Americas Silver Corporation Reports Fourth Quarter And Year-End 2016 Financial Results

http://www.americassilvercorp.com/s/NewsReleases.asp?ReportID=784370

TORONTO, ONTARIO—March 30, 2017— Americas Silver Corporation (TSX: USA) (NYSE “MKT”: USAS) (“Americas Silver” or the “Company”) today reported fourth quarter and year-end financial and operational results for 2016 and an update on the San Rafael Project (“San Rafael”).

This earnings release should be read in conjunction with the Company’s MD&A, Financial Statements and Notes to Financial Statements for the corresponding period, which have been posted on SEDAR at www.sedar.com and are also available on the Company’s website at www.americassilvercorp.com. All figures are in U.S. dollars unless otherwise noted.

Year-end and Fourth Quarter Highlights

  • Consolidated results met 2016 guidance for cash costs[1] and all-in sustaining costs1 with approximately 2.4 million silver ounces and 4.7 million silver equivalent ounces[2] at cost of sales of $9.86 per silver equivalent ounce, by-product cash costs of $10.00 per silver ounce and all-in sustaining costs of $12.71 per silver ounce for the year.
  • Fourth quarter production was approximately 565,000 silver ounces and 1.1 million silver equivalent ounces at cost of sales of $10.47 per silver equivalent ounce, by-product cash costs of $8.91 per silver ounce, and all-in sustaining costs of $11.57 per silver ounce.
  • Consolidated operating cash flow generated was $5.4 million in fiscal 2016 compared to ($5.7 million) in fiscal 2015, an increase of $11.1 million or 195%.
  • Revenues of $58.9 million and net loss of ($5.2) million or ($0.15) cents per share for the year compared to revenues of $53.5 million and net loss of ($19.4) million and ($0.68) cents per share for the year ended December 31, 2015.
  • Consolidated guidance[3] for 2017 is 2.0 – 2.5 million silver ounces and 5.5 – 6.0 million silver equivalent ounces at cost of sales of $8.00 – $10.00 per silver equivalent ounce, by-product cash costs of $4.00 – $5.00 per ounce, and all-in sustaining cash costs of $9.00 – $10.00 per ounce.
  • The fully-funded San Rafael Project continues to progress on time and budget for commercial production in late Q3, 2017 following its formal construction commencement in October 2016. San Rafael is expected to be the Company’s key cash flow generator for 2018 and beyond, targeted to produce free cash flow of approximately $30 million annually at current spot prices with an unlevered IRR of +100%.
  • Cash and cash equivalents were $24.1 million at December 31, 2016 with net working capital of approximately $20.1 million. A low interest rate $15.0 million concentrate pre-payment facility was entered in January 2017 after year end with a subsidiary of Glencore PLC (“Glencore”) to fund a portion of the development costs for San Rafael.

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