Americas Silver Corporation (TSX: USA) (NYSE “MKT”: USAS)
(“Americas Silver” or the “Company”) today reported consolidated
financial and operational results for the second quarter of
2017.
This earnings release should be read in conjunction with the
Company’s Second Quarter Production and Cost Update, Management’s
Discussion and Analysis, Financial Statements and Notes to
Financial Statements for the corresponding period, which have been
posted on the Americas Silver Corporation SEDAR profile at
www.sedar.com, on its EDGAR profile at www.sec.gov, and are also
available on the Company’s website at www.americassilvercorp.com.
All figures are in U.S. dollars unless otherwise noted.
Second Quarter
Highlights
- Revenues of $17.2 million in Q2, 2017
compared with revenues of $12.8 million in Q2, 2016.
- Cash flow generated from operating
activities1 in the first 6 months of 2017 of $6.3 million,
including approximately $3.2 million in Q2, 2017, compared to cash
generated from operating activities of approximately $1.6 million
for the first 6 months of 2016, including $0.7 million in Q2,
2016.
- A net income of $0.9 million or $0.02
cents per share in Q2, 2017, compared with a net loss of ($2.1)
million or ($0.07) cents per share in Q2, 2016.
- Consolidated silver production for the
quarter of approximately 558,000 silver ounces and 1.2 million
silver equivalent2 ounces, representing increases of 1% and 18%,
respectively, compared to Q2, 2016.
- Consolidated cash costs3 for the
quarter were approximately $6.31 per silver ounce, a decrease 45%
year-over-year, while consolidated all-in sustaining costs2 were
approximately $9.74 per silver ounce, a decrease of 33%
year-over-year.
- San Rafael remains on budget and on
time for the start of production by the end of Q3, 2017.
- Guidance for 2017 remains at 2.0 - 2.5
million ounces of silver production and silver equivalent
production of 5.0 - 5.5 million ounces with projected cash costs of
$4.00 - $5.00 per silver ounce and all-in sustaining cash costs of
$9.00 - $10.00 per silver ounce.
- Americas Silver is pleased to announce
the appointment of Manuel Rivera to its Board of Directors
effective August 2, 2017.
- Cash balance at June 30, 2017 of $12.8
million with net working capital of approximately $18.3
million.
“The Company had a strong second quarter, generating net income
and strong operating cash flow from our operations despite low
silver prices,” said Americas Silver Corporation President and CEO
Darren Blasutti. “We expect Nuestra Senora to continue
producing until the end of the third quarter while San Rafael
transitions from a development project into a producing mine in the
fourth quarter. Fiscal 2018 is shaping up to be the most exciting
year in the Company’s history as San Rafael commences commercial
production.”
Consolidated Production and Operating
Costs
Consolidated Production and Cost Details Q2
2017 Q2 2016 Total ore processed (tonnes milled)
179,427 161,700 Silver produced (ounces) 557,892 556,404 Zinc
produced (pounds) 2,904,374 2,081,046 Lead produced (pounds)
6,435,048 6,677,247 Copper produced (pounds) 273,475 225,785 Silver
equivalent produced (ounces) 1,175,836 997,537 Silver recovery
(percent) 90.6 82.5 Silver grade (grams per tonne) 107 130 Silver
sold (ounces) 574,479 528,349 Zinc sold (pounds) 2,746,948
1,774,368 Lead sold (pounds) 6,725,788 6,803,078 Copper sold
(pounds) 294,278 168,104 Cost of sales ($ per silver equivalent
ounce)1 $11.00 $10.80 Silver cash cost ($ per silver ounce) 1 $6.31
$11.38 All-in sustaining cost ($ per silver ounce) 1 $9.74 $14.62
1 Cost of sales per silver equivalent ounce, cash costs per
silver ounce, and all-in sustaining costs per silver ounce in Q2,
2017 excludes pre-production of 22,549 silver ounces and 32,955
silver equivalent ounces mined from El Cajón during its
commissioning period. Pre-production revenue and cost of sales from
El Cajón are capitalized as development costs.
Net income of $0.9 million was recorded for the quarter,
compared to a net loss of ($2.1) million for the second quarter of
2016. The Company also generated cash from operating activities
before non-cash working capital items of $6.3 million in the first
half of 2017 compared to $1.6 million in the first half of 2016.
The improvement in net income and cash from operating activities
before non-cash working capital items is primarily attributable to
higher net revenue on concentrate sales, lower corporate general
and administrative expenses, and lower interest and financing
expense, partially offset by higher cost of sales, and higher
depletion and amortization. General and administrative expenses
were higher in Q1, 2017 due to the Company’s US listing, debt
refinancing, and San Felipe acquisition. Further information is
available in the Company’s Management’s Discussion and Analysis for
the three and six months ended June 30, 2017.
