Full Year 2024 Americas Gold and Silver Corp Earnings Call
Unknown Attendee: Hello and welcome to the Americas Gold and Silver fourth quarter and year-end 2024 conference call. This call will be recorded and will be available for watching from the events page of our website at around 1 p.m. Eastern Time or 10 a.m. Pacific Time today.
Hello, and welcome to the Americas Gold and silver fourth quarter and year end 2024 conference call. This call will be recorded and will be available for watching from the events page of our website at around one PM Eastern time or 10 am Pacific time today.
Paul Hewitt: Now, without further ado, I'd like to pass it over to Paul Hewitt, the chairman and CEO of Americas Gold and Silver, so that we can get started. Thank you, Maxim. Good morning, everyone.
Speaker Change: Now without further Ado I'd like to pass it over to Paul Hewitt, the chairman and CEO of Americas Gold and silver so that we can get started.
Speaker Change: Thank you Max and good morning, everyone I would like to welcome you to the fourth quarter and year end 2024 conference call.
Paul Hewitt: I would like to welcome you to the fourth quarter and year-end 2024 conference call. Please note, we will be referencing a slide deck, which is being shared through the webcast of this call. Over to slide three. Before I begin the presentation, I would like to remind you to please review our cautionary statements regarding forward-looking information. and non-IFRS measures. These statements can be found in your year-end MD&A, news release, and in our presentation slides.
Speaker Change: Please note, we will be referencing a slide deck, which is being shared through the webcast of this call.
Speaker Change: Over to slide three.
Speaker Change: Before I begin the presentation I would like to remind you to please review our cautionary statements regarding forward looking information.
Speaker Change: And non <unk> measures. These statements can be found in your year end MD&A news release and in our presentation slides.
Paul Hewitt: Over to slide four with the highlights.
Speaker Change: Over to slide four with the highlights.
Paul Hewitt: On today's call with me is Warren Varga, our CFO, who will take us through the financial highlights for the fourth quarter and full year. Oliver Turner who is heading up our corporate development is also on the call and you will hear from Oliver later. But first, I will cover some recent highlights and then hand the call over to Warren to review the financial results.
Speaker Change: On today's call with me is Warren Barga, our CFO, who will take us through the financial highlights for the fourth quarter and full year.
Speaker Change: Oliver Turner, who is heading up our corporate development is also on the call and you will hear from Oliver later.
Speaker Change: But first I will cover some recent highlights and then hand the call over to Warren.
Warren Barga: To review the financial results.
Paul Hewitt: Let me start by sharing how excited I am about the significant transformation for the company that officially kicked off late last year. and we've been taking important steps forward ever since. Since I joined Americas Gold and Silver as Chairman and CEO, we have quickly taken steps to strengthen our board and management that will provide a proven leadership and unlock the massive potential of our operations for our shareholders. I couldn't be happier about the growing silver producer in what looks to be a very strong bull market for silver that has a lot of room to run from here.
Warren Barga: Let me start by sharing how excited I am about the significant transformation for the company that officially kicked off late last year.
Warren Barga: And we've been taking important steps forward ever since.
Speaker Change: Since I joined America's Goldman Silver as chairman and CEO, we have quickly taken steps to strengthen our board and management that will provide a proven leadership and unlock the massive potential of our operations for our shareholders.
Speaker Change: I couldnt be happier about the growing silver producer.
Speaker Change: And what looks to be a very strong bull market for silver that has a lot of room to run from here.
Paul Hewitt: Last year, we moved very quickly to consolidate ownership of the Galena complex. Then we closed an oversubscribed $50 million subscription receipt financing with the book filled in about, I don't know, three to five minutes. Demand was extremely high. We could have easily raised $100 million, but we said no. At these levels, we didn't want to take on more dilution than what was needed. And we knew we could work with preferred lenders to get a strong debt solution in place to clean up the rest of the balance. Now that original $50 million, it went to work at Galena, Kosala and to begin the process of tackling the liabilities on our balance.
Speaker Change: Last year, we moved very quickly to consolidate ownership of the Galena complex.
Speaker Change: Then we closed an oversubscribed $50 million subscription receipt financing with the Brookfield and about I don't know three to five minutes.
