Americas Silver Corporation Provides Second Quarter Production and Cost Update
1
AMERICAS SILVER CORPORATION PROVIDES SECOND QUARTER PRODUCTION AND COST UPDATE
TORONTO, ONTARIO —July 24, 2017—Americas Silver Cor poration (TSX: USA) (NYSE “MK T”: USAS)
(“Americas Silver” or the “Company”) today announced consolidated production and operating cost results
for the second quarter of 2017 and individually for its Cosalá Operations and Galena Complex. All figures
are in U.S. dollars unless otherwise indicated.
Second Quarter Highlights
Consolidated silver production for the quarter of approximately 558,000 silver ounces and 1.2 million
silver equivalent1 ounces, representing increases of 7% and 6%, respectively, whe n compared to Q1,
2017, and increases of 1% and 18%, respectively, year‐over‐year.
Consolidated cash costs2 for the quarter were approximately $6.31 per silver ounce, a decrease of 40%
when compared to Q1, 2017 and 45% year‐over‐year, while consoli dated all‐in sustaining costs2 were
approximately $9.74 per silver ounce, a decrease of 30% when co mpared to Q1, 2017 and 33% year‐
over‐year.
As at June 30, 2017, the Company had spent approximately $10.5 million of the revised $18 million
budget for the San Rafael development project located in Sinalo a , M e x i c o a n d e x p e c t s t o h a v e
sufficient resources from cash on hand and cash flow generated from continuing operations to fund
the remaining project development. The project is on time and o n budget for production before the
end of the third quarter.
Guidance for 2017 remains at 2.0 ‐ 2.5 million ounces of silver production with projected cash costs of
$4.00 ‐ $5.00 per silver ounce and all‐in sustaining cash costs of $9.00 ‐ $10.00 per silver ounce. Silver
equivalent production has been reduced slightly to 5.0 ‐ 5.5 million ounces.
The Company had cash and cash equivalents of $12.8 million at June 30, 2017.
“I am very pleased with the Company’s overall performance in th e second quarter”, said Darren Blasutti,
President & CEO of Americas Silver. “Silver production met expe c t a t i o n s , w e l o w e r e d o u r c o s t s
substantially over last year and last quarter, we had tremendou s exploration succe ss at both mines and
made significant progress at the San Rafael project for its first production before the end of the third
quarter.”
The Company expects to release its second quarter financial results on or before August 10, 2017.
Consolidated Second Quarter Production Details
Consolidated silver production for the second quarter of 2017 was 557,892 silver ounces which represents
a n i n c r e a s e o f 7 % o v e r t h e p r e v ious quarter and 1% year‐over‐year. Silver equivalent production was
approximately 1.2 million ounces, up 6% over the previous quart er and 18% year‐over‐year. The increase
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 2016 year‐end and quarterly MD&A. The
performance measures for the quarter ended June 30, 2017 are pr eliminary throughout this press release subject to refinement
from the Company’s second quarter financial results to be released on or before August 10, 2017.
2
in silver and silver equivalent production is primarily due to increased tonnage at t he Galena mine and
continuing strong production from the Nuestra Señora mine as it winds down operations prior to the start
of San Rafael in the fall.
Table 1
Consolidated Production Highlights
Q2 2017 Q1 2017 Change Q2 2016 Change
Processed Ore (tonnes milled) 179,427 167,493 7% 161,700 11%
Silver Production (ounces) 557,892 523,747 7% 556,404 0%
Silver Equivalent Production (ounces) 1,175,836 1,104,237 6% 997,537 18%
Silver Grade (grams per tonne) 107 107 0% 130 ‐18%
Cost of Sales ($ per equiv. ounce silver)1 $10.93 $9.93 10% $10.80 1%
Cash Costs ($ per ounce silver)1 $6.31 $10.49 ‐40% $11.38 ‐45%
All‐in Sustaining Costs ($ per ounce silver)1 $9.74 $13.97 ‐30% $14.62 ‐33%
Zinc Production (pounds) 2,904,374 2,389,133 22% 2,081,046 40%
Lead Production (pounds) 6,435,048 6,160,732 4% 6,677,247 ‐4%
Copper Production (pounds) 273,475 308,100 ‐11% 225,785 21%
1 Cost of sales per silver equivalent ounce, cash costs per sil ver ounce, and all‐in sustaining costs per silver ounce for Q2, 2017
and Q1, 2017 excludes pre‐production of 22,549 and 62,714 silve r ounces, respectively, and 32,955 and 88,656 silver
equivalent ounces, respectively, mined from El Cajón during its commissioning period. Pre‐pr oduction revenue and cost of
sales from El Cajón are capitalized as an offset to development costs.
