Americas Silver Corporation Provides First Quarter Production and Cost Update
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AMERICAS SILVER CORPORATION PROVIDES FIRST QUARTER PRODUCTION AND COST UPDATE
TORONTO, ONTARIO—April 29, 2019—Americas Silver Corporation (TSX: USA) (NYSE American: USAS)
(“Americas Silver” or the “Company”) today announced production and operating cost results for the first
quarter of 2019 on a consolidated basis and individually for its Cosalá Operations and Galena Complex. All
figures are in U.S. dollars unless otherwise indicated.
First Quarter Highlights
Consolidated silver production of approximately 1.8 million sil ver equivalent1 ounces, an increase of
9% year‐over‐year, and 395,000 silver ounces consistent with prior year.
Consolidated cash costs 2 were approximately negative ($0.50) per silver ounce, a decrea se of 144%,
when compared to prior quarter. Consolidated all‐in sustaining costs2 ( “ A I S C ” ) w e r e a p p r o x i m a t e l y
$5.54 per silver ounce, a decrease of 53%, when compared to Q4 2018.
Milled tonnage at the Cosalá Operations increased by 24% year‐o ver‐year, with the San Rafael mine
sustaining an average milling rate of approximately 1,750 tonnes per operating day. Production of
approximately 1.3 million silver equivalent ounces including approximately 170,000 silver ounces,
representing increases of 39% and 118%, respectively, year‐over‐year. Cash costs were approximately
negative ($30.48) per silver ounce and AISC were approximately negative ($25.85) per silver ounce
representing decreases of 21% and 130%, respectively, when compared to prior quarter.
Continuing operational challenges limited production at the Galena Complex to approximately 430,000
silver equivalent ounces including approximately 220,000 silver ounces, representing decreases of 15%
and 1%, respectively, when compared to prior quarter. Cash costs were approximately $23.03 per silver
ounce and AISC were approximately $30.17 per silver ounce representing increases of 8% and 2%,
respectively, when compared to prior quarter.
Subsequent to quarter end, the acquisition of Pershing Gold Cor poration (“Pershing”) closed on April
3, 2019 after the Committee on Foreign Investment in the United States (“CFIUS”) completed its
review. The Company announced concurrent financing signed with Sandstorm Gold Ltd. for gross
proceeds of approximately US$42.5 million to completely fund production at the Relief Canyon Project.
Guidance for 2019 remains unchanged at 1.6 – 2.0 million silver ounces and 6.6 – 7.0 million silver
equivalent ounces at cash costs of $4.00 to $6.00 per silver ou nce and AISC of $10.00 to $12.00 per
silver ounce. The Company expects to release its first quarter financial results on or before May 14,
2019.
“The Cosalá Operations had an excellent quarter mining and processing an average of approximately 1,750
tonnes per operating day, resulting in greater silver and by‐product metal production, with lower cash
costs and AISC,” said Americas Silver President and CEO Darren Blasutti. “Construction activity at Relief
C a n y o n i s r a m p i n g u p a n d o r d e r s f o r l o n g ‐ l e a d i t e m s h a v e b e e n placed as the Company advances this
project towards pouring gold before the end of the year. With the addition of this new mine, the Company
expects to increase precious metal production by over 500% by 2021.”
1 Silver equivalent production throughout this press release was calculated based on silver, zinc, and lead realized prices dur ing
each respective period.
2 Cash cost per ounce and all‐in sustaining cost per ounce are n on‐IFRS performance measures with no standardized definition.
For further information and detailed reconciliations, please refer to the Company’s 2018 year‐end and quarterly MD&A. The
performance measures for the quarter ended March 31, 2019 are preliminary throughout this press release subject to refinement
from the Company’s first quarter financial results to be released on or before May 14, 2019.
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Consolidated First Quarter Production Details
Consolidated silver production for the first quarter of 2019 wa s 393,824 ounces, which was largely
consistent with both the prior quarter and year‐over‐year. Silver equivalent production was approximately
1.8 million ounces, an increase of 9% year‐over‐year. Consolidated cash costs decreased 144% to negative
($0.50) per silver ounce compared to the prior quarter and increased 82% year‐over‐year, and AISC
decreased 53% to $5.54 per silver ounce compared to the prior quarter and decreased 10% year‐over‐year.
Consolidated zinc production increased by 10% compared to the p rior quarter and 54% year‐over‐year,
while consolidated lead production decreased by 10% compared to the prior quarter and increased by 8%
year‐over‐year.
