Americas GOLD and Silver Corporation Reports First Quarter 2020 Results
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AMERICAS GOLD AND SILVER CORPORATION REPORTS FIRST QUARTER 2020 RESULTS
TORONTO, ONTARIO—May 15, 2020—Americas Gold and Silver Corporation (“Americas” or the
“Company”) (TSX: USA; NYSE American: USAS), a growing North American precious metals producer, today
reported consolidated financial and operational results for the first quarter of 2020.
This earnings release should be read in conjunction 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 Corporation SEDAR profile at www.sedar.com, on its EDGAR
profile at www.sec.gov, and are also available on the Company’s website at www.americas‐gold.com. All
figures are in U.S. dollars unless otherwise noted.
Operational and First Quarter Financial Highlights
● Relief Canyon continues to ramp‐up following first gold pour in February and the Company is
focused on achieving commercial production by late Q2‐2020 or early Q3‐2020.
● Subsequent to Q1‐2020, the Company closed a bought deal public offering for gross proceeds of
approximately C$28.75 million which provides the Company with available capital to address
working capital needs including bringing Relief Canyon into commercial production, particularly in
the COVID‐19 environment.
● As a result of Relief Canyon being in pre‐commercial production, the Cosalá Operations producing
for less than a month during the quarter, and the exclusion of operating metrics from the Galena
Complex during the Galena recapitalization plan (“Recapitalization Plan”), Q1‐2020 revenue was
$7.3 million resulting in a net loss of $4.1 million or ($0.03) per share.
● Cosalá production for the first 26 days of Q1‐2020 yielded 420 gold equivalent ounces1 or 0.3
million silver equivalent ounces2 at cost of sales of $7.19/oz equivalent silver, by‐product cash cost3
of negative ($11.32/oz) silver, and all‐in sustaining cost3 of negative ($0.83/oz) silver.
● The Galena Recapitalization Plan is proceeding better than expected with the Company seeing both
increased production and encouraging exploration results.
● Outlook for 2021 continues to be 90,000 to 110,000 gold equivalent ounces at expected all‐in
sustaining costs4 of $900 to $1,100 per gold equivalent ounce.
● At March 31, 2020, the Company had a cash balance of approximately $16.4 million.
● The Company has chosen not to host a conference call to discuss the Q1‐2020 results given the
limited production and the extensive operations update released on May 4, 2020. The Company
will resume the quarterly conference calls following its Q2‐2020 results.
“The Company is in a great position to benefit from the strong gold price environment moving forward as
we addressed common start‐up challenges at Relief Canyon and it continues to ramp‐up” said Americas
President & CEO Darren Blasutti. “All operating aspects at Relief Canyon are trending positively, the Cosalá
Operations should be able to resume production early in the second half of 2020 as we have had several
encouraging developments in Mexico and the Galena Recapitalization Plan is proceeding better than
expected. The recently completed financing provides the Company with sufficient working capital to bring
Relief Canyon to commercial production.”
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Relief Canyon
The Company issued a press release on May 4, 2020 providing details of the Relief Canyon ramp‐up. The
Company continues to target commercial production by late Q2‐2020 or early Q3‐2020 and will be
providing more regular updates regarding the operation between now and then.
Since the start of pre‐production, approximately 5.2 million tonnes of material have been mined, including
4.2 million tonnes of waste and 1.0 million tonnes of ore. Waste movement is ahead of budget and the
operation currently has an ore stockpile of approximately 0.2 million tonnes ahead of the crusher waiting
to be placed on the leach pad.
Approximately 0.8 million tonnes of ore have been stacked on the leach pad. Solution flow rates from the
pad have continued to increase since the update on May 4, 2020 as the surface area available for leach
irrigation has increased.
Cosalá Operations
The Cosalá Operations operated for the first 26 days of the quarter as the operation was negatively
impacted by the previously announced illegal blockade since the end of January 2020. As a result,
operating results year‐over‐year were negatively impacted and not generally comparable.
