USA.TO · 2024-05-15 12:00:00

Americas GOLD and Silver Reports Q1‐2024 Results

Financials

AMERICAS GOLD AND SILVER REPORTS Q1‐2024 RESULTS

TORONTO, ONTARIO – May 15, 2024 – Americas Gold and Silver CorporaƟon (TSX: USA) (NYSE American:

USAS) (“Americas” or the “Company”), a growing North American precious metals producer, reports

consolidated ﬁnancial and operaƟonal results for the quarter ended March 31, 2024.

This earnings release should be read in conjuncƟon 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 CorporaƟon 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

 Revenue decreased to $19.5 million for Q1‐2024 or 12% compared to $22.1 million for Q1‐2023,

resulting from lower realized zinc price at the Cosalá Operations and lower silver and lead

production from the Galena Complex, offset by higher silver production from the Cosalá Operations.

 A net loss of $16.2 million for Q1‐2024, or an attributable loss of $0.07 per share representing an

increase in net loss of $5.7 million compared to Q1‐2023, primarily due to lower net revenue,

higher cost of sales, and higher loss on non‐cash derivatives related to the convertible debenture,

offset in part by lower interest and financing expense.

 As previously reported, Q1‐2024 attributable silver production was 0.48 million ounces compared

with approximately 0.50 million ounces in Q1‐2023. The Company also produced approximately

8.0 million attributable pounds of zinc and 4.0 million attributable pounds of lead during Q1‐2024.

 ProducƟon from the Cosalá OperaƟons was strong as the operaƟon beneﬁƩed from above

budgeted silver grades and recoveries. The Galena Complex producƟon was slightly below budget

as focus during the quarter was re‐allocated to lateral development to access the new mining

areas in the Upper Country Lead Zone veins between 2400 and 2800 levels. This silver‐lead area

commenced ore producƟon subsequent to quarter end and will provide 4,000‐5,000 tons per

month of base load silver‐lead producƟon for the next several years.

 Consolidated aƩributable cash costs of $20.53/oz silver produced[1] and all‐in sustaining costs of

$29.20/oz silver produced[1] during the quarter .

 The Company expects to close on a ﬁnancing with a metal trader for the anƟcipated iniƟal capital

requirements of the 100%‐owned EC120 Project at the Cosalá OperaƟons in Q2‐2024 with the

goal of producing higher‐grade silver‐copper concentrates in early 2025. The 2019 Preliminary

Feasibility Study for the EC120 Project forecasted average annual metal producƟon of 2.5 million

ounces of silver and 4.5 million pounds of copper with a total of over 12 million ounces of silver

and 23.0 million pounds of copper over a mine life of approximately 5 years.

“I am opƟmisƟc about the remainder of the year despite an expected, but lower producƟon quarter .

Increasing silver and base metals prices coupled with expected higher silver producƟon from the Galena

Complex should greatly improve operaƟng results over the next three quarters,” stated Americas President

and CEO Darren Blasuƫ. “Ore producƟon from the newly developed 2400 Level at the Galena Complex

has commenced, providing a larger monthly base load of silver‐lead producƟon. In addiƟon, development

on the 3700 Level at the Galena Complex has begun into a high‐grade silver‐copper area with iniƟal

producƟon expected at the start of Q3‐2024.”

Cosalá OperaƟons

The Cosalá OperaƟons produced approximately 295,000 ounces of silver, 2.8 million pounds of lead and

8.0 million pounds of zinc in Q1‐2024, compared with approximately 265,000 ounces of silver, 2.7 million

pounds of lead and 7.2 million pounds of zinc in Q1‐2023. Silver and zinc producƟon increased by over

10% year‐over‐year while lead producƟon was essenƟally unchanged.

With the current higher silver and copper price, the Company decided to expedite the development of its

100%‐owned EC120 Project at the Cosalá OperaƟons. IniƟal access to the Zone 120 deposit occurred in

Q3‐2023 from the San Rafael Upper Zone development. In addiƟon, the Company conƟnues mining and

processing silver‐zinc ore from the San Rafael Main and Upper Zones and is expecƟng to beneﬁt from the

increase in zinc prices experienced to date in the second quarter .

The Company expects to close in Q2‐2023 on a ﬁnancing with an internaƟonal metal trader to provide

ﬁnancing for the anƟcipated iniƟal capital requirements at the EC120 Project. The Company expects to

complete the required development and preparaƟons to begin producing higher‐grade silver‐copper

concentrates from the Project at the beginning of 2025. The 2019 Preliminary Feasibility Study for the

EC120 Project forecasted average annual metal producƟon of 2.5 million ounces of silver and 4.5 million

pounds of copper with a total of over 12 million ounces of silver and 23.0 million pounds of copper over

the ﬁve years of the project.

