Americas Gold and Silver (USAS) Q1 Earnings Miss, Down Y/Y

Americas Gold and Silver USAS reported a loss per share of 7 cents for first-quarter 2024, which missed the Zacks Consensus Estimate of a loss of 1 cent per share. USAS had reported a loss per share of 4 cents in the first quarter of 2023. The downside was attributed to lower revenues, elevated cost of sales and higher loss on non-cash derivatives related to the convertible debenture, which was partly offset by lower interest and financing expenses.

The company recorded a net loss of $16.2 million compared with a net loss of $5.7 million in the year-ago quarter.

Americas Gold and Silver’s revenues were around $19.5 million, which marked a 12% drop from the year-ago quarter. Revenues were impacted by lower silver and lead production from the Galena Complex, a decline in realized zinc price at the Cosalá Operations, offset by higher silver production from the Cosalá Operations.

The Cosalá Operations’ silver production was up 10% as it benefited from above-budgeted silver grades and recoveries. The Galena Complex’s production was slightly below budget as the focus during the quarter was shifted to lateral development to access the new mining areas in the Upper Country Lead Zone veins between 2400 and 2800 levels. This silver-lead area commenced ore production after the quarter end and is expected to provide 4,000-5,000 tons per month of base load silver-lead production over the next several years.

Americas Gold and Silver Corporation Price, Consensus and EPS Surprise

Americas Gold and Silver Corporation Price, Consensus and EPS Surprise

Americas Gold and Silver Corporation price-consensus-eps-surprise-chart | Americas Gold and Silver Corporation Quote

USAS’ attributable silver production was 0.48 million ounces, which was down 4% from 0.50 million ounces in the first quarter of 2023. The company also produced around 8 million attributable pounds of zinc and 4.0 million attributable pounds of lead during the January to March period.

The company’s attributable cash costs of $20.53 per ounce of silver produced were significantly higher than $11.18 per ounce of silver in the first quarter of 2023. All-in-sustaining costs of $29.20 per ounce of silver produced were higher than $16.87 per ounce in the year-ago quarter.

Cash Position

Americas Gold and Silver ended the first quarter with cash and cash equivalents of $3.9 million and a working capital deficit of $29 million. The company used $5 million of cash in operating activities in the quarter.

Price Performance

Shares of USAS have declined 32.6% over the past year against the industry's 15.1% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank

Americas Gold and Silver currently carries a Zacks Rank #2 (Buy).

Peer Performances

Avino Silver & Gold Mines Ltd. ASM reported earnings per share of 2 cents for the first quarter, which marked a 100% improvement from 1 cent reported in the first quarter of 2023 attributed to higher gold prices and lower costs. The Zacks Consensus Estimate was for break-even earnings.

Avino Silver’s revenues rose 26% year over year to $12.4 million, owing to higher gold and silver prices. The top line beat the consensus estimate of $11 million. ASM currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Hecla Mining Company HL reported adjusted earnings per share of 1 cent in the first quarter of 2024, which beat the Zacks Consensus Estimate of a loss of 2 cents per share. The bottom-line figure was in line with the year-ago quarter.

The company’s revenues decreased 5% year over year to around $189 million. The figure missed the consensus estimate of $190 million. Hecla Mining currently sports a Zacks Rank of 1.

Fortuna Silver Mines Inc. FSM reported first-quarter adjusted earnings per share of 9 cents, which beat the Zacks Consensus Estimate of 3 cents by a solid margin of 200%. The bottom line also marked an 80% improvement year over year. Results were aided by higher gold sales volume and improved gold prices.

Fortuna Silver’s revenues increased 28% year over year to $225 million on higher gold sales volumes and prices. FSM currently carries a Zacks Rank #2.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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