Americas Silver Corporation (USAS) Q1 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call presents a mixed outlook. Positive factors include increased production, revenue growth, and debt reduction. However, these are offset by higher costs, increased losses, and lack of shareholder return plans. The Q&A section lacks clarity, adding uncertainty. While production and revenue are improving, financial losses and operational risks are concerns. The absence of a clear shareholder return strategy and the ongoing negotiation of a debt facility add to the neutral sentiment. Given these factors, the stock price is likely to remain stable within a -2% to 2% range over the next two weeks.
Key Financial Performance
Revenue $23.5 million (12% increase from $20.9 million in Q1 2024) driven by higher realized metal prices with silver averaging just over $32 per ounce and zinc at $1.27 per pound.
Silver Production 446,000 ounces (80,000 ounce increase compared to the last quarter) as part of the growth plan.
Cost of Sales per Silver Equivalent Ounce $25.23 per ounce.
Cash Costs Just over $25 per silver ounce.
All-in Sustaining Costs $35.67 per silver ounce.
Net Loss $19 million (increase from a net loss of $16 million in Q1 2024) primarily due to the impact of metal prices on metal-based liabilities and higher corporate G&A expenses.
Adjusted Earnings Loss of $11.5 million.
Adjusted EBITDA Loss of $5.5 million.
Total Liabilities Reduction Approximately $34 million reduction due to repayments of metal liabilities, royalties, promissory notes, and transaction-related payables.
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Operating Highlights
New Product Development: Pre-production sales of silver, copper concentrate from EC120 have already contributed $2.3 million to our revenue in Q1 2025 with approximately 59,000 ounces of silver produced from the project this quarter. We remain on track to reach commercial production at EC120 by the end of 2025.
Market Positioning: As of May 1st, 2025, Americas Gold and Silver was included in the Solactive Global Miners Silver Total Return Index, resulting in the ETF acquiring approximately 11.2 million shares of Americas Gold and Silver, significantly increasing visibility among large institutional investors.
Operational Efficiency: We have been investing in our people and infrastructure, including the purchase of new mining equipment to modernize and grow our underground fleet, with the intent to become more productive.
Production Increase: On a consolidated basis, we produced 446,000 silver ounces, an increase of about 80,000 ounces compared to the last quarter.
Safety Performance: The Galena team demonstrated a strong trend of improving safety performance, including a first place finish at the 2025 Enforcement Mine Rescue Competition.
Debt Facility Negotiation: We are in the late stages of negotiating a rightsized debt facility to support the acceleration of our growth initiatives in 2025 and 2026.
Investor Base Expansion: Since the closing of the Galena Complex consolidation transaction in December, Americas' percentage of tightly held shares has grown from about 8% to over 60%, with large institutions building substantial positions.
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Risk or Challenges
Financial Losses: The company recorded a net loss of $19 million for Q1 2025, an increase from a $16 million loss in the previous year, primarily due to the impact of metal prices on liabilities and higher corporate expenses.
Regulatory and Market Risks: The company faces risks related to fluctuating metal prices, which can impact revenue and profitability, as evidenced by the losses reported.
Operational Challenges: The company is in the process of ramping up production at the EC120 project, which is expected to reach commercial production by the end of 2025. Any delays or issues in this ramp-up could affect overall production and cash flow.
Debt Management: The company is negotiating a rightsized debt facility to support growth initiatives, indicating potential risks associated with managing debt levels and financial flexibility.
Supply Chain Issues: The company is investing in new mining equipment and infrastructure, which may face delays or cost overruns, impacting operational efficiency and production timelines.
Competitive Pressures: The company operates in a competitive silver market, where price fluctuations and production efficiencies of competitors can affect market share and profitability.
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Guidance & Outlook
Growth Strategy: The company is focused on maximizing production from existing assets, investing in people and infrastructure, and modernizing the underground fleet.
Debt Facility: Negotiating a rightsized debt facility to support growth initiatives in 2025 and 2026.
Production Increase: Expect incremental silver production increases throughout the year as growth plans are implemented.
Galena Complex Development: Significant progress on infrastructure projects to access higher grade silver-lead and silver-copper veins.
Exploration Targets: Initial exploration target for the 034 vein estimated at 1.2 to 1.5 million silver ounces and 750,000 to 800,000 pounds of copper.
EC120 Project: Expected to reach commercial production by the end of 2025, significantly boosting silver output and free cash flow.
Investor Marketing Campaign: Aggressive marketing campaign to expand investor base and visibility in the market.
Revenue Expectations: Q1 2025 revenue increased by 12% to $23.5 million, driven by higher metal prices.
Production Forecast: Expect silver production to grow as EC120 project progresses and operational improvements are implemented.
Cost Metrics: Anticipate ongoing reductions in unit costs as silver production increases.
Financial Position: Confident in strengthening financial position and delivering on growth objectives.
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Shareholder Return Plan
Shareholder Return Plan: Americas Silver Corporation has not announced any specific share buyback program or dividend program during the Q1 2025 earnings call.
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Key Q&A
Q:Review of Unclear Management Responses
A:
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
ETF
Miners
SIL
Warren highlight
activity
aspect
base
beginning
closing
contractor
copper meter
copper vein
core mine
culture safety
decline
depth
development
drill
example
expectation
gain
grade intercept
gram tonne
inclusion
increase course
index
infrastructure
institution
intercept gram
majority
metal liability
month Americas
month st
plan production
priority
purchase
raise
silver copper
stuff
tonne silver
vein grade
ventilation
USAS Transcript
Americas Gold and Silver Corporation (USA:CA) Q3 2025 Earnings Call Prepared Remarks Transcript
Positive11-11
The earnings call shows strong silver production growth and improved financial metrics, with increased revenue and reduced costs. Despite a net loss, adjusted loss and EBITDA show significant improvement. The company's strategic positioning in critical minerals and infrastructure upgrades are positive indicators. Potential risks include regulatory challenges and market price fluctuations, but the overall sentiment leans positive, especially with the strong production figures and cost efficiencies.
Americas Silver Corporation (USAS) Q1 2025 Earnings Call Transcript
Unknown5-9
The earnings call presents a mixed outlook. Positive factors include increased production, revenue growth, and debt reduction. However, these are offset by higher costs, increased losses, and lack of shareholder return plans. The Q&A section lacks clarity, adding uncertainty. While production and revenue are improving, financial losses and operational risks are concerns. The absence of a clear shareholder return strategy and the ongoing negotiation of a debt facility add to the neutral sentiment. Given these factors, the stock price is likely to remain stable within a -2% to 2% range over the next two weeks.
Americas Silver Corporation (USAS) Q4 2024 Earnings Call Transcript
Unknown3-28
The earnings call presents a mixed picture with some positive aspects like increased revenue and strategic initiatives, but significant negatives such as increased net losses, high costs, and lack of clear shareholder return plan. The Q&A section reveals management's unclear responses on critical issues like sales forecast and product launches, adding to uncertainty. The absence of a dividend or buyback plan further dampens investor sentiment. Overall, the negatives outweigh the positives, suggesting a negative stock price movement over the next two weeks.
USAS Report
Frequently Asked Questions
Where does this earnings call transcript come from?
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