Americas Gold and Silver posts $30M net loss in 2020 as Cosalá blockade continues
(Kitco News) - Americas Gold and Silver (TSX: USA) (NYSE American: USAS), a growing North American precious metals producer, today reported a revenue of $27.9 million and a net loss of $30.1 million for 2020 or a loss of ($0.24) per share including a $9.0 million net loss in Q4 2020.
The company said that consolidated operating metrics from 2020 were generally not comparable to 2019 due to the illegal blockade at the Cosalá operations, suspension of operating metrics during the Galena recapitalization plan implementation, and the continued ramp-up of operations at Relief Canyon with commercial production declared effective January 11, 2021.
The Galena complex had a strong finish to the year with Q4 2020 production of 294,000 ounces of silver and 6.0 million pounds of lead (503,500 ounces AgEq) compared with 160,000 ounces of silver and 2.6 million pounds of lead in Q4-2019 (293,500 ounces AgEq), a year-over-year increase of over 70% on a AgEq basis.
Relief Canyon declared commercial production on January 11, 2021 and is expected to ramp-up to full production by the end of Q2 2021. The ramp-up has been challenging, most recently by the impact of a COVID-19 outbreak at site in December 2020-January 2021 and severe weather in February 2021.
In February 2020, the company announced that an illegal blockade was put in place at the Cosalá operations by a group of individuals including a small minority of the company’s hourly workforce. As a result, the Cosalá operations was put on care and maintenance where it currently remains. The company remains optimistic regarding a resolution for the illegal blockade at Cosalá.
Americas Gold and Silver is a high-growth precious metals mining company with multiple assets in North America. The company’s newest asset, the Relief Canyon mine in Nevada, USA, has achieved commercial production and is expected to ramp up to full production by the end of Q2 2021. The company also owns and operates 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.