Americas Silver Corporation Provides First Quarter Production and Cost Update Including Record Low Cash Costs and All‐in Sustaining Costs
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AMERICAS SILVER CORPORATION PROVIDES FIRST QUARTER PRODUCTION AND COST UPDATE
INCLUDING RECORD LOW CASH COSTS AND ALL‐IN SUSTAINING COSTS
TORONTO, ONTARIO—April 17, 2018—Americas Silver Corporation (TSX: USA) (NYSE American: USAS)
(“Americas Silver” or the “Company”) today announced consolidated production and operating cost results
for the first quarter of 2018 and individually for its Cosalá Operations and Galena Complex. All figures are
in U.S. dollars unless otherwise indicated.
First Quarter Highlights (compared to Q1, 2017)
Consolidated silver production of approximately 400,000 silver ounces and 1.6 million silver
equivalent1 ounces.
Consolidated cash costs 2 were approximately negative ($2.50) per silver ounce, a decrea se of 125%.
Consolidated all‐in sustaining costs2 (“AISC”) were approximately $6.40 per silver ounce, a decrease of
50%.
Cosalá Operations silver production solely from the Company’s San Rafael mine of approximately
80,000 silver ounces and 950,000 silver equivalent ounces. Cash costs were approximately negative
($58.45) per silver ounce and all‐in sustaining costs were appr oximately negative ($35.20) per silver
ounce.
Galena Complex silver production of approximately 320,000 silve r ounces and 666,000 silver
equivalent ounces representing increases of 16% and 17%, respectively. Cash costs were approximately
$11.45 per silver ounce and all‐in sustaining costs were approx imately $16.75 per silver ounce down
28% and 23%, respectively.
Guidance for 2018 remains unchanged at 1.6 – 2.0 million silver ounces and 7.2 – 8.0 million silver
equivalent ounces at cash costs of negative ($10.00) to negative ($5.00) per silver ounce and all‐in
sustaining cash costs of negative ($1.00) to $4.00 per silver ounce. The Company expects to release its
first quarter financial results on or before May 10, 2018.
“The Company had a strong first quarter at both operations as S an Rafael continued to ramp up in terms
of mining rate and mill throughput,” said Americas Silver President and CEO Darren Blasutti. “Shareholders
will be pleased with the significant reductions in our cash cos ts and AISC year‐over‐year as the benefits of
San Rafael begin to be realized. We expect further reductions into the second half of the year as mill
throughput reaches a steady state at 1,700 tonnes per day and S an Rafael capital expenditures reduce to
sustaining levels. Galena also delivered notable decreases in cash costs while increasing silver production,
supporting the consolidated results.”
Consolidated First Quarter Production Details
Consolidated silver production for the first quarter of 2018 was 397,035 ounces which represents a
decrease of 3% over the previous quarter and a decrease of 24% year‐over‐year. Silver equivalent
production was approximately 1.6 million ounces, up 19% over th e previous quarter and 46% year‐over‐
1 Silver equivalent production throughout this press release was calculated based on silver, zinc, lead and copper realized pri ces
during 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 2017 year‐end and quarterly MD&A. The
performance measures for the quarter ended March 31, 2018 are preliminary throughout this press release subject to refinement
from the Company’s first quarter financial results to be released on or before May 10, 2018.
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year. Consolidated cash costs decreased 129% to negative ($2.52) per silver ounce compared to the
previous quarter and 126% year‐over‐year, and all‐in sustaining costs decreased 55% to $6.38 per silver
ounce compared to the previous quarter and 52% year‐over‐year.
Table 1
Consolidated Production Highlights
Q1 2018 Q1 2017 Change Q4 2017 Change
Processed Ore (tonnes milled) 1 63,875 167,493 ‐2 % 168,901 ‐3%
Silver Production (ounces) 397,035 523,747 ‐24% 409,545 ‐3%
Silver Equivalent Production (ounces) 1,613,711 1,104,237 46% 1 ,358,441 19%
Silver Grade (grams per tonne) 95 107 ‐12% 91 4%
Cost of Sales ($ per equiv. ounce silver)1 $8.12 $9.93 ‐18% $10.16 ‐20%
Cash Costs ($ per ounce silver)1 ($2.52) $9.89 ‐126% $8.75 ‐129%
All‐in Sustaining Costs ($ per ounce silver)1 $6.38 $13.37 ‐52% $14.20 ‐55%
Zinc Production (pounds) 7,332,978 2,389,133 207% 4,895,670 50%
Lead Production (pounds) 7,624,685 6,160,732 24% 7,427,357 3%
Copper Production (pounds) ‐ 308,100 ‐ 78,541 ‐
1 Cost of sales per silver equivalent ounce, cash costs per sil ver ounce, and all‐in sustaining costs per silver ounce for Q1, 2017
excludes pre‐production of 62, 714 silver ounces, and 88,656 sil ver equivalent ounces mined from El Cajón during its
commissioning period, and for Q4, 2017 excludes pre‐production of 45,344 silver ounces, and 405,162 silver equivalent ounces
mined from San Rafael during its commissioning period. Pre‐production revenue and cost of sales from El Cajón and San Rafael
are capitalized as an offset to development costs.
