Americas Gold and Silver Corp (AGS) reported its first-quarter 2025 financial results, revealing a net loss of $19 million, compared to a $16 million loss in the same quarter last year. The company’s revenue increased by 12% year-over-year to $23.5 million. Despite the financial loss, the company’s stock price saw a slight increase of 2.41% in pre-market trading, reflecting a cautious optimism among investors.
Key Takeaways
- Q1 2025 revenue rose by 12% year-over-year to $23.5 million.
- Net loss widened to $19 million from $16 million in Q1 2024.
- Stock price increased by 2.41% in pre-market trading.
- Significant progress in exploration and production at the Galena Complex.
- Company expects increased production and lower costs later in 2025.
Company Performance
Americas Gold and Silver demonstrated a robust increase in revenue for Q1 2025, reaching $23.5 million, up from $20.9 million in the same quarter of the previous year. This growth comes despite a challenging environment marked by a net loss of $19 million, exacerbated by increased costs and operational investments. The company produced 446,000 silver ounces and 838,000 silver equivalent ounces, with significant contributions from its Galena Complex and Cozola Operations.
Financial Highlights
- Revenue: $23.5 million, up 12% from Q1 2024.
- Net loss: $19 million, compared to $16 million in Q1 2024.
- Adjusted EBITDA: Loss of $5.5 million.
- Cost of sales per silver equivalent ounce: $25.23.
- All-in sustaining costs: $35.67 per silver ounce.
Earnings vs. Forecast
For Q1 2025, Americas Gold and Silver reported an earnings per share (EPS) of -$0.03. The actual EPS reflected the company’s ongoing challenges in managing costs and achieving profitability. The revenue of $23.5 million was in line with expectations, highlighting stable demand and operational execution.
Market Reaction
Following the earnings release, Americas Gold and Silver’s stock experienced a 2.41% increase in pre-market trading. This positive movement suggests that investors are encouraged by the company’s revenue growth and its strategic initiatives aimed at boosting production and reducing costs. With a market capitalization of $1.87 billion and trading near its 52-week high of $7.49, the stock shows strong momentum. InvestingPro analysis reveals the stock trades at a P/E ratio of 7.41, with 12 additional key insights available to subscribers, including detailed valuation metrics and growth projections.
Outlook & Guidance
Looking ahead, Americas Gold and Silver is optimistic about increasing production levels and reducing unit costs as the year progresses. The company is negotiating a new debt facility to support its growth initiatives for 2025 and 2026. With a current ratio of 0.86 and operating with moderate debt levels, financial flexibility remains crucial. The EC120 project in Mexico is on track to achieve commercial production by the end of 2025, promising further revenue contributions. Discover comprehensive analysis and detailed financial metrics with InvestingPro’s exclusive research report, part of their coverage of over 1,400 US stocks.
Executive Commentary
CEO Paul Hewitt stated, "This is really just the beginning. We’ve been here for approximately one hundred days firing on all cylinders." He also highlighted the company’s efforts to secure a "right sized debt facility to support the acceleration of our growth initiatives," emphasizing the strategic focus on scaling operations and enhancing financial stability.
Risks and Challenges
- High production costs could continue to pressure profitability.
- Fluctuations in silver and zinc prices may impact revenue.
- Delays in project timelines could affect future growth projections.
- Macroeconomic factors, such as interest rates and inflation, pose additional risks.
- Dependency on successful exploration and development at key mining sites.
Q&A
There were no specific questions and answers transcribed during the earnings call. However, management’s focus on production increases and cost management were key themes discussed, reflecting investor interest in these strategic areas.
Full transcript - Americas Silver Corp (USA) Q1 2025:
Conference Moderator: Good morning, and welcome to the Americas Gold and Silver First Quarter twenty twenty five Conference Call. This call will be recorded and will be available for viewing from the Events page of our website later today. Now without further ado, I’ll pass the call over to our Chairman and CEO, Paul Hewitt, so he can get started. Paul, can you hear us?
Paul Hewitt, Chairman and CEO, Americas Gold and Silver: Yes, I’ve been speaking. Can you not hear me?
Conference Moderator: Now we can. Go ahead.
Paul Hewitt, Chairman and CEO, Americas Gold and Silver: Sorry. Thank you, Maxim. Good morning, everyone. I’d like to welcome you to the first quarter conference call. Please note, we will be referencing a slide deck, which is being shared through the webcast of this call.
Before I begin the presentation, I’d like to remind you to please review our cautionary statements regarding forward looking statements and non IFRS measures. These statements can be found in our first quarter MD and A, our news release and within our presentation. Over to Slide four, the highlights. With me on today’s call is Warren Varga, our Chief Financial Officer, who will take us through the financial highlights for the quarter. Also with me on the call is Oliver Turner, who is heading up our Corporate Development, and you will hear from Oliver as well.
I’ll start out by highlighting some key elements of our growth strategy before turning the call over to Warren. Let me start by sharing our optimism about where we are heading as a company and how we intend on getting there. In the last several months, the entire Americas team have been working diligently to methodically build the foundation for multi year production and growth. With me, if you’re over to Slide five. As an organization, we are aligned in our efforts with a renewed focus on safely maximizing production from our existing asset base.
