Americas Gold and Silver Reports 2Q22 Production ResultsBy Karin Dilge | Thu, 08/18/2022 - 17:31
After a 20-month blockade, the San Rafael Mine owned by Americas Gold and Silver restarted operations in September of last year. This week, it announced a 2Q22 production of approximately 128,000oz of silver, 9.9 million lb of zinc and 3.9 million lb of lead.
“We are generally pleased with the progress made in the first half of 2022 where we focused on the Cosalá Operations ramp-up, the refurbishment and installation of the new hoist at the Galena Complex and improving the overall financial position of the Company,” said Darren Blasutti, Americas Gold and Silver’s President and CEO.
Cosalá Operations comprises 67 mining concessions covering approximately 19,385ha in Sinaloa. According to the company, its mining operations at San Rafael were illegally blocked by its union in January 2020, under the argument that the company must improve its working conditions. However, Americas maintained that these claims are “false accusations” and that the real objective of the group is to illicitly obtain a collective agreement and other contracts related to mining activities.
The resolution came after several efforts made by the company and the federal government, including President López Obrador. Together, the parties established a framework to return to operations in the long term. Americas said that a key factor toward the permanent reopening of the mine is the continued support of the government in the matter.
For 2Q22, the company’s cash cost per silver ounce and all-in sustaining costs per silver ounce were negative US$35.97 and negative US$25.89, respectively. The company says that the Cosalá Operations continued to benefit from strong by-product credits. Moreover, cash costs increased compared to 1Q22 due to higher wages and costs of consumables.
“Furthermore, we have stayed on track to meet our silver and silver equivalent production as well as our cost guidance, despite the many challenges in the first half of the year. including the Cosalá Operations start-up, persistent COVID-19 challenges, volatile metal prices, increasing inflationary costs and delays throughout the supply chain,” added Blasutti.
Americas Gold and Silver expects silver production to increase during the 2H22 because of a growing contribution from high-grade silver areas in the Upper Zone of the San Rafael mine. In addition, the company informs that silver production from the Cosalá Operations for the year is expected to be toward the bottom end of the projected range from 0.7 to 0.9Moz of silver.
“We are expecting an exciting second half of the year where silver production at both mines will noticeably increase due to mining in the Upper Zone at the Cosalá Operations and mining higher-grade silver stopes at the Galena Complex,” Blasutti concluded.