Consolidated cash costs decreased 40% to $6.31 per silver ounce compared to the previous quarter and
45% year‐over‐year. All‐in sustaining costs decreased 30% to $9.74 per silver ounce compared to the
previous quarter and 33% year‐over‐year. The decrease in cash costs and all‐in sustaining costs was
primarily due to lower operating costs, lower development required at Nuestra Señora, increased zinc and
lead production, and the increase in the realized prices from these by‐product metals.
Cosalá Operations Production Details
The Cosalá Operations produced 242,523 ounces of silver during the second quarter of 2017 and 564,112
ounces of silver equivalent inclusive of pre‐production material from El Cajón. Excluding the El Cajón
material, the Cosalá Operations produced 219,974 ounces of silver during the second quarter of 2017 and
531,157 ounces of silver equivalent during the same period at c ost of sales of $7.57 per silver equivalent
ounce, cash costs and all‐in sustaining costs of negative $2.43 per silver ounce. While silver production
remained relatively flat year‐over‐year, silver equivalent prod uction increased 39% year‐over‐year as ore
production was suspended briefly during Q2, 2016 due to the pro cessing of oxidized stockpiles as a result
of unexpected ground movements at Nuestra Señora. Cash costs improved by 193% compared to the
previous quarter and decreased 126% year‐over‐year while all‐in sustaining costs improved 190%
compared to the previous quarter and 120% year‐over‐year.
3
Table 2
Cosalá Operations Highlights
Q2 2017 Q1 2017 Change Q2 2016 Change
Processed Ore (tonnes milled) 134,778 128,577 5% 120,347 12%
Silver Production (ounces) 242,523 250,296 ‐3% 244,548 ‐1%
Silver Equivalent Production (ounces) 564,112 533,762 6% 405,797 39%
Silver Grade (grams per tonne) 66 70 ‐7% 88 ‐25%
Cost of Sales ($ per equiv. ounce silver)1 $7.57 $7.22 5% $9.51 ‐20%
Cash Costs ($ per ounce silver)1 ($2.43) $2.61 ‐193% $9.34 ‐126%
All‐in Sustaining Costs ($ per ounce silver)1 ($2.43) $2.69 ‐190% $11.89 ‐120%
Zinc Production (pounds) 2,904,374 2,389,133 22% 2,081,046 40%
Lead Production (pounds) 1,351,258 1,124,464 20% 574,775 135%
Copper Production (pounds) 273,475 308,100 ‐11% 225,785 21%
1 Cost of sales per silver equivalent ounce, cash costs per sil ver ounce, and all‐in sustaining costs per silver ounce for Q2, 2017
and Q1, 2017 excludes pre‐production of 22,549 and 62,714 silve r ounces, respectively, and 32,955 and 88,656 silver
equivalent ounces, respectively, mined from El Cajón during its commissioning period. Pre‐pr oduction revenue and cost of
sales from El Cajón are capitalized as an offset to development costs.
Production for the Cosalá Operations was primarily sourced from the Nuestra Señora mine during Q2, 2017
as higher zinc and lead prices prioritized this ore above the s tockpiled silver‐copper El Cajón ore. Nuestra
Señora was initially planned to cease production in early Q2, 2 017, however further economic material
continues to be sourced at lower operating costs and with minim al development cost from various levels
of existing workings. It is expected that both the stockpiled El Cajón ore and remaining Nuestra Señora ore
will be processed during Q3, 2017 up to the commencement of San Rafael. The significant decrease in cash
costs and all‐in sustaining cost s was due to lower operating co sts and lack of capitalized development at
Nuestra Señora, increased zinc and lead production, and the increase in the realized prices from these by‐
product metals.
The Company updated its sharehol ders on July 17, 2017 on the st atus of development at the San Rafael
project in Sinaloa, Mexico. The development remains on budget a nd on time to begin processing ore by
the end of the Q3, 2017 with mill modifications, machinery refurbishments, and ramp development
progressing well. The March 30, 2016 San Rafael Pre‐Feasibilit y Study forecasted average annual
production of 1 million ounces of silver, 50 million pounds of zinc and 20 million pounds of lead over an
initial 6‐year mine life at negative all‐in sustaining costs ba sed on current reserves and metal prices. The
mine is expected to have an IRR of greater than 100%, generate substantial free cash flow and provide a
step change in the Company’s cash cost and all‐in sustaining cost profile in 2018.
