Americas Gold and Silver Reports Positive Q2 2025 Results and Provides Development Update on Operational Improvements and Projects Underway
TORONTO, ONTARIO – August 11, 2025 – Americas Gold and Silver Corpora�on (TSX: USA) (NYSE American: USAS) (“Americas” or the “Company”), a growing North American precious metals producer, reports consolidated financial and opera�onal results for the quarter ended June 30, 2025.
This earnings release should be read in conjunc�on with the Company’s Management’s Discussion and Analysis, Financial Statements and Notes to Financial Statements for the corresponding period, which have been posted on the Americas Gold and Silver Corpora�on SEDAR+ profile at www.sedarplus.ca, and on its EDGAR profile at www.sec.gov, and which are also available on the Company’s website at www.americas- gold.com. All figures are in U.S. dollars unless otherwise noted.
Highlights
- Consolidated silver production increased 36% year-over-year and 54% quarter-over-quarter as the impact of operational improvements and efficiencies continues at the Galena Complex in Idaho while the positive development progress at the EC120 Project (“EC120”) facilitated the batching of higher grade development ore through the mill.
- Consolidated silver production of 689,000 ounces was achieved during the quarter, or approximately 839,000 silver equivalent2 ounces, including 1.5 million pounds of zinc and 1.9 million pounds of lead.
- Increase in silver sales revenue due to higher realized prices. Consolidated revenue, including by product revenue, decreased to $27.0 million for Q2-2025 or 19% compared to $33.2 million for Q2- 2024. The positive impact of higher silver production and realized silver price1 of $34.22/oz was offset by lower production and realized prices of zinc and & lead, as the Company continues development transitioning into the silver-copper EC120 Project which is predominantly higher grade silver and copper compared to San Rafael (higher zinc and lead) mined previously.
- Pre-production sales of EC120 silver-copper concentrate contributed $8.3 million to revenue during Q2-2025.
- Executed Senior secured term loan facility for funds of up to $100 million entered into with SAF Group (“SAF”) primarily to fund growth and development capital spending at the Galena Complex, with the first $50 million tranche of funds received in June.
- Successful metallurgical testwork results at the Galena Complex demonstrated over 90% antimony recovery. The Company commissioned SGS Canada Inc. to conduct flotation tests on the current mill feed. The test results on the tetrahedrite material indicated that a marketable concentrate may now be possible using modern metallurgical processes.
- The test results mark a key step toward establishing the Company as the only current antimony producer in the United States, potentially unlocking a new revenue stream from a strategic by-product, previously counted as a penalty element, of the Galena ore body.
- Multi-Metal Offtake Agreement for Galena Concentrates with Ocean Partners for treatment of up to 100% of the polymetallic concentrates from the Company’s Galena Complex at Teck Resources Limited’s (“Teck”) Trail Operations in Trail British Columbia. Guaranteeing processing capacity at a nearby smelter is critical as the Company executes its plans to significantly increase silver and byproduct metal production over the next several years.
- Strong exploration results from the Galena Complex, highlighted by an intersection of 983 g/t over 3.4 metres in the new 034 vein, with an initial vein target of 1.2M-1.5M silver ounces. The Company is continuing its near mine exploration program to target new high-grade mining areas that provide near term mining potential.
- Cash and cash equivalents balance of $61.7 million and working capital1 of $10.4 million as at June 30, 2025 (working capital deficit of $28.7 million as at December 31, 2024).
- Cost of sales1,2 per silver equivalent ounce produced, cash costs1 and all-in sustaining costs1 per silver ounce produced averaged $27.99, $26.64 and $32.89, respectively, in Q2-2025.
- Net loss of $15.1 million for Q2-2025 during the revitaliza�on of Galena (Q2-2024 net loss of $4.0 million), primarily due to the impact of increasing precious metal prices on metals-based liabili�es, non-recurring non-cash corporate general and administra�ve expenses connected with the addi�on of key technical personnel and recons�tu�on of the Board, and lower net revenue from decreased base metals produc�on of zinc and lead, as the Cosalá Opera�ons transi�on to the silver-copper focused EC120 deposit. This was par�ally offset by lower interest and financing expense, and higher foreign exchange gain as well as very strong silver revenue performance as the company executes its strategy at Galena and Cosala.
