quarters.