Table 1
Consolidated Production Highlights
Q1 2019 Q1 2018 Change Q4 2018 Change
Processed Ore (tonnes milled) 182,029 163,875 11% 186,585 ‐2%
Silver Production (ounces) 393,824 397,035 ‐1% 395,294 ‐1%
Silver Equivalent Production (ounces) 1,754,839 1,613,711 9% 1, 799,741 ‐2%
Silver Grade (grams per tonne) 87 95 ‐8% 87 0%
Cost of Sales ($ per equiv. ounce silver) $7.11 $8.14 ‐13% $7.87 ‐10%
Cash Costs ($ per ounce silver) ($0.50) ($2.73) 82% $1.14 ‐144%
AISC ($ per ounce silver) $5.54 $6.17 ‐10% $11.78 ‐53%
Zinc Production (pounds) 11,263,623 7,332,978 54% 10,223,692 10 %
Lead Production (pounds) 8,211,429 7,624,685 8% 9,088,862 ‐10%
Cosalá Operations Production Details
The Cosalá Operations produced 173,169 ounces of silver during the first quarter of 2019 and 1,322,045
ounces of silver equivalent during the same period at cash cost s of negative ($30.48) per silver ounce and
AISC of negative ($25.85) per silver ounce. Silver production i ncreased by 118% year‐over‐year and
consistent with the fourth quarter 2018, while silver equivalen t production increased by 39% year‐over‐
y e a r a n d 3 % o v e r t h e p r i o r q u a r t e r . C a s h c o s t s a n d A I S C i m p r o v ed by 21% and 130%, respectively,
compared to the Q4 2018.
Table 2
Cosalá Operations Highlights
Q1 2019 Q1 2018 Change Q4 2018 Change
Processed Ore (tonnes milled) 152,605 123,285 24% 149,577 2%
Silver Production (ounces) 173,169 79,382 118% 172,016 1%
Silver Equivalent Production (ounces) 1,322,045 948,081 39% 1,2 87,657 3%
Silver Grade (grams per tonne) 57 42 36% 59 ‐3%
Cost of Sales ($ per equiv. ounce silver) $4.35 $5.92 ‐27% $4.66 ‐7%
Cash Costs ($ per ounce silver) ($30.48) ($59.52) ‐49% ($25.12) 21%
AISC ($ per ounce silver) ($25.85) ($36.28) ‐29% ($11.26) 130%
Zinc Production (pounds) 11,263,623 7,332,978 54% 10,223,692 10 %
Lead Production (pounds) 4,626,233 2,679,485 73% 4,388,146 5%
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Strong results were driven by sustained improvements in grade, mill throughput and metal recovery to
concentrate. Site expenditures tracked expectations. Developme n t o f t h e i n c l i n e r a m p t o w a r d S a n
Rafael’s Upper Zone has resumed and is advancing ahead of plan. Ore production from the Main Zone
benefited from the additional working headings providing operational flexibility. Further, mined head
grades exceeded budgeted head grades during the quarter. Any po tential reduction in head grades over
the remainder of the year are expected to be largely offset by further gains in mill throughput and metal
recovery as additional flotation capacity is installed during the second quarter.
Galena Complex Production Details
Unplanned mill downtime due to problems with the mill pinion be aring at the Galena mine in January set
the year off on a challenging note however the underlying issue s were successfully resolved during the
quarter. Performance trended back up until two separate ground falls delayed production from two high‐
tonnage stopes. The cumulative impact was the loss of nearly one month’s production during the quarter.
Performance is slowly improving and should return to expected levels by the end of Q2 2019. Management
remains committed to returning the operation to an acceptable level of performance.
As a result of these unexpected incidents, the Galena Complex p roduced 220,655 ounces of silver during
Q1 2019 and 432,794 ounces of silver equivalent at cash costs of $23.03 per silver ounce and AISC of $30.17
per silver ounce. Silver and silver equivalent production decreased by 1% and 15%, respectively, compared
to the prior quarter, and 31% and 35%, respectively, year‐over‐ year. Cash costs and AISC increased by 8%
and 2%, respectively, due to the noted operational challenges.
Table 3
Galena Complex Highlights
Q1 2019 Q1 2018 Change Q4 2018 Change
Processed Ore (tonnes milled) 29,424 40,590 ‐28% 37,008 ‐20%
Silver Production (ounces) 220,655 317,653 ‐31% 223,278 ‐1%
Silver Equivalent Production (ounces) 432,794 665,630 ‐35% 512, 084 ‐15%
Silver Grade (grams per tonne) 242 256 ‐5% 199 22%
Cost of Sales ($ per equiv. ounce silver) $15.55 $11.31 38% $15.95 ‐2%
Cash Costs ($ per ounce silver) $23.03 $11.46 101% $21.36 8%
AISC ($ per ounce silver) $30.17 $16.78 80% $29.52 2%
Lead Production (pounds) 3,585,196 4,945,200 ‐28% 4,700,716 ‐24 %
Relief Canyon Update
On April 3, 2019, the Company anno unced the closing of the Pers hing acquisition after receiving
notification that CFIUS completed its review. The Company also announced a financing package of $42.5
million secured from Sandstorm Gold Ltd. to fully fund the development of Relief Canyon and Board
approval for construction commencement at the Project with the intention of pouring gold before year
end. Since that time, orders have been placed for long‐lead items such as the mill liners, crusher and
conveyor system and negotiations have commenced on the leach pa d construction and mining contracts.
Expected start dates are mid‐May and mid‐June respectively. Fur ther information on the Relief Canyon
development will be made available periodically on the Company’ s website as construction progresses at
www.americassilvercorp.com.
