Q2 2026 Americas Gold and Silver Corporation Earnings Call Transcript
Key Points
- Consolidated revenue surged 71% year-over-year to $46.3 million in Q2 2026, with first-half revenue of $114 million nearly matching full-year 2025 levels.
- Silver production at Cosala increased 26% year-over-year to approximately 337,000 ounces, supported by higher grades and improved recoveries, with cash costs dropping to $16.91 per ounce.
- Completed Phase 2 of the Galena shaft modernization, increasing hoisting throughput from 42 to 85 tonnes per hour (with peaks at 105), and added a critical spare motor for enhanced reliability.
- Settled remaining variable silver and gold delivery obligations with Sprott and Royal Gold, removing over $76 million in future obligations and $28 million in annual debt service for just 3.3% dilution.
- Drilling at Cosala returned exceptional high-grade intercepts, including 14 meters at 600 grams per tonne silver, five times the model grade, adjacent to existing infrastructure.
- Maintained zero lost-time accidents for over a year across all operations, reflecting a strong safety culture.
- Net loss of $5 million in Q2 2026, though improved from $15 million loss in Q2 2025, was impacted by foreign exchange losses, derivative losses from the Royal Gold settlement, and higher income taxes.
- Consolidated cash costs and AISC remain elevated at $25.68 and $40.63 per silver ounce sold, respectively, though AISC for H1 was lower at $37.
- Production remains heavily weighted to the second half, with H1 output at only ~40% of guidance, requiring a significant ramp-up in H2 to meet full-year targets.
- A minor fire at Galena caused a temporary deferral of high-grade production, though no injuries occurred and operations have resumed.
- Capital spending is expected to be lumpy, with higher deployment in Q4 due to major projects like the paste fill plant, potentially impacting near-term cash flow.
- The transition to long-hole stoping is still in early stages, with only 13 stopes completed, and the mine will never be 100% long-hole due to flat-dipping veins, limiting efficiency gains.
Hello, and welcome to the Americas Gold and Silver second-quarter 2026 conference call. (Operator Instructions).
I will now turn the conference over to Paul Huet, Chairman and CEO. Please go ahead.
Thank you. Good morning, everyone, and welcome to Americas Gold and Silver's second-quarter 2026 conference call. As always, this call is being recorded and will be available on our website's Events page later today. We will also be referencing a slide deck during today's webcast presentation.
Joining me on the call today are Warren Varga, our Chief Financial Officer, who will walk us through the main financial takeaways for the quarter; and Oliver Turner, our Executive Vice President of Corporate Development. I'll begin with a few housekeeping items and then walk through the key operational and strategic highlights from the second quarter before turning the call over to Warren.
Over to slide 3. Before I begin, I'd like to remind you to
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