Americas Gold and Silver Shaft Upgrade Lifts Hoisting Capacity 2x

Americas Gold and Silver posted sharply higher second-quarter revenue as silver prices nearly doubled from a year earlier and the Cosalá mine in Mexico delivered a 26% gain in output. The company also completed a shaft modernization at its Idaho complex that more than doubled its hoisting rate and settled remaining metal-delivery obligations with Sprott and Royal Gold, removing more than $28 million in annual debt-service costs.

Revenue rose 71% from a year earlier to roughly $46.3 million in the quarter, CFO Warren Varga said on the company's earnings call. For the first half, revenue reached $114 million, up 126%. The average realized silver price came in at $67 an ounce versus $34 in the year-ago period.

The net loss narrowed to about $5 million, or $0.02 a share, from a loss of $15 million, or $0.06 a share, in the second quarter of 2025. Adjusted EBITDA swung to positive $12 million from a negative $4.1 million a year earlier, Varga said.

Silver production reached roughly 665,000 ounces for the quarter, or just over 800,000 silver-equivalent ounces. Chairman and CEO Paul Huet said the company remains on track to hit full-year guidance of 3.2 million to 3.6 million ounces, with output weighted to the second half.

Cosalá and the drill hit

At Cosalá in Sinaloa, silver production rose 26% year over year to about 337,000 ounces. Huet credited higher grades, better metallurgical recoveries and commercial production from the EC-120 area. Cash costs at the mine fell to $16.91 an ounce, helped by grades and copper byproduct credits.

The company said resource-conversion drilling at the San Rafael upper zones and 120 zones has returned grades averaging two to three times previously reported inferred resource grades. Huet highlighted hole SR568, which intersected 14 meters grading 600 grams per metric ton of silver, compared with a modeled resource grade of 110 grams per ton in the same area. He said the intercept sits close to existing mine infrastructure and could become part of mine plans in the fourth quarter or in 2027.

Galena shaft and the shift to long-hole stoping

At the Galena Complex in Idaho, the company completed phase two of the No. 3 shaft modernization. Huet said the work lifted sustained hoisting throughput to 85 tons per hour from roughly 42 tons per hour. Peak rates have reached 105 tons per hour.

The project involved increasing the hoist motor from 1,750 horsepower to 2,250 horsepower, adding a second 2,250-horsepower motor as a critical spare, and upgrading loading, mechanical, electrical, braking and control systems. The company also added more than 10 mobile-equipment units and installed fiber-optic communications infrastructure for real-time equipment tracking and future automation.

Huet said the company is advancing a transition toward long-hole stoping at Galena. The mine has completed its 13th long-hole stope and is targeting 30% to 40% long-hole mining by the end of 2026, followed by approximately 50% to 60% in 2027. The mine will retain some conventional jackleg mining for flatter-lying areas less suited to long-hole methods.

A paste-fill plant remains a key element of the plan, Huet said, expected to reduce stope filling time to about 36 hours from the current 10 days using sand fill. Some capital spending related to the plant and shaft relining is weighted toward the fourth quarter.

During the Q&A session, Huet said the company is undertaking waste development at both Galena and Crescent to support future mining. A secondary egress at Crescent must be established under Mine Safety and Health Administration rules before ore can be extracted there.

Settling the metal obligations

Executive Vice President of Corporate Development Oliver Turner said the company settled its remaining silver delivery obligation with Sprott Mining Inc. and its remaining gold delivery obligation with Royal Gold during the second quarter. The transactions removed more than $76 million in future variable metal-price-linked obligations and more than $28 million in annual debt-servicing obligations, he said. Combined shareholder dilution was 3.3%, and the settlements eliminated future mark-to-market volatility tied to the instruments.

Varga said the company ended the quarter with roughly $89 million in cash and cash equivalents and $49 million in working capital, after spending on growth projects and the Sprott and Royal Gold settlements.

Consolidated cost of sales was $32 per silver-equivalent ounce sold. Cash costs averaged $25.68 per silver ounce sold during the quarter. All-in sustaining costs averaged $40.63 per silver ounce sold in the second quarter and $37 per ounce for the first half.

Huet said the company recorded zero lost-time accidents for more than one year across its U.S. and Mexican operations. Plans call for continuing the drilling campaign, ramping Idaho operations and advancing its antimony strategy with joint venture partner United States Antimony Corporation.