Americas Gold and Silver (USAS) Q3 2026 earnings review
Americas Gold and Silver revenue jumps, but Idaho costs climb
Strong silver output in Mexico carried Americas Gold and Silver while rising costs at its Idaho mine ate into the benefit of higher metal prices. Revenue climbed 68% from a year ago as realized silver prices jumped by half to $61 an ounce, and settling old metal-delivery contracts cut the net loss to $5.6 million. Even so, the company guided full-year expectations to the bottom of its production target and the top of its cost range.
| Revenue | $51.4M +68% from a year ago on +50% silver prices |
|---|---|
| Silver production | 800,458 oz +5% from a year ago; Cosalá +28%, Galena −13% |
| All-in sustaining cost | $42.94/oz up from $31.12 a year ago; Galena at $60.07/oz |
| Full-year 2026 outlook | Guided to low end low end of 3.2–3.6M oz and high end of $30–$35/oz cost |
⚖️ Verdict: 🔴 Bearish
The story got worse because the turnaround at the Galena mine in Idaho is costing far more than planned and running behind schedule. Galena's all-in sustaining cost reached $60 an ounce while its silver output stayed below last year, forcing management to lean on the Cosalá mine in Mexico and leaving cash down another $26 million. On the positive side, the company cancelled a related-party drilling contract in October and paid off the metal liabilities that used to swing its earnings.
The question now is whether the pile of broken ore left underground at Galena in late September turns into a fourth-quarter production jump that pulls unit costs down. Either the faster shaft hoist clears that rock and lifts output to the 948,000 ounces needed by our math for the annual floor, or the company misses its full-year targets and burns closer to its minimum cash covenant. Fourth-quarter production and year-end cash will settle it.
🐂 Bull Case
Cosalá Is Carrying Production and Lowering Costs
Americas Gold and Silver shifted its Cosalá mine in Mexico out of the older zinc-and-lead zone and into EC120, a higher-grade silver-and-copper deposit that entered commercial production in January. That switch is now doing the heavy lifting for the whole group, even with an eight-day maintenance shutdown on one of the two mill lines during the quarter.
- Cosalá silver output: 415,879 ounces, up 28% from a year ago and more than half of group production
- Cosalá all-in sustaining cost: $25.21 per ounce sold, down 14% from $29.45 a year ago
- Cosalá pre-tax profit: $12.2 million, up from $2.8 million a year ago
Because EC120 ore carries richer silver grades and yields copper as a by-product, copper sales credits offset the cost of mining silver. That cut Cosalá's cash cost to $14.51 an ounce from $24.79 a year ago and made Mexico the company's only profitable mine in the quarter.
What to watch: whether Cosalá can hold silver output above 400,000 ounces in the fourth quarter without mill interruptions. Another strong quarter in Mexico is essential to keep group unit costs near the annual target.
Settling Metal Liabilities Cleaned Up the Income Statement
In the second quarter, the North American miner paid off its remaining fixed silver and gold delivery contracts with Eric Sprott and Royal Gold by issuing 10.6 million shares and delivering 5,000 ounces of gold. Those contracts had forced the company to book large accounting losses whenever rising metal prices increased the value of the ounces it owed.
The third quarter was the first clean period after that payoff. Losses on metal contract liabilities dropped to zero from $13.1 million a year ago, which helped narrow the quarterly net loss to $5.6 million from $16.5 million. Current liabilities on the balance sheet also stands $9.4 million lower than at year-end.
What to watch: operating cash flow retention in the fourth quarter now that fixed metal deliveries are gone. With no more gold or silver owed under those deals, every ounce mined is sold at market prices.
🐻 Bear Case
Galena Costs Jumped While Output Still Lags
Management is upgrading the Galena Complex in Idaho with new underground equipment, long-hole blasting and a faster hoist on the No. 3 Shaft that now moves 90 to 100 tons an hour, up from 42 tons. Those upgrades were meant to lift silver output and lower unit costs after a June electrical fire held back the second quarter.
Instead, Galena's costs rose sharply while silver production of 384,579 ounces stayed 13% below a year ago and 9% below the first quarter. Cost of sales at Galena jumped to $21.3 million from $11.9 million a year ago, which management attributed "to a significant increase in broken ore and waste underground in late September" as blasting accelerated. All-in sustaining cost (AISC), a measure of total mine-site cost per ounce, reached $60.07 at Galena — almost equal to the $60.54 average silver price the company realized, pushing the mine to a $2.2 million pre-tax loss.
What to watch: whether that broken ore sitting underground at the end of September turns into milled silver ounces and sub-$45 AISC in the fourth quarter. If Galena's costs stay near $60, the mine cannot make money even at sixty-dollar silver.
Full-Year Targets Need a Steep Fourth-Quarter Jump
Americas kept its full-year targets on paper at 3.2 to 3.6 million ounces of silver and $30 to $35 in all-in sustaining cost per ounce, but trimmed where it expects to land inside both ranges. "The Company expects to achieve the low end of existing full-year production guidance and the high end of AISC guidance range," the report stated.
Even the softened targets require a fourth quarter unlike anything the miner has delivered to date. Through nine months, the group has produced 2.25 million ounces at an all-in sustaining cost of $39.16 an ounce. By our math, hitting 3.2 million ounces requires about 948,000 ounces in the fourth quarter — 18% above the third quarter's record. Getting the full-year cost down to $35 an ounce would require fourth-quarter AISC to drop to about $25 an ounce by our math, down from $42.94 in the third quarter.
