USA.TO · 2023-11-15 12:00:00

Americas GOLD and Silver Reports Q3‐2023 Results

Financials

AMERICAS GOLD AND SILVER REPORTS Q3‐2023 RESULTS

TORONTO, ONTARIO – November 15, 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 September 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 $18.3 million for Q3‐2023 compared to revenue of $18.3 million for Q3‐2022, resulƟng

from higher silver producƟon and silver price from the Galena Complex, oﬀset by slightly lower

base metal producƟon and much lower zinc prices from the Cosalá OperaƟons during the most

recent period.

 A net loss of $10.5 million for Q3‐2023, or an aƩributable loss of $0.04 per share represenƟng a

decrease in net loss of $14.1 million compared to Q3‐2022.

 As previously reported, Q3‐2023 consolidated aƩributable silver producƟon rose 17% totalling

approximately 0.39 million ounces compared with approximately 0.33 million ounces in Q3‐2022.

 ProducƟon was negaƟvely impacted early in the quarter by a planned ﬁve‐day electrical shutdown

at the Galena Complex, as well as mobile equipment availability. The Cosalá OperaƟons had

various mill outages totalling 14 days due to heavy rain and tailings work during the Q3‐2023

period.

 Q4‐2023 producƟon has been strong to date with over 190,000 ounces of aƩributable silver

ounces produced in October . AƩributable silver producƟon in November and December are

expected to exceed October actuals.

 AƩributable cash costs of $19.01/oz silver produced1 and all‐in sustaining costs of $29.55/oz silver

produced2 during the quarter . Cash costs were negaƟvely impacted in the quarter by losing 19

days of combined producƟon, lower zinc prices and the appreciaƟon in the Mexican peso.

 Following the end of the quarter, the Company commenced discussions with interested metal

traders to provide concentrate prepayment ﬁnancing for the capital requirements at its 100%‐

owned El Cajón and Zone 120 silver‐copper project (“EC120 Project”) at the Cosalá OperaƟons.

The Company expects this ﬁnancing to close before the end of 2023.

 The Company has selected Moran Mining and Tunnelling Limited to ﬁnish the Galena ShaŌ repair

work. Moran will begin fabricaƟng the necessary work plaƞorms in their shop and expects to

commission to site in early to mid January 2024. The repair work is expected to be completed by

the end of Q1‐2024.

 ProducƟon guidance for 2023 remains unchanged but the Company expects to be at lower end of

both the consolidated aƩributable silver producƟon range of 2.2 and 2.6 million ounces and

consolidated aƩributable silver equivalent2 producƟon range of 5.5 and 6.0 million ounces at

budgeted prices.

 Darren Dell resigned from his role as COO with the Company during Q4‐2023 to pursue a technical

role in corporate banking. Mr . Dell was instrumental in the iniƟal construcƟon and the re‐opening

of the San Rafael mine, and the driving force behind the re‐capitalizaƟon of the Galena Complex

Joint Venture. The Company is expected to announce Daren’s successor prior to year end.

“The operaƟons had strong silver producƟon in October which is expected to conƟnue for the balance of

the year, posiƟoning the Company to meet the lower end of its full year silver producƟon targets following

a diﬃcult Q3‐2023,” stated Americas President and CEO Darren Blasuƫ. “On behalf of the Board of

Directors, I would like to thank Daren Dell for his leadership, hard work, and dedicaƟon at the Company

over the previous decade. Daren posiƟoned the Company’s operaƟons to signiﬁcantly increase its silver

producƟon over the next several years in anƟcipaƟon of much stronger silver prices.”

Galena Complex

AƩributable producƟon from the 60% owned Galena Complex was approximately 209,000 ounces of silver

and 1.8 million pounds of lead in Q3‐2023, compared to approximately 145,000 ounces of silver and 2.1

million pounds of lead in Q3‐2022, represenƟng a 44% increase in silver producƟon and a 13% decrease

in lead producƟon. ProducƟon was negaƟvely impacted early in the quarter by a planned ﬁve‐day

electrical shutdown at the Galena Complex to allow necessary hoist switchgear upgrades. Towards the

end of Q3‐2023, the Galana Complex was unable to maintain targeted ore producƟon due to unavailability

of certain mine mobile equipment. The availability issue has been largely resolved and has led to a strong

start in Q4‐2023 though improvements were late to posiƟvely impact Q3‐2023 results.

Cash costs decreased to $22.91 per silver ounce from $28.51 per silver ounce in Q3‐2022 with similar

decrease to all‐in sustaining costs per silver ounce due to the increase in silver producƟon. All‐in sustaining

costs 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 economies of scale on the exisƟng cost base are realized.

The Company selected Moran Mining and Tunnelling Limited to ﬁnish the Galena ShaŌ repair work. Moran

will begin fabricaƟng the necessary work plaƞorms in their shop and expects to mobilize to site in early to

mid January 2024. The repair work is expected to be completed at the end of Q1‐2024.