Consolidated silver production for the second quarter of 2017
was 557,892 silver ounces which represents an increase of 7% over
the previous quarter and 1% year-over-year. Silver equivalent
production was approximately 1.2 million ounces, up 6% over the
previous quarter and 18% year-over-year. The increase in silver and
silver equivalent production is primarily due to increased tonnage
at the Galena mine and continuing strong production from the
Nuestra Señora mine as it winds down operations prior to the start
of San Rafael in the fall.
The Company expects to provide an exploration update on its
Cosalá properties before the end of the third quarter. Exploration
results have been encouraging to date.
Further information concerning the consolidated and individual
mine operations is included in the Company’s second quarter
Condensed Interim Consolidated Financial Statements for the six
months ended June 30, 2017 and Management’s Discussion and Analysis
for the three and six months ended June 30, 2017.
Americas Silver Welcomes New
Director
Americas Silver is pleased to announce the appointment of Manuel
Rivera to its Board of Directors. Mr. Rivera is currently the
President & CEO of Grupo Expansión with over 20 years of
experience in a variety of industries including media, digital, and
consumer goods. Mr. Rivera began his career at Procter & Gamble
(Mexico) before joining Grupo Expansión as the head of sales &
marketing, moving up to COO, then to President and co-owner after a
management-led buyout. Since joining Grupo Expansión, Mr. Rivera
has taken the company from a minor magazine player, to one the
largest digital publishers in Mexico and Latin America. Mr. Rivera
is also the current Co-chair of the Global Future Council for Media
and Information of the World Economic Forum and also Chairman of
the board for Make-A-Wish Mexico.
Mr. Rivera’s impressive track record and experience with Grupo
Expansión will help advance the Company’s interests in its
principal country of growth. Commenting on Mr. Rivera’s appointment
to the Board, Alex Davidson, Chairman of Americas Silver said, “We
are delighted to welcome Manuel to the Board. His extensive
management skills, strategic perspective, and knowledge of Mexico
will be extremely valuable to the Company. We look forward to his
experience and perspective as a Director of the Company.”
About Americas Silver
Corporation
Americas Silver is a silver mining company focused on growth in
precious metals from its existing asset base and execution of
targeted accretive acquisitions. It owns and operates the Cosalá
Operations in Sinaloa, Mexico and the Galena Mine Complex in Idaho,
USA. The Company has acquired an option on the San Felipe
development project in Sonora, Mexico.
Daren Dell, Chief Operating Officer and a Qualified Person under
Canadian Securities Administrators guidelines, has approved the
applicable contents of this news release. For further information
please see SEDAR or americassilvercorp.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, the Company’s
expectations intentions, plans, assumptions and beliefs with
respect to, among other things, the realization of operational and
development plans (including completion of the San Rafael Project),
the Cosalá Operations and Galena Complex as well as the Company’s
financing efforts. Often, but not always, forward‐looking
information can be identified by forward‐looking words such as
“anticipate”, “believe”, “expect”, “goal”, “plan”, “intend”,
“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 the Company 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 the Company to be
materially different from those expressed or implied by such
forward looking information. This includes the ability to develop
and operate the Cosalá and Galena properties, risks associated with
the mining industry such as economic factors (including future
commodity prices, currency fluctuations and energy prices), ground
conditions and factors other factors limiting mine access, 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 expenditures, reclamation activities, social and
political developments and other risks of the mining industry.
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. By its nature, forward-looking information involves
numerous assumptions, inherent risks and uncertainties, both
general and specific that contribute to the possibility that the
predictions, forecasts, and projections of various future events
will not occur. The Company undertakes no 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.
1 Cash flow generated from operating activities is a non-IFRS
financial measure calculated as net cash flow used in operating
activities less changes in non-cash working capital items such as
trade and other receivables, inventories, prepaid expenses, and
trade and other payables.2 Silver equivalent production throughout
this press release was calculated based on silver, zinc, lead and
copper realized prices during each respective period.3 Cash cost
per ounce and all-in sustaining cost per ounce are non-IFRS
performance measures with no standardized definition. For further
information and detailed reconciliations, please refer to the
Company’s 2016 year-end and quarterly MD&A.
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version on businesswire.com: http://www.businesswire.com/news/home/20170809006086/en/
Americas Silver CorporationDarren Blasutti,
416-848-9503President and CEO
Americas Gold and Silver (TSX:USA)
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