Americas Gold and Silver (USAS) Q1 2026 earnings review
Record Silver Prices and EC120 Ramp-Up Drive a Dramatic Turnaround
Americas Gold and Silver delivered a transformational quarter, reversing a long streak of net losses. Consolidated revenue accelerated 187% YoY to $67.8M, fueled by a 76% surge in silver production and a staggering $79.48/oz realized silver price. The Cosalá Operations officially reached commercial production at the high-grade EC120 zone, pushing segment silver output up 174%. Net Income reversed completely from a $19.7M loss last year to a $10.0M profit. While operating costs at the Galena Complex remain uncomfortably high, the combination of surging production volumes and record commodity pricing has thoroughly repaired the company's once-fragile balance sheet.
🐂 Bull Case
The successful commercial production at EC120 ends reliance on lower-margin base metals. The shift drove a 174% YoY increase in silver production at Cosalá, providing high-grade momentum for the rest of the year.
Realized silver prices skyrocketed to $79.48/oz. Even with consolidated All-In Sustaining Costs (AISC) at $34.12/oz, the company is now generating significant free cash flow and a massive $33.6M in Adjusted EBITDA.
🐻 Bear Case
Despite a 35% jump in Galena's silver production, the segment's AISC remained stubbornly high at $39.47/oz. If silver prices pull back, this specific asset will quickly erase consolidated profits.
Guidance outlines an aggressive $90-$120M capital expenditure plan for 2026. This aggressive growth spending requires silver prices to remain elevated to avoid future debt reliance.
⚖️ Verdict: 🟢
Bullish. Management promised a turnaround, and external macro tailwinds amplified their operational delivery. The balance sheet has been entirely de-risked, moving from a severe working capital deficit a year ago to $122.4M in cash, providing a sturdy bridge for their massive 2026 capital program.
Key Themes
Unprecedented Margin Expansion
The operational story is strong, but the macro story is stronger. Realized silver prices accelerated 147% YoY to $79.48/oz (up from $32.10/oz in 25Q1). Because consolidated AISC remained relatively stable at $34.12/oz, operating margins exploded. This pricing power drove a Reversing trend in Adjusted EBITDA, flipping from a $5.5M loss a year ago to a record $33.6M profit.
Cosalá's EC120 Reaches Commercial Production
Management executed perfectly on their timeline for Cosalá. By ceasing mining at the lower-grade San Rafael central orebody and bringing the high-grade EC120 silver-copper zone into commercial production (effective January 1, 2026), silver output at the site soared 174% YoY to ~362,000 ounces. This structurally lowers reliance on zinc/lead by-products.
Galena Complex Negative Operating Leverage
A concerning contradiction lies within Galena's numbers: silver production accelerated 35% YoY to ~425,000 ounces, yet AISC actually increased to $39.47/oz (vs $39.37/oz a year ago). Direct mining costs jumped, meaning the higher volume did not create economies of scale. Management must prove that ongoing shaft upgrades and fleet modernization will eventually pull these unit costs down to the targeted $30-$35 consolidated range.
Modernized Mining Techniques Yielding Results
Operational innovation is taking root at Galena. The successful extraction of a tenth long-hole panel at the Galena 49-360 stope utilizing remote mucking operations showed massive efficiency gains. They are now moving approximately 200 tonnes per shift, a dramatic acceleration compared to the ~50 tonnes per shift historically achieved using traditional underhand cut-and-fill mining methods.
Metals Contract Liabilities Dampen Net Income
While higher gold and silver prices are a massive revenue tailwind, they carry a hidden accounting cost. The soaring commodity curve increased the unrealized present value of the company's historical metals contract liabilities, resulting in a $12.5M non-cash loss for the quarter (up from $9.7M a year ago). This heavily obscured the underlying operational profitability on the final Net Income line.
Other KPIs
A stunning Reversing trend in liquidity. Just one year ago (25Q1), the company flagged going-concern risks with a $27.8M working capital deficit. Today, fueled by massive cash flow and prior capital raises, working capital stands firmly positive at $66.8M, with $122.4M in pure cash and equivalents.
Accelerating dramatically from an $11.5M adjusted loss in 25Q1. This metric strips out the heavy $12.5M non-cash loss on metal contract liabilities, providing a much clearer picture of the core business's ability to print cash in an $80/oz silver environment.
Guidance
Stable. The company remains on track to hit this target following 787,000 ounces produced in Q1. Hitting the midpoint of 3.4 million ounces requires an average of 871,000 ounces per quarter, implying production must accelerate slightly through the remainder of the year as Cosalá fully ramps up.
Stable. Q1 AISC came in at $34.12, near the high end of the range. The company expects unit costs to decline as volume increases, but execution at the troubled Galena complex will dictate whether they can stay beneath the $35 ceiling.
This represents a massive investment phase. The budget includes $60-$80M in growth capital (heavily weighted toward Galena's Crescent Mine) and $30-$40M in sustaining capital. A separate $15-$20M is earmarked for the largest exploration drill campaign in company history (64,000 meters).
Key Questions
Path to Galena Cost Containment
Despite a 35% increase in silver production at Galena, AISC actually rose YoY to nearly $40/oz. What specific mechanical improvements or grade milestones are required in Q2 and Q3 to drag this asset's costs down below the consolidated $35 guidance ceiling?
Capital Expenditure Flexibility
You've outlined an aggressive $90-$120M CapEx program for 2026. If the silver market experiences a sudden correction back toward the $30-$40 range, how much of this growth capital is discretionary, and how quickly can it be paused to protect the balance sheet?
Cosalá Grade Normalization
With the EC120 project now in commercial production and driving a 174% increase in silver output, what are the normalized silver and copper grades we should expect for the remainder of the year once the initial high-grade stopes are exhausted?