Speaker Change: Demand was extremely high we could have easily raised $100 million, but we said no.
Speaker Change: These levels, we didn't want to take on more dilution than what was needed.
Speaker Change: And we knew we could work with preferred lenders to get a strong that solution in place to clean up the rest of the balance sheet.
Speaker Change: Now that original $50 million it went to work at Galena wholesaler.
Speaker Change: And to begin the process of tackling the liabilities on our balance sheet.
Paul Hewitt: Warren will go into more details later. But since the consolidation transaction, we have reduced liabilities by approximately $43 million. a tremendous accomplishment both from operating cash flow and our bolstered treasury. These wins just go to show our team's relentless drive and hard work to build value. All this puts us in a great spot to grow from.
Loren: Loren will go into more details later.
Loren: But since the consolidation transaction.
Loren: We have reduced liabilities by approximately $43 million.
Loren: A tremendous accomplishment both from operating cash flow and our bolstered credits.
Loren: These wins just goes to show our team's relentless drive and hard work to build value.
Loren: All of this puts us in a great spot to grow from this.
Paul Hewitt: Before I turn to the operations, it is important to know that we are making great progress towards putting a place sorry, putting towards a substantial debt financial facility in place. In the near future, we will strengthen our balance sheet and provide financial flexibility to bring our operations to the next level. I'm also pleased to let you know we will be issuing our full year production guidance 425 in the next few weeks so that's just a couple weeks in April so stay tuned for that.
Loren: Before I turn to the operations. It is important to note that we are making great progress towards putting a place.
Laurie: Laurie putting towards.
Loren: Substantial debt financial.
Loren: Facility in place in the near future, we will strengthen our balance sheet.
Loren: And provide financial flexibility to bring our operations to the next level.
Loren: I'm also pleased to.
Loren: To let you know we will be issuing our full year production guidance $4 25 in the next few weeks. So that's just a couple of weeks in April so stay tuned for that.
Paul Hewitt: Now I just want to discuss the Galena complex with everybody. Since we unified the asset in late 24, we've been laser focused on unlocking its full potential. Let me tell you, look, there's tremendous opportunity here. Our strategy is crystal clear. We're breathing a new life into this high-grade silver operation. and delivering real value to our shareholders with a smart multifaceted game plan. So what did we accomplish in late 24? As previously mentioned, we unified ownership of the historic Galena. First huge step. We jumped right in, evaluated productivity rates, and rolled up some quick win improvements that are already making a difference.
Loren: Now I just wanted to discuss the Galena complex with everybody.
Loren: Since we unified the asset late 'twenty four we've been laser focused on unlocking its full potential.
Loren: And let me tell you, but there is tremendous opportunity here our strategy is crystal clear, we're breathing new life into this high grade silver operations.
Loren: And delivering real value to our shareholders with the smart multifaceted game plan.
Loren: So what did we accomplish in late 'twenty four.
Loren: As previously mentioned, we unified ownership of the historic Galena.
Loren: Huge step.
Loren: We jumped right in evaluated productivity rates and rolled up some quick win improvements that are already making a difference.
Paul Hewitt: On the leadership front, we strengthened the board, strengthened the management team, and the senior executive team on site. We didn't stop there. We brought in some top-notch technical and operational talent that are really relevant to help us elevate. Coupled with that, we ordered some brand new equipment. We ordered five brand new pieces of equipment that will help our safety and productivity rates. But here's where it gets even better. We're not slowing down. Right now, we're wrapping up an internal trade-off study to establish the optimal path to ramp up the mining to our initial guidance or our target.
Loren: On the leadership front, we strengthened the board strengthened the management team and the senior executive team on site, but we didn't stop there we brought in some top notch technical and operational talent that are really relevant to help us elevate things.
Loren: Coupled with that we ordered some brand new equipment, we ordered five brand new pieces of equipment that will help our safety and productivity rates.
Loren: But here's where it gets even better we're not slowing down right now we're wrapping up an internal trade off studies to establish the optimal path to ramp up the mining to our initial guidance or targets or even other guidance our target of around 1200 tonnes a day.
