Americas Gold And Silver Corporation ((TSE:USA)) has held its Q4 earnings call. Read on for the main highlights of the call.
Americas Gold and Silver Corporation’s recent earnings call painted a picture of both progress and challenges. The company celebrated significant achievements in financing, operational improvements, and revenue growth. However, these positive developments were tempered by financial losses and challenges in cost management. Despite these hurdles, the company’s strategic initiatives and positive market response suggest a promising outlook.
Successful Financing and Reduced Liabilities
Americas Gold and Silver Corporation successfully closed an oversubscribed $50 million subscription receipt financing, which significantly bolstered their financial position. This move allowed the company to reduce its liabilities by approximately $43 million, demonstrating a strong commitment to improving its balance sheet and financial health.
Galena Complex Developments
The company made notable strides at the Galena Complex, consolidating ownership and ordering new equipment to enhance productivity. With a target to ramp up mining operations to 1,200 tonnes per day, these developments are poised to significantly boost the company’s output and operational efficiency.
Cosalá Operations Performance
Cosalá operations delivered an impressive production of 2.4 million silver equivalent ounces at a cash cost of $11 per ounce. Looking ahead, production is expected to increase in 2025, highlighting the company’s focus on scaling operations and optimizing production costs.
Revenue Growth
The company reported a 5% increase in revenue, reaching $100.2 million, driven by higher realized metal prices. This growth underscores the company’s ability to capitalize on favorable market conditions and enhance its financial performance.
Institutional Ownership and Market Performance
Institutional ownership of the company’s shares has surpassed 50%, and the shares have outperformed the silver group with an impressive 85% return. This indicates strong market confidence and investor interest in the company’s future prospects.
Net Loss for 2024
Despite the positive developments, the company reported a net loss of $48.9 million for 2024. This was primarily due to higher costs of sales, increased depletion and amortization, and elevated exploration costs, highlighting areas that require strategic attention.
Adjusted Earnings and EBITDA Loss
Adjusted earnings for the year were a loss of $33.7 million, with an adjusted EBITDA loss of $1.5 million. These figures reflect ongoing challenges in cost management and operational efficiency that the company needs to address.
Forward-Looking Guidance
Looking forward, Americas Gold and Silver Corporation anticipates increased production in 2025, particularly from the EC120 project at their Cosalá operations. The company is also finalizing a debt facility to further strengthen its balance sheet and enhance operational growth. These initiatives are expected to drive future performance and improve financial stability.
In conclusion, the earnings call for Americas Gold and Silver Corporation highlighted a mix of achievements and challenges. While the company has made significant strides in financing and operational improvements, financial losses and cost management remain areas of concern. However, with strategic initiatives and a positive market response, the company is well-positioned for future growth and success.