Americas Silver Corporation (TSX:USA) (NYSE American:USAS)
(“Americas Silver” or the “Company”) today announced consolidated
production and operating cost results for the first quarter of 2018
and individually for its Cosalá Operations and Galena Complex. All
figures are in U.S. dollars unless otherwise indicated.
First Quarter Highlights (compared to
Q1, 2017)
- Consolidated silver production of
approximately 400,000 silver ounces and 1.6 million silver
equivalent1 ounces.
- Consolidated cash costs2 were
approximately negative ($2.50) per silver ounce, a decrease of
125%. Consolidated all-in sustaining costs2 (“AISC”) were
approximately $6.40 per silver ounce, a decrease of 50%.
- Cosalá Operations silver production
solely from the Company’s San Rafael mine of approximately 80,000
silver ounces and 950,000 silver equivalent ounces. Cash costs were
approximately negative ($58.45) per silver ounce and all-in
sustaining costs were approximately negative ($35.20) per silver
ounce.
- Galena Complex silver production of
approximately 320,000 silver ounces and 666,000 silver equivalent
ounces representing increases of 16% and 17%, respectively. Cash
costs were approximately $11.45 per silver ounce and all-in
sustaining costs were approximately $16.75 per silver ounce down
28% and 23%, respectively.
- Guidance for 2018 remains unchanged at
1.6 – 2.0 million silver ounces and 7.2 – 8.0 million silver
equivalent ounces at cash costs of negative ($10.00) to negative
($5.00) per silver ounce and all-in sustaining cash costs of
negative ($1.00) to $4.00 per silver ounce. The Company expects to
release its first quarter financial results on or before May 10,
2018.
“The Company had a strong first quarter at both operations as
San Rafael continued to ramp up in terms of mining rate and mill
throughput,” said Americas Silver President and CEO Darren
Blasutti. “Shareholders will be pleased with the significant
reductions in our cash costs and AISC year-over-year as the
benefits of San Rafael begin to be realized. We expect further
reductions into the second half of the year as mill throughput
reaches a steady state at 1,700 tonnes per day and San Rafael
capital expenditures reduce to sustaining levels. Galena also
delivered notable decreases in cash costs while increasing silver
production, supporting the consolidated results.”
Consolidated First Quarter Production
Details
Consolidated silver production for the first quarter of 2018 was
397,035 ounces which represents a decrease of 3% over the previous
quarter and a decrease of 24% year-over-year. Silver equivalent
production was approximately 1.6 million ounces, up 19% over the
previous quarter and 46% year-over-year. Consolidated cash costs
decreased 129% to negative ($2.52) per silver ounce compared to the
previous quarter and 126% year-over-year, and all-in sustaining
costs decreased 55% to $6.38 per silver ounce compared to the
previous quarter and 52% year-over-year.
Table 1 Consolidated Production Highlights
Q1 2018 Q1 2017
Change Q4 2017 Change Processed
Ore (tonnes milled) 163,875 167,493 -2%
168,901 -3% Silver Production (ounces) 397,035
523,747 -24% 409,545 -3% Silver Equivalent
Production (ounces) 1,613,711 1,104,237 46%
1,358,441 19% Silver Grade (grams per tonne)
95 107 -12% 91 4% Cost of Sales ($ per
equiv. ounce silver)1 $8.12 $9.93 -18%
$10.16 -20% Cash Costs ($ per ounce silver)1 ($2.52)
$9.89 -126% $8.75 -129% All-in
Sustaining Costs ($ per ounce silver)1 $6.38 $13.37
-52% $14.20 -55% Zinc Production (pounds)
7,332,978 2,389,133 207% 4,895,670
50% Lead Production (pounds) 7,624,685
6,160,732 24% 7,427,357 3% Copper Production
(pounds) - 308,100 - 78,541 - 1
Cost of sales per silver equivalent ounce, cash costs per
silver ounce, and all-in sustaining costs per silver ounce for Q1,
2017 excludes pre-production of 62,714 silver ounces, and 88,656
silver equivalent ounces mined from El Cajón during its
commissioning period, and for Q4, 2017 excludes pre-production of
45,344 silver ounces, and 405,162 silver equivalent ounces mined
from San Rafael during its commissioning period. Pre-production
revenue and cost of sales from El Cajón and San Rafael are
capitalized as an offset to development costs.
Consolidated silver production was lower compared to prior
quarters as the Company had its first full quarter of operations
from its new San Rafael mine after declaring commercial production
in December 2017. San Rafael will provide lower silver production
compared to the previously mined deposits at the Cosalá Operations
until mining sequences to the higher silver grade areas of the ore
body later next year. The consolidated silver equivalent production
increased substantially and the consolidated cash costs and all-in
sustaining costs decreased when compared to prior quarter and
year-over-year due to the comparatively higher base metal grades
generally present in the San Rafael deposit. Galena is returning to
an acceptable level of profitable operating performance with grades
returning to historical norms with consistent contribution from
production areas.
Cosalá Operations Production
Details
The Cosalá Operations produced 79,382 ounces of silver during
the first quarter of 2018 and 948,081 ounces of silver equivalent
during the same period at cash costs of negative ($58.47) per
silver ounce and all-in sustaining costs of negative ($35.22) per
silver ounce. Silver production decreased 47% over the previous
quarter and 68% year-over-year, while silver equivalent production
increased 25% over the previous quarter and 78% year-over-year.
