USA.TO · 2023-08-14 12:00:00

Americas GOLD and Silver Reports Q2‐2023 Results

Financials

AMERICAS GOLD AND SILVER REPORTS Q2‐2023 RESULTS

TORONTO, ONTARIO – August 14, 2023 – 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 June 30, 2023.

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.sedar.com, 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 of $24.2 million for Q2‐2023 represenƟng an increase of $4.2 million (or 21%) compared

to Q2‐2022 primarily due to higher silver and lead producƟon from the Galena Complex and higher

silver producƟon from the Cosalá OperaƟons, parƟally oﬀset by lower realized zinc prices.

 Cash generated from operaƟng acƟviƟes1 improved by $2.9 million compared Q2‐2022, before

changes in non‐cash working capital items.

 A net loss of $7.1 million for Q2‐2023, or an aƩributable loss of $0.03 per share2 represenƟng a

decrease in net loss of $2.2 million compared to Q2‐2022, primarily due to higher net revenue of

$4.2 million oﬀset in part by higher cost of sales of $2.8 million and lower realized zinc prices.

 The Company successfully installed the Galena Hoist which is now operaƟonal as of the end of Q2‐

2023 with only shaŌ repair remaining before ﬁnal cerƟﬁcaƟon can be obtained. The Company has

fully inspected the shaŌ with a LIDAR survey showing less than a few hundred feet of the shaŌ

requiring more extensive repair . These repairs are on‐going and are expected to be completed in

Q4‐2023.

 Q2‐2023 consolidated aƩributable silver producƟon increased by 92% year‐over‐year totalling

approximately 0.57 million ounces compared with approximately 0.30 million ounces in Q2‐2022.

Consolidated aƩributable silver equivalent3 producƟon in Q2‐2023 was approximately 1.3 million

ounces compared with 1.3 million ounces in Q2‐2022.

 AƩributable cash costs of $10.00/oz silver produced4 and all‐in sustaining costs of $16.78/oz silver

produced4 during the quarter . Cash costs were negaƟvely impacted in the quarter by lower zinc

prices and an appreciaƟon in the Mexican peso.

 ProducƟon guidance for 2023 remains unchanged with consolidated aƩributable silver equivalent

producƟon expected to range between 5.5 – 6.0 million ounces and consolidated aƩributable

silver producƟon expected to increase by over 80% from 2022 and range between 2.2 – 2.6 million

ounces.

 The Company closed the second tranche of the converƟble debenture with Delbrook Capital, one

of the Company’s largest shareholders, with the receipt of the remaining C$4.0 million subsequent

to the quarter end.

“ProducƟon in the second half of the year is expected to be higher than the ﬁrst half of the year and the

Company remains on track to meet its 2023 producƟon guidance,” stated Americas President and CEO

Darren Blasuƫ. “The Company has also made the decision to source higher‐grade silver copper ore from

the EC120 deposit at the Cosalá operaƟons, starƟng later this month. The decision is a result of expected

higher silver and copper prices relaƟve to zinc prices going forward. Developing into the EC120 deposit

allows for greater revenue opƟmizaƟon to constantly changing metal prices and increases silver

opƟonality.”

Cosalá OperaƟons

The Cosalá OperaƟons produced approximately 335,000 ounces of silver, 3.2 million pounds of lead and

9.6 million pounds of zinc in Q2‐2023, compared to approximately 128,000 ounces of silver, 3.9 million

pounds of lead and 9.9 million pounds of zinc in Q2‐2022, beneﬁƫng from more producƟon from the

higher‐grade silver areas in the Upper Zone of the San Rafael mine. Cash cost and all‐in sustaining cost

were $4.51 per silver ounce and $11.10 per silver ounce, respecƟvely, which were negaƟvely impacted in

the quarter by lower lead and zinc prices and an appreciaƟon in the Mexican peso compared with Q2‐

2022.

