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Americas Gold and Silver (USAS) Q3 Earnings & Revenues Miss Mark

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Americas Gold and Silver (USAS - Free Report) reported a loss per share of four cents for third-quarter 2023, which missed the Zacks Consensus Estimate of a loss of three cents per share. USAS had reported a loss per share of six cents in the third quarter of 2022.

Americas Gold and Silver’s revenues were around $18.3 million in the third quarter of 2023, which were flat compared with the year-ago quarter. Higher silver production and silver price from the Galena Complex were offset by slightly lower base metal production and lower zinc prices from the Cosalá Operations The top-line figure missed the Zacks Consensus Estimate of $20 million.

USAS’ attributable silver production rose 17% to approximately 0.39 million ounces in the third quarter of 2023 from 0.33 million ounces in the third quarter of 2022. Consolidated attributable silver equivalent production in the quarter was approximately 1.0 million ounces compared with 1.3 million ounces in the third quarter of 2022.

Production was negatively impacted in the earlier part of the third quarter by a planned five-day electrical shutdown at the Galena Complex. Also, at the end of the quarter, production was impacted due to the unavailability of certain mine mobile equipment. The Cosalá Operations had mill outages for 14 days due to heavy rain and tailings work during the quarter under review.
USAS stated that it has produced more than 190,000 ounces of attributable silver ounces in October. With output in November and December expected to be higher than these numbers, USAS is set for a strong fourth-quarter performance.

 

In 2023, the company however expects to deliver the lower end of its earlier stated range of consolidated attributable silver production range of 2.2 million ounces and 2.6 million ounces. Consolidated attributable silver equivalent production is also expected to be at the low end of the range of 5.5 million ounces and 6.0 million ounces for 2023.

The company’s attributable cash costs of $19.01 per ounce of silver produced are compared with $10.01 per ounce of silver in the third quarter of 2022. All-in-sustaining costs of $29.55 per ounce of silver produced during the quarter were higher than $18.66 per ounce in the year-ago quarter. Cash costs were negatively impacted in the quarter by the lost days of production, lower zinc prices and the appreciation in the Mexican peso.

The total cost of sales was around $18 million in the third quarter of 2023 compared with $18.7 million in the year-ago quarter.

Financial Position

Americas Gold and Silver ended the third quarter of 2023 with $0.9 million cash in hand, down from $2 million held at the end of 2022. Cash used in operating activities was around $3.6 million in the first nine-month period of 2023 compared with usage of $1.5 million in the prior-year comparable period.

Price Performance

Shares of USAS have fallen 52.3% over the past year against the industry's 8.4% growth.

Zacks Investment Research
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Zacks Rank & Stocks to Consider

Americas Gold and Silver currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , Universal Stainless & Alloy Products, Inc. (USAP - Free Report) and The Andersons Inc. (ANDE - Free Report) . While CRS currently sports a Zacks Rank #1 (Strong Buy), USAP and ANDE carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Carpenter Technology has an average trailing four-quarter earnings surprise of 14.3%. The Zacks Consensus Estimate for CRS’ fiscal 2024 earnings is pegged at $3.57 per share. The consensus estimate for 2024 earnings has moved 3% north in the past 60 days. Its shares have gained 69% in a year’s time.

Universal Stainless & Alloy Products has an average trailing four-quarter earnings surprise of 44.4%. The Zacks Consensus Estimate for USAP’s 2023 earnings is pegged at 27 cents per share. Earnings estimates have been unchanged in the past 60 days. USAP’s shares have gained 93% in the last year.

The consensus estimate for ANDE's current-year earnings has been revised 3.3% upward over the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average. ANDE shares have rallied around 38% in a year.

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