Americas Gold and Silver Corporation (TSX: USA) (NYSE American:
USAS) (“Americas” or the “Company”), a growing North American
precious metals producer, is pleased to provide the Company’s
silver production, cost and capital expenditure guidance for 2022
and silver production outlook for 2023 and 2024 as well as
production results for fiscal 2021. All amounts are expressed in US
dollars unless otherwise noted.
Highlights
- Silver production is expected to increase over the next two
years as production ramps-up into the higher-silver grade Upper
Zone of the San Rafael deposit at the Cosalá Operations and the
Galena Hoist project at the Galena Complex is completed.
- The Company’s silver equivalent1 production is expected to
increase to a range of 4.8 to 5.2 million ounces in 2022 with
further increases to between 7.0 to 7.4 million ounces in 2024,
increases of approximately 240% and 375%, respectively, in
production compared with 2021.
- For Q4-2021, total silver production from the Company’s share
of the Galena Complex (60% owned) and the Cosalá Operations
(approximately one month of operation) was 207,000 ounces and
708,000 silver equivalent ounces. Silver production for the full
year 2021 was approximately 670,000 ounces while silver equivalent
production was 1.5 million ounces.
- In Q4-2021, the Cosalá Operations returned to nameplate mill
production following the resolution of the illegal blockade which
significantly impacted production in 2020 and 2021. The operation
had a strong production month in December 2021 which has continued
into the start of 2022.
“Silver and silver equivalent production is expected to
significantly increase over the next couple of years and benefit
from continuing strong silver and base metal prices,” stated
Americas President and CEO Darren Blasutti. “The Cosalá Operations
silver production is expected to increase towards the second half
of the year as higher-grade silver ore from the Upper Zone is
mined. The Galena Complex is expected to gain from increased
operating capacity and flexibility once the Galena Hoist is
commissioned in the second half of 2022 resulting in higher silver
production in the fourth quarter and into 2023.”
Consolidated 2022 Guidance, 2023 and 2024 Production
Outlook*
2022 Guidance
2023 Outlook
2024 Outlook
Silver Production (ounces)
1.4 – 1.8 Moz
2.4 – 2.8 Moz
3.4 – 3.8 Moz
Zinc Production (million pounds)
36.0 – 40.0 Mlbs
31.0 – 35.0 Mlbs
33.0 – 37.0 Mlbs
Lead Production (million pounds)
22.0 – 26.0 Mlbs
21.0 – 25.0 Mlbs
22.0 – 26.0 Mlbs
Silver Equivalent Production
(ounces)
4.8 – 5.2 Moz
5.6 – 6.0 Moz
7.0 – 7.4 Moz
Cash costs ($ per silver ounce)
$4.00 – 5.00/oz
Capital Expenditures ($) – Sustaining
$12.0 – 14.0 M
–
Growth
$6.0 – 7.0 M
Exploration Drilling ($)
$2.5 – 3.0 M
* Guidance for 2022 and outlook for 2023 and 2024 include only
the Cosalá Operations and the Galena Complex (60%). Silver
equivalent production throughout this press release was calculated
based on $22.00/oz silver, $0.95/lbs lead and $1.30/lbs zinc.
2022 Guidance
The Company expects to significantly increase metals production
in 2022 following the resolution of the illegal blockade at the
Cosalá Operations and continued recapitalization at the Galena
Complex. Consolidated silver equivalent production (60% Galena
Complex / 100% Cosalá Operations) for 2022 is anticipated to be
between 4.8 to 5.2 million ounces. This represents a year-over-year
increase in silver equivalent production of approximately 240%.
Silver production from the Cosalá Operations in 2022 is forecast
to be between 0.7 to 0.9 million ounces. The Cosalá Operations are
expected to increase silver production through 2022 benefitting
from higher-grade silver areas in the Upper Zone of the San Rafael
mine in the second half of 2022. Zinc production from the Cosalá
Operations is expected to be approximately 36.0 to 40.0 million
pounds while lead production is expected to be 13.0 to 15.0 million
pounds.