Cosalá OperaƟons

The Cosalá OperaƟons produced approximately 178,000 ounces of silver, 2.8 million pounds of lead and

9.0 million pounds of zinc in Q3‐2023, compared to approximately 186,000 ounces of silver, 3.8 million

pounds of lead and 9.4 million pounds of zinc in Q3‐2022. ProducƟon during the quarter was negaƟvely

impacted by a cumulaƟve 14 days of lost mill operaƟng Ɵme due to heavy rainfall and tailings maintenance.

Cash costs per silver ounce increased signiﬁcantly in the quarter to $14.42 per ounce from $(4.43) per

ounce in Q3‐2022 due to the lower price of zinc combined with lower base metal producƟon, and the

devaluaƟon of the USD relaƟve to the Mexican peso.

With the current higher silver price and lower zinc 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 and approximately 10,000

tonnes of high‐grade material was stockpiled from the transiƟon area between the deposits.

The Company has commenced discussions in Q4‐2023 with interested metal traders to provide

concentrate prepayment ﬁnancing opƟons for the capital requirements at the EC120 Project. The 2019

Preliminary Feasibility Study enƟtled “Americas Silver CorporaƟon Technical Report on the San Rafael Mine

and the EC120 Preliminary Feasibility Study, Sinaloa, Mexico” dated May 17, 2019 (with an eﬀecƟve date

of April 3, 2019) capital esƟmate assumed a standalone project. The current EC120 Project will take

advantage of exisƟng infrastructure, faciliƟes, and equipment currently in use at the Cosalá OperaƟon’s

San Rafael Mine. Assuming the Company’s ability to bring to expected producƟon, the EC120 Project is

expected to provide signiﬁcantly improved cash ﬂow to the Company given the shared infrastructure,

capital reducƟons, and the higher silver and copper prices which have improved since the date of the

study.

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.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 Galena shaŌ repair following compleƟon of the Galena Hoist installaƟon 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; and

statements relaƟng to the Company’s EC120 Project, including expected approvals, ﬁnancing availability

and capital expenditures required to develop such project and reach producƟon thereat, expectaƟons

regarding the 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 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 and related shaŌ repairs 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 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)

Q3‐2023 Q3‐2022

Cost of sales ('000) $17,984 $17,434

Less non‐controlling interests portion ('000) (3,614) (3,599)

Attributable cost of sales ('000) 14,370 13,835

Non‐cash costs ('000) 16 (18)

Direct mining costs ('000) $14,386 $13,817

Smelting, refining and royalty expenses ('000) 5,549 5,687

Less by‐product credits ('000) (12,583) (16,187)

Cash costs ('000) $7,352 $3,317

Divided by silver produced (oz) 386,615 331,304

Cash costs/Ag oz produced ($/oz) $19.01 $10.01

Reconciliation of Cosalá Operations Cash Costs/Ag Oz Produced

Q3‐2023 Q3‐2022

Cost of sales ('000) $8,949 $8,435

Non‐cash costs ('000) 11 231

Direct mining costs ('000) $8,960 $8,666

Smelting, refining and royalty expenses ('000) 4,420 4,929

Less by‐product credits ('000) (10,820) (14,419)

Cash costs ('000) $2,560 $(824)

Divided by silver produced (oz) 177,503 186,062

Cash costs/Ag oz produced ($/oz) $14.42 $(4.43)

Reconciliation of Galena Complex Cash Costs/Ag Oz Produced

Q3‐2023 Q3‐2022

Cost of sales ('000) $9,035 $8,999

Non‐cash costs ('000) 8 (415)

Direct mining costs ('000) $9,043 $8,584

Smelting, refining and royalty expenses ('000) 1,882 1,264

Less by‐product credits ('000) (2,939) (2,947)

Cash costs ('000) $7,986 $6,901

Divided by silver produced (oz) 348,521 242,070

Cash costs/Ag oz produced ($/oz) $22.91 $28.51

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

Q3‐2023 Q3‐2022

Cash costs ('000) $7,352 $3,317

Capital expenditures ('000) 3,434 2,340

Exploration costs ('000) 640 526

All‐in sustaining costs ('000) $11,426 $6,183

Divided by silver produced (oz) 386,615 331,304

All‐in sustaining costs/Ag oz produced ($/oz) $29.55 $18.66

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

Q2‐2023 Q3‐2022

Cash costs ('000) $2,560 $(824)

Capital expenditures ('000) 2,077 1,153

Exploration costs ('000) 198 479

All‐in sustaining costs ('000) $4,835 $808

Divided by silver produced (oz) 177,503 186,062

All‐in sustaining costs/Ag oz produced ($/oz) $27.24 $4.35

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

Q3‐2023 Q3‐2022

Cash costs ('000) $7,986 $6,901

Capital expenditures ('000) 2,263 1,979

Exploration costs ('000) 737 78

All‐in sustaining costs ('000) $10,986 $8,958

Galena Complex Recapitalization Plan costs ('000) 275 2,858

All‐in sustaining costs with Galena Recapitalization Plan ('000) $11,261 $11,816

Divided by silver produced (oz) 348,521 242,070

All‐in sustaining costs/Ag oz produced ($/oz) $31.52 $37.00

All‐in sustaining costs with Galena Recapitalization/Ag oz produced ($/oz) $32.31 $48.81

(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).

2 Silver equivalent ounces for Q3‐2023 and Q3‐2022 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.

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