Paul Hewitt: Sorry, not our guidance. Our target of around 1,200 tons a day. We're also optimizing the hoist and shift schedules to drive efficiency, productivities, most importantly, safety. we're introducing different mining methods like long hole versus underhand cut and fill to give us the best results in terms of safety output and tremendous cost savings. On the equipment side we're taking a hard look at our fleet and planning upgrades to our loaders, trucks, jumbos to keep us at the cutting edge. In fact, we have five new pieces of equipment that have already been delivered to a port in Seattle.
Loren: We're also optimizing the hoist and shift schedules to drive efficiency productivity.
Loren: Most importantly safety.
Loren: We're introducing different mining methods like long haul versus underhand cut and fill to give us the best results in terms of safety output and tremendous cost savings.
Loren: On the equipment side, we're taking a hard look at our fleet and planning upgrades to our loaders trucks jumbos to keep us at the cutting edge.
Loren: In fact, we have five new pieces of equipment that have already been delivered to a port in Seattle. They are on our way to our operations. This month.
Paul Hewitt: They're on our way to our operations this month. A great effort by the operations and procurement team. I'm extremely pleased at the outcome of how quickly that came together. we are also evaluating a new backfill system to make sure it's running at peak performance.
Speaker Change: Great effort by the operations and procurement team I am extremely pleased at the outcome of how quickly that came together.
Speaker Change: We are also evaluating a new backfill system to make sure it's running at peak performance.
Paul Hewitt: Meanwhile, exploration is firing on all cylinders. We're doing infill drilling to lock in confidence for the next three to five years of our mine plan. Updating our mineral resource and estimates to keep everything razor-sharp and hitting the ground with surface exploration drilling. The potential for new discoveries in this historic silver district is significant. We're just getting started at this thing.
Speaker Change: Meanwhile, exploration is firing on all cylinders.
Speaker Change: We're doing infill drilling to lock in confidence for the next three to five years of our mine plan.
Speaker Change: Updating our mineral resource estimates to keep everything.
Speaker Change: Razor sharp and hitting the ground with surface exploration drilling at the.
Speaker Change: Potential for new discoveries in this historic Silver district is significant.
Speaker Change: We are just getting started at this thing we've been here.
Paul Hewitt: We've been here 65 days with all these exciting initiatives in motion. and our incredibly motivated team pushing the needle. I'm absolutely confident that Galena Complex is going to stay the bedrock of our portfolio. We're building some serious momentum here and I look forward to seeing what's going to happen next at Galena.
Speaker Change: 65 days with all these exciting initiatives in motion.
Speaker Change: And are incredibly motivated team pushing the needle I'm, absolutely confident that Galina complex.
Speaker Change: Is going to stay the bedrock of our portfolio we're building some serious momentum here.
Speaker Change: I look forward to seeing what's going to happen next at Galena.
Paul Hewitt: I just want to talk a bit about over on slide six. I want to give people a sense of some of the historical production. at Galena because I think it's all relevant. To illustrate some of the potential where we're working or getting to unlock, turning over to slide six, Maxim, which shows the historical production from the Galena complex. As you can see, in its peak year, Galena produced an impressive 5.3 million ounces of silver at a run rate of around 600 tons per day. That's a remarkable achievement and a testament to what this asset is actually capable of.
Speaker Change: I just wanted to talk a bit about over on slide six I wanted to give people a sense of some of the historical production at Galena, because I think it's all relevant.
Speaker Change: To illustrate some of the potential.
Speaker Change: We're working our getting to unlock turning over to slide six Maxim.
Speaker Change: Which shows the historical production from the Galena accomplished.
Speaker Change: As you can see in its peak year.
Speaker Change: Galena produced an impressive five 3 million ounces of silver.
Speaker Change: At a run rate of around 600 tonnes per day.
Speaker Change: It's a remarkable achievement and a testament to what this asset is actually capable of.
Paul Hewitt: Last year in 2024, we mined about 300 tons a day, so about half of what that record was in 2002. But with our current initiative to ramp up to 1,200 tons a day, we're setting our sights on even greater heights. In our past businesses at both Corora and Flandex, we've never failed to meet a metric someone else has already achieved. And I have every confidence that we will do the same here or even surpass.
Speaker Change: Last year in 2004, we've mined about 300 tons a day, so about half of what that record was in 2002.