Cosalá Operations Production and Cost Detail
Q1 2020 Q1 2019
Total ore processed (tonnes milled) 43,253 152,605
Silver grade (grams per tonne) 48 57
Zinc grade (percent) 4.26 4.16
Lead grade (percent) 1.70 1.82
Silver Recovery (%) 58.7 61.7
Zinc Recovery (%) 79.3 80.5
Lead Recovery (%) 74.3 75.6
Silver produced (ounces) 39,117 173,169
Zinc produced (pounds) 3,221,744 11,263,623
Lead produced (pounds) 1,203,720 4,626,233
Gold equivalent produced (ounces) 420 2,085
Silver sold (ounces) 34,693 172,995
Zinc sold (pounds) 3,083,663 10,864,404
Lead sold (pounds) 988,828 4,682,695
Cost of sales ($ per equivalent silver ounce) $7.19 $4.34
Silver cash cost ($ per silver ounce) $(11.32) $(30.48)
All‐in sustaining cost ($ per silver ounce) $(0.83) $(25.85)
On March 31, 2020, the Government of Mexico issued a national COVID‐19 related decree for the
temporary suspension of all non‐essential businesses in the country, including all mining operations. This
week the Government of Mexico issued a number of statements that are expected to allow for the re‐
opening of mining operations starting in June 2020. The Company believes this will provide a pathway for
the Cosalá Operations to resume production early in the second half of 2020, including a legal and
legitimate labour representative for its workers, allowing for a resolution to the current illegal blockade.
The Company’s priority continues to be the safety of its workers and the community of Cosalá that have
been negatively impacted – first by the illegal blockade and now by COVID‐19.
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Galena Complex
In addition to providing an update regarding the ramp‐up of Relief Canyon, the Company also provided an
extensive update regarding the Galena Recapitalization Plan in the May 4, 2020 update, including
information regarding the rehabilitation development , equipment purchases, and early drill results from
the 39,000‐meter drill program.
The Company has suspended disclosure of certain operating metrics such as cash costs, and all‐in sustaining
costs for the Galena Complex until the Recapitalization Plan is substantially completed; the Galena Complex
results are not included in the Consolidated Results.
Galena Production
Q1 2020 Q1 2019
Total ore processed (tonnes milled) 31,910 29,424
Silver grade (grams per tonne) 235 242
Lead grade (percent) 6.60 5.98
Silver Recovery (%) 95.6 96.2
Lead Recovery (%) 92.1 92.5
Silver produced (ounces) 230,275 220,655
Lead produced (pounds) 4,280,527 3,585,196
Gold equivalent produced (ounces) 2,409 2,663
Silver sold (ounces) 237,159 207,168
Lead sold (pounds) 4,378,663 3,282,576
Consolidated Financial and Consolidated Production5 Results
Consolidated operating results from Q1‐2020 are generally not comparable to Q1‐2019 due to the illegal
blockade temporarily halting mining and processing at the Cosalá Operations, and the exclusion of
operating results from the Galena Complex as a result of the Recapitalization Plan. Consolidated operating
results include only 26 days of production from the Cosalá Operations.
Gross revenue decreased by $10.5 million during Q1‐2020 compared to Q1‐2019 primarily due to the illegal
blockade. This decrease was offset by a $0.9 million increase in silver and lead revenue at the Galena
Complex from increased production in the early stages of the Recapitalization Plan.
Consolidated cost of sales was $7.19/oz equivalent silver representing an increase year‐over‐year, while
by‐product cash cost was negative ($11.32/oz) silver, and all‐in sustaining cost was negative ($0.83/oz)
silver, representing increases year‐over‐year, respectively.
Further information concerning the consolidated and individual mine operations is included in the
Company’s first quarter Condensed Interim Consolidated Financial Statements for the three months ended
March 31, 2020 and Management’s Discussion and Analysis for the three months ended March 31, 2020.
About Americas Gold and Silver Corporation
Americas Gold and Silver Corporation is a high‐growth precious metals mining company with multiple
assets in North America. The Company’s newest asset, Relief Canyon in Nevada, USA, has poured first gold
and is expected to ramp up to full production over the course of 2020. The Company also owns and
operates the Cosalá Operations in Sinaloa, Mexico and manages the 60%‐owned Galena Complex in Idaho,
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USA. The Company also holds an option on the San Felipe development project in Sonora, Mexico. For
further information, please see SEDAR or www.americas‐gold.com.
Qualified Persons
Darren Dell, P.Eng., Chief Operating Officer and Niel de Bruin, Director of Geology, who are each employees
of the Company and a “qualified person” under National Instrument 43‐101, have approved the applicable
contents of this news release.
For more information:
Stefan Axell Darren Blasutti
VP, Corporate Development & Communications President and CEO
Americas Gold and Silver Corporation Americas Gold and Silver Corporation
416‐874‐1708 416‐848‐9503
Cautionary Statement on Forward‐Looking Information:
This news release contains “forward‐looking information” within the meaning of applicable securities laws.
