Americas Gold and Silver Reports Q3‐2024 Results; Paul Huet Appointed CEO
TORONTO, ONTARIO – November 7, 2024 – 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 September 30, 2024.
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
- On October 9, 2024, the Company announced an agreement to acquire the remaining 40% interest of the Company’s Galena Complex ("Acquisition Agreement"). In conjunction with the Acquisition Agreement, the Company announced a bought deal private placement of subscription receipts completed through the raising of gross proceeds of C$50 million at an issue price of C$0.40 per subscription receipt (closed October 30, 2024). The gross proceeds are being held in escrow pending closing of the Acquisition Agreement anticipated to be in December 2024.
- Mr. Paul Andre Huet to be appointed Chief Executive Officer effective November 11, 2024. Mr. Huet will be focused on building a strong, experienced technical team to unlock the dormant value of the Galena Complex in pursuit of increased shareholder returns.
- Increase in revenue due to higher realized prices. Revenue increased to $21.0 million for Q3‐2024 or 31% compared to $18.3 million for Q3‐2023, with higher realized silver of $29.71/oz and zinc of $1.27/lb during the period.
- Consolidated attributable silver production of 0.4 million ounces with approximately 0.9 million ounces of silver equivalent, including 8.4 million pounds of zinc and 4.1 million pounds of lead.
- Increase in net loss to $16.1 million for Q3‐2024 (Q3‐2023 net loss of $10.5 million), primarily due to higher loss on fair value of the gold‐based metals contract liability due to higher gold prices.
- Cash flow used in operating activities [1] decreased to $2.2 million in Q3‐2024 (Q3‐2023 use of cash of $3.9 million), primarily due to higher realized silver prices.
- Reduction of cash costs [2] and all‐in sustaining costs [2] in Q3‐2024 compared to Q3‐2023 to $16.88/oz silver produced and $25.38/oz silver produced, respectively.
“The quarter was challenging with mul�ple lost opera�ng days due to severe weather at the Cosalá Opera�ons and the decision to focus on development priori�es to access high‐grade silver ore early next year at the Galena Complex. The lack of opera�onal flexibility with only one sha� available for ore and waste impacted produc�on during the quarter. However, I am thoroughly excited for the future of the Company,” stated Americas President and CEO Darren Blasu�. “We have seen a tremendous response from shareholders following the announcement in October on the acquisi�on of the remaining 40% interest in the Galena Complex and highly successful equity raise to recapitalize this project moving forward. As a result, the Board of Directors has made the decision to expediate Paul’s transi�on to CEO to November 11, 2024, allowing for a �melier opera�onal strategy to be implemented aimed at maximizing the Company’s assets moving forward.”
“I am excited to join Americas Gold and Silver and keen to get to work on the 2025 work plan we have been developing for the Galena Complex,” stated incoming Americas CEO Paul Andre Huet. “The Galena Complex is a tremendous opera�on with huge poten�al that has been handcuffed for years due to a lack of proper capitaliza�on. With the raise that was recently completed, we are excited to get to work on reviewing the current opera�on and building on a solid base to deliver what we believe to be one of the premier silver mines in the Americas. I would like to thank Darren Blasu� for his �reless work over the last decade at the helm of the Company during what has been a very difficult silver price environment. Darren will remain as President of the Company and will help me, together with fresh capital and a strong, technical management team, to deliver a revitalized North American based silver mining company during a period of exci�ng increases in silver prices.”
Consolidated Produc�on
Consolidated a�ributable silver produc�on during Q3‐2024 and Q3‐2023 were comparable at approximately 386,000 ounces and 387,000 ounces, respec�vely. The Company also produced 8.4 million pounds of zinc and 4.1 million a�ributable pounds of lead during Q3‐2024. Consolidated a�ributable silver equivalent produc�on during Q3‐2024 decreased by 11% compared to Q3‐2023 due to higher silver prices in Q3‐2024 compared to Q3‐2023 as the Company uses realized quarterly prices in its equivalency calcula�ons. The Company’s goal is to generate more than 80% of its revenue from silver produc�on by the end of 2025 which would be among the silver industry leaders in percentage revenue from silver.
Consolidated a�ributable cash costs and all‐in sustaining costs for Q3‐2024 were $16.88 per silver ounce and $25.38 per silver ounce, respec�vely. Cash costs per silver ounce at the Cosalá Opera�ons were reduced because of increased by‐product credits from the increased zinc produc�on and prices while Galena Complex cash costs per silver ounce were nega�vely impacted by lower silver produc�on.