Across our operation, we have been investing in our people and infrastructure, including the purchase of new mining equipment to modernize and grow our underground fleet, and obviously with the intent to become more productive. We have also been actively drilling to bring on new high grade production areas and conducting exploration activities in underexplored zones near existing mining infrastructure with some very encouraging early results, hence that 34 vein that we hit at Galena that was quite exciting. Over to Slide six, we’ve been very busy at the corporate level as well. In late twenty twenty four, we strengthened our balance sheet in conjunction with the Galena consolidation transaction via the $15,000,000 bought deal financing, which allowed us to both invest in our operations and significantly reduce our liabilities. There is more to come.
We are in the late stages of negotiating a right sized debt facility to support the acceleration of our growth initiatives in ’twenty five and ’twenty six, ensuring we have the financial flexibility required to execute our ambitious plans. Switching to production, on a consolidated basis, we produced 446,000 silver ounces. That’s about 80,000 ounce increase compared to the last quarter. We expect to continue to see incremental silver production increases over the course of the year and beyond as we begin to fully implement our growth plan. Now, I’ll briefly focus on our progress and the path forward at the Galena Complex.
Over to Slide seven. Building a culture that always prioritizes safety in everything we do is of the utmost important to the Americas team. I’m proud of our team at Galena for taking this message to heart and demonstrating a strong trend of improving safety performance. I’d like to also congratulate the Galena team for a strong showing at the twenty twenty five Enforcement Mine Rescue Competition, which took place in March. The Galena team’s results included a first place finish and two second place finishes within various aspects of the competition.
Well done to our entire team. Over to Slide eight. Operating results at Galena were in line with our expectations for the first quarter with production of 314,000 silver ounces. Our Galena team is focused on mine development activities that are critical to our growth. And to that end, we’ve been making significant progress on important infrastructure projects that support the advance of the fifty five-one hundred seventy nine decline.
These projects will support our new and larger 20 ton haul trucks and the installation of the required ventilation upgrades. The fifty five one hundred seventy nine decline will provide access to higher grade silver lead and silver copper veins in the central and lower country lead zones of the mine. Over to Slide 9. The Galena Complex hosts multiple high priority drill targets near existing infrastructure and vein systems that remain open for drill testing. Our recent discovery of the high grade silver copper 34 vein that I just talked about earlier is an excellent example of near term mining opportunity.
The 34 vein has returned several high grade intercepts including nine eighty three gram per ton silver at over 3.44 meters. Based on 40 holes drilled to date, we’ve estimated an initial exploration target in that range of 1,200,000 to 1,500,000 silver ounces and between seven and fifty thousand to 800,000 pounds of copper. And what’s even better, this is absolutely just the beginning. The 34 vein remains completely open up dip and at depth. Over to Slide 10, another great example of high priority targeted for 2025 at the Galena Complex is the core mine.
Our drill plan will target four silver copper veins where we have high grade intercepts from historical wide space drilling. The historical results include intercepts of 4,313 gram per ton silver and 5% copper over 0.32 meters and nineteen eighty two gram and 3.2% copper over 1.3 meters wide. And when you consider the last fifteen, twenty years of our careers, our team are experts at mining this narrow stuff. So this narrow stuff, 1.3 meters wide, five feet wide, that is very exciting and encouraging for us with these types of grades. The core mine was previously developed down to the 3,700 level at much lower metal prices, but has seen very limited mining and remains completely open at depth.
It is important to note that the targeted core veins all have significant antimony potential, which represents yet another important value driver for America’s Shareholders. We look forward to providing updates on our drilling progress at the 34 Vein and the Core Mine as the year progresses. Beyond these near term priorities, multiple there are multiple Blue Sky opportunities that exist at the Galena Complex, including at depth near surface and along strike. Let’s face it, this is just the beginning. We’ve been here just over one hundred days here.
Over to Slide 11, our Cozola operations. At our Cozola operations in Mexico, we have a highly skilled team led by our General Manager, Gabriel So to, who consistently fosters a strong culture of safety and productivity. During the quarter, silver production was approximately 132,000 ounces and zinc and lead were six point seven million and one point six million pounds respectively. Silver was lower than the same period last year as the majority of the silver produced for the quarter was sourced from the San Rafael main central area, which is fully developed but contains lower grade silver with higher zinc values. Over to Slide 12 please.
The team at Kosala is focused on several initiatives including development of the EC120 to the bottom upper west block of the 120 deposit. Starting the development and the rehab of the El Cajon mine with a contractor, bringing in a raise for a contractor to complete ventilation raises and completing the infill drilling program to support the life of mine plan. We expect to ramp up to full production rate expectations by probably right around mid June, July, which will drive quarterly production increases over the course of the year as more EC120 ore is processed through our own milling facility. Over to Slide 13. Pre production sales of silver copper concentrate from EC120 have already contributed $2,300,000 to our revenue in Q1 ’twenty five, with approximately 59,000 ounces of silver produced from the project this quarter.
