There's a particular kind of frustration that comes from doing the thing you said you'd do and still getting punished for it. Americas Gold and Silver Corp. (AMEX:USAS) just lived through that on Friday.
The company reported fiscal third-quarter 2026 results, and the headline number was genuinely historic: silver production hit a record 800,458 ounces, up 5% year over year. Chairman and CEO Paul Andre Huet didn't hide his pride on the earnings call.
“In the 28-year history of this company, that has never been done,” Huet said.
Investors, however, were looking at a different number. Revenue rose 68% year over year to $51.4 million, but that fell well short of the $68.37 million consensus estimate. The stock dropped 6.99% to $2.59 by the time of publication Friday, according to market data.
The Profit Picture Is Improving, Just Not Fast Enough
The adjusted loss came in at 2 cents per share, compared with an adjusted loss of 6 cents per share a year earlier. The net loss narrowed to $5.6 million from $16.5 million.
Adjusted EBITDA rose to $9.3 million from $1.9 million, driven mainly by higher realized silver prices. So the underlying business is moving in the right direction. The problem is that “right direction” and “meeting expectations” are two different things, and Wall Street grades on the latter.
Cosalá Is the Star of the Show
The Cosalá operations produced 415,879 ounces, up 28%, supported by higher grades at the EC120 mine. Huet also highlighted exceptional silver discoveries there, and he did not mince words about what he's seeing.
“In my 35-plus years of mining, I have never seen any widths followed by grades like this,” Huet said, describing the results as “world-class.”
He added that some newly discovered zones contain silver grades four to five times higher than previously modeled. That's the kind of talk that makes geologists sit up straight.
Silver-equivalent production reached 936,870 ounces, including lead, copper and antimony output. Cash costs averaged $29.66 per silver ounce sold, while all-in sustaining costs (AISC) reached $42.94 per ounce.
The balance sheet looks sturdy enough: the company ended September with $63.3 million in cash and $113 million in available liquidity.
Guidance Points to the Cautious End of the Range
For the full year, Americas Gold and Silver expects silver production near the lower end of its 3.2 million to 3.6 million-ounce forecast. It also expects AISC near the upper end of its $30 to $35 per-ounce forecast.
Translation: output is likely to land on the light side while costs lean heavy. That combination rarely gets a warm reception, which helps explain Friday's selloff.
Meanwhile, the company continues upgrading its Galena operations to improve efficiency and expand production capacity. Improved hoisting capabilities have accelerated mine development to support future mining in silver-copper zones, and management expects these improvements to support future production growth.
So the story here is a company that just set a 28-year record, is finding grades it has never seen before, and still got taken to the woodshed because the top line missed. That's the market for you: records are nice, but estimates are the scoreboard.
