USA.TO · 2024-08-15 12:00:00

Americas GOLD and Silver Reports Q2‐2024 Results

Financials

AMERICAS GOLD AND SILVER REPORTS Q2‐2024 RESULTS

TORONTO, ONTARIO – August 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 June 30, 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

 Consolidated revenue increased to $31.6 million for Q2‐2024 or 62% compared to $19.5 million for

Q1‐2024 due to higher realized commodity prices and increased silver production at the Galena

Complex, offset slightly by lower silver production from the Cosalá Operations.

 Positive earnings before interest, taxes, depreciation and amortization (“EBITDA”) and net income

from combined Cosalá and Galena operations of $11.1 million[1] and $4.4 million, respectively,

compared with negative EBITDA from those combined operations of $1.5 million and a net loss of

$6.3 million in Q1‐2024.

 Decrease in consolidated net loss to $4.0 million or $0.02 per share for Q2‐2024 (Q1‐2024

consolidated net loss of $16.2 million or $0.08 per share), primarily due to higher net revenue

from higher silver and zinc prices.

 As previously reported, Q2‐2024 consolidated attributable silver production of 0.51 million

ounces. The Company also produced 8.9 million pounds of zinc and 4.4 million attributable

pounds of lead during Q2‐2024. Significant reduction of consolidated attributable cash costs to

$12.42/oz silver produced[1] and all‐in sustaining costs (“AISC”) to $19.58/oz silver produced[1] in

Q2‐2024, representing decreases of approximately 40% and 35%, respectively, compared with

Q1‐2024.

 Galena Complex quarterly producƟon was the highest on record since 2013 with silver producƟon

of approximately 560,000 ounces on a 100% basis as the operaƟon beneﬁƩed from producƟon

from mining areas in the Upper Country Lead Zone between 2400 and 2800 levels and a strong

quarter from the 52‐198 Silver Hanging Wall Vein.

 On August 14, 2024, the Company signed a $15 million secured Credit and Oŏake Agreement for

the capital requirements of the Board‐approved EC120 Project at its Cosalá OperaƟons with the

goal of solely producing higher‐grade silver‐copper concentrates in Q3‐2025.

 The Company commenced negoƟaƟons with current converƟble debenture holders and potenƟal

new investors to extend the term of the exisƟng faciliƟes.

“Q2‐2024 was a strong quarter for the Company and an iniƟal demonstraƟon of what our operaƟng assets

can deliver as we transiƟon to over 80% silver revenue over the next year,” stated Americas President and

CEO Darren Blasuƫ. “With the stronger commodity prices, the Company was able to signiﬁcantly improve

both its EBITDA and cash ﬂow from operaƟons. I expect conƟnued improvement as the Company advances

its development projects at both the Galena Complex and the Cosalá OperaƟons. I am excited to partner

with a world‐class metal trader such as Traﬁgura on advancing the EC120 Project which will begin to

contribute higher‐grade silver‐copper producƟon through development over 2025, coinciding well with

the recent increases in silver and copper prices.”

Consolidated ProducƟon

Consolidated aƩributable silver producƟon in Q2‐2024 was approximately 506,000 ounces. Quarterly

silver producƟon in Q2‐2024 remained on a steady upward trend and is expected to conƟnue with

increased working faces at the Galena Complex as well as the exploitaƟon of EC120 Project at the Cosalá

OperaƟons. The EC120 Project has already started contribuƟng to producƟon with small amounts of

development ore and will conƟnue to ramp up through to achieving commercial producƟon in Q3‐2025.

The Company also produced 8.9 million pounds of zinc and 4.4 million aƩributable pounds of lead during

Q2‐2024. The Company’s goal is to generate more than 80% of its revenue from silver producƟon by the

end of 2025 which would be among the silver industry leaders in percentage revenue from silver .

Consolidated aƩributable cash costs and all‐in sustaining costs for Q2‐2024 were $12.42 per silver ounce

and $19.58 per silver ounce, respecƟvely. Galena Complex cash costs per silver ounce beneﬁƩed from the

signiﬁcant increase in silver producƟon on a largely ﬁxed cost base at the Galena Complex. Cash costs per

silver ounce at the Cosalá OperaƟons were reduced because of increased by‐product credits from the

increased zinc producƟon and prices.

Galena Complex

The Galena Complex produced approximately 560,000 ounces of silver on a 100% basis in Q2‐2024

compared to approximately 311,000 ounces of silver in Q1‐2024 (an 80% increase in silver producƟon),

and 3.0 million pounds of lead in Q2‐2024, compared to 1.9 million pounds of lead in Q1‐2024 (a 60%

increase in lead producƟon).

The Galena Complex beneﬁƩed from the recent horizontal development work in the Upper Country Lead

Zone between the 2400 and 2800 Levels which allowed the operaƟon to access addiƟonal working areas

which is expected to conƟnue to beneﬁt the operaƟon in subsequent quarters and a strong contribuƟon

from the 52‐198 Silver Hanging Wall Vein. Development work on the 3700 Level is expected to be

completed in Q3‐2024 and is expected to contribute to high‐grade silver producƟon thereaŌer .

Cash costs decreased to $14.78 per ounce silver in Q2‐2024 from $27.14 per ounce silver in Q1‐2024 due

to increased silver producƟon, and AISC also decreased to $21.93 per ounce silver in Q2‐2024 from $40.96

per silver ounce in Q1‐2024. Cash costs and all‐in sustaining costs per silver ounce at the Galena Complex

are anƟcipated to decrease with the projected increase in producƟon from the 3700 Level and the

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

realized.

