Americas Gold and Silver reported record silver production that still disappointed the market. Consolidated silver production in the three months to September 30 was 800,458 ounces, up 4.6 percent from a year earlier and a company record, but below the 950,000 ounce median forecast of analysts who follow the stock. Silver sales set their own record at 860,850 ounces, about 7.5 percent above production. The shares fell 0.4 percent to 5.32 Canadian dollars in Toronto on Monday morning.
The shortfall sat at Galena in Idaho, the company’s main asset, which produced 384,579 ounces of silver while a paste fill plant, hoist upgrades, underground fibre communications and waste development to prepare higher grade silver, copper and antimony veins for long hole stoping continued. Galena is recovering from temporary interruptions in the second quarter. The Cosalá operation in Sinaloa, Mexico, carried the quarter, producing 415,879 ounces, up 23 percent from the previous quarter on stronger grades in the EC120 orebody, with sales of 423,141 ounces. Consolidated output also included 918,456 pounds of copper, 964,551 pounds of lead and antimony sales of 121,691 pounds.
Management held its line. The company reaffirmed full year guidance of 3.2 million to 3.6 million ounces of silver at all in sustaining costs of 30 to 35 dollars an ounce, with nine month production at 2.3 million ounces. “Which continues to be in line with our 2026 expectations,” chief executive Paul André Huet said, adding that production will be weighted to the second half with lower costs.
Analysts did the arithmetic out loud. “We have a negative read on the results; while the guidance reiteration is encouraging, Galena underperformed our expectations and USA will need to produce about 1.1 million oz. in the fourth quarter, up 43 percent quarter on quarter, to achieve the midpoint of guidance,” Desjardins Capital Markets analyst Bryce Adams wrote. Americas Gold ended September with an unaudited cash balance of 63 million dollars and available liquidity of 113 million dollars, including 50 million dollars under an existing credit facility.