Cosalá Opera�ons
The Company focused on increasing silver while maintaining base metal produc�on from the San Rafael Main and Upper Zones to maximize its revenue and cash flow genera�on to benefit from the recent increase in silver and zinc prices as the mine prepares for its next evolu�on of opera�ons in the EC120 silver‐copper deposit. Silver produc�on increased in Q3‐2024 by 8% to approximately 192,000 ounces of silver compared to approximately 178,000 ounces of silver in Q3‐2023 primarily due to increased tonnage offset by lower recoveries. Produc�on during the quarter was impacted primarily by heavy rains and other factors which caused the mill to be shut down for 10.5 days. Silver produc�on is expected to increase in Q4‐2024 with more predictable weather and further into 2025 as the development into EC120 progresses with the opera�on con�nuing to batch higher development grade ore through the mill.
Produc�on of base metals decreased to 8.4 million pounds of zinc and 2.6 million pounds of lead in Q3‐ 2024, compared to 9.0 million pounds of zinc, and 2.8 million pounds of lead in Q3‐2023 which was similarly impacted by the 10.5 missed opera�ng days as noted above.
Cash costs per silver ounce decreased during the quarter to $7.12 per ounce from $14.42 per ounce in Q3‐ 2023 due primarily to increased silver produc�on, and higher by‐product credits from a higher zinc realized price during the period.
Galena Complex
The Galena Complex produced approximately 323,000 ounces of silver in Q3‐2024 compared to approximately 349,000 ounces of silver in Q3‐2023 (a 7% decrease in silver produc�on), and 2.6 million pounds of lead in Q3‐2024, compared to 3.1 million pounds of lead in Q3‐2023 (a 15% decrease in lead produc�on). Cash costs increased to $26.54 per ounce silver in Q3‐2024 from $22.91 per ounce silver in Q3‐2023 due to decreased silver produc�on, with an increase in all‐in sustaining costs due to an increase in capital expenditures.
Tonnage and silver produc�on both decreased during Q3‐2024 primarily due to a focus on development during the quarter which included con�nued work on the 55‐179 decline to develop deeper higher‐grade produc�on stopes which will drive long‐term produc�on goals, as well as equipment issues and changes to mining sequence and design. Tonnage was also nega�vely impacted by the build up of waste rock caused by con�nued hois�ng limita�ons due to the delay in repairs to the Galena sha�.
About Americas Gold and Silver Corpora�on
Americas Gold and Silver Corpora�on is a high‐growth precious metals mining company with mul�ple assets in North America. The Company owns and operates the Cosalá Opera�ons in Sinaloa, Mexico, manages the 60%‐owned Galena Complex in Idaho, USA, and is re‐evalua�ng the Relief Canyon mine in Nevada, USA. The Company also owns the San Felipe development project in Sonora, Mexico. For further informa�on, please see SEDAR+ or www.americas‐gold.com.
For more informa�on:
Stefan Axell VP, Corporate Development & Communica�ons Americas Gold and Silver Corpora�on 416‐874‐1708
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 Chris McCann, P.Eng., Vice President, Technical Services of the Company. 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 gold, silver and other metals, the expected prices of gold, silver and other metals, as well as the related costs, expenses and capital expenditures; produc�on from the Galena Complex and Cosalá Opera�ons, including the expected number of producing stopes and produc�on levels; 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 rates and cash costs per silver ounce and all‐in sustaining costs per silver ounce; statements rela�ng to Americas’ EC120 Project; and statements rela�ng to implementa�on of, and the impact of new management on, the planned recapitaliza�on of Galena Complex. 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 metric is a non‐GAAP financial measure or ratio. The Company uses the financial measure “net cash generated from operating activities” 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 liquidity, operational efficiency, and short‐term financial health.
This is a financial measure disclosed in the Company’s statements of cash flows determined as cash generated from operating activities, after changes in non‐cash working capital items.
Reconciliation of Net Cash Generated from Operating Activities Q3‐2024 Q3‐2023
| Cash used in operating activities ('000) | ($2,153) | ($3,882) |
| Changes in non‐cash working capital items ('000) | 2,107 | 4,610 |
| Net cash generated from (used in) operating activities (‘000) | ($46) | $728 |
2 This metric is a non‐GAAP financial measure or ratio. The Company uses the financial measures, “Cash Cost”, “Cash Cost/Ag Oz Produced”, “All‐In Sustaining Cost”, and “All‐In Sustaining Cost/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 earnings, cash costs and total costs of operations. EBITDA is net income less interest, taxes, depreciation and amortization. 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, while all‐in sustaining costs is the cash costs plus all development, capital expenditures, and exploration spending.