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Americas Silver Annual and Special Meeting
The annual and special meeting of Americas Silver is scheduled for 3pm (EDT) on Wednesday May 15, 2019
at Vantage Venues, 150 King St. West, Toronto, Ontario.
Your vote is important. Please vote before the proxy vote deadline on May 13, 2019 at 3pm (EDT).
Additional information concerning the annual and special meeting can be found in the Management
Information Circular dated April 18, 2019. An electronic copy o f the Circular is available online under the
Company’s profile at www.sedar.com or at www.americassilvercorp.com.
About Americas Silver Corporation
Americas Silver is a precious metal mining company focused on g rowth from its existing asset base and
execution of targeted accretive acquisitions. It owns and operates the Cosalá Operations in Sinaloa, Mexico
and the Galena Complex in Idaho, USA. The Company expects to begin producing gold in the fourth quarter
of 2019 at its fully‐funded Relief Canyon Project, in Nevada, U SA which is currently in construction. For
further information, please see SEDAR or americassilvercorp.com.
Cautionary Statement on Forward‐Looking Information:
This news release contains “forward‐looking information” within the meaning of applicable securities laws.
Forward‐looking information includes, but is not limited to, Ame r i c a s S i l v e r ’ s e x p e c t a t i o n s , i n t e n t i o n s ,
plans, assumptions and beliefs wit h respect to, among other thi ngs, Americas Silver’s financing efforts;
construction, production, and development plans at the Relief C anyon Project and performance
expectations for the Relief Canyon Project and impact on Americas Silver’s financial performance; and the
estimated construction timeline and costs for the Relief Canyon Project; the estimated timeline for
environmental approvals for the second phase of the Relief Cany on Project; and the impact of the
Transaction on the liquidity of the Company’s shares. Often, bu t not always, forward‐looking information
can be identified by forward‐looking words such as “anticipate” , “believe”, “expect”, “goal”, “plan”,
“intend”, “potential’, “estimate”, “may”, “assume” and “will” or similar words suggesting future outcomes,
or other expectations, beliefs, plans, objectives, assumptions, intentions, or statements about future
events or performance. Forward‐looking information is based on the opinions and estimates of Americas
Silver as of the date such information is provided and is subject to known and unknown risks, uncertainties,
a n d o t h e r f a c t o r s t h a t m a y c a u s e t h e a c t u a l r e s u l t s , l e v e l o f activity, performance, or achievements of
Americas Silver to be materially different from those expressed or implied by such forward‐looking
information. With respect to the Sandstorm financing, risks and uncertainties include the ability of the
Company and its subsidiaries to fulfill the conditions to drawing all the available funds under the purchase
agreement and convertible debenture and the potential for, and consequences of, default thereunder.
With respect to the business of Americas Silver, these risks an d uncertainties include interpretations or
reinterpretations of geologic information; unfavorable exploration results; inability to obtain permits
required for future exploration, development or production; gen eral economic conditions and conditions
affecting the industries in which the Company operates; the unc ertainty of regulatory requirements and
approvals; fluctuating mineral and commodity prices; the abilit y to obtain necessary future financing on
acceptable terms or at all; the ability to develop, complete co nstruction and operate the Relief Canyon
P r o j e c t ; a n d r i s k s a s s o c i a t e d w i t h t h e m i n i n g i n d u s t r y s u c h a s economic factors (including future
commodity prices, currency fluctuations and energy prices), gro und conditions and other factors limiting
mine access, failure of plant, equipment, processes and transpo rtation services to operate as anticipated,
environmental risks, government regulation, actual results of current exploration and production activities,
possible variations in ore grade or recovery rates, permitting timelines, capital and construction
expenditures, reclamation activities, labor relations, social a nd political developments and other risks of
the mining industry. Although the Company has attempted to iden tify important factors that could cause
actual results to differ materially from those contained in forward‐looking information, there may be other
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factors that cause results not to be as anticipated, estimated, or intended. Readers are cautioned not to
place undue reliance on such information. Additional informatio n regarding the fact ors that may cause
actual results to differ materially from this forward‐looking information is available in Pershing Gold’s filings
with the SEC, including the Annual Report on Form 10‐K for the year ended December 31, 2017 and the
Proxy Statement of Pershing Gold dated November 29, 2018, and in Americas Silver’s filings with the
Canadian Securities Administrators on SEDAR and with the SEC, i ncluding the management information
circular of Americas Silver dated December 4, 2018. Americas Si lver does not undertake any obligation to
update publicly or otherwise revise any forward‐looking informa t i o n w h e t h e r a s a r e s u l t o f n e w
information, future events or other such factors which affect t his information, except as required by law.
Americas Silver does not give any assurance (1) that Americas S ilver will achieve its expectations, or (2)
concerning the result or timing thereof. All subsequent written and oral forward‐looking information
concerning Americas Silver, the Transaction, the Sandstorm financing package, the combined Company or
other matters attributable to Americas Silver or any person act ing on its behalf are expressly qualified in
their entirety by the cautionary statements above.
For more information:
Darren Blasutti
President and CEO
Americas Silver Corporation
416‐848‐9503