Americas Silver Corporation Provides Third Quarter Production and Cost Update
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AMERICAS SILVER CORPORATION PROVIDES THIRD QUARTER PRODUCTION AND COST UPDATE
TORONTO, ONTARIO—October 31, 2017—Americas Silver Corporation (TSX: USA) (NYSE American: USAS)
(“Americas Silver” or the “Company”) today announced consolidated production and operating cost results
for the third quarter of 2017 and individually for its Cosalá Operations and Galena Complex. All figures are
in U.S. dollars unless otherwise indicated.
Third Quarter Highlights
Consolidated silver production for the quarter of approximately 565,000 silver ounces and 1.1 million
silver equivalent1 o u n c e s , r e p r e s e n t i n g a n i n c r e a s e o f 1 % a n d d e c r e a s e o f 6 % , r e spectively, when
compared to Q2, 2017, and a decrease of 5% and increase 1%, respectively, year‐over‐year.
Consolidated cash costs 2 for the quarter were approxima tely $12.61 per silver ounce, an increase of
26% year‐over‐year, while consolidated all‐in sustaining costs 2 were approximately $15.92 per silver
ounce, an increase of 24% year‐over‐year.
The Company processed 69,000 tonnes of silver‐copper El Cajón ore producing 160,000 ounces of
silver. El Cajón ore was mined in the second quarter as transit ional feed to bridge the period until the
commencement of San Rafael produc tion. It was not determined to be in commercial production and
was omitted from the quarterly consolidated cost calculations. Adjusting for this production,
consolidated cash costs and all‐in sustaining costs would have been $11.75 and $14.18 per silver ounce,
respectively.
San Rafael ore development continued to increase to approximate ly 1,000 tonnes per day at the end
of October. The Company expects San Rafael to be the sole source of mill feed by mid‐November 2017
with commercial production expected before the end of the fourt h quarter. The project remains fully
funded and is tracking well to budget.
The Company has performed two test runs of San Rafael ore, one at the end of September and the
second at the end of October to test the new flotation and conc entrate re‐grind circuits. Both tests
confirmed circuit performance predicted in the San Rafael Prefeasibility Study.
Guidance for 2017 remains at 2.0 ‐ 2.5 million ounces of silver production and silver equivalent
production of 5.0 ‐ 5.5 million ounces with projected cash costs at the high end of the $4.00 ‐ $5.00 per
silver ounce and all‐in sustaining cash costs of $9.00 ‐ $10.00 per silver ounce ranges depending on the
timing of the declaration of commercial production of San Rafael.
The Company has cash and cash equivalents of $8.7 million at September 30, 2017. The Company
expects to release its third quarter financial results on or before November 14, 2017.
“The Cosalá team has done an effective job at managing the development and operations of three different
mines and a successful drill program during 2017,” said Americas Silver President and CEO Darren Blasutti.
1 Silver equivalent production throughout this press release was calculated based on silver, zi nc, 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 September 30, 2017 are preliminary throughout this press release subject to
refinement from the Company’s third quarter financial results to be released on or before November 14, 2017.
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“We expect this strong performance to continue through to the end of 2017 and into 2018 with San Rafael
coming into production on time and on budget in the next couple of weeks. We made a prudent decision
to process El Cajón ore in the third quarter that increased cos ts in order to free up working capital that
otherwise would have been inaccessible for years.”
Consolidated Third Quarter Production Details
Consolidated silver production for the third quarter of 2017 wa s 564,833 silver ounces which represents
a n i n c r e a s e o f 1 % o v e r t h e p r e v i o u s q u a r t e r a n d a d e c r e a s e o f 5% year‐over‐year. Silver equivalent
production was approximately 1.1 million ounces, a decrease of 6% over the previous quarter and an
increase of 1% year‐over‐year. The decrease in silver and silv er equivalent production is primarily due to
lower tonnage and grade at the Galena Complex, partially offset by continuing strong production from the
Nuestra Señora and El Cajón mines as the Cosalá Operations prep ares to commence commercial
production from San Rafael later in the quarter.