We remain on track to reach commercial production at EC20 by the end of twenty twenty five, which will significantly boost our silver output and our free cash flow. While EC120 is ramping up, we will continue to mine the remaining developed stoves at the San Rafael mine, which are able to cover all our fixed costs at our operation. That’s quite a unique situation that we find ourselves in. In a quick summary, overall, I’m extremely pleased with the advancements we’re making across our portfolio, including the significant progress made at Galena, where we’re driving operational efficiencies and production growth. With both operations positioned to capitalize on strong silver prices, we’re well placed to deliver value in this exciting silver market.
I’ll now turn the call over to Warren to go over some of the financial highlights.
Warren Varga, Chief Financial Officer, Americas Gold and Silver: Thank you, Paul, and good morning, everyone. This morning, we released our Q1 twenty twenty five financial results. Our unaudited, condensed, interim consolidated financial statements and MD and A for the three months ended 03/31/2025, are available on our website and on SEDAR plus In the first quarter this year, revenue increased by 12% to $23,500,000 compared to $20,900,000 in Q1 twenty twenty four. This growth was driven by higher realized metal prices with silver averaging just over $32 per ounce and zinc at $1.27 per pound. We produced four forty six ounces of silver and approximately 838,000 ounces silver equivalent, including 6,700,000 pounds of zinc and 3,800,000 pounds of lead.
Our cost metrics for the quarter included cost of sales per silver equivalent ounce produced of $25.23 cash costs at just over $25 per silver ounce and all in sustaining costs at $35.67 per silver ounce. We anticipate ongoing reductions in unit costs as silver production increases at both operations over the next several quarters. We recorded a net loss of $19,000,000 for Q1 twenty twenty five compared to a net loss of $16,000,000 last year. The increased loss was primarily due to the impact of metal prices on our metal based liabilities and higher corporate G and A expenses. These were partially offset by higher net revenue, lower care and maintenance costs, foreign exchange gains and a gain on disposal of assets.
Adjusted earnings for the quarter were a loss of $11,500,000 and adjusted EBITDA was a loss of $5,500,000 Turning to our balance sheet. We’ve made significant strides since the December transaction, reducing total liabilities by approximately $34,000,000 through the repayments of metal liabilities, royalties, the promissory note and transaction related payables. The full conversion of our convertible debenture into common shares has also streamlined our capital structure. Looking ahead, we expect silver production to grow as we progress with the EC120 project at Kosala and implement operational improvements at the Galena complex. We’re confident in our ability to strengthen our financial position and deliver on our growth objectives.
With that, I’ll turn the call over to Oliver Turner.
Oliver Turner, Corporate Development, Americas Gold and Silver: Thank you, Warren, and hello and good morning, everyone. Certainly some great financial highlights there. So I’m pleased on my behalf to share some significant developments in our corporate strategy that are enhancing America’s visibility in the market and positioning us for continued growth in the investment community. Switching over to Slide 17, highlighting the SIL. So as we announced last month and as of 05/01/2025, America’s Gold and Silver was included in the Selective Global Miners’ Silver Total Return Index, commonly known as the SIL, a leading silver miner ETF.
This inclusion resulted in the ETF acquiring approximately 11,200,000.0 shares of America’s gold and silver, significantly increasing our visibility amongst large institutional investors who focus on index constituents. Being part of the SIL underscores our growing prominence as a silver focused producer and validates the strategic progress we’ve made. Looking ahead to later this year, we see strong potential for inclusion in the VanEck Junior Gold Miners ETF or the GDXJ, which would be another big milestone for our company. So these developments are critical steps in strengthening our shareholder base and exposing us to much larger institutions that only purchase companies that are part of these indexes. Switching over to Slide 18, our investor base.
So since closing of the Galena Complex consolidation transaction in December, we significantly expanded our investor base. In just four months, Americas’ percentage of tightly held shares has grown from about 8% to over 60%, with large institutions such as Merck, DelBrooke, Conway, CQS, Mackenzie and many others building substantial positions. Many of these groups are strong past supporters sharing the successes of Carrora and Klondex, and we’re encouraged by their continued support here at Americas Gold and Silver. Looking ahead, we are continuing our aggressive investor marketing campaign in earnest. We will be attending the one:one Mining Investment Conference in London next week, where we have a fully booked schedule of U.
K.-based Institutional And High Net Worth Investors. This will be our first concentrated effort in London since the consolidation transaction, and we’re looking forward to connecting with new and reconnecting with prior shareholders. So with that, I’ll turn the call back over to Paul for some closing remarks. Look,
Paul Hewitt, Chairman and CEO, Americas Gold and Silver: what can I say? This is really just the beginning. We’ve been here for approximately one hundred days firing on all cylinders. We must remain laser like focused on delivering our plan as we continue to grow. There’s still a lot of work ahead of ourselves, but we’re not afraid to roll up our sleeves and do that work, as most of you are aware.
I just want to thank Oliver and Warren. I want to thank all our employees at both our operations in Mexico, at Galena. And most importantly, I want to say thank you to our shareholders, those who believe us and all the analysts that cover us. And thank you very much and have a great day to everyone. Thanks for taking the time to join us on this call.
And that will conclude our call today. Have a great day.
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