- Adjusted earnings1 for Q2-2025 was a loss of $12.1 million (adjusted loss of $2.4 million for Q2- 2024) and Adjusted EBITDA1 for Q2-2025 was a loss of $4.1 million (adjusted EBITDA income of $8.0 million for Q2-2024), or $0.02 and $0.01 per share, respec�vely, primarily due to nonrecurring non-cash corporate general and administra�ve expenses, and lower net revenue from decreased base metals produc�on of zinc and lead.
- Inclusion in the Solac�ve Global Silver Miners Index announced on May 1, 2025. Inclusion in this major silver index is an important milestone valida�ng Americas posi�on as a growing silver focused miner and increases exposure to large ins�tu�onal investors.
Paul Andre Huet, Chairman and CEO, commented: “During the first half of 2025, we’ve made significant progress and investments into our strategy to deliver materially increased silver produc�on and lower costs over the coming years. Our teams have been strengthened and aligned in execu�ng our opera�onal growth plan at Galena and the transi�on from the San Rafael Mine to the higher grade silver-copper EC120 Project at Cosalá. Our cri�cal work in reviewing the current opera�ons has progressed well, including studying mul�ple scenarios for opera�onal adjustments, produc�vity improvements, cost reduc�ons and material movement increases.
Securing the US$100 million debt facility in June represents a major milestone for the Company, providing us with the financial flexibility to implement and execute our growth strategy. The result is that we expect to realize incremental produc�on increases and lower costs as we progress through a transforma�ve investment year in 2025 se�ng us up with a much stronger opera�onal pla�orm to support con�nued sustained produc�on growth at Galena.
At Galena, numerous ini�a�ves are underway that are designed to safely improve mining produc�vity. Key developments during the quarter include the expansion of the 55-179 decline to access mul�ple stopes, the successful development and mining of the first long-hole stope as well as the commissioning of new underground loaders and trucks to enhance produc�vity. Significant ven�la�on improvements were achieved with the comple�on of the first Alimak vent raise, while the development of a second Alimak raise is underway. Very significantly, components for the #3 sha� replacement hoist motor have arrived at site, with installa�on planned for Q4-2025 to materially boost hois�ng capacity and debo�leneck opera�ons – a cri�cal step in unlocking value at the mine.
Figure 1 – Galena New Equipment Deliveries: New hoist motor shown on le� and new underground loader shown on right
We’re also very excited about the metallurgical tes�ng completed on Galena concentrate that confirmed high recoveries of both an�mony and copper, with modern processes enabling the poten�al extrac�on of an�mony from the tetrahedrite. The test work is a key step in establishing Americas as the only current an�mony producer in the U.S., unlocking a poten�al new revenue stream. Further tes�ng is aimed at confirming the ability to produce saleable an�mony products, leveraging historical precedents and enhancing Galena's economic poten�al. Rounding out the metallurgical successes, we also secured a mul�-metal o�ake agreement with Ocean Partners at Teck’s Trail Opera�ons in Bri�sh Columbia. This guaranteed capacity not only secures the growth plan at Galena, it also turns several metals previously penalized (including copper and an�mony) into poten�al revenue streams – a double benefit for our shareholders.
The Cosalá Opera�ons are advancing well towards mining the higher-grade silver-copper EC120 orebody, where we are aiming to be in commercial produc�on by the end of 2025. The team is mining concurrently at San Rafael during the development of EC120, with a focus on mining higher-grade silver areas in late Q3 and early Q4 2025. During the quarter we saw an early example of the posi�ve impact EC120 will have on silver grades and we are looking forward to con�nuing this progress. In support of the ramp up efforts, we have also placed addi�onal mobile fleet orders to improve opera�onal efficiency as we enter the heart of the orebody in the years ahead – an exci�ng �me for everyone at Americas.
I am also pleased to welcome Shirley In't Veld to Americas Board of Directors. The addi�on of Shirley's extensive experience as a senior execu�ve and director in the mining, renewables and energy sectors to our team further strengthens our Board and is a strong endorsement of Americas posi�on as growing silver producer. We look forward to benefi�ng from Shirley’s insights and guidance as we con�nue to grow and create value for our shareholders.
Overall, I am very pleased with our progress as we leverage the strength of our expanded and strengthened team as well as our bolstered balance sheet to build a strong founda�on for our strategy to deliver sustained mul�-year produc�on growth, unlocking the massive poten�al across our asset base for all our stakeholders.”