Table 1
Consolidated Production Highlights
Q3 2017 Q2 2017 Change Q3 2016 Change
Processed Ore (tonnes milled) 174,677 179,427 ‐3% 166,770 5%
Silver Production (ounces) 564,833 557,892 1% 596,855 ‐5%
Silver Equivalent Production (ounces) 1,107,874 1,175,836 ‐6% 1,107,110 1%
Silver Grade (grams per tonne) 111 107 4% 124 ‐11%
Cost of Sales ($ per equiv. ounce silver)1 $9.17 $11.00 ‐17% $10.25 ‐11%
Cash Costs ($ per ounce silver)1 $12.61 $7.21 75% $10.00 26%
All‐in Sustaining Costs ($ per ounce silver)1 $15.92 $10.65 50% $12.86 24%
Zinc Production (pounds) 1,433,961 2,904,374 ‐51% 2,183,814 ‐34 %
Lead Production (pounds) 5,369,482 6,435,048 ‐17% 7,991,507 ‐33 %
Copper Production (pounds) 507,285 273,475 85% 326,639 55%
1 Cost of sales per silver equivalent ounce, cash costs per sil ver ounce, and all‐in sustaining costs per silver ounce for Q3, 2017
and Q2, 2017 excludes pre‐production of 160,128 and 22,549 silver ounces, respectively, and 238,919 and 32,955 silver
equivalent ounces, respectively, mined from El Cajón during its commissioning period, and for Q3, 2017 excludes pre‐
production of 5,146 silver ounces and 30,161 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 cash costs increased 75% to $12.61 per silver ounc e compared to the previous quarter and
26% year‐over‐year. All‐in sustaining costs increased 50% to $15.92 per silver ounce compared to the
p r e v i o u s q u a r t e r a n d 2 4 % y e a r ‐ o v e r ‐ y e a r . T h e i n c r e a s e i n c a s h costs and all‐in sustaining costs was
primarily due to lower tonnage and grade at the Galena Complex as the mine progressed through lower
grade areas of the mine while catching up on development in hig her grade areas and the processing of El
Cajón ore in the quarter. The impact of this beneficial work will be realized starting in the fourth quarter.
Approximately 69,000 tonnes of ore from the El Cajón mine was m illed in Q3, 2017 as the stockpiled El
Cajón silver‐copper ore could not be processed with either silv er‐zinc‐lead Nuestra Señora or San Rafael
ore. The material yielded concentrates containing approximatel y 160,000 ounces of silver and 462,000
pounds of copper. By processing this ore before the San Rafael production start‐up, approximately $3.4
million of pre‐production revenue was realized that would have stayed on the stockpile until the end of
the San Rafael mine life. The criteria necessary to declare sustainable commercial production of this
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transitional ore were determined not to have been met. As a result, the by‐product revenues and pre‐
production costs were omitted from the consolidated cash costs and all‐in sustaining cost costs calculation.
If El Cajón pre‐production revenues and costs were included, th e adjusted consolidated cash costs would
have been approximately $11.75 pe r silver ounce and all‐in sust a i n i n g c o s t s w o u l d h a v e b e e n
approximately $14.18 per silver ounce for the quarter.
Cosalá Operations Production Details
During Q3, 2017, the Cosalá Operations progressed its transitio n from the existing Nuestra Señora and El
C a j ó n m i n e s t o i n i t i a l p r o d u c t i o n f r o m t h e S a n R a f a e l m i n e . P r oduction for the Cosalá Operations was
primarily sourced from the silver‐zinc‐lead‐copper Nuestra Señora mine during the first two months of Q3,
2017 and silver‐copper El Cajón ore in September. Nuestra Señor a was originally planned to cease
production in early Q2, 2017, but has been extended to take advantage of additional material sourced from
various areas of the existing workings. It is expected that sto ckpiled Nuestra Señora ore will be processed
during Q4, 2017 up to the commencement of San Rafael ore processing in mid‐late November.
The Cosalá Operations produced 277,752 ounces of silver during the third quarter of 2017 and 528,823
ounces of silver equivalent inclusive of El Cajón and pre‐production material from San Rafael. Excluding the
El Cajón and San Rafael material, the Cosalá Operations produced 112,478 ounces of silver during the third
quarter of 2017 and 259,743 ounces of silver equivalent during the same period at cost of sales of $1.32
per silver equivalent ounce, cash costs and all‐in sustaining c osts of $3.16 per silver ounce. While silver
production increased 15% compared to the previous quarter and 14% year‐over‐year, silver equivalent
production decreased 6% compared to the previous quarter as a r esult of lower by‐product production of
zinc and lead from Nuestra Señora partially offset by increased copper production. Cash costs and all‐in
sustaining costs improved year‐over‐year by 68% and 73%, respectively, as Nuestra Señora ore was
produced with lower operating costs and minimal development work.
