Americas Gold and Silver (TSX: USA) has been anything but boring in 2025. From index inclusion to mine upgrades, exploration breakthroughs and a push to ramp up silver production, the mining stock is working overtime to transform its operations. But despite this ambition, the miner still posted a net loss in the first quarter of the year, leaving investors to ask: Is this stock a buy, sell, or hold? Let’s break it down.
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Into earnings
In May, Americas Gold and Silver reported its Q1 2025 earnings. Revenue rose 12% year over year to $23.5 million, helped by a much stronger realized silver price of $32.10 per ounce. That alone is an encouraging sign, especially considering silver prices have been volatile. However, a closer look at the financials reveals that the miner is still deep in the red. It posted a net loss of $18.9 million, worse than the $16.2 million loss in the same quarter last year. Adjusted earnings, which strip out some one-time charges, still came in at a $11.5 million loss.
Production volumes also dipped slightly. Silver output dropped to 446,000 ounces compared to 484,000 ounces last year. The culprit? A planned 14-day shutdown at the Galena Complex and transition phase at the Cosalá Operations in Mexico, which are shifting from the San Rafael Mine to the higher-grade EC120 Project. That shift is strategic and promising, but it’s not without near-term costs.
What’s giving investors some hope is the groundwork being laid for a potentially more profitable future. The Galena Complex, now fully owned by the company following a 2024 deal with Eric Sprott and Paul Huet’s team, is finally getting the capital investment and technical expertise it has long needed. The Galena team is actively advancing infrastructure projects that should allow higher-grade ore to be extracted more efficiently. Production from high-grade silver-lead and silver-copper stopes is already picking up.
Looking ahead
At Cosalá, the EC120 zone is set to be the mining stock’s growth engine. While it only contributed modestly to Q1 numbers at $2.3 million in revenue and increased capital spending of $1 million, the mining company expects production to ramp up meaningfully by the end of the year. Once operational at scale, the EC120 zone could lower overall costs while boosting output.
Still, costs remain a concern. Cash costs came in at $25.04 per ounce in Q1, while all-in sustaining costs were a steep $35.67. These numbers are above current silver prices, which means the mining stock is not generating operating cash flow from its core business just yet. The hope is that these will trend down as higher-grade ore from EC120 and Galena Central comes online. Encouragingly, development costs at Galena are reportedly coming in below expectations, a rare win in mining today.
Then there’s the inclusion in the Solactive Global Silver Miners Index in May, a milestone that should raise the company’s profile among institutional investors. That’s especially helpful as the mining stock seeks a “non-dilutive, right-sized debt facility” to help fund its growth plans. With only $8.8 million in cash and a working capital deficit of $27.8 million, Americas will need more capital, and soon. If that debt facility falls through, another equity raise could be on the table, which would dilute current shareholders.
Bottom line
So, is this mining stock a buy, sell, or hold? If you’re looking for a stable dividend payer or cash-flow machine, this isn’t it, yet. But if you’re a speculative investor who believes in silver’s long-term potential and trusts in management’s ability to turn around operations, this could be a calculated hold, or even a buy-on-dips situation. That said, with ongoing losses, capital needs, and production still ramping, risk remains high.
Americas Gold and Silver is a high-risk, high-reward silver miner trying to prove it can finally deliver. If management executes and silver prices stay strong, shareholders could be rewarded. But it’s not for the faint of heart.
