USA.TO · 2024-11-07 12:00:00

Americas GOLD and Silver Reports Q3‐2024 Results; Paul Huet Appointed CEO

Management Changes Financials

AMERICAS GOLD AND SILVER REPORTS Q3‐2024 RESULTS; PAUL HUET APPOINTED CEO

TORONTO, ONTARIO – November 7, 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 September 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

 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 mulƟple lost operaƟng days due to severe weather at the Cosalá

OperaƟons and the decision to focus on development prioriƟes to access high‐grade silver ore early next

year at the Galena Complex. The lack of operaƟonal ﬂexibility with only one shaŌ available for ore and

waste impacted producƟon during the quarter . However, I am thoroughly excited for the future of the

Company,” stated Americas President and CEO Darren Blasuƫ. “We have seen a tremendous response

from shareholders following the announcement in October on the acquisiƟon 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 transiƟon to CEO to

November 11, 2024, allowing for a Ɵmelier operaƟonal 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 operaƟon with huge potenƟal that has been handcuﬀed for years due to a lack

of proper capitalizaƟon. With the raise that was recently completed, we are excited to get to work on

reviewing the current operaƟon 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 Blasuƫ for his Ɵreless 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 exciƟng increases in silver prices.”

Consolidated ProducƟon

Consolidated aƩributable silver producƟon during Q3‐2024 and Q3‐2023 were comparable at

approximately 386,000 ounces and 387,000 ounces, respecƟvely. The Company also produced 8.4 million

pounds of zinc and 4.1 million aƩributable pounds of lead during Q3‐2024. Consolidated aƩributable silver

equivalent producƟon 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

calculaƟons. 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 Q3‐2024 were $16.88 per silver ounce

and $25.38 per silver ounce, respecƟvely. Cash costs per silver ounce at the Cosalá OperaƟons were

reduced because of increased by‐product credits from the increased zinc producƟon and prices while

Galena Complex cash costs per silver ounce were negaƟvely impacted by lower silver producƟon.

Cosalá OperaƟons

The Company focused on increasing silver while maintaining base metal producƟon from the San Rafael

Main and Upper Zones to maximize its revenue and cash ﬂow generaƟon to beneﬁt from the recent

increase in silver and zinc prices as the mine prepares for its next evoluƟon of operaƟons in the EC120

silver‐copper deposit. Silver producƟon 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. ProducƟon 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 producƟon is expected to increase in

Q4‐2024 with more predictable weather and further into 2025 as the development into EC120 progresses

with the operaƟon conƟnuing to batch higher development grade ore through the mill.

ProducƟon 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 operaƟng 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 producƟon, 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 producƟon), 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

producƟon). 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 producƟon, with an increase in all‐in sustaining costs due to an increase

in capital expenditures.

Tonnage and silver producƟon both decreased during Q3‐2024 primarily due to a focus on development

during the quarter which included conƟnued work on the 55‐179 decline to develop deeper higher‐grade

producƟon stopes which will drive long‐term producƟon goals, as well as equipment issues and changes

to mining sequence and design. Tonnage was also negaƟvely impacted by the build up of waste rock

caused by conƟnued hoisƟng limitaƟons due to the delay in repairs to the Galena shaŌ.

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

VP , Corporate Development & CommunicaƟons

Americas Gold and Silver CorporaƟon

416‐874‐1708

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; statements relaƟng to Americas’ EC120 Project; and statements

relaƟng to implementaƟon of, and the impact of new management on, the planned recapitalizaƟon of

Galena Complex. 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 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 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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