Americas Gold and Silver (NYSEAMERICAN:USAS) Posts Quarterly Earnings Results, Misses Expectations By $0.04 EPS

Americas Gold and Silver (NYSEAMERICAN:USAS) posted its quarterly earnings results on Friday. The company reported ($0.02) earnings per share for the quarter, missing the consensus estimate of $0.02 by ($0.04), reports. Americas Gold and Silver had a positive return on equity of 3.59% and a negative net margin of 26.67%. The company had revenue of $59.00 million during the quarter, compared to analysts’ expectations of $63.45 million.

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 Stock Performance

USAS traded down $0.26 on Friday, hitting $2.54. 4,174,201 shares of the company traded hands, compared to its average volume of 5,309,920. The company has a 50 day moving average of $4.07 and a 200-day moving average of $5.50. Americas Gold and Silver has a 12-month low of $2.51 and a 12-month high of $10.50. The stock has a market capitalization of $859.47 million, a PE ratio of -13.29 and a beta of 0.98. The company has a quick ratio of 1.41, a current ratio of 1.62 and a debt-to-equity ratio of 0.15.

Analyst Upgrades and Downgrades

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

Americas Gold and Silver Company Profile

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.