Silver producƟon from the Cosalá OperaƟons in 2023 is expected to be between 1.2 – 1.4 million ounces,

beneﬁƫng from more producƟon from the higher‐grade silver areas in the Upper Zone of the San Rafael

mine and starƟng to source higher grade silver ore from the EC120 deposit starƟng later this month. The

decision is a result of lower‐than‐expected zinc prices and expected higher silver prices going forward.

Developing into the EC120 deposit allows for greater revenue opƟmizaƟon to constantly changing metal

prices and increases silver opƟonality.

Galena Complex

AƩributable producƟon from the 60% owned Galena Complex was approximately 238,000 ounces of silver

and 2.7 million pounds of lead in Q2‐2023, compared to approximately 171,000 ounces of silver and 2.5

million pounds of lead in Q2‐2022. Much of the increase in silver producƟon comes from the 3700 Level

silver‐copper areas which drove total silver grade processed above 400 g/t during the quarter . Cash cost

and all‐in sustaining cost were $17.74 per silver ounce and $24.74 per silver ounce, respecƟvely, a decrease

in both cash cost and all‐in sustaining cost compared to Q2‐2022. All‐in sustaining cost per silver ounce at

the Galena Complex is anƟcipated to conƟnue to decrease with the compleƟon of the Galena Hoist project

as the beneﬁts of scaling economies on the exisƟng cost base are realized.

During the quarter, the Company successfully installed the Galena Hoist and it is now operaƟonal. The

Company is focused on ﬁnishing the remaining shaŌ repair work, which is not expected to impact

producƟon guidance for the Galena Complex in 2023. The Company has fully inspected the shaŌ with a

LIDAR survey showing less than a few hundred feet of the shaŌ requiring more extensive repair . These

repairs are on‐going and are expected to be completed in Q4‐2023. The Galena Hoist will support plans

to increase producƟon, improve operaƟonal ﬂexibility and improve operaƟonal economics.

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 Daren Dell, P. E n g . , Chief OperaƟng Oﬃcer 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.sedar .com, 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, including the

expected producƟon levels and potenƟal addiƟonal mineral resources thereat; the expected Ɵming and

compleƟon of the shaŌ repair related to the Galena Hoist project and the expected operaƟonal and

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

and all‐in sustaining costs per silver ounce at the Galena Complex following compleƟon; and mining and

processing operaƟons at the Cosalá OperaƟons conƟnuing, including expected producƟon levels and the

conƟnuity of legal access for employees and contractors; . 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 adverse impacts to operaƟons from the COVID 19 pandemic, no further adverse impacts to the Cosalá

OperaƟons from blockades or work stoppages, and compleƟon of the Galena Hoist project (including

current shaŌ repair) on its expected schedule and budget, and 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 through meeƟng producƟon targets and at the Galena

Complex through implemenƟng the Galena RecapitalizaƟon Plan, including the compleƟon of the Galena

Hoist project 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 including the COVID‐19 pandemic, including the

emergence of new strains and/or the resurgence of COVID‐19, acƟons that have been and may be taken

by governmental authoriƟes to contain the COVID‐19 pandemic or to treat its impact and/or the

availability, eﬀecƟveness and use of treatments and vaccines (including the eﬀecƟveness of boosters); the

impact of COVID‐19 on our workforce, suppliers and other essenƟal 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 producƟvity, the risks in connecƟon with the

operaƟons, cash ﬂow and results of the Company relaƟng to the unknown duraƟon and impact of the

COVID‐19 pandemic; 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 The Company uses the ﬁnancial measure “net cash generated from operaƟng acƟviƟes” 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 liquidity, operaƟonal 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 operaƟng acƟviƟes, aŌer changes in non‐cash working capital items.

Reconciliation of Net Cash Generated from Operating Activities

Q2‐2023 Q2‐2022

Cash generated from (used in) operating activities (‘000) $642 $(2,312)

Changes in non‐cash working capital items (‘000) (6,586) 9,284

Net cash generated from (used in) operating activities (‘000) $(5,944) $6,972

2 The Company uses the ﬁnancial measure “net loss per share” 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 liquidity, operaƟonal eﬃciency, and short‐term ﬁnancial health.