Cash costs per silver ounce increased in the quarter to $16.35 per ounce from $4.61 per ounce in Q1‐2023

due to higher cost of sales, lower realized Q1‐2024 zinc prices and the devaluaƟon of the USD relaƟve to

the Mexican peso.

Galena Complex

AƩributable producƟon from the 60% owned Galena Complex was approximately 187,000 ounces of silver

and 1.1 million pounds of lead in Q1‐2024, compared to approximately 235,000 ounces of silver and 2.8

million pounds of lead in Q1‐2023. During the quarter, the Company focused on horizontal development

work in the Upper Country Lead Zone between the 2400 and 2800 Levels to access addiƟonal working

areas. The development work reduced silver and lead producƟon in the quarter but is expected to

posiƟvely impact overall producƟon for the remainder of the year and going forward. The mining crews

have been relocated to accelerate development into a high‐grade silver copper stope accessed oﬀ of the

3700 level which will add high‐grade silver‐copper producƟon commencing in Q3‐2024.

Cash costs increased to $27.14 per silver ounce in Q1‐2024 from $18.59 per silver ounce in Q1‐2023 mainly

due to lower silver and lead producƟon during the quarter . Cash costs and all‐in sustaining costs per silver

ounce at the Galena Complex are anƟcipated to decrease with the projected increase in producƟon and

the compleƟon of the Galena Hoist project as the beneﬁts of economies of scale on the exisƟng cost base

are realized.

About Americas Gold and Silver CorporaƟon

Americas Gold and Silver CorporaƟon is a high‐growth precious metals mining company with mulƟple

assets in North America. The Company owns and operates the Cosalá OperaƟons in Sinaloa, Mexico,

manages the 60%‐owned Galena Complex in Idaho, USA, and is re‐evaluaƟng the Relief Canyon mine in

Nevada, USA. The Company also owns the San Felipe development project in Sonora, Mexico. For further

informaƟon, please see SEDAR+ or www.americas‐gold.com.

For more informaƟon:

Stefan Axell Darren Blasuƫ

VP , Corporate Development & CommunicaƟons President and CEO

Americas Gold and Silver CorporaƟon Americas Gold and Silver CorporaƟon

416‐874‐1708 416‐848‐9503

Technical InformaƟon and Qualiﬁed Persons

The scienƟﬁc and technical informaƟon relaƟng to the Company’s material mining properƟes contained

herein has been reviewed and approved by Chris McCann, P .Eng., Vice President, Technical Services of the

Company. The Company’s current Annual InformaƟon Form and the NI 43‐101 Technical Reports for its

mineral properƟes, 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 esƟmates, classiﬁcaƟon and

reporƟng parameters, key assumpƟons and associated risks for each of the Company’s material mineral

properƟes, including a breakdown by category.

All mining terms used herein have the meanings set forth in NaƟonal Instrument 43‐101 – Standards of

Disclosure for Mineral Projects (“NI 43‐101”), as required by Canadian securiƟes regulatory authoriƟes.

These standards diﬀer from the requirements of the SEC that are applicable to domesƟc United States

reporƟng 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, informaƟon contained in this

news release may not be comparable to similar informaƟon made public by companies subject to the SEC’s

reporƟng and disclosure requirements.

CauƟonary Statement on Forward‐Looking InformaƟon:

This news release contains “forward‐looking informaƟon” within the meaning of applicable securiƟes laws.

Forward‐looking informaƟon includes, but is not limited to, Americas’ expectaƟons, intenƟons, plans,

assumpƟons and beliefs with respect to, among other things, esƟmated and targeted producƟon 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; producƟon from the Galena Complex and Cosalá

OperaƟons, including the expected number of producing stopes and producƟon levels; the expected

