USA: Crescent Mine Acquisition Will Drive Stronger Silver Output And Upside Potential

Analysts have raised their price target on Americas Gold and Silver by approximately 4 percent to reflect stronger expected revenue growth and a higher anticipated earnings multiple, partly offset by more conservative profit margin assumptions.

What's in the News

• Announced a bought deal private placement to issue 16,250,000 common shares at $4 per share, raising gross proceeds of $65 million to support growth initiatives, on November 13, 2025 (company news release)
• Closed a private placement financing transaction on December 4, 2025, further strengthening the balance sheet (company news release)
• Entered into a binding agreement to acquire 100 percent of Crescent Silver, LLC and the fully permitted Crescent Mine in Idaho for approximately $65 million. The company aims to add 1.4 to 1.6 million ounces of silver production annually and unlock significant synergies with the nearby Galena Complex (company news release)
• Reported strong third quarter 2025 production of 765,000 ounces of silver, up 98 percent year over year, alongside higher lead output despite a planned 10 day shutdown for Galena shaft upgrades (company operational update)
• Completed Phase 1 upgrades to the No. 3 Shaft hoist at the Galena Complex ahead of schedule. Hoisting capacity increased from about 40 tons per hour to an initial 80 tons per hour, with a target of 100 tons per hour after Phase 2 (company operational update)

Valuation Changes

• The fair value estimate has risen slightly to CA$8.88 from CA$8.53, reflecting a modestly more optimistic outlook for the shares.
• The discount rate has increased marginally to 7.22 percent from 7.18 percent, implying a slightly higher required return to compensate for perceived risk.
• Revenue growth assumptions have risen meaningfully to about 56.0 percent from roughly 44.9 percent, driven by higher expected production and contribution from new assets.
• Net profit margin assumptions have fallen significantly to about 33.0 percent from approximately 44.8 percent, indicating more conservative expectations for cost control and operating leverage.
• The future P/E multiple has increased to about 20.2x from 17.5x, suggesting the market may assign a higher valuation to the company’s anticipated earnings stream.