Consolidated Produc�on
Consolidated silver produc�on of 689,000 ounces during Q2-2025 was higher than Q2-2024 produc�on of 506,000 ounces (36% increase in silver produc�on) due to higher grades at both opera�ons, offset by slightly lower tonnage. At Cosalá, pre-produc�on of EC120 silver-copper concentrate contributed to 211,000 ounces of silver produc�on during Q2-2025. Produc�on of both zinc and lead during the quarter were lower than in Q2-2024 due to lower tonnage of San Rafael ore processed as the Company develops and transi�ons into the silver-copper EC120 orebody.
Consolidated a�ributable cash costs and all-in sustaining costs for Q2-2025 were $26.64 per silver ounce and $32.89 per silver ounce, respec�vely. Cash costs per silver ounce increased during the quarter compared to the same period the year prior, primarily due to lower by-product credits as the Company focused on se�ng up for future growth.
Galena Complex
The Galena Complex produced 420,000 ounces of silver in Q2-2025 compared to 560,000 ounces of silver in Q2-2024 (25% decrease in silver produc�on). The mine also produced 1.7 million pounds of lead in Q2- 2025, compared to 3.0 million pounds of lead in Q2-2024 (44% decrease in lead produc�on). During the period of opera�onal improvements currently underway as part of the transi�on plan at the Galena Complex, as previously discussed, the Company an�cipates poten�al short-term movements in by-product produc�on levels while the focus on increasing mining rates of silver-copper ore and se�ng up key infrastructure in support of future growth is advanced. Cash costs per ounce of silver increased to $24.18 in Q2-2025 from $14.78 in Q2-2024, primarily due to modest increases in salaries and employee benefits at the opera�ons inline with the Company’s strategy to a�ract and retain key technical personnel, and impact from decreased lead produc�on resul�ng in lower by-product credits during the period.
During Q2-2025, the Company has con�nued to make significant advances at the Galena Complex and is on-track with its opera�onal growth plan. Development plans are advancing well with efficiencies in muck handling and improved development rates being realized.
Cosalá Opera�ons
Silver produc�on increased in Q2-2025 to ~269,000 ounces of silver compared to ~170,000 ounces of silver in Q2-2024 (58% increase in silver produc�on) primarily due to higher grades and silver recoveries offset by lower tonnages during the period. Higher por�on of the mill feed came from pre-produc�on of the EC120 Project which has higher silver grades and silver recoveries based on its minerology. Lower milled tonnage from the San Rafael Main Central orebody caused base metals produc�on to decrease to 1.5 million pounds of zinc and 0.2 million pounds of lead in Q2-2025, compared to 8.9 million pounds of zinc, and 2.6 million pounds of lead in Q2-2024. Silver produc�on is expected to increase steadily as the development into EC120 Project progresses and EC120 con�nues to batch higher development grade ore through the mill. The Cosalá Opera�ons increased capital spending on the EC120 Project, expending $2.9 million during Q2-2025 ($1.0 million during Q1-2025). The EC120 Project contributed 211,000 ounces of silver produc�on in Q2-2025 (375,000 ounces of silver produc�on project-to-date) as the Cosalá Opera�ons milled and sold silver-copper concentrate during the EC120 Project’s development phase, contributed $8.3 million to net revenue during Q2-2025. Cash costs per silver ounce increased during Q2- 2025 to $30.48 per ounce from $7.75 per ounce in Q2-2024 due primarily to decreased zinc and lead produc�on resul�ng in lower by-product credits during the period.
Board of Directors Strengthened with Appointment of Shirley In’t Veld
The Company is pleased to announce the appointment of Shirley In't Veld to its Board of Directors effec�ve immediately.
Ms. In’t Veld brings extensive depth of knowledge and experience to the Americas Board, having served over 30 years in board and senior management posi�ons in the mining, renewables and energy sectors. She is currently a Director of Westgold Resources Limited and Develop Global Limited. Ms. In’t Veld was formerly a Director Karora Resources Inc., NBN Co. Limited (Na�onal Broadband Network Co.), Northern Star Resources Limited, Perth Airport, DUET Group, Asciano Limited and Alcoa of Australia Limited. Ms. In’t Veld was also the Managing Director of Verve Energy (2007 – 2012) and, previously, served 10 years in senior roles at Alcoa of Australia Limited, WMC Resources Ltd, Bond Corpora�on and BankWest Perth.