Speaker Change: But with our current initiatives to ramp up to 1200 tonnes a day, we're setting our sights uneven greater heights.
Speaker Change: In our past businesses at both cross flow index, we've never failed to meet our metrics someone else has already achieved.
Speaker Change: And I have every confidence that we will do the same here or even surpass it.
Paul Hewitt: Turning over to slide seven, our Costilla Mexican operations. This is an extremely important part of our story.
Speaker Change: Turning over to slide seven our coastal our Mexican operations. This is an extremely important part of our story.
Speaker Change:
Paul Hewitt: The operation Sorry, jumping to Kosovo, this is an operation where we have an extremely talented and experienced operating team. that has demonstrated a strong safety culture under the leadership and general manager of Gabriel Soto. In 2024, Kosila delivered production of 2.4 million silver equivalent ounces, roughly about 900,000 ounces of silver at a cash cost of $11 per ounce, ASIC just above $21.48 US per ounce. Looking ahead, we will see increased production from COSA for 2025 as we transition from mining the San Rafael zone to the higher grade silver copper ore in the EC-120 areas.
Speaker Change: Sorry jumping to coastal or is this is an operation where we have an extremely talented and experienced operating team.
Speaker Change: That has demonstrated a strong safety culture under the leadership and general manager of Gabriel So took in.
Speaker Change: In 2024 close of the delivered production too.
Speaker Change: Two 4 million.
Speaker Change: Silver equivalent ounces.
Speaker Change: We have about 900000 ounces of silver at a cash cost of $11 per ounce.
Speaker Change: About just above $21 48 U S per ounce.
Speaker Change: Looking ahead, we will see increased production from 425 as we transition from mining the San Rafael zone to the higher grade silver.
Speaker Change: Copper ore in the <unk> 120 areas.
Paul Hewitt: Excuse me. As with Galena, we expect the 2025 production increase to be weighted to the second half of the year as the transition to higher grade zones picks up steam. Overall, I'm extremely enthusiastic for another strong year of cash generation from our Kosala operations led by Gabriel.
Speaker Change: Excuse me.
Speaker Change: As with Galina, we expect the 2025 production increase to be weighted to the second half of the year as the transition to higher grade zones picks up steam.
Speaker Change: Overall, I am extremely enthusiastic for another strong year of cash generation.
Speaker Change: From our coastal operations led by Gabriel.
Paul Hewitt: Before I turn the call over to Warren, I just want to share with you my excitement about not only realizing the full potential of our asset, but also the exposure we have to the great bull market for silver. We are a silver-focused company, and we expect to realize approximately 80% of our revenues from silver as we increase production from higher-grade zones at both Salina and Kosala. It is truly a great time to be growing as a silver producer.
Speaker Change: Before I turn the call over to Warren I, just wanted to share with you my excitement about not only realizing the full potential of our assets, but also the exposure we have to the great Bull market for silver.
Speaker Change: We are a silver focused company and we expect to realize approximately 80% of our revenues from silver as we increased production from higher grade zones at both Galena and kofler.
Speaker Change: It is truly a great time to be growing.
Speaker Change: As a silver producer.
Warren Varga: With that, I'll turn the call over to Warren, who's going to go over some of the financial highlights. Thank you Paul and good morning everyone. This morning we issued a news release with our Q4 and full year 2024 financial results. Our audited financial statements and MD&A for the period ended December 31, 2024 have been filed and are available on our website and under Americas Gold and Silver's profile on CDAR. For the full year, our revenue increased to $100.2 million.
Warren Barga: With that I'll turn the call over to warrant who's going to go over some of the financial highlights.
Speaker Change: Thank you Paul and good morning, everyone. This morning, we issued a news release with our Q4 and full year 2024 financial results are audited financial statements and MD&A for the period ended December 31, 2024, and have been filed and are available on our website and under America's Golden Silvers profile on <unk>.
Speaker Change: SEDAR plus.
Speaker Change: For the full year, our revenue increased to $102 million up 5% from $95 2 million in 2023.
Warren Varga: 5% from $95.2 million in 2008. This growth was due to higher realized averaging $28.13 per ounce and zinc at $1.26 per pound. Alongside this, we achieved consolidated silver Consolidated attributable silver production of 1.7 million with approximately 3.7 million ounces of silver equivalent, including 31.5 million pounds of.