Attributable silver production to the Company from the Galena
Complex (60% owned by Americas) in 2022 is expected to be between
0.7 to 0.9 million silver ounces. Attributable lead production is
expected to be between 9.0 to 11.0 million pounds. The Company
expects to complete the Galena Hoist project in Q4-2022.
Consolidated cash cost (net of by-product credits) for 2022 is
expected to range between $4.00 to $5.00 per silver ounce. Zinc and
lead are currently trading at approximately $1.65/lb and $1.05/lb,
respectively, which would positively impact the operations and
costs if these prices persist.
Anticipated consolidated capital expenditures for the Company in
2022 of $18 to $21 million are related to the installation of the
Galena hoist and associated engineering for the Galena Shaft,
increased development capital and sustaining capital at the Cosalá
Operations.
2023 and 2024 Outlook
The Company anticipates consolidated silver equivalent
production to further increase in 2023 and 2024 as the Galena Hoist
project is completed in the second half of 2022 and the Cosalá
Operations fully benefit from higher-grade silver areas in the
Upper Zone. Consolidated silver equivalent production for 2023 is
expected to range between 5.5 – 6.0 million ounces increasing to
7.0 – 7.3 million ounces in 2024. Consolidated silver equivalent
production outlook for 2024 would represent an approximate 375%
increase in production compared with 2021.
Consolidated Q4-2021 and Full Year 2021 Production
Details
Consolidated production (60% Galena Complex / 100% Cosalá
Operations) in Q4-2021 was 708,000 silver equivalent ounces
including 207,000 silver ounces compared to production in Q4-2020
of 302,200 silver equivalent ounces including 176,000 silver
ounces, representing increases of 134% and 17%, respectively.
Production in Q4-2021 benefitted from one month of production from
the Cosalá Operations.
Consolidated production in 2021 was 1.5 million silver
equivalent ounces including 669,000 silver ounces compared to
production in 2020 of 1.3 million silver equivalent ounces
including 597,000 silver ounces, representing increases of 11% and
12%, respectively. Both 2020 and 2021 production were negatively
impacted by the illegal blockade at the Cosalá Operations which
started in January 2020 and were resolved in Q4-2021. Consolidated
costs will be provided when the Company releases its full-year 2021
financial results in March 2022.
About Americas Gold and Silver Corporation
Americas Gold and Silver Corporation is a growing precious
metals mining company with multiple assets in North America. The
Company owns and operates the Cosalá Operations in Sinaloa, Mexico,
manages the 60%-owned Galena Complex in Idaho, USA, and is
re-evaluating the Relief Canyon mine in Nevada, USA. The Company
also owns the San Felipe development project in Sonora, Mexico. For
further information, please see SEDAR or www.americas-gold.com.
Cautionary Statement on Forward-Looking Information:
This news release contains “forward-looking information” within
the meaning of applicable securities laws. Forward-looking
information includes, but is not limited to, Americas Gold and
Silver’s expectations, intentions, plans, assumptions and beliefs
with respect to, among other things, estimated and targeted
production rates and results for gold, silver and other metals, the
expected prices of gold, silver and other metals, as well as the
related costs, expenses and capital expenditures; the
recapitalization plan at the Galena Complex, including the expected
production levels and potential additional mineral resources
thereat; the resumption of mining and processing operations at the
Cosalá Operations following the resolution of the illegal blockade,
including expected production levels and the continuity of legal
access for employees and contractors; the expected capital costs
required in connection with the resumption of mining and processing
operations at the Cosalá Operations; the expectations regarding the
level of support from the Mexican government with respect to the
long-term stability of Cosalá Operations, and its ability to
maintain such support in the near- and long-term. Guidance and
outlook contained in this press release was prepared based on
current mine plan assumptions with respect to production, costs and
capital expenditures, the metal price assumptions disclosed herein,
and assumes no adverse impacts to operations from the COVID 19
pandemic and no further adverse impacts to the Cosalá Operations
from blockades and is subject to the risks and uncertainties
outlined below. Often, but not always, forward-looking information
can be identified by forward-looking words such as “anticipate”,
“believe”, “expect”, “goal”, “plan”, “intend”, “potential’,
“estimate”, “may”, “assume” and “will” or similar words suggesting
future outcomes, or other expectations, beliefs, plans, objectives,
