Americas Silver Corporation Provides Second Quarter Production and Cost Update
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AMERICAS SILVER CORPORATION PROVIDES SECOND QUARTER PRODUCTION AND COST UPDATE
TORONTO, ONTARIO—July 19, 2018—Americas Silver Corporation (TSX: USA) (NYSE American: USAS)
(“Americas Silver” or the “Company”) today announced production and operating cost results for the
second quarter of 2018 on a consolidated basis and individually f o r i t s C o s a l á O p e r a t i o n s a n d G a l e n a
Complex. All figures are in U.S. dollars unless otherwise indicated.
Second Quarter Highlights
Consolidated silver production for the quarter of approximately 300,000 silver ounces and 1.5 million
silver equivalent1 ounces, representing decreases of 24% and 9%, respectively, when compared to Q1,
2018, and a decrease of 46% and an increase of 24%, respectively, year‐over‐year.
Consolidated cash costs2 for the quarter were approximately negative ($6.15) per silver o u n c e , a
decrease of 125% when compared to Q1, 2018 and 185% year‐over‐year, while 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 . 4 0 p e r s i l v e r o u n c e , a d e c r e a s e of 13% when
compared to Q1, 2018 and 49% year‐over‐year.
Cosalá Operations milled tonnage increased by 13% over Q1, 2018 as San Rafael continued to
successfully ramp up both mining and milling rates in the secon d quarter of commercial production.
As a result, silver production increased to approximately 90,00 0 silver ounces and 1.0 million silver
equivalent ounces during the quarter, representing increases of 19% and 10%, respectively, when
compared to Q1, 2018. Cash costs were approximately negative ($60.13) per silver ounce and AISC
were approximately negative ($41.66) per silver ounce representing a decrease of 15% when compared
to Q1, 2018.
As previously announced, Galena Complex production for the quarter was negatively impacted by two
separate issues at its No.3 Shaft that inhibited normal hoisting for approximately 27 days in total. As a
result, the Complex produced approximately 210,000 silver ounces and 420,000 silver equivalent
ounces, representing decreases of 35% and 37%, respectively, when compared to Q1, 2018, and
decreases of 34% and 31%, respectively, year‐over‐year. Cash c osts were approximately $18.36 per
silver ounce and AISC were approximately $26.77 per silver ounce. The issues impacting second quarter
production are not expected to affect production in the second half of the year.
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 negativ e ($5.00) per silver ounce and AISC of
negative ($1.00) to $4.00 per silver ounce. The Company expects to release its second quarter financial
results on or before August 9, 2018.
The Company had cash and cash equivalents of $7.8 million at June 30, 2018.
“The San Rafael mine successfully increased mining and milling rates by almost 15% during the quarter
and we expect further increases in the third quarter as it cont inues to ramp up the mill to capacity,” said
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 June 30, 2018 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 9, 2018.
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Darren Blasutti, President & CEO of Americas Silver. “These increases allowed the Company to continue to
drive down its industry‐leading cash costs and AISC when compared to both last quarter and last year,
despite lower than expected production from the Galena Complex. N o w t h a t t h e n e c e s s a r y r e p a i r s a t
Galena have been successfully completed in the second quarter, we can continue to execute our
operational plan for the remainder of the year.”
Consolidated Second Quarter Production Details
Consolidated silver production for the second quarter of 2018 was 301,711 silver ounces which represents
a decrease of 24% over the previous quarter and 46% year‐over‐y ear. Silver equivalent production was
approximately 1.5 million ounces, down 9% over the previous quarter and up 24% year‐over‐year. The
increase in the milling rate achieved at Cosalá Operations was offset by the lower tonnage at the Galena
Complex during the quarter. Consolidated cash costs decreased 125% to negative ($6.15) per silver ounce
comparted to previous quarter and 185% year‐over‐year, and AISC decreased 13% to $5.40 per silver ounce
compared to the previous quarter and 49% year‐over‐year. Consolidated zinc production increased by 19%
compared to Q1, 2018 and 201% compared to Q2, 2017; consolidate d lead production decreased by 18%
compared to Q1, 2018. The decreases in silver, silver equivalen t, silver grade, and lead production
compared to Q1, 2018 are primarily due the issues associated with the No.3 Shaft at the Galena Complex.
Table 1
Consolidated Production Highlights
Q2 2018 Q2 2017 Change Q1 2018 Change
Processed Ore (tonnes milled) 164,313 179,427 ‐8% 163,875 1%
Silver Production (ounces) 301,711 557,892 ‐46% 397,035 ‐24%
Silver Equivalent Production (ounces) 1,462,170 1,175,836 24% 1 ,613,711 ‐9%
Silver Grade (grams per tonne) 77 107 ‐28% 95 ‐19%
Cost of Sales ($ per equiv. ounce silver) 1 $8.19 $11.00 ‐26% $8.14 1%
Cash Costs ($ per ounce silver) 1 ($6.15) $7.21 ‐185% ($2.73) ‐125%
All‐in Sustaining Costs ($ per ounce silver) 1 $5.40 $10.65 ‐49% $6.17 ‐13%
Zinc Production (pounds) 8,756,201 2,904,374 201% 7,332,978 19%
Lead Production (pounds) 6,216,592 6,435,048 ‐3% 7,624,685 ‐18%
Copper Production (pounds) ‐ 273,475 ‐100% ‐ ‐
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
excludes pre‐production of 22,549 silver ounces and 32,955 silver equivalent ounces, respectively, mined from El Cajón during
its commissioning period. Pre‐production revenue and cost of sales from El Cajón are capitalized as an offset to development
costs.
