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USAS - Americas Gold And Silver Corporation

Discussion in 'Stock Message Boards NYSE, NASDAQ, AMEX' started by Dan Thunderbolt, Apr 2, 2019.

  1. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    USAS market cap is still very low imo in view of their future production profile. Lots of catching up to do once the Relief Canyon Gold project in Nevada reaches commercial production in mid August.
     
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  2. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    This one takes longer than expected to move up significantly. Nevertheless I am still confident that a nice run with positive news is just around the corner. We’ll see…
     
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  3. Dan Thunderbolt

    Dan Thunderbolt Active Member

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  4. Bodacious

    Bodacious Active Member

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    Precious metals go up crazy today, looking good.
     
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  5. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    Things seems to be progressing at Relief Canyon. Commercial production is around the corner...

    Sandstorm Gold
    Q2 2020 Earnings Call
    Jul 31, 2020

    https://www.fool.com/earnings/call-...gold-sand-q2-2020-earnings-call-transcri.aspx

    "For those who have been following Sandstorm for a while, you may notice in addition to this chart, the Relief Canyon mine, which contributed approximately a thousand gold equivalent ounces in the second quarter."
     
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  6. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    AMERICAS GOLD AND SILVER CORPORATION
    MANAGEMENT’S DISCUSSION AND ANALYSIS
    FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2020
    DATED AUGUST 14, 2020

    Q2-2020 Highlights
    • Relief Canyon continues to ramp up with tonnage and grade reconciling to the resource model. Mining progressed through the lower grade upper fringe portion of the deposit near the historic North and Lightbulb pits but has now reached a more continuous and higher grade area. Commercial production is expected to be delayed until Q4-2020 due to various start-up challenges including equipment issues with the radial stacker, inconsistent operating practices and variable solution application rates. On August 4, 2020, the operation began stacking ore typical of the Main Zone which management expect to show gold extraction rates consistent with feasibility expectations.
    • A legal vote for a new union to represent the Company’s workers at its Cosalá operations is expected by mid-September. The Company is anticipating this vote will allow for the restart of operations before the end of Q3-2020.
    • Galena’s Recapitalization Plan is proceeding on time and on budget with the Company expecting higher production in the second half of 2020 from the recapitalization improvements. Drilling todate on extensions of known resources and historic veins below existing workings is showing promising results to expand resources and production beyond 2020.
    • Revenue of $4.6 million and a net loss of $10.8 million for Q2-2020 or a loss of ($0.09) per share.
    • Year-to-date operating metrics were largely unchanged in Q2-2020 from Q1-2020 due to the illegal blockade at the Cosalá Operations, suspension of operating metrics during the Galena Recapitalization Plan implementation, and ongoing pre-development at Relief Canyon (omitted below).
    • Closed a bought deal public offering for gross proceeds of approximately C$28.75 million in May 2020.
    • The Company had a cash balance of $16.9 million and working capital balance of negative ($5.7) million as at June 30, 2020.
     
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  7. Onepoint272

    Onepoint272 2019 Stockaholics Contest Winner

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    Thanks for posting your updates @Dan Thunderbolt . Currently USAS is the only miner I hold. Generally I run through my list and look for relative strength and narrow it down to the leaders. Since you seem to take a more fundamental approach, I'm curious what other miners (gold or silver) you like best. Please don't put yourself out with the details and no hurry on a reply. Thanks in advance.
     
  8. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    Hi Onepoint272
    I am all set with my miners (USAS, MQR, SGN). Currently I am not buying or actively searching for opportunities in the Gold and Silver mining sector, I am just holding.

    USAS is the one which is lagging behind a bit but imo has great potential from current share price levels. They will soon earn lots of money with their Gold project. I intend to hold the shares longer because of the silver potential. Once silver is in the range of $50-$100 I will consider selling. If USAS then manages to produce at least 5 million ounces per year the market cap should easily be above 2 Billion. At current levels still a great medium/longterm buy (though I do not know how the market will react to the further delay at Relief Canyon published Friday evening).

    My main Gold play is Monarch Gold. Downside is this stock is not so highly traded but it is getting much better as of late. I am pretty sure that if Gold stays above $1.500 this will be a billion dollar company minimum in the next 2-4 years down the road (current market cap is around 130 Million). I did a lot of dd on this one, great projects with nearterm production potential. If I wanted to buy a Gold play right now I would definitely strongly consider this one.

    I missed out on two silver plays on which I did lots of DD and liked very much. but I was to greedy with my buy limit at 20 Cents - Aurcana Corp and the other one was GRSL which I sold for a quick twenty 20% gain at 20 cents hoping to buy it again back later cheaper.
     
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  9. Onepoint272

    Onepoint272 2019 Stockaholics Contest Winner

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    Thank you. Technically MQR looks very good to me, it just got oversold along with the silver and gold contracts. But with the cause it built between Sept 2018 and June 2020, my Point and Figure work shows it has legs to $1.00, a double from here. It could be higher if we get an extended re-accumulation range here. I'll be watching it. Maybe bite at 45 cents.
     
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  10. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    Two news releases today. Most importantly imo the Cosala Silver mine blockade has been resolved. Company personnel have re-entered the mine operations and the Company expects to have the operation restarted before the end of Q3-2020. This should generate sufficient near term cash flow until Relief Canyon is fully operational.

    August 17, 2020
    Americas Gold and Silver Corporation Provides Encouraging Results from Initial Deep Level Drilling from The Galena Complex
    https://www.americas-gold.com/news-...-deep-level-drilling-from-the-galena-complex/

    August 17, 2020
    Americas Gold and Silver Corporation Reports Second Quarter 2020 Results and Provides Operations Update
    https://www.americas-gold.com/news-...-2020-results-and-provides-operations-update/
     
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  11. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    Interesting article. According to the article USAS is a laggard, however with lots of potential if all things go right. Overall, the author sees better opportunities elsewhere.