Consolidated silver production was lower compared to prior quarters as the Company had its first full
quarter of operations from its new San Rafael mine after declar ing commercial production in December
2017. San Rafael will provide lower silver production compared to the previously mined deposits at the
Cosalá Operations until mining sequences to the higher silver g rade areas of the ore body later next year.
The consolidated silver equivalent production increased substantially and the consolidated cash costs and
all‐in sustaining costs decreased when compared to prior quarte r and year‐over‐year due to the
comparatively higher base metal grades generally present in the San Rafael deposit. Galena is returning to
an acceptable level of profitable operating performance with grades returning to historical norms with
consistent contribution from production areas.
Cosalá Operations Production Details
The Cosalá Operations produced 79,382 ounces of silver during the first quarter of 2018 and 948,081
ounces of silver equivalent during the same period at cash cost s of negative ($58.47) per silver ounce and
all‐in sustaining costs of negative ($35.22) per silver ounce. S i l v e r p r o d u c t i o n d e c r e a s e d 4 7 % o v e r t h e
previous quarter and 68% year‐over‐year, while silver equivalent production increased 25% over the
previous quarter and 78% year‐over‐year. Cash costs and all‐in sustaining costs were down significantly
c o m p a r e d t o t h e p r e v i o u s q u a r t e r f r o m n e g a t i v e ( $ 0 . 2 8 ) p e r s i l ver ounce and $3.74 per silver ounce,
respectively, and down significantly year‐over‐year from $1.13 per silver ounce and $1.21 per silver ounce,
respectively.
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Table 2
Cosalá Operations Highlights
Q1 2018 Q1 2017 Change Q4 2017 Change
Processed Ore (tonnes milled) 1 23,285 128,577 ‐4 % 129,098 ‐5%
Silver Production (ounces) 79,382 250,296 ‐68% 150,235 ‐47%
Silver Equivalent Production (ounces) 948,081 533,762 78% 759,4 39 25%
Silver Grade (grams per tonne) 42 70 ‐40% 54 ‐22%
Cost of Sales ($ per equiv. ounce silver) 1 $5.92 $7.22 ‐18% $7.39 ‐20%
Cash Costs ($ per ounce silver) 1 ($58.47) $1.13 >‐100% ($0.28) >‐100%
All‐in Sustaining Costs ($ per ounce silver) 1 ($35.22) $1.21 >‐100% $3.74 >‐100%
Zinc Production (pounds) 7,332,978 2,389,133 207% 4,895,670 50%
Lead Production (pounds) 2,679,485 1,124,464 138% 2,348,125 14%
Copper Production (pounds) ‐ 308,100 ‐ 78,541 ‐
1 Cost of sales per silver equivalent ounce, cash costs per sil ver ounce, and all‐in sustaining costs per silver ounce for Q1, 2017
excludes pre‐production of 62, 714 silver ounces, and 88,656 sil ver equivalent ounces mined from El Cajón during its
commissioning period, and for Q4, 2017 excludes pre‐production of 45,344 silver ounces, and 405,162 silver equivalent ounces
mined from San Rafael during its commissioning period. Pre‐production revenue and cost of sales from El Cajón and San Rafael
are capitalized as an offset to development costs.
As previously noted, Cosalá silver production was lower compared to prior quarters as the Company
completed its first full quarter of operations from its new San Rafael mine after declaring commercial
production in December 2017. San Rafael is expected to produce lower grade silver compared to the
previously mined deposits at the Cosalá Operations until mining operations move to higher silver grade
areas of the ore body later next year. Additionally, the initia l development in the San Rafael ore body was
in an area closest to the portal where the silver grade is less than half of the reserve silver grade. As a result,
the silver production was lower in the first quarter compared to prior quarters. The Cosalá Operations had
a significant increase in silver equivalent production as well as a significant reduction in cash costs and all‐
in sustaining costs during Q1, 2018, primarily due to the by‐pr oduct metal production from zinc and lead
during the period, which increased by 50% and 14%, respectively , when compared to prior quarter, and
increased by 207% and 138%, respectively, year‐over‐year.
