Key Takeaways
- Americas Gold and Silver fell 11% today, and Coeur Mining, Wheaton Precious Metals and Pan American Silver fell 8%, 6% and 6% as silver slid.
- New attacks on shipping in the Strait of Hormuz pushed oil higher, which added to bets on a December Fed rate hike that would weigh on silver.
- Americas Gold and Silver just reported record quarterly silver output, but its operating margin has been negative every year since 2021, so a lower silver price hits it hard.
- Next up are the Fed’s Oct. 27-28 meeting and the company’s full third-quarter results, due in a few weeks.
Silver slid today, and the smallest miners took the worst of it. Americas Gold and Silver (USAS) fell 11%, Coeur Mining (CDE) dropped 8%, Wheaton Precious Metals (WPM) fell 6% and Pan American Silver (PAAS) fell 6% as well.
Oil up, silver down
Kitco reported this morning that new attacks on commercial shipping in the Strait of Hormuz pushed Brent crude above $112 a barrel, its highest since May.
Pricier oil feeds inflation worries, and traders see about an 86% chance of a Fed hike in December. As Kitco put it, “Silver has come under greater selling pressure as higher borrowing costs and concerns about industrial activity compound the impact of weakness in gold.”
By late morning the iShares Silver Trust was down nearly 5%. Other silver miners fell 6% to 8%, on a day when tech pulled the whole market lower.
TIKR tracks 10 analysts on Americas Gold and Silver. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Americas Gold and Silver, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Americas Gold and Silver’s Analyst Ratings
A record quarter with little cushion
The drop came three days after Americas Gold and Silver reported record third-quarter silver production of 800,458 ounces. A 23% jump from the second quarter at Cosalá in Mexico helped. Even so, output came in below what analysts expected, TD Cowen’s Wayne Lam said, as the Galena Complex in Idaho keeps ramping up.
The bigger issue is how little room the business has when silver falls. Its gross margin has moved a lot, from 10% in 2022 to 26% in 2025…
Mining costs don’t fall with the metal. So a 5% cut in what the company gets per ounce would take nearly a fifth off that gross profit. (That’s rough, since copper, lead and antimony are also part of its sales.)
Lower down the income statement, its operating margin has been negative every year since 2021:
Even in the second quarter, when it got $67 an ounce for its silver, it posted an adjusted loss of $0.9 million. Spot silver was near $56 this morning.
Coeur, Pan American and Wheaton are all far bigger companies, and they fell only a little more than the metal. Americas Gold and Silver fell about twice as far.
The Fed is the bigger test
My take: this is simply how Americas Gold and Silver trades. Its ounces are growing, but it still needs a high silver price to turn them into profit. So the stock should keep swinging harder than the metal, both up and down.
The next tests come fast. The Fed meets Oct. 27-28, and full third-quarter results should land in a few weeks, showing how much of that record output became profit.
So what is Americas Gold and Silver stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what Americas Gold and Silver could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
Value Americas Gold and Silver for free
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