Speaker Change: This growth was due to higher realized metal prices for silver, averaging $28 13 per ounce and zinc at $1.26 per pound.
Speaker Change: Alongside this we achieved consolidated silver.
Speaker Change: Consolidated attributable silver production of $1 7 million ounces with approximately $3 7 million ounces of silver equivalent, including $31 5 million pounds of zinc and $15 8 million pounds of lead.
Warren Varga: $15.8 billion. Our cost of sales per silver equivalent ounce produced averaged $18.12, while cash costs and all in sustaining costs per silver ounce produced were $17.41 and $28.13 respectively. On the earning front, we reported a net loss of $48.9 million for 2024, compared to a net loss of $38.2 million in 2023. This was primarily due to several factors, including higher cost of sales, increased depletion and amortization, and higher exploration costs, but we did see some offset from the higher revenue we already noted.
Speaker Change: Our cost of sales per silver equivalent ounce produced averaged $18 12.
Speaker Change: Cash costs and all in sustaining costs per silver ounce produced were $17 41, and $28 13, respectively.
Speaker Change: On the earnings front, we reported a net loss of $48 9 million for 2024 compared to a net loss of $38 2 million. In 2023. This was primarily due to several factors, including including higher cost of sales increased depletion and amortization and higher exploration costs.
Speaker Change: But we did see some offset from the higher revenue we already noted.
Warren Varga: Our adjusted earnings for the year were a loss of $33.7 million and adjusted EBITDA was a loss of $1.5 billion. We're very optimistic about the future. Silver production is expected to increase steadily as we progress with EC120 project at our coastal operations. In fact, pre-production sales from EC120 already contributed $3.7 million to our revenue in 2024. To support this project, we signed a $15 million secure financing with Trafigura in 2024 with a goal of producing higher-grade silver-copper concentrates by Q3 2025.
Speaker Change: Our adjusted earnings for the year were a loss of $33 7 million and adjusted EBITDA was a loss of $1 5 million.
Speaker Change: We're very optimistic about the future.
Speaker Change: Silver production is expected to increase steadily as we progressed with EC 120 project at our coastal operations.
Speaker Change: Fact, preproduction sales from <unk> 'twenty already contribute three already contributed $3 $7 million to our revenue in 2020 for.
Speaker Change: To support this project, we signed a $15 million secure financing with Trafigura in 2024 with a goal of producing higher grade silver copper concentrates by Q3 2025.
Oliver Turner: Now I'll turn the call over to Oliver. Thank you Warren, and good morning to everyone as well. So the first 90 days at Americas Gold and Silver has certainly been an active period for everyone on the team. From closing our transformational consolidation transaction to adding to the board of directors and management team, ordering new equipment, making significant changes to improving operations, and pushing forward on the final piece of the puzzle, our debt facility. It's been a fast-paced first three months. On the market side, we've been more active than ever. I'm proud to say that after delivering over 100 institutional pitch meetings since we closed the transaction, we have now institutionalized over 50% of our shareholder register, a tremendous achievement.
Speaker Change: I'll now turn the call over to Oliver Turner.
Oliver Turner: Thank you Warren and good morning to everyone as well so the first 90 days in America Gold and silver has certainly been an active period for everyone on the team from closing our transformational consolidation transaction to adding to the board of directors and management team ordering new commitment equipment, making significant changes.
Oliver Turner: Improving operations and pushing forward on the final piece of the puzzle our debt facility has been a fast paced first three months on the market side, we've been more active than ever.
Oliver Turner: I wouldn't say that after delivering over 100 institutional pitch meetings since we closed the transaction, we've now institutionalized over 50% of our shareholder Register a tremendous achievement at our previous business Kerr resources. This level of institutional ownership took us over two five years to accomplish in fact, if you include management over 60%.
Oliver Turner: At our previous business, Corora Resources, this level of institutional ownership took us over two and a half years to accomplish. In fact, if you include management, over 60% of USA shares qualify as tightly held, a very strong position for us to move forward with. Well done to everyone. Along with new investors, we're generating new market attention with the launch of research coverage by Nick Dion at Cormark Securities. This bodes very well for additional coverage from other groups as we move forward. Since the announcement of the October transactions, USA shares have outperformed the silver group with 85% return besting the pure group average by over 50%.