    Americas Gold And Silver: A Disappointing Start To FY2020
    Aug. 19, 2020

    Summary
    Americas Gold and Silver reported its Q2 results last week with the disappointing news that commercial production at Relief Canyon has been delayed.

    This delay combined with an illegal blockade at the company's Cosala operations led to a 69% drop in revenue year-over-year, weighing on the company's working capital.

    Given the weak balance sheet, the company has been forced to raise capital for the third time this year, with shareholders hit with yet another round of dilution.

    While the stock is undervalued if Relief Canyon can finally get into production without any further issues, I see better opportunities elsewhere in the sector.

    https://seekingalpha.com/article/4369684-americas-gold-and-silver-disappointing-start-to-fy2020
     
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  12. Onepoint272

    Onepoint272 2019 Stockaholics Contest Winner

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    Yeah I should have harvested at 3.50 or so but regardless I do like the recent action the day before the ER and following. Appears to be some sort of shakeout (see note on chart below). I will add on a shallow low-volume test next week and/or see if it can jump the creek, the top of the selling bar after the ER @ 3.09.

    Daily bars:
    upload_2020-8-29_1-31-28.png
     
    #112 Onepoint272, Aug 29, 2020
    Last edited: Aug 29, 2020
    bigbear0083 and T0rm3nted like this.
  13. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    The next spike will occur imo when they announce production re-start at their Cosala Silver Mine mid to end of September. We will maybe see $3.50 - $4.00.

    Then next is commercial production in December 2020. Once Relief Canyon is functioning as intended we will likely trade around $5 or above.

    The Galena Silver mine may surprise us with great drilling results. Eric Sprott has invested directly into this mine...
     
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  14. T0rm3nted

    T0rm3nted Moderator
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    Just hopped in this one. Some good DD in here and the 50MA has really acted as strong support with multiple bounces off of it dating back to mid June. Only dipped below once for a week and recovered.

    upload_2020-9-1_11-15-17.png
     
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  15. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    The current market cap is way too low imo considering the intrinsic value of some of the assets.

    The NPV of Relief Canyon is around $420 Million (before tax) with the current price of Gold. And this is without the 20%-30% percent mine life increase which they know is there and just has to be drilled out.

    At a current price of silver the NPV of the EC120 silver project is $120 Million.

    Plus 60% of Galena which is a historical 5 Moz/yr producer.

    Up to now USAS has been a laggard compared to most other mining companies. Nonetheless I am still highly confident that once the start-up problems at Relief Canyon have been solved and Silver production is ramping up again USAS has lots of catching up to do.
     
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  16. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    Let's hope the situation has been solved today at the Cosala Silver Mine...

    "The Company has worked with government authorities to secure a democratic election to ratify a legitimate union to represent its workers which is now set for September 9, 2020."

    "... the Company expects to have the operation restarted before the end of Q3-2020."

    https://www.americas-gold.com/news-...-2020-results-and-provides-operations-update/
     
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  17. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    I'll assume the only way is up from here on moving forward :)

    September 10, 2020
    Americas Gold and Silver Provides Update on Relief Canyon
    TORONTO, ONTARIO - September 10, 2020 - Americas Gold and Silver Corporation (TSX: USA) (NYSE American: USAS) (“Americas” or the “Company”), a growing North American precious metals producer, today provides an update on the ramp-up of the Relief Canyon mine toward commercial production.

    Highlights
    • Since placing first ore on the 6W leach pad on August 4, 2020, leach solution grade coming from the pad has increased significantly and is operating within expected norms.
    • Continued improvements to operating practices will improve consistency of heap performance and reduce operating costs.
    • Commercial production remains targeted for Q4-2020.
    “The Company is thrilled to report that the new section of the leach pad is operating according to plan” stated Americas President and CEO Darren Blasutti. “Leach solution grade has bumped up nicely which bodes well for continued increases in gold production and a strong finish to the year. We remain committed to declaring commercial production before the new year.”

    https://www.americas-gold.com/news-...-and-silver-provides-update-on-relief-canyon/
     
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  18. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    Looks like they are having trouble re-opening the Cosala Silver mine...

    Canadian miner Americas Gold and Silver, owner of the San Rafael mine, Cosalá categorically rejected the validity of a vote count among participating unions to determine ownership of the mine's collective bargaining agreement.

    Americas Gold and Silver rechaza resultado en elección de sindicato en mina Cosalá
    18.09.2020

     
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  19. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    Kitco interview from today with the CEO.

    Nothing concerning the Cosala siutation...

    However, some encouraging words concerning Relief Canyon (starting around 19 min): "There was delay yes, but the mine is going like gangbusters right now. Commercial production mid Q4."

     
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  20. Dan Thunderbolt

    Dan Thunderbolt Active Member

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    This is big news imo...

    October 14, 2020
    Americas Gold and Silver Provides Update on Relief Canyon
    TORONTO, ONTARIO - October 14, 2020 - Americas Gold and Silver Corporation (TSX: USA) (NYSE American: USAS) (“Americas” or the “Company”), is pleased to provide an update on the continued successful ramp-up of the Relief Canyon mine in Nevada as it progresses towards commercial production.

    Highlights
    • Pregnant solution grade has increased over 400% since August 2020.
    • With ore leaching well, the resulting increase expected from the return of the repaired radial stacker in the first week of November is the only remaining requirement to reach commercial production at the mine.
    • Commercial production remains targeted for Q4-2020.
    https://www.americas-gold.com/news-...nd-silver-provides-update-on-relief-canyon-1/
     
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