Americas Gold and Silver Reports 2023-2024 Outlook
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Americas Gold and Silver Reports 2023-2024 Outlook

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Karin Dilge By Karin Dilge | Journalist and Industry Analyst - Mon, 02/27/2023 - 16:41

The Canadian mining company Americas Gold and Silver reported its attributable silver production, silver equivalent production, cost and capital expenditure guidance for 2023 as well as its production outlook for 2024. 

Americas Gold and Silver is expecting a silver equivalent production of 5.5-6 million oz in 2023, with further increases anticipated to result in the production of between 6.5 and 7 million oz in 2024. Moreover, attributable silver production forecasted for 2023 is between 2.2 and 2.6 million oz, with further increases anticipated to yield 3.5-4 million oz in 2024. 

“The Company’s 2023 guidance and 2024 production outlook are expected to continue to deliver solid organic production increases and substantial silver optionality to our stakeholders over the next several years,” stated Darren Blasutti, President and CEO, Americas Gold and Silver.

In addition, year-over-year attributable silver production is expected to increase in 2023 by over 80% based on the mid-point of the expected 2023 guidance range while attributable silver equivalent production is expected to increase in 2023 by approximately 10%. 

Americas Gold and Silver highlighted that the expected increase in 2023 will be the result of a higher portion of production coming from the higher-grade silver Upper Zone of the San Rafael deposit at the Cosalá Operations as well as a full year of production from the 3700 Level at the Galena Complex, which contains higher grade ore as well as the completion of the Galena Hoist project before 2H23. 

“The Galena Hoist project is nearing completion and is expected before 2H23, while the Cosalá Operations are actively mining the higher-grade silver zones, both of which are expected to boost attributable silver production by over 80% in 2023,” said Blasutti. 

Furthermore, the company expects sustaining and discretionary growth capital expenditures in 2023 to be in-line with 2022 actuals. It published that capitalized exploration costs will be higher as a US$1.2 million drill program is expected to test the Cosalá North prospect in 2023. 

The company also announced that the Galena Complex is confronting an industry-wide labor shortage, which has been reflected in the company’s silver equivalent production guidance for 2023. What is more, 1Q23 production will be impacted by a two-and-a-half-week shutdown in February to complete remedial work on the tunnel at the Cosalá Operations tailings facility. 

Finally, consolidated cash cost for 2023 is expected to range between US$8-US$9 per silver oz assuming zinc and lead prices of US$1.45/lb and lead of US$1/lb, respectively.

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