Americas Gold’s record silver output misses forecasts

Americas Gold and Silver (TSX: USA; NYSE-A: USAS) reported weaker-than-expected silver production in the third quarter amid ongoing infrastructure work at its main Galena complex in Idaho.

Silver production in the three months ended Sept. 30 hit a record 800,458 oz., a 4.6% increase from the same quarter a year ago, Americas Gold said Monday in a statement. Financial analysts who follow the company had forecast median production of 950,000 ounces.

Americas Gold nevertheless reaffirmed its earlier goal of producing 3.2 million to 3.6 million oz. of silver for all of 2026 at all-in sustaining costs of $30 to $35 per ounce. Silver production through nine months stands at 2.3 million oz., “which continues to be in line with our 2026 expectations,” CEO Paul André Huet said.

Full-year production will be weighted to the second half of the year with associated lower costs, Huet added.

“We have a negative read on the results; while the guidance reiteration is encouraging, Galena underperformed our expectations and USA will need to produce about 1.1 million oz. in the fourth quarter, up 43% quarter-on-quarter, to achieve the midpoint of guidance,” Desjardins Capital Markets mining analyst Bryce Adams said Monday in a note.

Americas Gold stock fell 0.4% to C$5.32 Monday morning in Toronto, having earlier touched C$5.25. The company has a market capitalization of about C$1.8 billion ($1.3 million).

Record sales

Silver sales hit a record 860,850 oz. in the period, exceeding production by about 7.5%, Americas Gold said.

Copper production reached 918,456 lb., while antimony sales totalled 121,691 pounds. The company also produced 964,551 lb. of lead.

Americas Gold is advancing several infrastructure projects at Galena. They include construction of a paste fill plant, upgrades to a hoist and installation of underground fibre optic communications.

Underground waste development is also progressing to prepare higher-grade silver-copper-antimony veins for future long-hole stoping.

Galena produced 384,579 oz. of silver during the period, while sales totalled 437,709 ounces. The operation is recovering from temporary production interruptions in the second quarter.

The mine also produced 964,551 lb. of lead, 182,362 lb. of copper and 101,011 lb. of antimony.

Mexico increase

Americas Gold’s Cosalá operation in Mexico’s Sinaloa state produced 415,879 oz. of silver during the quarter, a 23% jump from the previous three months. Silver sales hit 423,141 ounces.

The increase in output at Cosalá reflected stronger grades as mining advanced into the heart of the EC120 orebody, supported by improved underground material movement.

Cosalá also produced 736,094 lb. of copper during the quarter, accounting for most of the company’s consolidated copper production.

Americas Gold ended September with an unaudited cash balance of $63 million and available liquidity of $113 million. That included $50 million under an existing credit facility.