Americas Gold and Silver (USAS) Q3 2025: Silver Output Jumps 98% as Galena Upgrades Transform Cost Structure
Americas Gold and Silver’s Q3 marked a decisive inflection, with silver production nearly doubling year-over-year and new mining methods at Galena sharply reducing costs. Strategic investments in equipment and long-hole stoping have begun to deliver tangible productivity gains, while antimony test work and government engagement signal a push into critical minerals. With EC120 set to reach commercial production and a fortified balance sheet, the company is positioned to accelerate both output and cash flow into 2026.
Summary
- Galena Modernization Delivers: Long-hole stoping and new equipment drive significant productivity and cost improvements.
- EC120 Ramp Accelerates: Mexican operations transition to higher-margin silver and copper, offsetting base metal declines.
- Critical Minerals Strategy Advances: Antimony breakthroughs and government outreach position USAS for policy tailwinds.
Performance Analysis
Americas Gold and Silver posted a sharp operational turnaround in Q3 2025, with consolidated silver production up 98% year-over-year to 765,000 ounces. This surge was led by the Galena Complex, which benefited from the first-ever deployment of long-hole stoping—a mining method that enables safer, lower-cost, and higher-volume extraction compared to legacy underhand cut and fill. Galena’s attributable silver output increased 127% YoY, while COSOLA in Mexico contributed a 70% YoY production lift as the EC120 ore body ramped up.
Revenue rose 37% YoY to $30.6 million, propelled by both higher realized silver prices (approximately $40 per ounce) and volume gains, despite lower zinc and lead output. Cost discipline was evident across all key metrics: cost of sales per silver equivalent ounce fell 18% sequentially, cash cost per silver ounce dropped 10%, and all-in sustaining cost (AISC) per ounce improved 9%. Adjusted EBITDA swung positive to $1.9 million, a notable reversal from prior losses, while adjusted loss narrowed sharply.
- Galena Productivity Leap: Hoist upgrades and new loaders doubled shaft capacity and reduced waste hoisting bottlenecks.
- EC120 Contribution Grows: Pre-production sales added $12.9 million revenue and 314,000 ounces of silver, with commercial output imminent.
- Balance Sheet Strength: $39 million in cash supports ongoing mine development and infrastructure upgrades.
The combination of operational enhancements, improved cost structure, and higher-margin ore mix is beginning to translate into sustainable financial momentum, setting a new baseline for the company’s growth trajectory.
Executive Commentary
"Our bolstered balance sheet allowed us to make some very strategic investments to continue implementing the operational enhancements we've identified to set ourselves up for sustained growth production. I think I can't emphasize that. More importantly, it is sustained growth production."
Paul Hewitt, Chairman and CEO
"Cost per ounce metrics decreased materially across the board compared to last quarter, with continued reductions expected as silver production increases at both of our mines. Cost of sales per silver equivalent ounce decreased 18% to approximately $23 per ounce. Cash cost per silver ounce decreased 10% to $24.11, and ASIC per silver ounce decreased 9% to approximately $30 per ounce."
Warren Barga, Chief Financial Officer
Strategic Positioning
1. Galena Complex: Modernization and Method Shift
The introduction of long-hole stoping at Galena is a structural shift, enabling higher productivity, lower costs, and improved safety. New underground loaders and trucks, plus major hoist upgrades, have doubled shaft capacity and reduced development bottlenecks. These moves are designed to sustain robust production growth and unlock higher-grade zones near existing infrastructure.
2. COSOLA: Transition to High-Grade Silver and Copper
The EC120 development at COSOLA is transforming the Mexican asset from a base metals focus to a high-margin silver-copper producer. As San Rafael winds down, EC120’s ramp is expected to drive further volume and margin gains, with commercial production targeted by year-end. This ore body’s pre-production already contributed nearly half of total Q3 silver output.
3. Critical Minerals: Antimony Upside and Policy Leverage
Americas Gold and Silver is positioning itself as a key U.S. source of antimony, a mineral critical for defense and energy applications. Test work confirmed over 99% recovery from copper concentrate and a 0.7:1 antimony-to-copper ratio, supporting future revenue diversification. Engagement with government relations specialists signals intent to secure policy support and potentially local processing options.
4. Labor Alignment and Institutional Support
A new five-year collective bargaining agreement at Galena aligns worker incentives for safe, profitable growth, reducing labor risk and supporting operational stability. Institutional ownership remains high, with over 60% of shares tightly held, including a 20% stake by Eric Sprott, reinforcing management-shareholder alignment.
Key Considerations
This quarter’s results mark a pivotal operational and strategic transition for Americas Gold and Silver, with modernization, ore mix upgrades, and critical minerals exposure reshaping the investment case.
Key Considerations:
- Operational Execution Risk: Sustained productivity and cost gains hinge on flawless ramp-up of new mining methods and equipment at Galena.
- Metal Price Sensitivity: Heavy revenue exposure to silver (87% in Q3) amplifies both upside and downside from commodity price swings.
- EC120 Commercial Ramp: Timely transition to full production at EC120 is crucial for maintaining growth momentum as San Rafael declines.
- Antimony Strategy: Success in scaling antimony output and securing policy support could provide a differentiated revenue stream and valuation lever.
Risks
Execution risk remains elevated as the company transitions mining methods and ramps EC120, with any delays or cost overruns potentially eroding margin improvements. Commodity price volatility, especially in silver, could materially impact revenue and cash flow, given the high degree of exposure. Dependence on successful government engagement for antimony policy support introduces uncertainty around critical mineral monetization.
Forward Outlook
For Q4 2025, Americas Gold and Silver signaled:
- Further increases in silver production as Galena upgrades and EC120 ramp continue.
- Ongoing cost reductions as higher-grade ore and productivity gains flow through.
For full-year 2025, management reiterated targets for:
- Commercial production at EC120 by year-end, significantly enhancing silver output and free cash flow.
Management emphasized several drivers for the coming quarters:
- Completion of the second phase of Galena shaft upgrades to unlock full capacity.
- Continued antimony test work and government engagement to secure critical mineral status and support.
Takeaways
Americas Gold and Silver’s operational transformation is gaining traction, with modernization at Galena and the EC120 ramp in Mexico driving volume and cost tailwinds.
- Production Inflection: The shift to long-hole stoping and new infrastructure at Galena is structurally lowering costs and raising output, with further upside as upgrades complete.
- Strategic Diversification: Antimony advances and policy engagement could create a new revenue leg and buffer against silver price swings.
- 2026 Watchpoint: Investors should monitor EC120’s move to commercial production and the pace of critical mineral monetization as key drivers of valuation re-rating.
Conclusion
Q3 2025 marks a step-change for Americas Gold and Silver, with operational upgrades and ore body transitions beginning to deliver on cost and production promises. The company’s push into critical minerals adds strategic optionality, while execution and commodity prices remain the primary levers for future performance.
Industry Read-Through
The modernization and productivity leap at Galena signal a broader trend among North American miners to deploy capital for operational efficiency and cost control in a volatile metals environment. The pivot toward critical minerals, especially antimony, reflects increasing alignment with U.S. policy priorities and potential for new subsidy or offtake opportunities. Peers with legacy mining methods or limited exposure to critical minerals may face relative competitive pressure, while those able to demonstrate similar operational turnarounds could see market re-rating. The sector’s consolidation and focus on high-margin ore bodies underscore the importance of both technical and policy-driven differentiation going forward.