Share Consolida�on
Americas is also pleased to announce, as previously authorized by its shareholders on June 24 and subsequently approved by its Board of Directors (the “Board”) on August 6, 2025, the Company intends to file ar�cles of amendment on or about August 21, 2025, implemen�ng a consolida�on of its outstanding common shares on the basis as finally determined by the Board of one (1) post-consolida�on common share for every two point five (2.5) pre-consolida�on common shares (the "Consolida�on"). The Consolida�on has been condi�onally approved by the TSX and is subject to NYSE American approval. Americas will issue a further news release providing the date, expected in the next 10 days, on which the Company’s common shares will commence trading on a post-consolida�on basis on each of the TSX and NYSE American. The exercise price or conversion price, as applicable, and the number of common shares issuable, as applicable, under any of the Company's outstanding conver�ble or share-based securi�es such as warrants, stock op�ons and restricted share units, performance share units and deferred share units, as applicable, will be propor�onately adjusted upon comple�on of the Consolida�on in accordance with their respec�ve terms. The CUSIP and ISIN numbers of the post-consolida�on common shares will also change upon the comple�on of the Consolida�on.
Conference Call Details
Date: August 11, 2025
Time: 10:00 am ET / 7:00 am PT
The call may be accessed using the following webcast link:
h�ps://zoom.us/webinar/register/WN_6Ro3OqEgSGKDM-LkGaKcXA
Dial-In Toll Free Canada: (833) 955-1088
Dial-In Toll Free USA: (833) 548-0276
Dial-In Interna�onal Toll Number: +1 (647) 374-4685
Mee�ng ID: 985 1535 4261
No par�cipant ID – Please press # to join.
A recording of the conference call will be available for replay on the ‘Events’ page of our website later in the day on August 11, 2025.
About Americas Gold and Silver Corpora�on
Americas Gold & Silver is a growing precious metals mining company with mul�ple assets in North America. In December 2024, Americas increased its ownership in the Galena Complex (Idaho, USA) from 60% to 100% in a transac�on with Eric Spro�, solidifying its posi�on as a silver-focused producer. Americas also owns and operates the Cosalá Opera�ons in Sinaloa, Mexico. Eric Spro� is the Company’s largest shareholder, holding an approximate 20% interest. Americas has a proven and experienced management team led by Paul Huet, is fully funded to execute its growth plans, and focused on becoming one of the top North American silver plays, with an objec�ve of over 80% of its revenue to be generated from silver by the end of 2025.
For more informa�on:
Maxim Kouxenko - Manager, Investor Rela�ons
M: +1 (647) 888-6458 E: [email protected] W: Americas-gold.com
Technical Informa�on and Qualified Persons
The scien�fic and technical informa�on rela�ng to the Company’s material mining proper�es contained herein has been reviewed and approved by Rick Streiff, Execu�ve Vice President – Geology of the Company. Mr. Streiff is a “qualified person” for the purposes of NI 43-101. The Company’s current Annual Informa�on Form and the NI 43-101 Technical Reports for its mineral proper�es, all of which are available on SEDAR+ at www.sedarplus.ca, and EDGAR at www.sec.gov, contain further details regarding mineral reserve and mineral resource es�mates, classifica�on and repor�ng parameters, key assump�ons and associated risks for each of the Company’s material mineral proper�es, including a breakdown by category.
All mining terms used herein have the meanings set forth in Na�onal Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), as required by Canadian securi�es regulatory authori�es. These standards differ from the requirements of the SEC that are applicable to domes�c United States repor�ng companies. Any mineral reserves and mineral resources reported by the Company in accordance with NI 43-101 may not qualify as such under-SEC standards. Accordingly, informa�on contained in this news release may not be comparable to similar informa�on made public by companies subject to the SEC’s repor�ng and disclosure requirements.
