USA.TO · 2018-05-09 12:00:00

Americas Silver Corporation Reports First Quarter 2018 Financial Results

Financials

AMERICAS SILVER CORPORATION REPORTS FIRST QUARTER 2018 FINANCIAL RESULTS

TORONTO, ONTARIO—May 9, 2018—Americas Silver Corporation (TSX: USA) (NYSE American: USAS)

(“Americas Silver” or the “Company”) today reported consolidate d financial and operational results for

the first quarter of 2018.

This earnings release should be read in conjunction with the Company’s First Quarter Production and Cost

Update, Management’s Discussion and Analysis, Financial Stateme nts and Notes to Financial Statements

for the corresponding period, which have been posted on the Americas Silver Corporation SEDAR profile at

www.sedar.com, on its EDGAR profile at www.sec.gov, and are also available on the Company’s website

at www.americassilvercorp.com. All figures are in U.S. dollars unless otherwise noted.

First Quarter Highlights

 Revenues of $20.4 million in Q1, 2018 compared with revenues of $15.2 million in Q1, 2017.

 Previously announced, consolidated silver production for the quarter of approximately 1.6 million

silver equivalent1 ounces, an increase of 46% when compared to Q1, 2017 including approximately

400,000 silver ounces.

 A net income of $0.5 million or 0.01 cents per share in Q1, 2018 after Zone 120 exploration expenses

of $1.8 million, compared with a net loss of ($0.2) million or ($0.01) cent per share in Q1, 2017.

 Previously announced, consolidated cash costs2 were approximately negative ($2.73) per silver ounce,

a decrease of 128% year‐over‐year, while consolidated all‐in su staining costs 3 ( “ A I S C ” ) w e r e

approximately $6.17 per silver ounce, a decrease of 54% year‐over‐year.

 Cash flow generated from operating activities 3 in Q1, 2018 of approximately $3.7 million after

exploration costs compared to cash flow used in operating activ ities of approximately $0.5 million in

Q4, 2017.

 Cash balance at March 31, 2018 of $3.3 million with net working capital of approximately $10.9

million; long‐term debt decreasing to $9.6 million.

 Guidance for 2018 remains uncha nged 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 all‐in

sustaining cash costs of negative ($1.00) to $4.00 per silver ounce.

“The Company had a solid first quarter with increases in conso lidated revenue, net income, and silver

equivalent production with significant decreases in cash costs and AISC,” said Americas Silver Corporation

President and CEO Darren Blasutti. “San Rafael continued to ramp up its mining rate and milling rate

throughout the quarter while advancing development into the hig her‐grade Main Zone with the

expectation of reaching a milling rate of 1,700 tonnes per day in the second half of the year. Exploration

cost of $1.8 million during the quarter was spent primarily on the very successful 12,000‐meter drill

program at Zone 120 designed to expand and upgrade previously reported resources, expected to be

released in Q3, 2018.”

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 s ustaining 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.

3 Cash flow generated from (used in) operating activities is a n on‐IFRS financial measure calcul ated as net cash flow generated

from (used in) operating activities less changes in non‐cash working capital items such as trade and other receivables, inventories,

prepaid expenses, and trade and other payables.

Consolidated Production and Operating Costs

Consolidated Production and Cost Details

Q1 2018 Q1 2017

Total ore processed (tonnes milled) 163,875 167,493

Silver produced (ounces) 397,035 523,747

Zinc produced (pounds) 7,332,978 2,389,133

Lead produced (pounds) 7,624,685 6,160,732

Copper produced (pounds) ‐ 308,100

Silver equivalent produced (ounces) 1,613,711 1,104,237

Silver recovery (percent) 79.3 90.5

Silver grade (grams per tonne) 95 107

Silver sold (ounces) 404,649 528,827

Zinc sold (pounds) 7,259,622 2,500,550

Lead sold (pounds) 7,895,231 6,119,207

Copper sold (pounds) ‐ 295,336

Cost of sales ($ per silver equivalent ounce)1 $8.14 $9.93

Silver cash cost ($ per silver ounce) 1 ($2.73) $9.89

All‐in sustaining cost ($ per silver ounce) 1 $6.17 $13.37

1 Cost of sales per silver equiva lent ounce, cash costs per silver ounce, and all‐in sustaining costs per silver ounce in Q1, 2017