Reconciliation of Consolidated Cash Costs/Ag Oz Produced(a, b)
Q3‐2024 Q3‐2023
| Cost of sales ('000) | $18,957 | $17,984 |
| Less non‐controlling interests portion ('000) | (4,238) | (3,614) |
| Attributable cost of sales ('000) | 14,719 | 14,370 |
| Non‐cash costs ('000) | 1,076 | 16 |
| Direct mining costs ('000) | $15,796 | $14,386 |
| Smelting, refining and royalty expenses ('000) | 3,141 | 5,549 |
| Less by‐product credits ('000) | (12,428) | (12,583) |
| Cash costs ('000) | $6,509 | $7,352 |
| Divided by silver produced (oz) | 385,564 | 386,615 |
| Cash costs/Ag oz produced ($/oz) | $16.88 | $19.01 |
Reconciliation of Cosalá Operations Cash Costs/Ag Oz Produced(b)
Q3‐2024 Q3‐2023
| Cost of sales ('000) | $8,364 | $8,949 |
| Non‐cash costs ('000) | 1,203 | 11 |
| Direct mining costs ('000) | $9,567 | $8,960 |
| Smelting, refining and royalty expenses ('000) | 2,911 | 4,420 |
| Less by‐product credits ('000) | (11,113) | (10,820) |
| Cash costs ('000) | $1,365 | $2,560 |
| Divided by silver produced (oz) | 191,739 | 177,503 |
| Cash costs/Ag oz produced ($/oz) | $7.12 | $14.42 |
Reconciliation of Galena Complex Cash Costs/Ag Oz Produced Q3‐2024 Q3‐2023
| Cost of sales ('000) | $10,593 | $9,035 |
| Non‐cash costs ('000) | (212) | 8 |
| Direct mining costs ('000) | $10,381 | $9,043 |
| Smelting, refining and royalty expenses ('000) | 383 | 1,882 |
| Less by‐product credits ('000) | (2,192) | (2,939) |
| Cash costs ('000) | $8,572 | $7,986 |
| Divided by silver produced (oz) | 323,043 | 348,521 |
| Cash costs/Ag oz produced ($/oz) | $26.54 | $22.91 |
Reconciliation of Consolidated All‐In Sustaining Costs/Ag Oz Produced (a, b)
Q3‐2024(b) Q3‐2023
| Cash costs ('000) | $6,508 | $7,352 |
| Capital expenditures ('000) | 2,693 | 3,434 |
| Exploration costs ('000) | 586 | 640 |
| All‐in sustaining costs ('000) | $9,787 | $11,426 |
| Divided by silver produced (oz) | 385,564 | 386,615 |
| All‐in sustaining costs/Ag oz produced ($/oz) | $25.38 | $29.55 |
Reconciliation of Cosalá Operations All‐In Sustaining Costs/Ag Oz Produced(b)
Q3‐2024 Q3‐2023
| Cash costs ('000) | $1,365 | $2,560 | |
| Capital expenditures ('000) | 654 | 2,077 | |
| Exploration costs ('000) | 113 | 198 | |
| All‐in sustaining costs ('000) | $2,132 | $4,835 | |
| Divided by silver produced (oz) | 191,739 | 177,503 | |
| All‐in sustaining costs/Ag oz produced ($/oz) | $11.12 | $27.24 |
Reconciliation of Galena Complex All‐In Sustaining Costs/Ag Oz Produced Q3‐2024 Q3‐2023
| Cash costs ('000) | $8,572 | $7,986 |
| Capital expenditures ('000) | 3,399 | 2,263 |
| Exploration costs ('000) | 788 | 737 |
| All‐in sustaining costs ('000) | $12,579 | $10,759 |
| Galena Complex Recapitalization Plan costs (‘000) | ‐ | 275 |
| All‐in sustaining costs with Galena Recapitalization Plan (‘000) | $12,579 | $11,261 |
| Divided by silver produced (oz) | 323,043 | 348,521 |
| All‐in sustaining costs/Ag oz produced ($/oz) | $39.50 | $31.52 |
| All‐in sustaining costs with Galena Recapitalization Plan/Ag oz produced ($/oz) | $39.50 | $32.31 |
(a) Throughout this press release, consolidated produc�on results and consolidated opera�ng metrics are based on the a�ributable ownership percentage of each opera�ng segment (100% Cosalá Opera�ons and 60% Galena Complex).
(b) Throughout this press release, silver produc�on, silver equivalent produc�on, and cost per ounce measurements during fiscal 2024 include EC120 Project pre‐produc�on from the Cosalá Opera�ons.