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USAS Boosts Balance Sheet Strength With Gold Settlement Agreement
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Key Takeaways
USAS settled 8,861 ounces of gold obligations with Royal Gold using gold and common shares.
Americas Gold and Silver used cash and $7M from hedge unwinding to finance the settlement.
USAS and Sprott Mining settled silver obligations, removing $85M in future debt combined.
Americas Gold and Silver Corporation (USAS - Free Report) announced that it reached an agreement to settle its outstanding gold delivery with Royal Gold, Inc.'s (RGLD - Free Report) affiliate, International Royalty Corporation (“IRC”).
USAS originally entered a Precious Metals Delivery Agreement with Sandstorm Gold Ltd. in 2019, before Sandstorm Gold was acquired by Royal Gold in 2025. The new deal resolves Americas Gold and Silver's outstanding commitment to deliver 8,861 ounces of gold between June 2026 and December 2027 to IRC.
USAS will clear the outstanding immediately in exchange for 5,000 ounces of gold and 2,652,532 common shares issued at a deemed price of $5.86 per share. Americas Gold and Silver will finance the delivery using cash on hand and around $7 million in proceeds generated from unwinding the company's in-the-money gold price hedges.
Americas Gold and Silver’s Focus to Strengthen Balance Sheet
This deal removes $40 million in variable future debt obligations for USAS. Moreover, the gold price protection instruments that the company put in place in mid-2025 generated a $7-million return for shareholders.
On May 22, USAS announced that it had reached an agreement with Sprott Mining Inc. to terminate the remaining obligation under the existing Silver Delivery Agreement in exchange for company shares. This deal will resolve outstanding 592,000 ounces of silver in exchange for 7,956,696 common shares issued at a deemed price of $5.57 per share.
The two settlements mark a vital step in solidifying the company's balance sheet and business. Combined, these two transactions have eliminated more than $85 million in variable future debt obligations at a highly attractive equity valuation.
USAS Stock’s Price Performance
Shares of the company have surged 285.2% in the past year compared with the industry's 60.4% growth.
Image Source: Zacks Investment Research
Americas Gold and Silver’s Zacks Rank & Stocks to Consider
Albemarle has an average trailing four-quarter earnings surprise of 74.5%. The Zacks Consensus Estimate for the company’s 2026 earnings is pegged at $12.45 per share, indicating year-over-year growth from a loss of 79 cents. ALB shares have skyrocketed 203.1% so far this year.
Avino Silver has an average trailing four-quarter earnings surprise of 125%. The Zacks Consensus Estimate for Avino Silver’s 2026 earnings is pegged at 39 cents per share, indicating 34.5% year-over-year growth. Its shares have upsurged 113.4% in a year.
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USAS Boosts Balance Sheet Strength With Gold Settlement Agreement
Key Takeaways
Americas Gold and Silver Corporation (USAS - Free Report) announced that it reached an agreement to settle its outstanding gold delivery with Royal Gold, Inc.'s (RGLD - Free Report) affiliate, International Royalty Corporation (“IRC”).
USAS originally entered a Precious Metals Delivery Agreement with Sandstorm Gold Ltd. in 2019, before Sandstorm Gold was acquired by Royal Gold in 2025. The new deal resolves Americas Gold and Silver's outstanding commitment to deliver 8,861 ounces of gold between June 2026 and December 2027 to IRC.
USAS will clear the outstanding immediately in exchange for 5,000 ounces of gold and 2,652,532 common shares issued at a deemed price of $5.86 per share. Americas Gold and Silver will finance the delivery using cash on hand and around $7 million in proceeds generated from unwinding the company's in-the-money gold price hedges.
Americas Gold and Silver’s Focus to Strengthen Balance Sheet
This deal removes $40 million in variable future debt obligations for USAS. Moreover, the gold price protection instruments that the company put in place in mid-2025 generated a $7-million return for shareholders.
On May 22, USAS announced that it had reached an agreement with Sprott Mining Inc. to terminate the remaining obligation under the existing Silver Delivery Agreement in exchange for company shares. This deal will resolve outstanding 592,000 ounces of silver in exchange for 7,956,696 common shares issued at a deemed price of $5.57 per share.
The two settlements mark a vital step in solidifying the company's balance sheet and business. Combined, these two transactions have eliminated more than $85 million in variable future debt obligations at a highly attractive equity valuation.
USAS Stock’s Price Performance
Shares of the company have surged 285.2% in the past year compared with the industry's 60.4% growth.
Americas Gold and Silver’s Zacks Rank & Stocks to Consider
USAS currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Albemarle Corporation (ALB - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) . ALB sports a Zacks Rank #1 (Strong Buy) at present, whereas ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle has an average trailing four-quarter earnings surprise of 74.5%. The Zacks Consensus Estimate for the company’s 2026 earnings is pegged at $12.45 per share, indicating year-over-year growth from a loss of 79 cents. ALB shares have skyrocketed 203.1% so far this year.
Avino Silver has an average trailing four-quarter earnings surprise of 125%. The Zacks Consensus Estimate for Avino Silver’s 2026 earnings is pegged at 39 cents per share, indicating 34.5% year-over-year growth. Its shares have upsurged 113.4% in a year.