Cau�onary Statement on Forward-Looking Informa�on:
This news release contains “forward-looking informa�on” within the meaning of applicable securi�es laws. Forward-looking informa�on includes, but is not limited to, Americas’ expecta�ons, inten�ons, plans, assump�ons and beliefs with respect to, among other things, es�mated and targeted produc�on rates and results for silver, gold and other metals, the expected prices of silver, gold and other metals, as well as the related costs, expenses and capital expenditures; produc�on from the Galena Complex and Cosalá Opera�ons; expecta�ons regarding the Company’s execu�on of its plans to significantly increase silver and by-product metal produc�on and improve opera�onal efficiency over the next several years; the Company’s execu�on of and expected benefits from its growth strategy and plans; the expected �ming and comple�on of required development and the expected opera�onal and produc�on results therefrom, including the an�cipated improvements to produc�on and lowering of costs; statements rela�ng to Americas’ EC120 Project; statements rela�ng to the implementa�on of the Consolida�on, including the expected �ming thereof and receipt of necessary approvals; and statements rela�ng to results from recent metallurgical tes�ng at its Galena Complex, including the poten�al recovery of an�mony and concentrate levels thereof, and the poten�al new revenue stream from an�mony and copper Guidance and outlook references contained in this press release were prepared based on current mine plan assump�ons with respect to produc�on, development, costs and capital expenditures, the metal price assump�ons disclosed herein, and assumes no further adverse impacts to the Cosalá Opera�ons from blockades or work stoppages, and comple�on of the sha� repair and sha� rehab work at the Galena Complex on its expected schedule and budget, the realiza�on of the an�cipated benefits therefrom, and is subject to the risks and uncertain�es outlined below. The ability to maintain cash flow posi�ve produc�on at the Cosalá Opera�ons, which includes the EC120 Project, through mee�ng produc�on targets and at the Galena Complex through implemen�ng the Galena Recapitaliza�on Plan, including the comple�on of the Galena sha� repair and sha� rehab work on its expected schedule and budget, allowing the Company to generate sufficient opera�ng cash flows while facing market fluctua�ons in commodity prices and infla�onary pressures, are significant judgments in the consolidated financial statements with respect to the Company’s liquidity. Should the Company experience nega�ve opera�ng cash flows in future periods, the Company may need to raise addi�onal funds through the issuance of equity or debt securi�es. O�en, but not always, forward-looking informa�on can be iden�fied by forward-looking words such as “an�cipate”, “believe”, “expect”, “goal”, “plan”, “intend”, “poten�al’, “es�mate”, “may”, “assume” and “will” or similar words sugges�ng future outcomes, or other expecta�ons, beliefs, plans, objec�ves, assump�ons, inten�ons, or statements about future events or performance. Forward-looking informa�on is based on the opinions and es�mates of Americas as of the date such informa�on is provided and is subject to known and unknown risks, uncertain�es, and other factors that may cause the actual results, level of ac�vity, performance, or achievements of Americas to be materially different from those expressed or implied by such forward-looking informa�on. With respect to the business of Americas, these risks and uncertain�es include risks rela�ng to widespread epidemics or pandemic outbreak, ac�ons that have been and may be taken by governmental authori�es to contain such epidemic or pandemic or to treat its impact and/or the availability, effec�veness and use of treatments and vaccines (including the effec�veness of boosters);
interpreta�ons or reinterpreta�ons of geologic informa�on; unfavorable explora�on results; inability to obtain permits required for future explora�on, development or produc�on; general economic condi�ons and condi�ons affec�ng the industries in which the Company operates; the uncertainty of regulatory requirements and approvals; poten�al li�ga�on; fluctua�ng mineral and commodity prices; the ability to obtain necessary future financing on acceptable terms or at all; the ability to operate the Company’s projects; and risks associated with the mining industry such as economic factors (including future commodity prices, currency fluctua�ons and energy prices), ground condi�ons, illegal blockades and other factors limi�ng mine access or regular opera�ons without interrup�on, failure of plant, equipment, processes and transporta�on services to operate as an�cipated, environmental risks, government regula�on, actual results of current explora�on and produc�on ac�vi�es, possible varia�ons in ore grade or recovery rates, permi�ng �melines, capital and construc�on expenditures, reclama�on ac�vi�es, labor rela�ons or disrup�ons, social and poli�cal developments, risks associated with generally elevated infla�on and infla�onary pressures, risks related to changing global economic condi�ons, and market vola�lity, risks rela�ng to geopoli�cal instability, poli�cal unrest, war, and other global conflicts may result in adverse effects on macroeconomic condi�ons including vola�lity in financial markets, adverse changes in trade policies, infla�on, supply chain disrup�ons and other risks of the mining industry. Although the Company has a�empted to iden�fy important factors that could cause actual results to differ materially from those contained in forward-looking informa�on, there may be other factors that cause results not to be as an�cipated, es�mated, or intended. Readers are cau�oned not to place undue reliance on such informa�on. Addi�onal informa�on regarding the factors that may cause actual results to differ materially from this forward-looking informa�on is available in Americas’ filings with the Canadian Securi�es Administrators on SEDAR+ and with the SEC. Americas does not undertake any obliga�on to update publicly or otherwise revise any forward-looking informa�on whether as a result of new informa�on, future events or other such factors which affect this informa�on, except as required by law. Americas does not give any assurance (1) that Americas will achieve its expecta�ons, or (2) concerning the result or �ming thereof. All subsequent wri�en and oral forward-looking informa�on concerning Americas are expressly qualified in their en�rety by the cau�onary statements above.
