Americas Gold and Silver (NYSEAMERICAN:USAS) reported higher second-quarter revenue and reduced losses as stronger silver prices and improved performance at its Cosalá mine supported results, while the company completed infrastructure work at its Galena Complex in Idaho and settled its remaining metal-delivery obligations.
Revenue rose 71% from a year earlier to approximately $46.3 million in the second quarter, while first-half revenue increased 126% to $114 million, Chief Financial Officer Warren Varga said during the company’s second-quarter 2026 conference call. The average realized silver price was $67 per ounce during the quarter, compared with $34 per ounce in the prior-year period.
Production Guidance Maintained
Americas Gold and Silver produced approximately 665,000 ounces of silver during the quarter, or slightly more than 800,000 silver-equivalent ounces. Chairman and Chief Executive Officer Paul Huet said the company remains on track to meet its full-year production guidance of 3.2 million to 3.6 million ounces of silver, with production expected to be weighted toward the second half of the year.
Huet said the company had spent capital earlier in the year on infrastructure improvements, particularly at Galena, and expects the benefits of that work to support higher production later in 2026.
At Cosalá in Mexico, silver production increased 26% year over year to approximately 337,000 ounces. Huet attributed the performance to higher grades, improved metallurgical recoveries and commercial production from the EC-120 area. Cash costs at Cosalá declined to $16.91 per ounce, aided by grades and copper byproduct credits.
The company said resource-conversion drilling at San Rafael upper zones and the 120 zones has returned grades averaging roughly two to three times previously reported inferred resource grades. Huet highlighted drill 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 is close to existing mine infrastructure and could potentially be included in mine plans during the fourth quarter or in 2027.
Galena Infrastructure Work Completed
At the Galena Complex, 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 previously, while peak rates have reached 105 tons per hour.
The modernization included 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.
Americas Gold and Silver also added more than 10 mobile equipment units and installed fiber-optic communications infrastructure intended to support real-time equipment tracking, future automation and mine connectivity.
During the question-and-answer session, Huet said the company is undertaking waste development at both Galena and Crescent to support future mining. He said the company needs to establish a secondary egress at Crescent before ore can be extracted there under Mine Safety and Health Administration requirements.
The company is also advancing a transition toward long-hole stoping at Galena. Huet said the mine had 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. He said the mine will retain some conventional jackleg mining because certain flatter-lying areas are less suited to long-hole methods.
Huet said a paste-fill plant remains a key element of the plan, as it is expected to reduce stope filling time to about 36 hours from approximately 10 days using sand fill. Some capital spending related to the paste-fill plant and shaft relining is expected to be weighted toward the fourth quarter, he said.
Debt Obligations Settled
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.
According to Turner, the transactions removed more than $76 million of future variable metal-price-linked obligations and more than $28 million in annual debt-servicing obligations. He said the settlements resulted in combined shareholder dilution of 3.3% and eliminated future mark-to-market volatility associated with the instruments.
Varga said the company ended the quarter with approximately $89 million in cash and cash equivalents and $49 million in working capital, following capital deployment for growth projects and the settlements with Sprott and Royal Gold.
- 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 sold for the first half of 2026.
Huet said the company recorded zero lost-time accidents for more than one year across its U.S. and Mexican operations. Looking ahead, he said Americas Gold and Silver plans to continue its drilling campaign, ramp Idaho operations and advance its antimony strategy with joint venture partner United States Antimony Corporation.
About Americas Gold and Silver (NYSEAMERICAN:USAS)
Americas Gold and Silver Corporation is a precious metals mining company focused on the exploration, development and production of silver and gold assets in North America. The company’s core operations center on the Cosalá district in Sinaloa, Mexico and the Relief Canyon mine in Nevada, where it pursues both open-pit and underground mining techniques. In addition to these producing mines, Americas Gold and Silver maintains an exploration portfolio designed to support future growth and reserve replacement.
The Cosalá operation comprises multiple silver-gold deposits accessed via ramp and portal infrastructure.
