Americas Gold and Silver reports production increase in Q1, says on track to meet 2022 guidance
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(Kitco News) - Americas Gold and Silver (TSX: USA) reported today that in Q1 2022, its consolidated attributable production totaled approximately 300,000 silver ounces and 1,274,000 silver equivalent ounces.
According to the company's statement, this represents a 45% increase in silver production and an 80% increase in silver equivalent production compared with Q4 2021.
The company also estimates consolidated Q1 2022 cash cost per silver ounce of negative $9.55 per ounce and consolidated Q1 2022 all-in sustaining cost per silver ounce of $0.42 per ounce.
The company added that silver production is expected to continue 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.
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 had a strong start to the 2022 and we expect that trend to continue as silver production ramps-up at both our Cosalá Operations in Sinaloa and the Galena Complex in Idaho over the rest of the year," stated President and CEO Darren Blasutti. "The company's balance sheet is steadily improving with the strong current silver, zinc and lead prices. Current spot silver and zinc are trading over 10% and 20% higher, respectively, than the average realized price the company received this quarter. Strong metal prices and increasing silver production are expected to generate improved cash flow in the coming quarters."
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Americas Gold and Silver 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.