1. This is a supplementary or non-GAAP financial measure or ra�o. See “Non-GAAP and Other Financial Measures” sec�on below for further informa�on.
2. Throughout this news release, contract services related to transporta�on cost were reclassified from treatment and selling costs in revenue to cost of sales in fiscal 2024.
Non-GAAP and Other Financial Measures
The Company has included certain non-GAAP financial and other measures to supplement the Company’s consolidated financial statements, which are presented in accordance with IFRS, including the following:
- Average realized silver, zinc and lead prices;
- Cost of sales (CoS)/Ag Eq oz produced;
- Cash costs/Ag oz produced;
- All-in sustaining costs/Ag oz produced;
- Net cash generated from operating activities;
- Working capital;
- EBITDA, adjusted EBITDA, and adjusted earnings; and
- Silver equivalent production (Ag Eq).
Management uses these measures, together with measures determined in accordance with IFRS, internally to better assess performance trends and understands that a number of investors, and others who follow the Company’s performance, also assess performance in this manner. These non-GAAP and other financial measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Non-GAAP and other financial measures do not have any standardized meaning prescribed under IFRS, and therefore they may differ from methods used by other companies with similar descriptions. Management's determination of the components of non-GAAP financial measures and other financial measures are evaluated on a periodic basis influenced by new items and transactions, a review of investor uses and new regulations as applicable. Any changes to the measures are duly noted and retrospectively applied as applicable. Subtotals and per unit measures may not calculate based on amounts presented in the following tables due to rounding.
Average Realized Silver, Zinc and Lead Prices
The Company uses the financial measures "average realized silver price", "average realized zinc price” and “average realized lead price” because it understands that in addition to conventional measures prepared in accordance with IFRS, certain investors and analysts use this information to evaluate the Company’s performance vis-à-vis average market prices of metals for the period. The presentation of average realized metal prices is not meant to be a substitute for the revenue information presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measure.
Average realized metal prices represent the sale price of the underlying metal excluding unrealized markto-market gains and losses on provisional pricing and concentrate treatment and refining charges. Average realized silver, zinc and lead prices are calculated as the revenue related to each of the metals sold, e.g. revenue from sales of silver divided by the quantity of ounces sold.
| Reconciliation of Average Realized Silver, Zinc and Lead Prices1 | ||||
|---|---|---|---|---|
| Q2-2025 | Q2-2024 | YTD-2025 | YTD-2024 | |
| Gross silver sales revenue ('000) | $ 16,115 | $ 21,793 | $ 28,738 | $ 35,381 |
| Payable metals & fixed pricing adjustments ('000) | 27 | 14 | (26) | 27 |
| Payable silver sales revenue ('000) | $ 16,142 | $ 21,807 | $ 28,712 | $ 35,408 |
| Divided by silver sold (oz) | 471,664 | 745,921 | 863,301 | 1,331,972 |
| Average realized silver price ($/oz) | $ 34.22 | $ 29.23 | $ 33.26 | $ 26.58 |
| Q2-2025 | Q2-2024 | YTD-2025 | YTD-2024 | |
| Gross zinc sales revenue ('000) | $ 2,274 | $ 11,261 | $ 11,775 | $ 19,922 |
| Payable metals & fixed pricing adjustments ('000) | (3) | 31 | (26) | 31 |
| Payable zinc sales revenue ('000) | $ 2,271 | $ 11,292 | $ 11,749 | $ 19,953 |
| Divided by zinc sold (lb) | 1,917,354 | 8,677,305 | 9,388,118 | 16,453,877 |
| Average realized zinc price ($/lb) | $ 1.18 | $ 1.30 | $ 1.25 | $ 1.21 |
| Q2-2025 | Q2-2024 | YTD-2025 | YTD-2024 | |
|---|---|---|---|---|
| Gross lead sales revenue ('000) | $ 1,852 | $ 5,652 | $ 5,264 | $ 9,792 |
| Payable metals & fixed pricing adjustments ('000) | (1) | (15) | (1) | (11) |
| Payable lead sales revenue ('000) | $ 1,851 | $ 5,637 | $ 5,263 | $ 9,781 |
| Divided by lead sold (lb) | 2,076,077 | 5,718,958 | 5,864,460 | 10,148,810 |
| Average realized lead price ($/lb) | $ 0.89 | $ 0.99 | $ 0.90 | $ 0.96 |
1 Excludes EC120 Project pre-production silver ounces sold from the Cosalá Operations.
Cost of Sales/Ag Eq Oz Produced
The Company uses the financial measure “Cost of Sales/Ag Eq Oz Produced” because it understands that, in addition to conventional measures prepared in accordance with IFRS, certain investors and analysts use this information to evaluate the Company’s underlying cost of operations. Silver equivalent production are based on all metals production at average realized silver, zinc, and lead prices during each respective period, except as otherwise noted.