Oliver Turner: Of USA shares qualify as tightly held a very strong position for us to move forward with well done to everyone.
Oliver Turner: Along with new investors, we're generating new market attention with the launch of research coverage by Nick Diana Cormack Securities.
Oliver Turner: It's very well for additional coverage from other groups as we move forward.
Oliver Turner: Since the announcement of the October transactions USA shares have outperformed the silver group with 85% return besting the peer group average by over 50%. Despite this USA shares still have a long way to go on evaluation investment basis and represents an extremely compelling investment for new potential shareholders listening to this call today.
Oliver Turner: Despite this, USA shares still have a long way to go on a valuation basis. And it represents an extremely compelling investment for new potential shareholders listening to this call today. With over 80% exposure to silver by the end of 2025, which is second only to IAD Gold and Silver in the silver producing universe, we still trade at a significant discount to peers at 0.6 times NAV versus a pure group average over one times NAV. As a former equity research analyst myself for many years, this is certainly an exciting proposition.
Oliver Turner: With over 80% exposure to silver by the end of 2025, which is second only to <unk> gold and silver and silver producing universe, we still trade at a significant discount to peers at <unk> six times NAV versus the peer group average over one times enough as a former equity research analysts myself for many years. This is certainly.
Oliver Turner: An exciting proposition.
Oliver Turner: To that end, we will continue to pitch investors globally at several upcoming conferences, including the Zurich Gold Show next week, the TD Silver Day in London, mining one-to-one in London, and many, many more over the course of the summer and the remainder of the year. As a team, we are making sure that strong value and growth proposition is well understood by investors and analysts so that we can do what we do best, deliver on our plan and deliver on shareholder return.
Oliver Turner: To that end, we will continue to pension investors globally at several upcoming conferences, including the Zurich Gold show next week at TD Silver day in London mining one to one in London and many many more over the course of the summer and the remainder of the year as a team we are making sure that our strong value and growth proposition is well understood by investors and analysts so that we can do.
Paul Hewitt: What we do best deliver on our plan and deliver on shareholder returns so with that I will turn the call back over to Paul.
Paul Hewitt: So with that, I'll turn the call back over to Paul. Thanks, Oliver and Warren. Listen, honestly, it's hard not to be excited when you start listening to some of the accomplishments in such a really, really short time.
Speaker Change: Thanks, Oliver and Warren listen.
Paul Hewitt: Honestly, it's hard not to be excited when you start listening to some of the accomplishments.
Speaker Change: In such a really really short time.
Paul Hewitt: I just want to take a moment and say thank you to everyone for joining us today on this call. And I will reiterate that we are just starting. There's no doubt we have a lot of work ahead of ourselves, but we've never been afraid of doing the work and getting dirty ourselves. This is probably one of the greatest environments in this silver market. What a bull market we have in front of ourselves. Personally, I couldn't be more encouraged. So I just want to say thank you to all of our supporters, all our shareholders, and our team on the ground that are doing all the work in both Mexico at Costilla and in Idaho at Galena and in Nevada.
Speaker Change: Just wanted to take a moment and say thank you to everyone for joining us today on this call and I will reiterate that we are just starting.
Speaker Change: There is no doubt we have a lot of work ahead of ourselves, but we've never been afraid of doing the work and getting dirty ourselves. This is probably one of the greatest environment in the silver market, what a what a bull market we have in front of ours in front of ourselves.
Speaker Change: Personally I couldn't be more encouraged so I just wanted to say thank you to all of our supporters all of our shareholders.
Speaker Change: And our team on the ground that are doing all the work in both Mexico at coastal.
Speaker Change: And in Idaho at Galena and in Nevada, So I want to thank all everyone for your hard work your efforts and everyone else have a blessed day and thank you for joining us here today, and we look forward to updating you with the guidance very soon have.
So I want to thank all of everyone for your hard work, your efforts, and everyone else, have a blessed day. And thank you for joining us here today. And we look forward to updating you with the guidance very soon. Have a great day. Goodbye.
Speaker Change: Have a great day.
Speaker Change: Good.