What to watch: fourth-quarter silver production and full-year AISC in the annual report. A miss on the 3.2-million-ounce floor would confirm that the Galena ramp is running behind schedule.
Cash Burn Continues Under Going-Concern Warnings
Despite a 50% rise in its realized silver price to $60.54 an ounce from a year ago, the silver producer recorded a $4.9 million loss excluding one-offs in the third quarter and burned through cash to fund its mine upgrades. Over the first nine months of 2026, operating cash flow of $56.6 million fell $39.4 million short of the $96.0 million spent on property, plant and equipment.
Cash fell another $25.6 million during the third quarter to $63.3 million, and working capital — current assets minus current liabilities — dropped to $21.3 million from $48.6 million in June. Under its term loan with SAF Group, waivers on earnings and debt ratios require the miner to hold at least $35 million in cash through December 31, 2026. The financial statements repeat that "several material uncertainties may cast significant doubt (or raise substantial doubt as contemplated by PCAOB Standards) on the Company's ability to continue as going concern".
What to watch: year-end cash against the $35 million covenant floor, and whether the company satisfies the conditions to draw the remaining $50 million from its term loan facility.
👓 Other Themes
Related-Party Drilling Contract Cancelled, Controls Still Weak
In February 2026, Americas awarded a one-year drilling contract to a firm in which the spouse of chief executive Paul Huet holds a 33% stake, paying $2.6 million over the first nine months. "The contract was cancelled in October 2026, subsequent to quarter-end," the company disclosed. Separately, management reported that disclosure controls and internal controls over financial reporting remained ineffective as of September 30 due to un-remediated material weaknesses in information technology and accounting processes.
High Silver Prices and Sinaloa Security Delays
Market silver prices averaged $62.73 an ounce in the third quarter, up 59% from a year ago on industrial demand, though down from earlier in 2026 when Americas realized $79.48 in the first quarter and $67.04 in the second. In Sinaloa, Mexico, ongoing conflict among organized crime groups caused intermittent delays in contractor mobilization and concentrate shipping at Cosalá, though the company reported no damage and maintained normal mill throughput.
💲 Other KPIs
Bills owed to suppliers and contractors rose to $64.6 million from $45.8 million in the first quarter and $38.8 million at the end of 2025. Payables now make up 84% of current liabilities, up from 45% at year-end, helping preserve cash on hand while capital spending runs high at Galena and Cosalá.
Weighted average diluted shares rose 24.9% from 271.5 million a year ago. The increase reflects 33.1 million shares sold in December 2025 to fund the Crescent acquisition and working capital, 11.1 million shares paid for Crescent itself, and 10.6 million shares issued in the second quarter to settle the gold and silver delivery liabilities.
Tax expense climbed to $5.4 million in the third quarter from $0.7 million a year ago, bringing the nine-month tax charge to $17.0 million against pre-tax income of $16.3 million. All of the charge comes from provisional income taxes and an 8.5% mining royalty at the profitable Cosalá mine in Mexico, while losses in Idaho and corporate overhead generated no recorded tax benefit.
🔮 Guidance
Unchanged in range, lowered in tone. The company kept the 3.2 to 3.6 million ounce bracket but now expects to finish at the 3.2 million low end. With 2.25 million ounces produced through September, hitting 3.2 million ounces leaves about 948,000 ounces for the fourth quarter by our math — 18% above the third quarter's output.
Unchanged in range, raised in tone. Management now points to the $35 top of the range after nine-month costs averaged $39.16 an ounce ($42.94 in Q3). By our math, pulling the full-year average down to $35 would require fourth-quarter all-in sustaining costs to drop to roughly $24.85 an ounce, a sharp reversal from Galena's $60.07 third-quarter rate.
Unchanged. The full-year capital plan holds at $90 to $120 million, split between $30 to $40 million of sustaining capital (including infill drilling) and $60 to $80 million of growth capital. Having spent $96.0 million on property, plant and equipment through the first nine months, the miner is already inside the annual bracket with one quarter left.
❓ Key Questions
How can full-year AISC still reach $35 an ounce?
Nine-month all-in sustaining cost sits at $39.16 per ounce after a $42.94 third quarter. Hitting the $35 top of the annual plan requires fourth-quarter unit costs near $25, which would demand an immediate drop in Galena's $60.07 cost per ounce.
When did the September underground ore stockpile get milled?
Management blamed Galena's $9.3 million cost-of-sales jump on broken ore and waste left underground after rapid September blasting. Investors need to know how many ounces that stockpile contained and whether milling it in October lowered fourth-quarter unit costs.
Will Americas draw the next $50 million loan tranche?
Cash dropped to $63.3 million while trade payables climbed to $64.6 million, and the SAF Group loan requires a $35 million minimum cash balance through year-end. Management has not said which conditions remain to unlock the next $50 million debt tranche.
When will Crescent production and costs be reported separately?
Crescent pre-production ounces and costs are currently folded into the Galena Complex tables, with $1.0 million of proceeds offset by $1.0 million of costs in the third quarter. Breaking out Crescent's ramp schedule and capital spend would show what the $87 million acquisition is contributing.