Americas Gold and Silver (USAS) Q4 2025: Silver Output Jumps 52% as Galena Upgrades Drive Production Momentum

2026-03-30 | By EarningsIQ Research

Americas Gold and Silver’s Q4 capped a transformational year, with a 52% surge in silver production and sweeping operational upgrades across its North American mines. The company aggressively advanced long-hole stoping, major shaft upgrades, and resource expansion at Galena, while Kosala delivered record output and fresh discoveries. Management’s guidance signals another step-change in 2026, but margin compression and capital intensity remain focal points as the business scales for higher throughput and critical minerals diversification.

Summary

• Galena Modernization Accelerates: Long-hole stoping and shaft upgrades are driving step-change productivity improvements.
• Kosala Sets Production Records: Historic silver output and new discoveries expand future optionality.
• 2026 Growth Targets Raise Stakes: Execution on cost and capital discipline is critical as production ramps and new assets come online.

Performance Analysis

Americas Gold and Silver delivered an 18% year-over-year revenue increase to $118 million, propelled by a 52% jump in silver production to 2.65 million ounces attributable. This growth was achieved despite significant planned shutdowns at Galena for infrastructure upgrades, underscoring the operational resilience of the business. Kosala contributed a record 1.2 million ounces, its highest annual and quarterly silver output, while Galena’s advances included both higher volume and the highest grades seen in two decades.

Margins remain under pressure as all-in sustaining costs (AISC) averaged $33 per ounce, reflecting the capital-intensive modernization and ramp-up phase. The company posted a net loss of $87 million, with adjusted EBITDA at a $4 million loss, as operational gains were offset by ongoing investment and transition costs. However, the capital raise of $133 million in December strengthens liquidity to fund the next leg of growth, including the Crescent integration and expanded exploration.

• Operational Leverage Builds: Productivity at Galena improved with remote-controlled mucking and shaft upgrades, moving from 50 to 200 tons per shift.
• Cost Headwinds Persist: Sustaining and growth capital requirements, plus higher costs per ounce, weigh on near-term profitability.
• Exploration Upside Materializes: New high-grade veins and resource updates at Galena and Kosala support long-term optionality.

The company’s ability to convert operational improvements into cost reductions and cash flow will remain a central watchpoint as production guidance steps up another 30% for 2026.

Executive Commentary

Strategic Positioning

1. Galena Complex: Modernization and Resource Expansion

Galena’s transformation is central to USAS’s growth thesis. The mine is undergoing a shift to long-hole stoping, a bulk mining method that increases tonnage and efficiency, with 7-9 panels mined in 2025 versus zero the year before. Shaft upgrades—most notably the No. 3 and core shafts—are boosting hoisting capacity by 150% and supporting future throughput targets. The integration of Crescent and aggressive underground drilling (64,000 meters planned in 2026) are expanding high-grade resource potential, with M&I resources at Galena now exceeding 115 million ounces of silver.

2. Kosala: Record Output and New Discoveries

Kosala delivered its best-ever production year, ramping up the EC120 mine and discovering new high-grade targets like Alacran. This asset, with a history of turning outcrops into operating mines, is positioned for sustained output, with exploration focused on further resource conversion and mill feed flexibility. The operational team navigated geographic and logistical challenges, underpinning confidence in future expansion.

3. Critical Minerals Diversification: Antimony JV and Byproduct Revenue

USAS is leveraging its unique position as the largest active U.S. antimony landholder through a joint venture with United States Antimony to build a domestic mine-to-finish antimony facility. This move, alongside new offtake agreements for copper and antimony byproducts, creates additional revenue streams and aligns with U.S. critical minerals policy tailwinds.

4. Capital Allocation and Funding Flexibility

Capital discipline is under scrutiny as the company targets $90–$120 million in 2026 capital expenditures, with $60–$80 million for growth and $30–$40 million for sustaining investments. The December equity raise provides near-term liquidity, but execution risk rises as multiple projects progress in parallel, particularly with Crescent’s ramp and Galena’s infrastructure needs.

5. Market Position and Shareholder Alignment

Institutional ownership has risen sharply, now over 65%, reflecting increased market confidence and index inclusion (GDXJ, SIL, SILJ). Despite outperformance versus silver peers, management argues the shares still trade at a discount to net asset value, offering both growth and value leverage as the business scales.

Key Considerations

This quarter was marked by aggressive operational transformation, resource growth, and a multi-asset ramp-up that tests both execution and capital allocation discipline.

Key Considerations:

• Galena’s Long-Hole Stoping Transition: Execution on the shift to bulk mining methods is essential for hitting volume and cost targets.
• Infrastructure Upgrades: Timely completion of shaft, hoisting, and communications upgrades will dictate productivity and safety gains.
• Exploration and Resource Growth: Success in the 64,000-meter drill campaign could further extend mine life and improve grades, especially at Galena and Crescent.
• Cost Containment: Sustaining lower AISC as production rises is critical for margin expansion and cash generation.
• Critical Minerals Optionality: The antimony JV and byproduct agreements offer potential upside but require operational follow-through.

Risks

USAS faces material risks tied to capital execution, cost control, and timely delivery of infrastructure upgrades. Margin compression from high AISC, the complexity of integrating new assets like Crescent, and the need to deliver on critical minerals initiatives all present execution risk. Silver price volatility and potential delays in ramping new projects could further pressure results, while the business’s capital-intensive phase heightens sensitivity to funding and operational setbacks.

Forward Outlook

For Q1 2026, Americas Gold and Silver guided to:

• Consolidated silver production of 3.2–3.6 million ounces for the full year
• All-in sustaining costs of $30–$35 per ounce sold

For full-year 2026, management maintained guidance:

• $90–$120 million in capital expenditures, with $15–$20 million for exploration

Management highlighted several factors that will shape the year:

• Completion of Galena shaft upgrades and expansion of long-hole stoping to 60–70% of mining activity
• Initial Crescent ore contributions, with full ramp-up dependent on secondary egress completion
• Acceleration of drilling and exploration, especially in Idaho

Takeaways

Americas Gold and Silver is entering a pivotal phase with operational momentum and resource growth, but the ability to translate productivity gains into margin and cash flow improvement is the key investor watchpoint.

• Operational Milestones: Step-change production and grade improvements at Galena and Kosala are building a foundation for future volume and optionality.
• Capital Intensity: High capex and persistent margin pressure require disciplined execution to avoid value dilution as the business scales.
• Strategic Diversification: The antimony JV and byproduct revenue streams could provide future upside, but execution and market realization remain to be seen.

Conclusion

Americas Gold and Silver’s Q4 2025 results confirm a business in aggressive transformation, with operational, resource, and infrastructure advances positioning it for significant growth in 2026 and beyond. The challenge now is to sustain cost discipline and deliver on complex project ramps to unlock the full value of its high-grade silver and critical minerals platform.

Industry Read-Through

USAS’s quarter underscores the importance of modernization and mechanization in North American underground mining, as legacy assets are retooled for higher productivity and resource conversion. The success of long-hole stoping at Galena highlights the operational leverage available from mining method shifts, while the antimony JV points to emerging value in critical minerals supply chains. For peers, the focus on cost control, exploration-driven growth, and capital allocation discipline will be central themes as the sector navigates volatile commodity prices and rising investor scrutiny on execution and value creation.

USAS Materials Mining Silver Critical Minerals Exploration Capex Operational Efficiency