excludes pre‐production of 62,714 silver ounces, and 88,656 silv e r e q u i v a l e n t o u n c e s m i n e d f r o m E l C a j ó n d u r i n g i t s

commissioning period. Pre‐produc tion revenue and cost of sales from El Cajón are capitalized as an offset to development

costs.

As a result of the increased silver equivalent production, revenues increased to $20.4 million for the three

months ended March 31, 2018 from $15.2 million for the three months ended March 31, 2017, an increase

of $5.2 million or 34%, while net income improved to $0.5 milli on compared to a net loss $0.2 million

during the same period, a $0.7 million improvement. The improvement in net income was primarily

attributable to higher net revenue from increased silver equiva lent production, and lower interest and

financing expense due to the Company’s new facility, partially offset by higher cost of sales, Zone 120

exploration expenses, and higher depletion and amortization as San Rafael transitioned to commercial

production.

Consolidated silver production for the first quarter of 2018 was approximately 397,035 ounces which

represents a decrease of 24% year‐over‐year. Silver equivalent production was approximately 1.6 million

ounces, an increase of 46% year‐over‐year. Consolidated cash co sts significantly decreased by 128% to

negative ($2.73) per silver ounce year‐over‐year, and all‐in sustaining costs significantly decreased by 54%

to $6.17 per silver ounce year‐over‐year.

The Company’s cash balance decreased from $9.3 million at year‐ end to $3.3 million at the end of Q1‐

2018 and working capital decreased from $11.8 million to $10.9 million. These decreases are mainly due

to continued San Rafael capital expenditures to develop into th e Main Zone, $1.8 million of exploration

drilling primarily at Zone 120, a $0.5 million option payment o n the San Felipe property, and $0.6 million

of debt repayments on the outstanding Glencore facility. The Company’s accounts receivable balance

increased by approximately $5.0 million from year‐end 2017 due to the delayed timing of payment from

a concentrate off‐taker at quarter‐end due to statutory Mexican bank holidays for Easter in the last week

of March, the general increased volume of concentrate from San Rafael, and increased VAT receivables in

M e x i c o a s s o c i a t e d w i t h t h e r e c e n t S a n R a f a e l e x p e n d i t u r e s . W o r king capital was also impacted by

increases in the current portion of the Company’s facility.

Further information concerning the consolidated and individual mine operations is included in the

Company’s first quarter Condensed Interim Consolidated Financial Statements for the three months

ended March 31, 2018 and Management’s Discussion and Analysis for the same period.

Q1 2018 Earnings Conference Call

President & CEO Darren Blasutti will be hosting a Q1 2018 earnings conference call on Thursday, May 10,

2018 at 9:00am EDT. A copy of the presentation will be made av ailable after the completion of the call

on the company’s website at www.americassilvercorp.com.

Step 1: Dial‐In

Canada and USA Toll‐Free 1‐877‐256‐8282

International Toll Number 1‐416‐981‐9025

Step 2: Online Login

https://cc.callinfo.com/r/1rc7pzrgbkfge&eom

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. For further infor mation 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 thi ngs, the realization of exploration,

operational 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 othe r expectations, 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,

l e v e l o f a c t i v i t y , p e r f o r m a n c e , o r a c h i e v e m e n t s o f t h e C o m p a n y 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 energy prices), ground conditions and

factors other factors limiting mine access, failure of plant, equipment, processes and transportation

services to operate as anticipated, 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 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 that the predictions, forecasts, and projections of v a r i o u s f u t u r e e v e n t s w i l l n o t o c c u r . T h e

Company undertakes no obligation to update publicly or otherwis e 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

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