assumptions, intentions, or statements about future events or
performance. Forward-looking information is based on the opinions
and estimates of Americas Gold and Silver as of the date such
information is provided and is subject to known and unknown risks,
uncertainties, and other factors that may cause the actual results,
level of activity, performance, or achievements of Americas Gold
and Silver to be materially different from those expressed or
implied by such forward-looking information. With respect to the
business of Americas Gold and Silver, these risks and uncertainties
include risks relating to widespread epidemics or pandemic outbreak
including the COVID-19 pandemic; the impact of COVID-19 on our
workforce, suppliers and other essential resources and what effect
those impacts, if they occur, would have on our business, including
our ability to access goods and supplies, the ability to transport
our products and impacts on employee productivity, the risks in
connection with the operations, cash flow and results of the
Company relating to the unknown duration and impact of the COVID-19
pandemic; interpretations or reinterpretations of geologic
information; unfavorable exploration results; inability to obtain
permits required for future exploration, development or production;
general economic conditions and conditions affecting the industries
in which the Company operates; the uncertainty of regulatory
requirements and approvals; fluctuating mineral and commodity
prices; the ability to obtain necessary future financing on
acceptable terms or at all; the ability to operate the Company’s
projects; and risks associated with the mining industry such as
economic factors (including future commodity prices, currency
fluctuations and energy prices), ground conditions, illegal
blockades and other factors limiting mine access or regular
operations without interruption, failure of plant, equipment,
processes and transportation services to operate as anticipated,
environmental risks, government regulation, actual results of
current exploration and production activities, possible variations
in ore grade or recovery rates, permitting timelines, capital and
construction expenditures, reclamation activities, labor relations
or disruptions, social and political developments and other risks
of the mining industry. The potential effects of the COVID-19
pandemic on our business and operations are unknown at this time,
including the Company’s ability to manage challenges and
restrictions arising from COVID-19 in the communities in which the
Company operates and our ability to continue to safely operate and
to safely return our business to normal operations. The impact of
COVID-19 on the Company is dependent on a number of factors outside
of its control and knowledge, including the effectiveness of the
measures taken by public health and governmental authorities to
combat the spread of the disease, global economic uncertainties and
outlook due to the disease, and the evolving restrictions relating
to mining activities and to travel in certain jurisdictions in
which it operates. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking information,
there may be other factors that cause results not to be as
anticipated, estimated, or intended. Readers are cautioned not to
place undue reliance on such information. Additional information
regarding the factors that may cause actual results to differ
materially from this forward‐looking information is available in
Americas Gold and Silver’s filings with the Canadian Securities
Administrators on SEDAR and with the SEC. Americas Gold and Silver
does not undertake any obligation to update publicly or otherwise
revise any forward-looking information whether as a result of new
information, future events or other such factors which affect this
information, except as required by law. Americas Gold and Silver
does not give any assurance (1) that Americas Gold and Silver will
achieve its expectations, or (2) concerning the result or timing
thereof. All subsequent written and oral forward‐looking
information concerning Americas Gold and Silver are expressly
qualified in their entirety by the cautionary statements above.
1 Silver equivalent ounces for the 2022 guidance, and 2023 and
2004 outlook references were calculated based on $22.00/oz silver,
$0.95/lbs lead and $1.30/lbs zinc throughout this press release.
Silver equivalent ounces for Q4-2021 and full year 2021 were
calculated based on silver, zinc and lead realized prices during
each respective period throughout this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220222005536/en/
For more information:
Stefan Axell VP, Corporate Development & Communications
Americas Gold and Silver Corporation 416-874-1708
Darren Blasutti President and CEO Americas Gold and Silver
Corporation 416‐848‐9503
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