Americas Gold & Silver Held $88.9 Million in Cash as Second-Quarter Costs Reached $40.63 Per Ounce

• Consolidated net revenue reached $46 million in the second quarter of 2026, a 71% increase over the $27.0 million reported for the second quarter of 2025, which the company attributed primarily to higher realized prices.
• Silver equivalent production of approximately 801,000 ounces was 5% lower than in the second quarter of 2025, and silver sales of approximately 624,000 ounces fell from approximately 830,000 ounces in the first quarter of 2026.
• All-in sustaining cost (AISC) per silver ounce sold moved from $32.95 for full-year 2025 to $34.12 in the first quarter of 2026 and $40.63 in the second, with the first half averaging $36.92 against full-year guidance of $30 to $35.
• Cash and cash equivalents stood at $88.9 million and working capital at $48.6 million as of June 30, 2026, against 2026 capital investment guidance of $90 million to $120 million.
• Settlement of approximately $76 million in variable silver and gold debt obligations eliminated more than $28 million in annual debt service, at roughly 3.3% dilution, and removed metal price-driven valuation changes from the income statement prospectively.

What Has Happened

Americas Gold & Silver Corporation (TSX: USA | NYSE American: USAS) reported second quarter 2026 financial and operational results on August 14, 2026. Consolidated net revenue was $46 million for the quarter and $114 million for the first half, which the company states nearly matches its entire fiscal 2025 revenue.

Three measures moved the other way. Silver equivalent production of approximately 801,000 ounces was 5% below the second quarter of 2025. All-in sustaining cost (AISC) per silver ounce sold rose to $40.63 from $34.12 in the first quarter. Cash and cash equivalents stood at $88.9 million as of June 30, 2026, with working capital of $48.6 million, against a 2026 capital program guided to $90 million to $120 million. The business remains on track for full-year guidance of 3.2 to 3.6 million ounces at $30 to $35 per ounce sold, with production weighted toward the second half.

The Quarterly Progression Behind the 71% Revenue Increase

The company sets the two quarters side by side. Americas Gold & Silver produced approximately 787,000 ounces of silver and sold approximately 830,000 ounces in the first quarter of 2026. In the second quarter, it produced approximately 665,000 ounces and sold approximately 624,000 ounces. Both AISC and cash costs are reported per ounce sold rather than per ounce produced.

The revenue increase therefore did not come from volume. The company attributed the 71% rise primarily to higher realized prices, and states that silver accounted for approximately 90% of its first half 2026 revenue, on a basis it describes as 2025 gross commodity production multiplied by average 2025 spot prices. Consolidated silver equivalent output for the first half was approximately 1.7 million ounces, a 2% increase on the first half of 2025, against revenue growth of 126% over the same comparison. A 2% volume gain accompanied a 126% revenue gain.

Two disclosed events account for the second-quarter shortfall. The Phase 2 shaft upgrade shutdown at the Galena Complex ran two weeks beyond its planned 14-day duration, and a minor electrical fire in June deferred access to a planned higher-grade stope into the third quarter. The company states that minor repairs in the affected area have been completed.

Unit Costs Moved Away From Guidance in the Second Quarter

AISC per silver ounce sold was $32.95 for full-year 2025, $34.12 in the first quarter of 2026, and $40.63 in the second, giving a first-half average of $36.92 against full-year guidance of $30 to $35. Cost of sales per silver-equivalent ounce sold was $32.05 for the quarter and $28.33 for the first half, with cash costs of $25.68 and $24.48, respectively.

The consolidated figure conceals two operations moving in opposite directions. At the Galena Complex, cash costs per ounce of silver sold rose to $35.26 from $23.39 in the second quarter of 2025, which the company attributed to lower silver sales and increased use of contractors as Idaho operations scale up. At Cosalá, cash costs fell to $16.91 per ounce from $30.61, driven primarily by higher copper by-product credits. Cosalá produced approximately 337,000 ounces of silver, compared with Galena's approximately 328,000 ounces, so the lower-cost asset produced more silver during the quarter.

The company's stated route to lower unit costs runs through higher sustained throughput at Galena, spreading fixed cost across more ounces. Contractor use and reduced silver sales worked against that mechanism in the second quarter, and Galena's cash cost per ounce sold rose year-over-year as a result.