Cash costs and all-in sustaining costs were down significantly
compared to the previous quarter from negative ($0.28) per silver
ounce and $3.74 per silver ounce, respectively, and down
significantly year-over-year from $1.13 per silver ounce and $1.21
per silver ounce, respectively.
Table 2 Cosalá Operations Highlights
Q1 2018 Q1 2017 Change
Q4 2017 Change Processed Ore (tonnes
milled) 123,285 128,577 -4% 129,098
-5% Silver Production (ounces) 79,382 250,296
-68% 150,235 -47% Silver Equivalent Production
(ounces) 948,081 533,762 78% 759,439
25% Silver Grade (grams per tonne) 42 70
-40% 54 -22% Cost of Sales ($ per equiv. ounce
silver) 1 $5.92 $7.22 -18% $7.39
-20% Cash Costs ($ per ounce silver) 1 ($58.47) $1.13
>-100% ($0.28) >-100%
All-in Sustaining Costs ($ per ounce
silver) 1
($35.22) $1.21 >-100% $3.74
>-100% Zinc Production (pounds) 7,332,978
2,389,133 207% 4,895,670 50% Lead Production
(pounds) 2,679,485 1,124,464 138%
2,348,125 14% Copper Production (pounds) -
308,100 - 78,541 - 1 Cost of sales per
silver equivalent ounce, cash costs per silver ounce, and all-in
sustaining costs per silver ounce for Q1, 2017 excludes
pre-production of 62,714 silver ounces, and 88,656 silver
equivalent ounces mined from El Cajón during its commissioning
period, and for Q4, 2017 excludes pre-production of 45,344 silver
ounces, and 405,162 silver equivalent ounces mined from San Rafael
during its commissioning period. Pre-production revenue and cost of
sales from El Cajón and San Rafael are capitalized as an offset to
development costs.
As previously noted, Cosalá silver production was lower compared
to prior quarters as the Company completed its first full quarter
of operations from its new San Rafael mine after declaring
commercial production in December 2017. San Rafael is expected to
produce lower grade silver compared to the previously mined
deposits at the Cosalá Operations until mining operations move to
higher silver grade areas of the ore body later next year.
Additionally, the initial development in the San Rafael ore body
was in an area closest to the portal where the silver grade is less
than half of the reserve silver grade. As a result, the silver
production was lower in the first quarter compared to prior
quarters. The Cosalá Operations had a significant increase in
silver equivalent production as well as a significant reduction in
cash costs and all-in sustaining costs during Q1, 2018, primarily
due to the by-product metal production from zinc and lead during
the period, which increased by 50% and 14%, respectively, when
compared to prior quarter, and increased by 207% and 138%,
respectively, year-over-year.
Galena Complex Production
Details
The Galena Complex produced 317,653 ounces of silver during the
first quarter of 2018 and 665,630 ounces of silver equivalent
during the same period at cash costs of $11.46 per silver ounce and
all-in sustaining costs of $16.78 per silver ounce. Silver and
silver equivalent production increased 22% and 11%, respectively,
compared to the prior quarter, and increased 16% and 17%,
respectively, year-over-year. Cash costs were down 8% compared to
the prior quarter and 28% year-over-year and all-in sustaining
costs were down 9% compared to the prior quarter and 23%
year-over-year.
Table 3 Galena Complex Highlights
Q1 2018 Q1 2017 Change
Q4 2017 Change Processed Ore (tonnes
milled) 40,590 38,916 4% 39,803
2% Silver Production (ounces) 317,653 273,451
16% 259,310 22% Silver Equivalent Production (ounces)
665,630 570,475 17% 599,002 11%
Silver Grade (grams per tonne) 256 230 11%
213 20% Cost of Sales ($ per equiv. ounce silver)
$11.26 $12.05 -7% $11.79 -5%
Cash Costs ($ per ounce silver) $11.46 $15.89
-28% $12.40 -8% All-in Sustaining Costs ($ per ounce
silver) $16.78 $21.71 -23% $18.43
-9% Lead Production (pounds) 4,945,200
5,036,268 -2% 5,079,232 -3%
The Company is focused on returning Galena to an acceptable
level of operating performance during 2018 by advancing several
planning-related initiatives, including grade optimization, in
order to recapture and build on the gains which were made in 2015
and 2016. Improvements were realized in Q1, 2018 and should
continue throughout the year as grades are returning to targeted
norms with consistent contribution from production areas.
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 holds 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 exploration,
operational and development plans, 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 Silver equivalent production throughout
this press release was calculated based on silver, zinc, lead and
copper realized prices during each respective period. 2 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 2017 year-end and quarterly MD&A. The performance
measures for the quarter ended March 31, 2018 are preliminary
throughout this press release subject to refinement from the
Company’s first quarter financial results to be released on or
before May 10, 2018.
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version on businesswire.com: https://www.businesswire.com/news/home/20180417005566/en/
Americas Silver CorporationDarren Blasutti,
416-848-9503President and CEO
Americas Gold and Silver (TSX:USA)
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