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Americas Gold and Silver (USAS) Q2 Earnings Beat, Improve Y/Y

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Americas Gold and Silver (USAS - Free Report) posted second-quarter 2024 loss per share of 2 cents, which was narrower than the Zacks Consensus Estimate of a loss of 4 cents. The bottom line marked an improvement from a loss of 3 cents per share in the second quarter of 2023. The uptick was aided by higher revenues and lower income tax expense, partially offset by higher depletion and amortization, increase in interest and financing expense and higher loss on fair value of metals contract liability.

Americas Gold and Silver’s revenues were around $31.6 million, a 31% increase from the year-ago quarter. The revenue growth was driven by higher silver output at the Galena Complex and an increase in realized silver, zinc and lead prices. This was partially offset by a decline in lead production from the Galena Complex and lower output at Cosalá.

The average realized prices for silver, zinc and lead increased 24%, 16% and 4%, respectively, in the quarter.

USAS’ attributable silver production was 0.51 million ounces, which was down 12% from the second quarter of 2023. The company also produced around 8.87 million attributable pounds of zinc and 4.4 million attributable pounds of lead in the second quarter.  Zinc production was down 7% and lead slumped 25%.

Silver equivalent production in the quarter was 1.058 million ounces, 16% lower than 1.265 million ounces in the year-ago quarter.

The Galena Complex produced around 5.6 million ounces of silver in the quarter. It was the highest on record since 2013. Silver production was up 41% on a year-over-year comparison. The operation benefited from production from mining areas in the Upper Country Lead Zone between 2400 and 2800 levels and a strong quarter from the 52-198 Silver Hanging Wall Vein.

The complex produced 3 million pounds of lead in the second quarter of 2024, compared with 4.4 million pounds of lead in the year-ago quarter.

The Cosalá Operations’ silver production was down 49% year over year to 1.7 million ounces. This was due to the company’s decision to focus on mining higher-grade zinc and lower-grade silver areas of the San Rafael Main and Upper Zones to take advantage of the increase in zinc prices in the second quarter.

Zinc output at Cosalá declined 7% year over year to 8.87 million pounds and lead production slumped 20% to 2.56 million pounds.

The company’s attributable cash costs of $12.42 per ounce of silver produced were higher than $10 per ounce of silver in the second quarter of 2023. All-in-sustaining costs are $19.58 per ounce of silver produced compared with $16.78 per ounce in the year-ago quarter.

Cash Position

Americas Gold and Silver ended the second quarter with cash and cash equivalents of $3.6 million and a working capital deficit of $38.8 million. The company generated $2.3 million of cash in operating activities in the quarter compared with a usage of $5.9 million in the second quarter of 2023.

Price Performance

Shares of USAS have lost 33.2% in the past year compared with the industry's 1% decline.

Zacks Investment Research
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Zacks Rank

Americas Gold and Silver currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Performances

Avino Silver & Gold Mines Ltd. (ASM - Free Report) reported earnings per share of 3 cents for second-quarter 2024, which beat the Zacks Consensus Estimate of 2 cents. ASM had reported break-even earnings in the second quarter of 2023. The improvement in earnings was aided by an increase in payable silver equivalent ounces sold, higher metal prices and lower mining costs.

Avino Silver’s revenues surged 60% year over year to a record $14.8 million owing to higher sales and metal prices. The top line beat the Zacks Consensus Estimate of $14 million.

Pan American Silver Corp. (PAAS - Free Report) reported adjusted earnings per share of 11 cents for the second quarter, which missed the Zacks Consensus Estimate of 15 cents. PAAS had posted adjusted earnings per share of 8 cents in the year-ago quarter.

PAAS’ revenues improved 7.3% year over year to $686 million. The top line beat the Zacks Consensus Estimate of $682 million. The average realized silver price increased 20% year over year to $28.14 per ounce. The average realized gold price increased 18.3% year over year to $2,336 per ounce.

First Majestic Silver (AG - Free Report) reported second-quarter loss of 7 cents per share, in contrast to the Zacks Consensus Estimate of earnings of 2 cents per share. The company had reported a loss of 2 cents per share in the second quarter of 2023.

Total production was 5.3 million silver equivalent (AgEq) ounces, which consisted of 2.1 million silver ounces and 39,339 gold ounces. AG’s quarterly revenues declined 7% year over year to $136.2 million. The downfall was caused by a 15% decrease in the total number of payable AgEq ounces sold due to higher silver inventory levels held at quarter end.

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