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Americas Gold and Silver cuts losses on higher production and negative costs in first quarter

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(Kitco News) - Americas Gold and Silver (TSX: USA) today reported its Q1 2022 consolidated attributable production of approximately 300,000 silver ounces and 1,274,000 silver equivalent ounces, up 45% in silver production and an 80% increase in silver equivalent production compared with Q4 2021.

The company's consolidated Q1 2022 cash cost per silver ounce was negative $9.55 per ounce and consolidated Q1 2022 all-in sustaining cost per silver ounce was negative $2.67 per ounce.

"Cash costs benefitted from the strong zinc and lead prices, which are both higher than the company's budget and may continue to positively impact cash and all-in sustaining costs moving forward,"the company said in a statement.  

The company also reported revenue of $26.4 million and net loss of $0.3 million or a net loss of ($0.00) per share in Q1 2022, representing an increase of $16.0 million in revenue and a significant decrease of $91.5 million in net loss compared to Q1 2021.

Americas said that aggregate net income from the Cosalá Operations and 60% owned Galena Complex operating segments was $8.5 million during the quarter. 


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The Cosalá Operations net income increased to $5.6 million (+347%) and the Galena Complex net income to $2.9 million (+290%) during Q1 2022 over Q1 2021.

The company's silver and silver equivalent production guidance remains unchanged at 1.4 – 1.8 million ounces and 4.8 – 5.2 million ounces, respectively for 2022. 

Importantly, Americas said that further increases in silver production to a range of 3.4 – 3.8 million ounces and silver equivalent production to 7.0 – 7.4 million ounces are projected for 2024, representing increases of approximately 425% and 380%, respectively, compared with 2021 production.

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.

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