Galena Complex Production Details
The Galena Complex produced 317,653 ounces of silver during the first quarter of 2018 and 665,630 ounces
of silver equivalent during the same period at cash costs of $1 1.46 per silver ounce and all‐in sustaining
costs of $16.78 per silver ounce. Silver and silver equivalent production increased 22% and 11%,
respectively, compared to the prior quarter, and increased 16% and 17%, respectively, year‐over‐year. Cash
costs were down 8% compared to the prior quarter and 28% year‐over‐year and all‐in sustaining costs were
down 9% compared to the prior quarter and 23% year‐over‐year.
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Table 3
Galena Complex Highlights
Q1 2018 Q1 2017 Change Q4 2017 Change
Processed Ore (tonnes milled) 40,590 38,916 4% 39,803 2%
Silver Production (ounces) 317,653 273,451 16% 259,310 22%
Silver Equivalent Production (ounces) 665,630 570,475 17% 599,002 11%
Silver Grade (grams per tonne) 256 230 11% 213 20%
Cost of Sales ($ per equiv. ounce silver) $11.26 $12.05 ‐7% $11.79 ‐5%
Cash Costs ($ per ounce silver) $11.46 $15.89 ‐28% $12.40 ‐8%
All‐in Sustaining Costs ($ per ounce silver) $16.78 $21.71 ‐23% $18.43 ‐9%
Lead Production (pounds) 4,945,200 5,036,268 ‐2% 5,079,232 ‐3%
The Company is focused on returning Galena to an acceptable level of operating performance during 2018
by advancing several planning‐related initiatives, including gr ade optimization, in order to recapture and
build on the gains which were made in 2015 and 2016. Improvements were realized in Q1, 2018 and should
continue throughout the year as grades are returning to targeted norms with consistent contribution from
production areas.
About Americas Silver Corporation
Americas Silver is a silver mining company focused on growth in precious metals from its existing asset
base and execution of targeted accretive acquisitions. It owns and operates the Cosalá Operations in
Sinaloa, Mexico and the Galena Mine Complex in Idaho, USA. The Company holds an option on the San
Felipe development project in Sonora, Mexico.
Daren Dell, Chief Operating Officer and a Qualified Person under Canadian Securities Administrators
guidelines, has approved the applicable contents of this news r elease. 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, the Company’s expectations intentions, plans,
assumptions and beliefs with respect to, among other things, th e realization of exploration, operational
and development plans, the Cosalá Operations and Galena Complex as well as the Company’s financing
e f f o r t s . O f t e n , b u t n o t a l w a y s , f o r w a r d ‐ l o o k i n g i n f o r m a t i o n c a n be identified by forward‐looking words
such as “anticipate”, “believe”, “expect”, “goal”, “plan”, “intend”, “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. F orward‐looking information is based on
the opinions and estimates of the Company as of the date such i nformation is provided and is subject to
known and unknown risks, uncertainties, and other factors that may cause the actual results, level of
activity, performance, or achievements of the Company to be materially different from those expressed or
implied by such forward looking information. This includes the ability to develop and operate the Cosalá
and Galena properties, risks associated with the mining industry such as economic factors (including future
commodity prices, currency fluctuations and energy prices), gro und conditions and factors other factors
limiting mine access, failure of plant, equipment, processes and transportation services to operate as
anticipated, environmental risks, government regulation, actual r e s u l t s o f c u r r e n t e x p l o r a t i o n a n d
p r o d u c t i o n a c t i v i t i e s , p o s s i b l e v a r i a t i o n s i n o r e g r a d e o r r e c overy rates, permitting timelines, capital
expenditures, reclamation activities, social and political devel o p m e n t s a n d o t h e r r i s k s o f t h e m i n i n g
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industry. Although the Company has attempted to identify important factors that could cause actual results
to differ materially from those contained in forward‐looking in formation, there may be other factors that
cause results not to be as anticipated, estimated, or intended. Readers are cautioned not to place undue
reliance on such information. By its nature, forward‐looking in formation involves numerous assumptions,
inherent risks and uncertainties, both general and specific that contribute to the possibility that the
predictions, forecasts, and projections of various future events will not occur. The Company undertakes no
obligation to update publicly or otherwise revise any forward‐l ooking information whether as a result of
new information, future events or other such factors which affe ct this information, except as required by
law.
For more information:
Darren Blasutti
President and CEO
416‐848‐9503