Ɵming and compleƟon of required development and the expected operaƟonal and producƟon results

therefrom, including the anƟcipated improvements to producƟon rates and cash costs per silver ounce

and all‐in sustaining costs per silver ounce ; and statements relaƟng to Americas’ EC120 Project, including

expected approvals, prepayment ﬁnancing availability, execuƟon and Ɵ ming and capital expenditures

required to develop such project and reach producƟon thereat, and expectaƟons regarding its ability to

rely in exisƟng infrastructure, faciliƟes, and equipment. Guidance and outlook references contained in

this press release were prepared based on current mine plan assumpƟons with respect to producƟon,

development, costs and capital expenditures, the metal price assumpƟons disclosed herein, and assumes

no further adverse impacts to the Cosalá OperaƟons from blockades or work stoppages, and compleƟon

of the shaŌ repair and shaŌ rehab work at the Galena Complex on its expected schedule and budget, the

realizaƟon of the anƟcipated beneﬁts therefrom, and is subject to the risks and uncertainƟes outlined

below. The ability to maintain cash ﬂow posiƟve producƟon at the Cosalá OperaƟons, which includes the

EC120 Project, through meeƟng producƟon targets and at the Galena Complex through implemenƟng the

Galena RecapitalizaƟon Plan, including the compleƟon of the Galena shaŌ repair and shaŌ rehab work on

its expected schedule and budget, allowing the Company to generate suﬃcient operaƟng cash ﬂows while

facing market ﬂuctuaƟons in commodity prices and inﬂaƟonary pressures, are signiﬁcant judgments in the

consolidated ﬁnancial statements with respect to the Company’s liquidity. Should the Company experience

negaƟve operaƟng cash ﬂows in future periods, the Company may need to raise addiƟonal funds through

the issuance of equity or debt securiƟes. OŌen, but not always, forward‐looking informaƟon can be

idenƟﬁed by forward‐looking words such as “anƟcipate” , “believe” , “expect”, “goal” , “plan” , “intend” ,

“potenƟal’ , “esƟmate” , “may” , “assume” and “will” or similar words suggesƟng future outcomes, or other

expectaƟons, beliefs, plans, objecƟves, assumpƟons, intenƟons, or statements about future events or

performance. Forward‐looking informaƟon is based on the opinions and esƟmates of Americas as of the

date such informaƟon is provided and is subject to known and unknown risks, uncertainƟes, and other

factors that may cause the actual results, level of acƟvity, performance, or achievements of Americas to

be materially diﬀerent from those expressed or implied by such forward‐looking informaƟon. With respect

to the business of Americas, these risks and uncertainƟes include risks relaƟng to widespread epidemics

or pandemic outbreak, acƟons that have been and may be taken by governmental authoriƟes to contain

such epidemic or pandemic or to treat its impact and/or the availability, eﬀecƟveness and use of

treatments and vaccines (including the eﬀecƟveness of boosters); interpretaƟons or reinterpretaƟons of

geologic informaƟon; unfavorable exploraƟon results; inability to obtain permits required for future

exploraƟon, development or producƟon; general economic condiƟons and condiƟons aﬀecƟng the

industries in which the Company operates; the uncertainty of regulatory requirements and approvals;

potenƟal liƟgaƟon; ﬂuctuaƟng 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

ﬂuctuaƟons and energy prices), ground condiƟons, illegal blockades and other factors limiƟng mine access

or regular operaƟons without interrupƟon, failure of plant, equipment, processes and transportaƟon

services to operate as anƟcipated, environmental risks, government regulaƟon, actual results of current

exploraƟon and producƟon acƟviƟes, possible variaƟons in ore grade or recovery rates, permiƫng

Ɵmelines, capital and construcƟon expenditures, reclamaƟon acƟviƟes, labor relaƟons or disrupƟons,

social and poliƟcal developments, risks associated with generally elevated inﬂaƟon and inﬂaƟonary

pressures, risks related to changing global economic condiƟons, and market volaƟlity, risks relaƟng to

geopoliƟcal instability, poliƟcal unrest, war, and other global conﬂicts may result in adverse eﬀects on

macroeconomic condiƟons including volaƟlity in ﬁnancial markets, adverse changes in trade policies,

inﬂaƟon, supply chain disrupƟons and other risks of the mining industry. Although the Company has

aƩempted to idenƟfy important factors that could cause actual results to diﬀer materially from those

contained in forward‐looking informaƟon, there may be other factors that cause results not to be as

anƟcipated, esƟmated, or intended. Readers are cauƟoned not to place undue reliance on such

informaƟon. AddiƟonal informaƟon regarding the factors that may cause actual results to diﬀer materially

from this forward‐looking informaƟon is available in Americas’ ﬁlings with the Canadian SecuriƟes

Administrators on SEDAR+ and with the SEC. Americas does not undertake any obligaƟon to update

publicly or otherwise revise any forward‐looking informaƟon whether as a result of new informaƟon,

future events or other such factors which aﬀect this informaƟon, except as required by law. Americas does

not give any assurance (1) that Americas will achieve its expectaƟons, or (2) concerning the result or Ɵming

thereof. All subsequent wriƩen and oral forward‐looking informaƟon concerning Americas are expressly

qualiﬁed in their enƟrety by the cauƟonary statements above.

