Progressive shares fall as Q3 earnings, revenue miss expectations
On Tuesday, H.C. Wainwright adjusted the price target for American Silver Corp. (NYSE:USAS) shares to $0.90, a decrease from the previous target of $1.00, while maintaining a Buy rating on the stock. The company’s shares, currently trading at $0.55, have shown remarkable momentum with a 141.63% return over the past year and are trading near their 52-week high of $0.60. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.
The revision comes after Americas Gold and Silver, the parent company of American Silver Corp., provided an update on February 24 regarding its ongoing work programs at the Galena Complex. The update detailed the recent completion of the Galena consolidation transaction in the fourth quarter of 2024. With a market capitalization of $323.78 million and revenue growth of 14.41% in the last twelve months, the company has been executing its operational improvement strategy.
The company has identified the hoisting capacity as the primary limitation at the Galena Complex. To address this, there are plans to significantly enhance the #3 hoist, which is the main production hoist. The proposed upgrades include increasing the motor size, modifying the motor base, improving the brake and control system, and installing a down-rope shaft communication system. These upgrades are anticipated to be finalized in the fourth quarter of 2025.
Furthermore, American Silver Corp. has invested in new underground mobile equipment to bolster productivity. The order comprises one four-yard Load-Haul-Dump (LHD) machine, two two-yard LHD machines, and two 20-ton haul trucks. Delivery of this equipment is expected in the first quarter of 2025, with commissioning slated for the second quarter of the same year.
In addition to the equipment and hoist upgrades, a metallurgical test program has been initiated by the company to enhance concentrate sales. This program involves testing 1,000 drill hole pulps from previous silver-copper vein intersections to optimize the recovery of silver, copper, antimony, and gold.
The report by H.C. Wainwright reiterates a Buy rating for American Silver Corp., while adjusting the price target to reflect the recent developments and investments made by the company to improve its operations and productivity. InvestingPro subscribers have access to 12 additional investment tips for USAS, including detailed analysis of the company’s financial health, valuation metrics, and growth prospects. Get the full picture with InvestingPro’s comprehensive financial analysis tools.
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