| Reconciliation of Consolidated Cost of Sales/Ag Eq Oz Produced | ||||
|---|---|---|---|---|
| Q2-20251 | Q2-20241,2 | YTD-20251 | YTD-20241,2 | |
| Cost of sales ('000) | $ 23,479 | $ 21,562 | $ 44,618 | $ 42,600 |
| Less non-controlling interests portion ('000) | - | (4,160) | - | (7,648) |
| Attributable cost of sales ('000) | 23,479 | 17,402 | 44,618 | 34,952 |
| Divided by silver equivalent produced (oz) | 838,738 | 1,058,186 | 1,676,538 | 2,079,050 |
| Cost of sales/Ag Eq oz produced ($/oz) | $ 27.99 | $ 16.45 | $ 26.61 | $ 16.81 |
| Reconciliation of Cosalá Operations Cost of Sales/Ag Eq Oz Produced | ||||
|---|---|---|---|---|
| Q2-20251 | Q2-20241,2 | YTD-20251 | YTD-20241,2 | |
| Cost of sales ('000) | $ 11,600 | $ 11,163 | $ 22,591 | $ 23,479 |
| Divided by silver equivalent produced (oz) | 373,726 | 659,603 | 834,234 | 1,447,810 |
| Cost of sales/Ag Eq oz produced ($/oz) | $ 31.04 | $ 16.92 | $ 27.08 | $ 16.22 |
| Reconciliation of Galena Complex Cost of Sales/Ag Eq Oz Produced | ||||
|---|---|---|---|---|
| Q2-2025 | Q2-20242 | YTD-2025 | YTD-20242 | |
| Cost of sales ('000) | $ 11,879 | $ 10,399 | $ 22,027 | $ 19,121 |
| Divided by silver equivalent produced (oz) | 465,012 | 664,305 | 842,304 | 1,052,066 |
| Cost of sales/Ag Eq oz produced ($/oz) | $ 25.55 | $ 15.65 | $ 26.15 | $ 18.17 |
1 Throughout this MD&A, tonnes milled, silver grade and recovery, silver production and sales, silver equivalent production, and cost per ounce measurements during fiscal 2025 and 2024 include EC120 Project pre-production from the Cosalá Operations.
2 Throughout this MD&A, contract services related to transportation costs were reclassified from treatment and selling costs in revenue to cost of sales in fiscal 2024.
Cash Costs and Cash Costs/Ag Oz Produced
The Company uses the financial measures “Cash Costs” and “Cash Costs/Ag Oz Produced” in accordance with measures widely reported in the silver mining industry as a benchmark for performance measurement and because it understands that, in addition to conventional measures prepared in accordance with IFRS, certain investors and analysts use this information to evaluate the Company’s underlying cash costs of operations.
Cash costs are determined on a mine-by-mine basis and include mine site operating costs such as: mining, processing, administration, production taxes and royalties which are not based on sales or taxable income calculations. Non-cash costs consist of: non-cash related charges to cost of sales including inventory movements, write-downs to net realizable value of concentrates, ore stockpiles, and spare parts and supplies, and employee profit share accruals.