Cash & Working Capital Through the Growth Program

Executive Vice President of Corporate Development at Americas Gold & Silver, Oliver Turner, reported cash of $122 million, with $50 million drawn against a $100 million credit facility, leaving half the facility undrawn. As of June 30, 2026, cash and cash equivalents were $88.9 million and working capital was $48.6 million.

The company described that position as in line with expectations, reflecting the continued deployment of capital toward its revitalization and growth plans, alongside the settlement of variable future debt obligations. Against that balance, 2026 capital investment guidance is $30 million to $40 million sustaining and $60 million to $80 million growth, totaling $90 million to $120 million, with consolidated exploration capital of $15 million to $20 million targeted separately. Committed near-term items include new flotation cells at approximately $4.8 million, scheduled for delivery in the fourth quarter of 2026.

The settlements changed the structure of the liabilities rather than adding cash. Americas Gold & Silver settled approximately $76 million of variable silver and gold debt obligations, eliminating more than $28 million of annual debt servicing for roughly 3.3% dilution, comprising 7,956,696 common shares issued to Sprott and 2,652,532 shares plus 5,000 ounces of gold delivered to Royal Gold, with the gold purchase offset by approximately $7 million unlocked from in-the-money price protection instruments. The settlement also removes the effect of gold and silver price movements on the valuation of those instruments from the income statement prospectively, which narrows the gap between reported earnings and operating performance in future quarters.

Turner set out where that capital is directed, and where it is not:

"We are not targeting a massive M&A spree right now. We've got so much to work on with the assets that we have, but keeping informed on what's going on and what's available, of course, we're doing that."

How the Market Is Pricing the Business

As of August 7, 2026, drawing on S&P Capital IQ, company filings, and equity research, Americas Gold & Silver was valued at 0.75x average broker research net asset value  (NAV) per share. Intermediate to senior silver producers in the same comparison averaged approximately 1.17x. The peer set ranged from First Majestic Silver at 2.01x, Fresnillo at 1.68x, and Hecla Mining at 1.52x down through Fortuna Mining at 0.76x and Silvercorp Metals at 0.63x.

The same comparison places Americas Gold & Silver at a market capitalization of US$1.7 billion, the smallest in a set that runs to US$28.5 billion for Fresnillo, US$21.6 billion for Pan American Silver, and US$17.9 billion for Coeur Mining. Capital structure comprises 338 million common shares outstanding and 362 million fully diluted shares, with ownership as of May 28, 2026 split among institutions at 42%, other holders at 31%, Eric Sprott at 14%, exchange-traded funds at 8%, and management and directors at 5%.

Management cited approximately 0.6x NAV on-the-street numbers earlier in 2026; the August comparison uses the average broker research NAV and yields 0.75x. Both sit below the peer average, and the company ties any re-rating to quarterly delivery against guidance rather than to the silver price. 

Turner has described where the company is aiming to sit among US-listed silver names:

"We want to become the third port of call for US investors to invest in silver, and that's why we're building in the US, expanding the Silver Valley as we did with Crescent, and continuing to keep that presence really being North America."

What to Watch Next

The second half carries the weight of the full-year plan. First-half silver production was 1.5 million ounces against full-year guidance of 3.2 million to 3.6 million ounces, and first-half AISC was $36.92 against a guidance range of $30 to $35, which the company states was in line with plan and on track to achieve that range.

Three disclosed items govern delivery. With both phases complete, the upgraded No. 3 Shaft is expected to deliver 1,350 short tons per day of hoisting capacity, based on throughput that has risen from roughly 42 short tons per hour to a sustained rate of 85, with peak performance reaching 105. Mill capacity is targeted to increase from approximately 750 to 1,200 short tons per day by the end of 2026, with flotation cells scheduled for fourth-quarter delivery, and a paste fill plant to support the long-hole stoping transition is planned. Against $88.9 million in cash and $48.6 million in working capital as of June 30, 2026, the $90 million to $120 million capital program and $15 million to $20 million in exploration make the rate of balance sheet drawdown the figure to watch in the third-quarter report.

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