Table 2
Cosalá Operations Highlights
Q3 2017 Q2 2017 Change Q3 2016 Change
Processed Ore (tonnes milled) 134,273 134,778 ‐1% 121,875 10%
Silver Production (ounces) 277,752 242,523 15% 242,916 14%
Silver Equivalent Production (ounces) 528,823 564,112 ‐6% 436,774 21%
Silver Grade (grams per tonne) 74 66 12% 75 ‐1%
Cost of Sales ($ per equiv. ounce silver)1 $1.32 $7.57 ‐83% $9.96 ‐87%
Cash Costs ($ per ounce silver)1 $3.16 ($2.81) 213% $9.84 ‐68%
All‐in Sustaining Costs ($ per ounce silver)1 $3.16 ($2.81) 213% $11.72 ‐73%
Zinc Production (pounds) 1,433,961 2,904,374 ‐51% 2,183,814 ‐34 %
Lead Production (pounds) 793,058 1,351,258 ‐41% 885,560 ‐10%
Copper Production (pounds) 507,285 273,475 85% 326,639 55%
1 Cost of sales per silver equivalent ounce, cash costs per sil ver ounce, and all‐in sustaining costs per silver ounce for Q3, 2017
and Q2, 2017 excludes pre‐production of 160,128 and 22,549 silver ounces, respectively, and 238,919 and 32,955 silver
equivalent ounces, respectively, mined from El Cajón during its commissioning period, and for Q3, 2017 excludes pre‐
production of 5,146 silver ounces and 30,161 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.
The Company provided an exploration update for its Cosalá prope rties on August 24, 2017. The Company
expects to complete up to 12 additional holes in Q4, 2017 to fu rther define the geological controls and
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extent of mineralization in and around the known Zone 120 resou rce. Further exploration drilling is being
proposed for 2018. Results from the ongoing 2017 drilling are expected to be released in early 2018.
San Rafael Update
The Company continued to advance towards production at the San Rafael project during the quarter.
Underground development is progressing as expected with ore production ramping up from multiple
working faces. The reconfigured Los Braceros mill has been successfully tested with San Rafael ore.
Concentrates containing approximately 5,000 ounces of silver, 211,000 pounds of zinc and 134,000 pounds
of lead were produced from approximately 6,000 tonnes processed during the quarter. A second trial
campaign of approximately 7,000 tonnes occurred in late October to further refine operating parameters.
T h e r e s u l t s o f t h e t w o c a m p a i g n s w e r e p o s i t i v e w i t h r e c o v e r i e s and concentrate grades supportive of
estimates used in the April 2016 Prefeasibility Study. The surface ore stockpile contains approximately
20,000 tonnes of San Rafael ore and is increasing by nearly one thousand tonnes per day. The mill is
expected to shift to San Rafael ore on a full‐time basis in mid‐November with commercial production to be
declared before the end of the quarter. The project remains fully funded and tracking well to budget.
Galena Complex Production Details
The Galena Complex produced 287,081 ounces of silver during the third quarter of 2017 and 579,051
ounces of silver equivalent during the same period at cost of s ales of $12.69 per silver equivalent ounce,
cash costs of $16.31 per silver ounce and all‐in sustaining costs of $20.92 per silver ounce. Silver and silver
equivalent production decreased 9% and 5%, respectively, compar ed to the previous quarter, and
decreased 19% and 14%, respectively, year‐over‐year. Cash costs increased by 15% compared to the
previous quarter and 61% year‐over‐year and all‐in sustaining costs were up 4% compared to the previous
quarter and 53% year‐over‐year. Both silver and lead productio n were below expectations in the third
quarter due to a shortfall in tonnage and grade. With the San Rafael transition going as expected,
management is focused on returning Galena to an acceptable level of operating performance by advancing
several planning‐related initiatives, including grade optimizat ion, in order to recapture and build on the
gains which were made in 2015 and 2016.
Table 3
Galena Complex Highlights
Q3 2017 Q2 2017 Change Q3 2016 Change
Processed Ore (tonnes milled) 40,404 44,649 ‐10% 44,895 ‐10%
Silver Production (ounces) 287,081 315,369 ‐9% 353,939 ‐19%
Silver Equivalent Production (ounces) 579,051 611,724 ‐5% 670,336 ‐14%
Silver Grade (grams per tonne) 233 231 1% 258 ‐10%
Cost of Sales ($ per equiv. ounce silver) $12.69 $13.98 ‐9% $10.44 22%
Cash Costs ($ per ounce silver) $16.31 $14.20 15% $10.10 61%
All‐in Sustaining Costs ($ per ounce silver) $20.92 $20.03 4% $13.63 53%
Lead Production (pounds) 4,576,424 5,083,790 ‐10% 7,105,947 ‐36 %
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
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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
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