| Reconciliation of Consolidated Cash Costs/Ag Oz Produced | ||||
|---|---|---|---|---|
| Q2-20251 | Q2-20241 | YTD-20251 | YTD-20241 | |
| Cost of sales ('000) | $ 23,479 | $ 21,562 | $ 44,618 | $ 42,600 |
| Less non-controlling interests portion ('000) | - | (4,160) | - | (7,648) |
| Attributable cost of sales ('000) | 23,479 | 17,402 | 44,618 | 34,952 |
| Smelting, refining & royalty expenses in CoS ('000) | (504) | (1,467) | (1,572) | (2,768) |
| Non-cash costs ('000) | (1,003) | (487) | (2,397) | (335) |
| Direct mining costs ('000) | $ 21,972 | $ 15,448 | $ 40,649 | $ 31,849 |
| Smelting, refining & royalty expenses ('000) | 1,160 | 4,416 | 4,394 | 8,759 |
| Less by-product credits ('000) | (4,787) | (13,578) | (15,524) | (24,368) |
| Cash costs ('000) | $ 18,345 | $ 6,286 | $ 29,519 | $ 16,240 |
| Divided by silver produced (oz) | 688,663 | 505,932 | 1,134,870 | 989,852 |
| Cash costs/Ag oz produced ($/oz) | $ 26.64 | $ 12.42 | $ 26.01 | $ 16.41 |
| Reconciliation of Cosalá Operations Cash Costs/Ag Oz Produced | ||||
|---|---|---|---|---|
| Q2-20251 | Q2-20241 | YTD-20251 | YTD-20241 | |
| Cost of sales ('000) | $ 11,600 | $ 11,163 | $ 22,591 | $ 23,479 |
| Smelting, refining & royalty expenses in CoS ('000) | (314) | (1,288) | (1,169) | (2,495) |
| Non-cash costs ('000) | (611) | (227) | (1,922) | (505) |
| Direct mining costs ('000) | $ 10,675 | $ 9,648 | $ 19,500 | $ 20,479 |
| Smelting, refining & royalty expenses ('000) | 914 | 3,573 | 3,374 | 7,422 |
| Less by-product credits ('000) | (3,400) | (11,905) | (12,320) | (21,698) |
| Cash costs ('000) | $ 8,189 | $ 1,316 | $ 10,554 | $ 6,203 |
| Divided by silver produced (oz) | 268,702 | 169,728 | 401,146 | 466,990 |
| Cash costs/Ag oz produced ($/oz) | $ 30.48 | $ 7.75 | $ 26.31 | $ 13.28 |
| Reconciliation of Galena Complex Cash Costs/Ag Oz Produced | ||||
|---|---|---|---|---|
| Q2-2025 | Q2-2024 | YTD-2025 | YTD-2024 | |
| Cost of sales ('000) | $ 11,879 | $ 10,399 | $ 22,027 | $ 19,121 |
| Smelting, refining & royalty expenses in CoS ('000) | (190) | (299) | (403) | (455) |
| Non-cash costs ('000) | (392) | (432) | (475) | 284 |
| Direct mining costs ('000) | $ 11,297 | $ 9,668 | $ 21,149 | $ 18,950 |
| Smelting, refining & royalty expenses ('000) | 246 | 1,405 | 1,020 | 2,228 |
| Less by-product credits ('000) | (1,387) | (2,789) | (3,204) | (4,450) |
| Cash costs ('000) | $ 10,156 | $ 8,284 | $ 18,965 | $ 16,728 |
| Divided by silver produced (oz) | 419,961 | 560,340 | 733,724 | 871,436 |
| Cash costs/Ag oz produced ($/oz) | $ 24.18 | $ 14.78 | $ 25.85 | $ 19.20 |
1 Throughout this MD&A, tonnes milled, silver grade and recovery, silver production and sales, silver equivalent production, and cost per ounce measurements during fiscal 2025 and 2024 include EC120 Project pre-production from the Cosalá Operations.
All-In Sustaining Costs and All-In Sustaining Costs/Ag Oz Produced
The Company uses the financial measures “All-In Sustaining Costs” and “All-In Sustaining Costs/Ag Oz Produced” in accordance with measures widely reported in the silver mining industry as a benchmark for performance measurement and because it understands that, in addition to conventional measures prepared in accordance with IFRS, certain investors and analysts use this information to evaluate the Company’s total costs of producing silver from operations.
All-in sustaining costs is cash costs plus all sustaining development, capital expenditures, and exploration spending, excluding costs not related to current operations.
| Reconciliation of Consolidated All-In Sustaining Costs/Ag Oz Produced | ||||
|---|---|---|---|---|
| Q2-20251 | Q2-20241 | YTD-20251 | YTD-20241 | |
| Cash costs ('000) | $ 18,345 | $ 6,286 | $ 29,519 | $ 16,240 |
| Capital expenditures ('000)2 | 3,409 | 2,994 | 6,902 | 6,932 |
| Exploration costs ('000) | 894 | 626 | 2,143 | 1,272 |
| All-in sustaining costs ('000) | $ 22,648 | $ 9,906 | $ 38,564 | $ 24,444 |
| Divided by silver produced (oz) | 688,663 | 505,932 | 1,134,870 | 989,852 |
| All-in sustaining costs/Ag oz produced ($/oz) | $ 32.89 | $ 19.58 | $ 33.98 | $ 24.69 |