Americas Gold and Silver (USAS – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Heiko Ihle from H.C. Wainwright remains neutral on the stock and has a $1.50 price target.
Heiko Ihle has given his Buy rating to Americas Gold and Silver Corporation (USAS) due to a number of factors. Despite a 26% decrease in silver equivalent ounces (SEOs) production and operational issues at the Galena and Cosalá projects, the company reported a 17% YoY increase in attributable silver production. Additionally, Americas Gold and Silver has managed to address the equipment availability issues at its Galena project, leading to increased production rates in the later part of the third quarter.
Furthermore, despite setbacks caused by adverse weather and maintenance at the Cosalá site, the company anticipates a rise in production in the fourth quarter due to higher anticipated grades in the Upper Zone and San Rafael mine. Americas Gold and Silver has also grown its ore stockpile at the site to 25,000 tonnes. Although the price target (PT) was lowered, this was attributed to recent production results and a more conservative ramp-up timeline for Relief Canyon. The company’s valuation remains based on a DCF of operations, underpinned by unchanged discount rates for Galena and Cosalá, and an 11.0% discount rate for Relief Canyon. This suggests a potential for meaningful long-term shareholder value creation.
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Americas Gold and Silver (USAS) Company Description:
Americas Silver Corp. engages in the acquisition, exploration, development and exploration of mineral resource properties. It focuses its operation in Mexico and the United States. The company was founded by Peter Jude Hawley on May 12, 1998 and is headquartered in Toronto, Canada.
