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Americas Gold and Silver aims for top of guidance

Americas Gold and Silver expects to hit the higher end of its 2022 production guidance of 4.8 million-5.2 million silver-equivalent ounces following Q2 production that was up 5% quarter on quarter and 475% stronger year on year.
Americas Gold and Silver aims for top of guidance Americas Gold and Silver aims for top of guidance Americas Gold and Silver aims for top of guidance Americas Gold and Silver aims for top of guidance Americas Gold and Silver aims for top of guidance

Americas Gold and Silver's Cosala

The company's Q2 consolidated attributable production totaled about 1.34 million AgEq oz. That took the H2 volume to 2.62 million AgEq oz.

"The second quarter production plan in Mexico focused on mining the Main Zone at San Rafael to maximize revenue given the strong zinc prices," Americas president and CEO Darren Blasutti said.

The company owns and operates the Cosala operations in Sinaloa, Mexico, manages the 60%-owned Galena Complex in Idaho, USA, and is re-evaluating the Relief Canyon mine in Nevada, USA.

It also owns the San Felipe development project in Sonora, Mexico.

"We expect to see an appreciable increase in silver production over the second half of the year as the Galena Complex plan begins to mine more higher-grade silver stopes and San Rafael sees increased contribution from the high-grade silver Upper Zone," Blasutti said.

The company's silver production for Q2 was 300,000oz, which was unchanged quarter on quarter and up 115% year on year.

It estimates that consolidated Q2 cash cost per silver ounce of negative $0.12/oz and consolidated Q2 all-in sustaining cost per silver ounce of $7.96/oz.

Americas expects to see further growth to 7 million-7.4 million oz by 2024.

The company last year suspended its Relief Canyon mine due to ongoing metallurgical challenges while it also faced blockades in Mexico which impacted production.

The company's share price on July 18 of C$0.67 (US$0.52) was down 4% day on day and at the lower closing value in at least 10 years. The stock began last year at about C$4.

Americas has a market capitalization of C$123.47 million.