The Company expects to provide an exploration update on its Cosalá properties before the end of the third
quarter as results have been encouraging to date.
Galena Complex Production Details
The Galena Complex produced 315, 369 ounces of silver during the second quarter of 2017 and 611,724
ounces of silver equivalent during the same period at cost of s ales of $13.85 per silver equivalent ounce,
cash costs of $12.40 per silver ounce and all‐in sustaining costs of $18.23 per silver ounce. Silver and silver
equivalent production increased 15% and 7%, respectively, compa red to the previous quarter, and
4
increased 1% and 3%, respectively, year‐over‐year. Cash costs improved by 22% compared to the previous
quarter and 5% year‐over‐year and all‐in sustaining costs were down 16% compared to the previous
quarter.
Table 3
Galena Complex Highlights
Q2 2017 Q1 2017 Change Q2 2016 Change
Processed Ore (tonnes milled) 44,649 38,916 15% 41,353 8%
Silver Production (ounces) 315,369 273,451 15% 311,856 1%
Silver Equivalent Production (ounces) 611,724 570,475 7% 591,740 3%
Silver Grade (grams per tonne) 231 230 0% 251 ‐8%
Cost of Sales ($ per equiv. ounce silver) $13.85 $12.05 15% $11.68 19%
Cash Costs ($ per ounce silver) $12.40 $15.89 ‐22% $12.98 ‐5%
All‐in Sustaining Costs ($ per ounce silver) $18.23 $21.71 ‐16% $16.76 9%
Lead Production (pounds) 5,083,790 5,036,268 1% 6,102,472 ‐17%
Despite greater tonnage, both silver and lead production were b elow expectations in the second quarter
due to a shortfall in grade. This shortfall was primarily a result of operational challenges, including reduced
equipment availability and inade quate cemented fill quality, in some of the key production areas in the
lower parts of the mine. The mill relied more than expected on lower grade development ore from the
upper levels of the mine. The specific issues are being address ed and site personnel continue to advance
their planning practices to improve production flexibility in the future. As a result of the lower lead grades
p r o c e s s e d i n t h e f i r s t h a l f o f t h e y e a r , l e a d p r o d u c t i o n w a s a pproximately 3.5 million pounds below
expectations. This underperformance is the primary reason for reducing silver equivalent production
guidance to 5.0 ‐ 5.5 million ounces.
Direct operating costs have been tracking well against expectations excluding of an unexpected increase in
employee related medical costs in the quarter. The shortfall in lead production negatively impacted the
cash costs because of lower by‐product credits. Improvements will be realized as grades return to historic
norms and new production areas begin to contribute consistently.
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 has acquired 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 operational and
development plans (including the successful completion of the S an Rafael project), the Cosalá Operations
5
and Galena Complex as well as the Company’s financing efforts. Often, but not always, forward‐looking
information can be identified by forward‐looking words such as “anticipate”, “believe”, “expect”, “goal”,
“plan”, “intend”, “estimate”, “may”, “assume” and “will” or sim ilar words suggesting future outcomes, or
other expectations, beliefs, plans, objectives, assumptions, in tentions, or statements about future events
or performance. Forward‐looking information is based on the opi nions and estimates of the Company as
of the date such information is provided and is subject to know n and unknown risks, uncertainties, and
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 a c t i vity, 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 comm odity prices, currency fluctuations and
energy prices), ground conditions and factors other factors lim i t i n g m i n e a c c e s s , f a i l u r e o f p l a n t ,
equipment, processes and transportation services to operate as anticipated, environmental risks,
government regulation, actual results of current exploration an d production activities, possible variations
in ore grade or recovery rates, permitting timelines, capital expenditures, reclamation activities, social and
political developments and other risks of the mining industry. Although the Company has attempted to
identify important factors that could cause actual results to differ materially from those contained in
forward‐looking information, 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 information involves numerous assumptions, inherent risks and uncertainties,
both general and specific that contribute to the possibility th at 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‐looking information whether as a result of new information, future events or
other such factors which affect this information, except as required by law.
For more information:
Darren Blasutti
President and CEO
416‐848‐9503