1 This metric is a non‐GAAP ﬁnancial measure or raƟo. 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 addiƟon to convenƟonal measures

prepared in accordance with IFRS, certain investors and analysts use this informaƟon to evaluate the

Company’s underlying cash costs and total costs of operaƟons. Cash costs are determined on a mine‐by‐

mine basis and include mine site operaƟng costs such as mining, processing, administraƟon, producƟon

taxes and royalƟes which are not based on sales or taxable income calculaƟons, while all‐in sustaining

costs is the cash costs plus all development, capital expenditures, and exploraƟon spending.

Reconciliation of Consolidated Cash Costs/Ag Oz Produced(a)

Q1‐2024 Q1‐2023

Cost of sales ('000) $19,675 $17,479

Less non‐controlling interests portion ('000) (3,426) (3,959)

Attributable cost of sales ('000) 16,249 13,520

Non‐cash costs ('000) 82 279

Direct mining costs ('000) $16,331 $13,799

Smelting, refining and royalty expenses ('000) 4,343 5,242

Less by‐product credits ('000) (10,779) (13,457)

Cash costs ('000) $9,895 $5,584

Divided by silver produced (oz) 481,936 499,677

Cash costs/Ag oz produced ($/oz) $20.53 $11.18

Reconciliation of Cosalá Operations Cash Costs/Ag Oz Produced

Q1‐2024 Q1‐2023

Cost of sales ('000) $11,109 $7,582

Non‐cash costs ('000) (348) 292

Direct mining costs ('000) $10,761 $7,874

Smelting, refining and royalty expenses ('000) 3,849 4,188

Less by‐product credits ('000) (9,782) (10,839)

Cash costs ('000) $4,828 $1,223

Divided by silver produced (oz) 295,278 265,121

Cash costs/Ag oz produced ($/oz) $16.35 $4.61

Reconciliation of Galena Complex Cash Costs/Ag Oz Produced

Q1‐2024 Q1‐2023

Cost of sales ('000) $8,566 $9,897

Non‐cash costs ('000) 716 (21)

Direct mining costs ('000) $9,282 $9,876

Smelting, refining and royalty expenses ('000) 823 1,757

Less by‐product credits ('000) (1,661) (4,364)

Cash costs ('000) $8,444 $7,269

Divided by silver produced (oz) 311,096 390,927

Cash costs/Ag oz produced ($/oz) $27.14 $18.59

Reconciliation of Consolidated All‐In Sustaining Costs/Ag Oz Produced (a)

Q1‐2024 Q1‐2023

Cash costs ('000) $9,895 $5,584

Capital expenditures ('000) 3,531 2,419

Exploration costs ('000) 646 427

All‐in sustaining costs ('000) $14,072 $8,430

Divided by silver produced (oz) 481,936 499,677

All‐in sustaining costs/Ag oz produced ($/oz) $29.20 $16.87

Reconciliation of Cosalá Operations All‐In Sustaining Costs/Ag Oz Produced

Q1‐2024 Q1‐2023

Cash costs ('000) $4,828 $1,223

Capital expenditures ('000) 1,474 1,183

Exploration costs ('000) 123 119

All‐in sustaining costs ('000) $6,425 $2,525

Divided by silver produced (oz) 295,278 265,121

All‐in sustaining costs/Ag oz produced ($/oz) $21.76 $9.52

Reconciliation of Galena Complex All‐In Sustaining Costs/Ag Oz Produced

2023 Q1‐2023

Cash costs ('000) $8,444 $7,269

Capital expenditures ('000) 3,428 2,060

Exploration costs ('000) 871 514

All‐in sustaining costs ('000) $12,743 $9,843

Galena Complex Recapitalization Plan costs ('000) ‐ 2,565

All‐in sustaining costs with Galena Recapitalization Plan ('000) $12,743 $12,408

Divided by silver produced (oz) 311,096 390,927

All‐in sustaining costs/Ag oz produced ($/oz) $40.96 $25.18

All‐in sustaining costs with Galena Recapitalization/Ag oz produced ($/oz) $40.96 $31.74

(a) Throughout this press release, consolidated producƟon results and consolidated operaƟng

metrics are based on the aƩributable ownership percentage of each operaƟng segment (100%

Cosalá OperaƟons and 60% Galena Complex).

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