Net loss per share is consolidated net loss divided by the weighted average number of common shares

outstanding during the period.

Reconciliation of Net Loss per Share

Q2‐2023 Q2‐2022

Consolidated net loss ('000) $(7,091) $(9,278)

Divided by weighted average number of common shares outstanding 211,454,795 180,795,755

Net loss per share $(0.03) $(0.05)

3 Silver equivalent ounces for Q2‐2023 and Q2‐2022 were calculated based on all metals producƟon at

average realized silver, zinc, and lead prices during each respecƟve period throughout this press release.

Silver equivalent ounces for the 2023 guidance and 2024 outlook references were calculated based on

$22.00/oz silver, $1.45/lb zinc, $1.00 /lb lead, and $3.75/lb copper throughout this press release.

4 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 Produced1

Q2‐2023 Q2‐2022

Cost of sales ('000) $20,357 $16,552

Less non‐controlling interests portion ('000) (3,759) (3,440)

Attributable cost of sales ('000) 16,598 13,112

Non‐cash costs ('000) (822) 71

Direct mining costs ('000) $15,776 $13,183

Smelting, refining and royalty expenses ('000) 5,867 6,447

Less by‐product credits ('000) (15,901) (20,440)

Cash costs ('000) $5,742 $(810)

Divided by silver produced (oz) 573,382 299,228

Cash costs/Ag oz produced ($/oz) $10.00 $(2.72)

Reconciliation of Cosalá Operations Cash Costs/Ag Oz Produced

Q2‐2023 Q2‐2022

Cost of sales ('000) $10,959 $7,953

Non‐cash costs ('000) (793) 20

Direct mining costs ('000) $10,166 $7,973

Smelting, refining and royalty expenses ('000) 4,839 5,485

Less by‐product credits ('000) (13,493) (18,055)

Cash costs ('000) $1,512 $(4,597)

Divided by silver produced (oz) 334,992 127,803

Cash costs/Ag oz produced ($/oz) $4.51 $(35.97)

Reconciliation of Galena Complex Cash Costs/Ag Oz Produced

Q2‐2023 Q2‐2022

Cost of sales ('000) $9,398 $8,599

Non‐cash costs ('000) (49) 85

Direct mining costs ('000) $9,349 $8,684

Smelting, refining and royalty expenses ('000) 1,713 1,603

Less by‐product credits ('000) (4,012) (3,975)

Cash costs ('000) $7,050 $6,312

Divided by silver produced (oz) 397,316 285,707

Cash costs/Ag oz produced ($/oz) $17.74 $22.09

Reconciliation of Consolidated All‐In Sustaining Costs/Ag Oz Produced 1

Q2‐2023 Q2‐2022

Cash costs ('000) $5,742 $(810)

Capital expenditures ('000) 3,209 2,138

Exploration costs ('000) 672 278

All‐in sustaining costs ('000) $9,619 $1,606

Divided by silver produced (oz) 573,382 299,228

All‐in sustaining costs/Ag oz produced ($/oz) $16.78 $5.37

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

Q2‐2023 Q2‐2022

Cash costs ('000) $1,512 $(4,597)

Capital expenditures ('000) 1,896 1,022

Exploration costs ('000) 312 266

All‐in sustaining costs ('000) $3,720 $(3,309)

Divided by silver produced (oz) 334,992 127,803

All‐in sustaining costs/Ag oz produced ($/oz) $11.10 $(25.89)

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

Q2‐2023 Q2‐2022

Cash costs ('000) $7,050 $6,312

Capital expenditures ('000) 2,181 1,860

Exploration costs ('000) 599 20

All‐in sustaining costs ('000) $9,830 $8,192

Galena Complex Recapitalization Plan costs ('000) 1,648 2,308

All‐in sustaining costs with Galena Recapitalization Plan ('000) $11,478 $10,500

Divided by silver produced (oz) 397,316 285,707

All‐in sustaining costs/Ag oz produced ($/oz) $24.74 $28.67

All‐in sustaining costs with Galena Recapitalization/Ag oz produced ($/oz) $28.29 $36.75

1 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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