Cosalá OperaƟons

The Cosalá OperaƟons decreased silver producƟon in Q2‐2024 by 43% to approximately 170,000 ounces

of silver compared to approximately 297,000 ounces of silver in Q1‐2024.The Company focused on mining

higher grade zinc and lower grade silver areas of the San Rafael Main and Upper Zones to maximize its

revenue and cash ﬂow generaƟon by taking advantage of the Q2‐2024 increase in zinc prices. ProducƟon

of zinc increased to 8.9 million pounds of zinc while lead producƟon decrease slightly to 2.6 million pounds

of lead in Q2‐2024, compared to 8.0 million pounds of zinc, and 2.8 million pounds of lead in Q1‐2024.

Cash costs per silver ounce decreased during the quarter to $7.75 per ounce from $16.44 per ounce in Q1‐

2024 due primarily to increased zinc prices, which is treated as a by‐product credit.

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 accessed from the San Rafael Upper Zone development with iniƟal pre‐producƟon from

development ore from the area between the San Rafael Upper Zone and Zone 120. The Company expects

to realize an increase in silver producƟon in the near term due the higher‐grade silver areas in the Upper

Zone and EC120 development ore. 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 .

On August 14, 2024, the Company signed a $15 million secured Credit and Oŏake Agreement for the

capital requirements to provide ﬁnancing for the iniƟal capital requirements at the EC120 Project. The

Company expects to complete the required development and preparaƟons to achieve commercial

producƟon of higher‐grade silver‐copper concentrates from the Project in Q3‐2025. The Company has

been and will conƟnue to process Zone 120 and El Cajon development ore to produce high grade silver‐

copper concentrates through the pre‐producƟon development period. 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.

Relief Canyon

With the recent signiﬁcant rise in gold prices, the Company conƟnues to research possible soluƟons to

increase recoveries at the project including the possibility of improvements through a Carbon‐In‐Leach

(“CIL”) plant. The Company is commissioning an external study with an internaƟonal engineering

consultant to complete the necessary work. A CIL plant may demonstrate a path to higher gold recoveries

for the deposit with the potenƟal for improved economics and overall proﬁtability.

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, the availability of advances under the credit facility, execuƟon and Ɵming 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 ratio. The Company uses the financial measures “EBITDA” ,

“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)

Q2‐2024 Q1‐2024

Cost of sales ('000) $19,975 $19,675

Less non‐controlling interests portion ('000) (4,040) (3,426)

Attributable cost of sales ('000) 15,935 16,249

Non‐cash costs ('000) (486) 152

Direct mining costs ('000) $15,448 $16,401

Smelting, refining and royalty expenses ('000) 4,416 4,343

Less by‐product credits ('000) (13,578) (10,790)

Cash costs ('000) $6,286 $9,954

Divided by silver produced (oz) 505,932 483,920

Cash costs/Ag oz produced ($/oz) $12.42 $20.57

Reconciliation of Cosalá Operations Cash Costs/Ag Oz Produced(b)

Q2‐2024 Q1‐2024

Cost of sales ('000) $9,875 $11,109

Non‐cash costs ('000) (227) (278)

Direct mining costs ('000) $9,648 $10,831

Smelting, refining and royalty expenses ('000) 3,573 3,849

Less by‐product credits ('000) (11,905) (9,783)

Cash costs ('000) $1,316 $4,887

Divided by silver produced (oz) 169,728 297,262

Cash costs/Ag oz produced ($/oz) $7.75 $16.44

Reconciliation of Galena Complex Cash Costs/Ag Oz Produced

Q2‐2024 Q1‐2024

Cost of sales ('000) $10,100 $8,566

Non‐cash costs ('000) (432) 716

Direct mining costs ('000) $9,668 $9,282

Smelting, refining and royalty expenses ('000) 1,405 823

Less by‐product credits ('000) (2,789) (1,661)

Cash costs ('000) $8,284 $8,444

Divided by silver produced (oz) 560,340 311,096

Cash costs/Ag oz produced ($/oz) $14.78 $27.14

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

Q2‐2024(b) Q1‐2024

Cash costs ('000) $6,286 $9,954

Capital expenditures ('000) 2,994 3,938

Exploration costs ('000) 626 646

All‐in sustaining costs ('000) $9,906 $14,538

Divided by silver produced (oz) 505,932 483,920

All‐in sustaining costs/Ag oz produced ($/oz) $19.58 $30.04

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

Q2‐2024 Q1‐2024

Cash costs ('000) $1,316 $4,887

Capital expenditures ('000) 968 1,881

Exploration costs ('000) 250 123

All‐in sustaining costs ('000) $2,534 $6,891

Divided by silver produced (oz) 169,728 297,262

All‐in sustaining costs/Ag oz produced ($/oz) $14.93 $23.18

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

Q2‐2024 Q1‐2024

Cash costs ('000) $8,284 $8,444

Capital expenditures ('000) 3,377 3,428

Exploration costs ('000) 627 871

All‐in sustaining costs ('000) $12,288 $12,743

Divided by silver produced (oz) 560,340 311,096

All‐in sustaining costs/Ag oz produced ($/oz) $21.93 $40.96

Reconciliation of EBITDA from Cosalá Operations and Galena Complex

Q2‐2024 Q1‐2024

Net income (loss) from Cosalá and Galena ('000) $4,379 $(6,257)

Less interest and financing expense from Cosalá and Galena ('000) 183 184

Less income tax expense (recovery) from Cosalá and Galena ('000) 286 (15)

Less depletion and amortization from Cosalá and Galena ('000) 6,278 4,620

EBITDA from Cosalá and Galena ('000) $11,126 $(1,468)

(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).

(b) Throughout this press release, silver producƟon, silver equivalent producƟon, and cost per ounce

measurements during ﬁscal 2024 include EC120 Project pre‐producƟon from the Cosalá OperaƟons.

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