Americas Gold and Silver (NYSEAMERICAN:USAS) Posts Quarterly Earnings Results, Misses Estimates By $0.05 EPS

Americas Gold and Silver (NYSEAMERICAN:USAS) issued its earnings results on Friday. The company reported ($0.02) earnings per share for the quarter, missing the consensus estimate of $0.03 by ($0.05), reports. The company had revenue of $51.40 million for the quarter, compared to analyst estimates of $60.14 million. Americas Gold and Silver had a positive return on equity of 3.59% and a negative net margin of 26.67%.

Here are the key takeaways from Americas Gold and Silver’s conference call:

• Americas Gold & Silver produced a record 800,000-plus ounces of silver in Q3 and sold about 860,000 ounces. After producing 2.3 million ounces in the first nine months, management expects full-year output at the lower end of its 3.2–3.6 million-ounce guidance range.
• Cosalá produced about 420,000 ounces of silver, up 28% year over year, while cash costs fell to roughly $14 per ounce, supported by higher grades and copper byproduct credits. Management said recent drilling has returned grades well above the existing resource model, though results have not yet been incorporated into a resource update or mine plan.
• At Galena, the company is investing in shaft, material-handling, communications and mining-method upgrades to support more sustainable production; management cited improved long-hole mining productivity and no additional dilution so far. The complex produced just under 400,000 ounces in Q3, and further progress depends on waste development and a paste plant, with the company acknowledging that costs have been somewhat higher than intended.
• Q3 revenue rose more than 70% year over year to $51 million, and adjusted EBITDA increased to $9.3 million, but the company still recorded a $5.6 million net loss. It ended September with $63 million in cash and $23 million in working capital; an additional $15 million of term-loan availability is conditional, and management expects full-year AISC toward the high end of guidance.

Americas Gold and Silver Trading Down 10.4%

Americas Gold and Silver stock traded down $0.29 during midday trading on Friday, hitting $2.50. 5,669,504 shares of the stock were exchanged, compared to its average volume of 4,195,520. Americas Gold and Silver has a fifty-two week low of $2.48 and a fifty-two week high of $10.50. The stock has a market capitalization of $847.60 million, a price-to-earnings ratio of -13.16 and a beta of 0.98. The stock’s 50-day simple moving average is $4.01 and its 200 day simple moving average is $5.47. The company has a current ratio of 1.62, a quick ratio of 1.41 and a debt-to-equity ratio of 0.15.

Key Americas Gold and Silver News

These are some of the USAS news items that stood out recently:

• Positive Sentiment: The company said record quarterly silver production was driven by strong operating results at Cosalá. A separate report cited revenue growth of 68% year over year, indicating improved scale and sales. Company Q3 results
• Positive Sentiment: Cash from operations was reported at $9.4 million, with $63.3 million in cash and cash equivalents at quarter-end. These figures provide liquidity to support ongoing investment. Q3 financial highlights
• Negative Sentiment: Capital spending totaled $32.3 million, substantially exceeding reported operating cash flow and underscoring the cash demands of the company’s investment program. Q3 financial highlights

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on USAS shares. Stifel Nicolaus began coverage on Americas Gold and Silver in a report on Wednesday, October 14th. They issued a “buy” rating for the company. National Bank Financial assumed coverage on Americas Gold and Silver in a research note on Thursday, October 8th. They set an “outperform” rating on the stock. HC Wainwright restated a “buy” rating and issued a $9.25 target price on shares of Americas Gold and Silver in a report on Tuesday, October 20th. Finally, Zacks Research cut Americas Gold and Silver from a “hold” rating to a “strong sell” rating in a report on Tuesday, October 20th. Six analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $9.25.

About Americas Gold and Silver

Americas Gold and Silver Corporation is a mining company focused on the exploration, development and production of precious and base metals. Its products include silver, lead, zinc, copper and gold. The company operates the Galena Complex in Idaho, where its mines produce silver and associated metals, and the Cosalá Operations in Sinaloa, Mexico, which include the San Rafael mine. Its activities span both the United States and Mexico. Americas Gold and Silver was formed in 2019 through the combination of Americas Silver Corporation and Pershing Gold Corporation.