Cosalá Operations Production Details
The Cosalá Operations produced 94,231 ounces of silver during the second quarter of 2018 and 1,041,246
ounces of silver equivalent during the same period at cash cost s of negative ($60.13) per silver ounce and
AISC of negative ($41.66) per silver ounce. Silver production increased 19% over the previous quarter while
silver equivalent production increased 10% over the previous qu arter and 85% year‐over‐year. Cash costs
and AISC were down compared to the previous quarter from negative ($59.52) per silver ounce and
negative ($36.28) per silver ounce, respectively, and down significantly year‐over‐year from negative
($2.81) per silver ounce and negative ($2.81) per silver ounce, respectively. The improved results at San
Rafael relative to Q1, 2018 are a result of the increase in milling rate (13%) as the process plant continued
to ramp‐up operations to targeted levels during the quarter.
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Table 2
Cosalá Operations Highlights
Q2 2018 Q2 2017 Change Q1 2018 Change
Processed Ore (tonnes milled) 138,708 134,778 3% 123,285 13%
Silver Production (ounces) 94,231 242,523 ‐61% 79,382 19%
Silver Equivalent Production (ounces) 1,041,246 564,112 85% 948 ,081 10%
Silver Grade (grams per tonne) 42 66 ‐36% 42 0%
Cost of Sales ($ per equiv. ounce silver) 1 $5.34 $7.57 ‐29% $5.92 ‐10%
Cash Costs ($ per ounce silver) 1 ($60.13) ($2.81) >‐100% ($59.52) ‐1%
All‐in Sustaining Costs ($ per ounce silver) 1 ($41.66) ($2.81) >‐100% ($36.28) ‐15%
Zinc Production (pounds) 8,756,201 2,904,374 201% 7,332,978 19%
Lead Production (pounds) 2,982,316 1,351,258 121% 2,679,485 11%
Copper Production (pounds) ‐ 273,475 ‐100% ‐ ‐
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
excludes pre‐production of 22,549 silver ounces and 32,955 silver equivalent ounces, respectively, mined from El Cajón during
its commissioning period. Pre‐production revenue and cost of sales from El Cajón are capitalized as an offset to development
costs.
Galena Complex Production Details
As previously announced on June 14, 2018, production at the Galena Complex was negatively impacted by
two issues affecting the No.3 Shaft: a 10‐day suspension of hoisting in late April to allow the repair of steel
sets in the shaft, and a 17‐day shutdown of the hoist in June t o address a mechanical failure in the brake
m e c h a n i s m . T h e C o m p l e x w a s t e m p o r a r i l y c o n s i d e r e d t o b e o n c a r e and maintenance for the 17‐day
shutdown as repairs were performed with certain costs excluded from the cash costs and AISC calculations.
Repairs were completed by the end of June 2018 and these issues are not expected to impact production
rates for the remainder of the year.
As a result, the Galena Complex produced 207,480 ounces of silver and 420,924 ounces of silver equivalent
during the second quarter of 2018 at cash costs of $18.36 per s ilver ounce and AISC of $26.77 per silver
ounce. Silver and silver equivalent production decreased 35% and 37%, respectively, compared to the
previous quarter, and decreased 34% and 31%, respectively, year ‐over‐year. Cash costs increased by 60%
compared to the prior quarter and 29% year‐over‐year, and AISC were up 60% compared to the prior
quarter and 34% year‐over‐year.
Table 3
Galena Complex Highlights
Q2 2018 Q2 2017 Change Q1 2018 Change
Processed Ore (tonnes milled) 25,605 44,649 ‐43% 40,590 ‐37%
Silver Production (ounces) 207,480 315,369 ‐34% 317,653 ‐35%
Silver Equivalent Production (ounces) 420,924 611,724 ‐31% 665, 630 ‐37%
Silver Grade (grams per tonne) 263 231 14% 256 3%
Cost of Sales ($ per equiv. ounce silver) $15.23 $13.98 9% $11.31 35%
Cash Costs ($ per ounce silver) $18.36 $14.20 29% $11.46 60%
All‐in Sustaining Costs ($ per ounce silver) $26.77 $20.03 34% $16.78 60%
Lead Production (pounds) 3,234,276 5,083,790 ‐36% 4,945,200 ‐35 %
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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.
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,
production, and development plans, the Cosalá Operations 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 similar words suggesting future outcomes, or other ex pectations, beliefs, plans, objectives,
assumptions, intentions, or statements about future events or performance. Forward‐looking information
is based on the opinions and estimates of the Company as of the date such information is provided and is
subject to known and unknown risks, uncertainties, and other fa ctors that may cause the actual results,
level of activity, performance, or achievements of the Company t o b e m a t e r i a l l y d i f f e r e n t f r o m t h o s e
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 e nergy prices), ground conditions and
factors other factors limiting mine access, failure of plant, e quipment, processes and transportation
services to operate as anticipat ed, environmental risks, govern ment regulation, actual results of current
exploration and production activities, possible variations in o re 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 iden tify 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, forwar d‐looking information involves numerous
assumptions, inherent risks and uncertainties, both general and specific that contribute to the possibility
that the predictions, forecasts, a n d p r o j e c t i o n s o f v a r i o u s f u tu r e e v e n t s w i l l n o t o c c u r . T h e C o m p a n y
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