Analyst Heiko Ihle of H.C. Wainwright reiterated a Buy rating on Americas Gold and Silver (USAS – Research Report), with a price target of $1.50.
Heiko Ihle has given his Buy rating for Americas Gold and Silver Corporation due to a combination of factors. Firstly, he notes that despite a net loss of $10.5M in the third quarter of 2023, this is an improvement on the previous year’s loss of $24.7M in the same quarter. This reduction in net loss is largely attributed to a $13.4M impairment to property, plant, and equipment that was incurred during the third quarter of 2022. Additionally, although the company’s cost of sales remained high at $18.0M, it was still slightly less than the $18.7M recorded in 3Q22.
Secondly, Ihle highlights that while 2023 production guidance remains unchanged, the company expects to land at the lower end of this range due to a series of issues including a planned five-day electrical shutdown at Galena and low mobile equipment availability. However, he maintains that most of these issues have now been resolved and predicts a significant improvement in production across 2024. Furthermore, he reiterates his Buy recommendation based on a Discounted Cash Flow (DCF) valuation method utilizing unchanged discount rates for Galena and Cosalá of 8.0% and 9.0% respectively. Lastly, he points out near-term catalysts such as improvements in mine equipment availability at Galena and the expected completion of repair work for the Galena Shaft in the first quarter of 2024, which could positively impact the company’s performance.
According to TipRanks, Ihle is an analyst with an average return of -19.6% and a 21.09% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Hecla Mining Company, Avino Silver & Gold, and Endeavour Silver.
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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.
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