Forward‐looking information includes, but is not limited to, Americas Gold and Silver’s expectations,
intentions, plans, assumptions and beliefs with respect to, among other things, estimated production rates
and results for gold, silver and other precious metals, as well as the related costs, expenses and capital
expenditures, the Company’s construction, production, development plans and performance expectations
at the Relief Canyon Mine, , its ability to finance, develop and operate Relief Canyon, including the
anticipated timing of commercial production at Relief Canyon, the resolution and removal of the illegal
blockade at the Company’s Cosalá Operations and the resumption of mining and processing operations,
the resolution, easing or removal of the temporary restrictions on all non‐essential businesses in Mexico
resulting from the COVID‐19 pandemic affecting the Company’s Cosalá Operations, and the expected use
of the net proceeds from the Company’s bought deal equity financing. Often, but not always, forward‐
looking information can be identified by forward‐looking words such as “anticipate”, “believe”, “expect”,
“goal”, “plan”, “intend”, “potential’, “estimate”, “may”, “assume” and “will” or similar words suggesting
future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions, or statements
about future events or performance. Forward‐looking information is based on the opinions and estimates
of Americas Gold and Silver as of the date such information is provided and is subject to known and
unknown risks, uncertainties, and other factors that may cause the actual results, level of activity,
performance, or achievements of Americas Gold and Silver to be materially different from those expressed
or implied by such forward‐looking information. With respect to the business of Americas Gold and Silver,
these risks and uncertainties include risks relating to widespread epidemics or pandemic outbreak
including the COVID‐19 pandemic; the impact of COVID‐19 on our workforce, suppliers and other essential
resources and what effect those impacts, if they occur, would have on our business, including our ability
to access goods and supplies, the ability to transport our products and impacts on employee productivity,
the risks in connection with the operations, cash flow and results of the Company relating to the unknown
duration and impact of the COVID‐19 pandemic; interpretations or reinterpretations of geologic
information; unfavorable exploration results; inability to obtain permits required for future exploration,
development or production; general economic conditions and conditions affecting the industries in which
the Company operates; the uncertainty of regulatory requirements and approvals; fluctuating mineral and
commodity prices; the ability to obtain necessary future financing on acceptable terms or at all; the ability
to develop, complete construction, bring to production and operate the Relief Canyon Project; and risks
associated with the mining industry such as economic factors (including future commodity prices, currency
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fluctuations and energy prices), ground conditions and other factors limiting mine access, failure of plant,
equipment, processes and transportation services to operate as anticipated, environmental risks,
government regulation, actual results of current exploration and production activities, possible variations
in ore grade or recovery rates, permitting timelines, capital and construction expenditures, reclamation
activities, labor relations or disruptions, social and political developments and other risks of the mining
industry. The potential effects of the COVID‐19 pandemic on our business and operations are unknown at
this time, including the Company’s ability to manage challenges and restrictions arising from COVID‐19 in
the communities in which the Company operates and our ability to continue to safely operate and to safely
return our business to normal operations. The impact of COVID‐19 on the Company is dependent on a
number of factors outside of its control and knowledge, including the effectiveness of the measures taken
by public health and governmental authorities to combat the spread of the disease, global economic
uncertainties and outlook due to the disease, and the evolving restrictions relating to mining activities and
to travel in certain jurisdictions in which it operate. Although the Company has attempted to identify
important factors that could cause actual results to differ materially from those contained in forward‐
looking information, there may be other factors that cause results not to be as anticipated, estimated, or
intended. Readers are cautioned not to place undue reliance on such information. Additional information
regarding the factors that may cause actual results to differ materially from this forward‐looking
information is available in Americas filings with the Canadian Securities Administrators on SEDAR and with
the SEC. Americas does not undertake any obligation to update publicly or otherwise revise any forward‐
looking information whether as a result of new information, future events or other such factors which
affect this information, except as required by law. Americas does not give any assurance (1) that Americas
will achieve its expectations, or (2) concerning the result or timing thereof. All subsequent written and oral
forward‐looking information concerning Americas are expressly qualified in their entirety by the cautionary
statements above.
1 Gold equivalent production throughout this press release was calculated based on the average gold spot metal prices and average
silver realized metal prices during each respective period.
2 Silver equivalent production throughout this press release was calculated based on all metals production at average gold spot
prices, and average silver, zinc, and lead realized prices during each respective period.
3 Cash cost per ounce and all‐in sustaining cost per ounce are non‐IFRS performance measures with no standardized definition.
For further information and detailed reconciliations, please refer to the Company’s 2019 year‐end and quarterly MD&A.
4 Net of by‐product zinc and lead credits assuming $1.05/lbs zinc and $0.90/lbs lead
5 Throughout this press release, Q1‐2020 consolidated production results exclude Q1‐2020 from the Galena Complex due to the
Recapitalization Plan.