Americas Silver Corporation (TSX: USA) (NYSE American: USAS)
(“Americas Silver” or the “Company”) today reported consolidated
financial and operational results for the first quarter of
2018.
This earnings release should be read in conjunction with the
Company’s First 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.
First Quarter Highlights
- Revenues of $20.4 million in Q1, 2018
compared with revenues of $15.2 million in Q1, 2017.
- Previously announced, consolidated
silver production for the quarter of approximately 1.6 million
silver equivalent1 ounces, an increase of 46% when compared to Q1
2017, including approximately 400,000 silver ounces.
- A net income of $0.5 million or 0.01
cents per share in Q1, 2018 after Zone 120 exploration expenses of
$1.8 million, compared with a net loss of ($0.2) million or ($0.01)
cent per share in Q1, 2017.
- Previously announced, consolidated cash
costs2 were approximately negative ($2.73) per silver ounce, a
decrease of 128% year-over-year, while consolidated all-in
sustaining costs3 (“AISC”) were approximately $6.17 per silver
ounce, a decrease of 54% year-over-year.
- Cash flow generated from operating
activities3 in Q1, 2018 of approximately $3.7 million after
exploration costs compared to cash flow used in operating
activities of approximately $0.5 million in Q4, 2017.
- Cash balance at March 31, 2018 of $3.3
million with net working capital of approximately $10.9 million;
long-term debt decreasing to $9.6 million.
- 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 had a solid first quarter with increases in
consolidated revenue, net income, and silver equivalent production
with significant decreases in cash costs and AISC,” said Americas
Silver Corporation President and CEO Darren Blasutti. “San Rafael
continued to ramp up its mining rate and milling rate throughout
the quarter while advancing development into the higher-grade Main
Zone with the expectation of reaching a milling rate of 1,700
tonnes per day in the second half of the year. Exploration cost of
$1.8 million during the quarter was spent primarily on the very
successful 12,000-meter drill program at Zone 120 designed to
expand and upgrade previously reported resources, expected to be
released in Q3 2018.”
Consolidated Production and Operating
Costs
Consolidated Production and Cost Details Q1
2018 Q1 2017 Total ore processed (tonnes milled)
163,875 167,493 Silver produced (ounces) 397,035 523,747 Zinc
produced (pounds) 7,332,978 2,389,133 Lead produced (pounds)
7,624,685 6,160,732 Copper produced (pounds) - 308,100 Silver
equivalent produced (ounces) 1,613,711 1,104,237 Silver recovery
(percent) 79.3 90.5 Silver grade (grams per tonne) 95 107 Silver
sold (ounces) 404,649 528,827 Zinc sold (pounds) 7,259,622
2,500,550 Lead sold (pounds) 7,895,231 6,119,207 Copper sold
(pounds) - 295,336 Cost of sales ($ per silver equivalent ounce)1
$8.14 $9.93 Silver cash cost ($ per silver ounce) 1 ($2.73) $9.89
All-in sustaining cost ($ per silver ounce) 1 $6.17 $13.37
1 Cost of sales per silver equivalent ounce, cash costs per
silver ounce, and all-in sustaining costs per silver ounce in Q1,
2017 excludes pre-production of 62,714 silver ounces, and 88,656
silver equivalent ounces mined from El Cajón during its
commissioning period. Pre-production revenue and cost of sales from
El Cajón are capitalized as an offset to development costs.
As a result of the increased silver equivalent production,
revenues increased to $20.4 million for the three months ended
March 31, 2018 from $15.2 million for the three months ended March
31, 2017, an increase of $5.2 million or 34%, while net income
improved to $0.5 million compared to a net loss $0.2 million during
the same period, a $0.7 million improvement. The improvement in net
income was primarily attributable to higher net revenue from
increased silver equivalent production, and lower interest and
financing expense due to the Company’s new facility, partially
offset by higher cost of sales, Zone 120 exploration expenses, and
higher depletion and amortization as San Rafael transitioned to
commercial production.
Consolidated silver production for the first quarter of 2018 was
approximately 397,035 ounces which represents a decrease of 24%
year-over-year. Silver equivalent production was approximately 1.6
million ounces, an increase of 46% year-over-year. Consolidated
cash costs significantly decreased by 128% to negative ($2.73) per
silver ounce year-over-year, and all-in sustaining costs
significantly decreased by 54% to $6.17 per silver ounce
year-over-year.
The Company’s cash balance decreased from $9.3 million at
year-end to $3.3 million at the end of Q1-2018 and working capital
decreased from $11.8 million to $10.9 million. These decreases are
mainly due to continued San Rafael capital expenditures to develop
into the Main Zone, $1.8 million of exploration drilling primarily
at Zone 120, a $0.5 million option payment on the San Felipe
property, and $0.6 million of debt repayments on the outstanding
Glencore facility. The Company’s accounts receivable balance
increased by approximately $5.0 million from year-end 2017 due to
the delayed timing of payment from a concentrate off-taker at
quarter-end due to statutory Mexican bank holidays for Easter in
the last week of March, the general increased volume of concentrate
from San Rafael, and increased VAT receivables in Mexico associated
with the recent San Rafael expenditures. Working capital was also
impacted by increases in the current portion of the Company’s
facility.
Further information concerning the consolidated and individual
mine operations is included in the Company’s first quarter
Condensed Interim Consolidated Financial Statements for the three
months ended March 31, 2018 and Management’s Discussion and
Analysis for the same period.
Q1 2018 Earnings Conference
Call
President & CEO Darren Blasutti will be hosting a Q1 2018
earnings conference call on Thursday, May 10, 2018 at 9:00am EDT. A
copy of the presentation will be made available after the
completion of the call on the company’s website at
www.americassilvercorp.com.
Step 1: Dial-InCanada and USA Toll-Free
1-877-256-8282International Toll Number 1-416-981-9025
Step 2: Online
Loginhttps://cc.callinfo.com/r/1rc7pzrgbkfge&eomAbout 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. 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.3 Cash flow generated from (used in) operating
activities is a non-IFRS financial measure calculated as net cash
flow generated from (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.
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version on businesswire.com: https://www.businesswire.com/news/home/20180509006365/en/
Americas Silver CorporationDarren BlasuttiPresident and
CEO416-848-9503
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