A Look at Americas Gold and Silver (TSX:USA) Valuation After Galena Shaft Upgrade Completion

If you have been following Americas Gold and Silver (TSX:USA), you probably noticed the recent announcement about completing Phase 1 upgrades to the No. 3 Shaft at their Galena Complex. Management finished the work faster than planned, which is a positive sign for their overall strategy of boosting mine productivity. For investors watching for operational milestones that can actually change a company’s outlook, this move is a clear and concrete step in that direction.

This upgrade news arrived as shares have picked up momentum lately, with Americas Gold and Silver’s stock up an impressive 80% over the past three months and delivering a total return of 362% in the past year. While the company has faced its share of volatility and mixed longer-term performance, the improvements at Galena are already translating into more tons hoisted and could help sustain these recent gains. The recent addition to the S&P Global BMI Index this month has also put the stock on more investor radars.

As the company turns operational progress into market excitement, the question is whether Americas Gold and Silver is undervalued at this stage or if the market is already factoring in the next phase of growth.

Most Popular Narrative: 60.5% Undervalued

According to Agricola, the prevailing narrative sees Americas Gold and Silver as dramatically undervalued, projecting significant upside based on future production growth and a bullish commodity outlook.

"Americas Gold and Silver Corporation is a precious metals producer with operations in Mexico (Cosalá Operations) and the United States (Galena Complex). The company focuses on silver, gold, zinc, lead, and other by-products. Key assets include: Cosalá Operations (Mexico), which includes the San Rafael mine and the EC120 project. EC120 is expected to reach commercial production by the end of 2025. Galena Complex (Idaho, USA) is a high-grade silver mine. The company acquired 100% ownership in December 2024 and it is undergoing a recapitalization plan to boost production."

Could this be 2025’s most underestimated miner? Strong revenue projections, bold commodity price outlooks, and ambitious production milestones all combine for a high-stakes valuation bet. Curious where the narrative’s numbers could land USA’s fair value?

Result: Fair Value of $12.29 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent inflation or operational setbacks at Galena or Cosalá could quickly upend these bullish projections and put pressure on shares.

Find out about the key risks to this Americas Gold and Silver narrative.

Another View: Industry Comparison Raises Questions

But not everyone agrees with a purely growth-driven valuation. When compared with similar Canadian miners, Americas Gold and Silver's current trading levels appear expensive when measured against typical sales multiples seen across the industry. Can the future growth really make up for such a premium?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Americas Gold and Silver to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Americas Gold and Silver Narrative

If you see things differently or want to dig into the numbers yourself, you can craft your own version of the narrative in just a few minutes: Do it your way.

A great starting point for your Americas Gold and Silver research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

Don’t settle for just one opportunity. Give your portfolio an edge by checking out fresh, unique investment themes with the Simply Wall Street Screener.

• Unlock growth by targeting penny stocks with strong financials. penny stocks with strong financials could reveal small companies on the cusp of something big.
• Capitalize on the momentum behind AI innovation by using AI penny stocks to pinpoint next-generation players riding the artificial intelligence wave.
• Boost your potential returns by seeking undervalued stocks based on cash flows. undervalued stocks based on cash flows helps you spot bargains before the crowd catches on.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com