More prominent earning report: Americas Silver Corporation (NYSE: USAS)

On Friday Americas Silver Corporation (NYSE: USAS) has shown upward move of +1.75% and ended the last trade at $2.90. The trading volume was recorded to 467,702 shares as compared to average traded volume of 183,892 shares.

mericas Silver Corporation (NYSE: USAS) recently stated consolidated financial and operational results for the first quarter of 2019.

First Quarter Highlights

  • Production of 1.8M consolidated silver equivalent ounces1, a raise of 9% year-over-year, including 0.4M silver ounces.
  • Revenue of $17.8M and net loss of $2.8M for the quarter or ($0.06) per share, a decrease of $2.6M in revenue and a raise in the net loss of $3.3M contrast to Q1-2018 due primarily to lower metal prices and non-reoccurring expenses associated with the Pershing Gold acquisition.
  • Consolidated by-product production totaling 11.3M pounds of zinc and 8.2M pounds of lead, representing increases of 54% and 8%, respectively.
  • The Company had a cash balance of $3.4M and working capital balance of $5.2M as at March 31, 2019.

Subsequent to First Quarter Highlights

  • Entered into financing contracts with Sandstorm Gold Ltd. (Sandstorm) for gross proceeds of about $42.5M to fully fund the development of mining and heap leaching operations at the Relief Canyon Project (“Relief Canyon”).
  • Preliminary feasibility study and initial mineral reserve estimate for a combined operation at its 100% owned El Cajón and Zone 120 silver-copper deposits highlighted by a probable mineral reserve of 2.9M tonnes containing 14.5M ounces of silver and 26.5M pounds of copper.
  • The Company agreed to sell its option for the right to acquire a 100% interest of the San Felipe property to Premier Gold Mines Ltd. for total consideration of $10.8M.

The Company’s net loss was influenced by lower silver, zinc and lead prices and by non-reoccurring charges associated with the Pershing Gold Acquisition, specifically transaction costs ($1.0M), and incremental interest and financing costs related to the convertible loans payable and promissory note ($0.5M) associated with the acquisition. The Company also had unrealized losses on non-hedge zinc forward contracts ($1.2M) during the quarter. Adjusting for these items, the net loss would have been about $0.1M. The Company generated cash from operating activities before non-cash working capital items of $2.6M for the first quarter of 2019 contrast to $3.7M in the same period in 2018.

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