USA.TO · 2018-08-13 12:00:00

Americas Silver Corporation Reports Second Quarter 2018 Financial Results

Financials

AMERICAS SILVER CORPORATION REPORTS SECOND QUARTER 2018 FINANCIAL RESULTS

TORONTO, ONTARIO—Aug 13, 2018—Americas Silver Corporation (TSX: USA) (NYSE American: USAS)

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

the second quarter of 2018.

This earnings release should be read in conjunction with the Co mpany’s Second Quarter Production and

Cost Update, Management’s Discussion and Analysis, Financial St atements 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.

Second Quarter Highlights

 Revenues of $17.3 million and net income of $1.4 million or $0.03 cents per share in Q2, 2018,

compared with revenues of $17.2 million and net income of $0.9 million or $0.02 cents per share in

Q2, 2017.

 Cash flow generated from operating activities1 for the first half of 2018 of approximately $8.0 million,

compared to cash flow generated from operating activities of ap proximately $6.3 million during the

same period in 2017.

 Record‐low consolidated cash costs and all‐in sustaining costs2 (“AISC”) were approximately negative

($6.15) per silver ounce, a decrease of 185% year‐over‐year, and approximately $5.40 per silver

ounce, a decrease of 49% year‐over‐year, respectively.

 Consolidated silver production for the quarter of approximately 1.5 million silver equivalent3 ounces,

an increase of 24% when compared to Q2 2017, including approximately 300,000 silver ounces.

 Cash balance at June 30, 2018 of $7.8 million with net working capital of approximately $12.1 million;

long‐term debt decreased to $8.3 million.

 Guidance for 2018 remains at 1.6 – 2.0 million silver ounces an d 7.2 – 8.0 million silver equivalent

ounces at cash costs of negati ve ($10.00) to negative ($5.00) p er silver ounce and AISC of negative

($1.00) to $4.00 per silver ounce. The Company expects silver a nd silver equivalent production to be

at the lower end of guidance, as a result of the Galena shaft repairs in Q2, 2018.

“The Company’s operations achieved record‐low consolidated cash costs and all‐in sustaining costs

despite Galena’s operations being down for nearly a month during the quarter,” said Americas Silver

President and CEO Darren Blasutti. “We expect the second half of the year to produce more silver, zinc

and lead at lower unit operating costs as Galena returns to nor mal production and San Rafael ramps up

to peak milling rates.”

1 C a s h f l o w g e n e r a t e d f r o m o p e r a ting activities is a non‐IFRS financial measure calculated as net cash flow generated from

operating activities less changes in non‐cash working capital items such as trade and other receivables, inventories, prepaid

expenses, and trade and other payables.

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 Silver equivalent production throughout this press release was calculated based on silver, zinc, lead and copper realized pri ces

during each respective period.

Consolidated Production and Operating Costs

Consolidated Production and Cost Details

Q2 2018 Q2 2017

Total ore processed (tonnes milled) 164,313 179,427

Silver produced (ounces) 301,711 557,892

Zinc produced (pounds) 8,756,201 2,904,374

Lead produced (pounds) 6,216,592 6,435,048

Copper produced (pounds) ‐ 273,475

Silver equivalent produced (ounces) 1,462,170 1,175,836

Silver recovery (percent) 74.4 90.6

Silver grade (grams per tonne) 77 107

Silver sold (ounces) 311,671 574,479

Zinc sold (pounds) 8,504,845 2,746,948

Lead sold (pounds) 6,352,839 6,725,788

Copper sold (pounds) ‐ 294,278

Cost of sales ($ per silver equivalent ounce)1 $8.20 $11.00

Silver cash cost ($ per silver ounce) 1 ($6.15) $7.21

All‐in sustaining cost ($ per silver ounce) 1 $5.40 $10.65

1 For Q2 2017 cost of sales per silver equivalent ounce, cash c osts per silver ounce, and all‐in sustaining costs per silver o unce

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.

Net income of $1.4 million was recorded for the quarter, compar ed to net income of $0.9 million for the

second quarter of 2017. The improvement in net income was primarily attributable to higher metal

production and realized metal prices, lower cost of sales, and a gain on the disposal of an asset, partially

offset by higher care and maintenance costs associated with the temporary shutdown. The Company also

generated cash from operating activities before non‐cash workin g capital items of $4.3 million for the

quarter compared to $3.2 million in the second quarter of 2017.

During Q2, 2018, the Company produced 1.5 million consolidated silver equivalent ounces including 0.3

million silver ounces, compared to production of 1.2 million co nsolidated silver equivalent ounces

including 0.6 million silver ounces during Q2, 2017. Consolidat ed silver equivalent production increased

due to the greater output of zinc and lead by‐product metals from the San Rafael mine at the Cosalá

Operations. During the first half of 2018, mining rates from Sa n Rafael gradually increased as the mine

balanced the extraction of ore with underground development into the main body of the deposit. Milling

rates increased from 1,370 tonnes per calendar day in Q1 to 1,524 tonnes per calendar day in Q2 and are

expected to be increase above 1,700 tonnes per day in the second half of this year.

C o n s o l i d a t e d s i l v e r p r o d u c t i o n w a s l o w e r c o m p a r e d t o p r i o r q u a rt e r s a s G a l e n a ’ s p r o d u c t i o n w a s

negatively impacted by necessary repairs to its No.3 Shaft completed by the end of Q2, 2018. As previously

announced on June 14, 2018, production at the Galena Complex was negatively impacted by two separate

issues affecting the No.3 Shaft for a combined total of 27 days during the quarter. Those issues have been

resolved and are not expected to negatively impact production in the future.

Consolidated costs of sales were $8.20/oz. equivalent silver, b y‐product cash costs were negative

($6.15/oz.) silver, and all‐in sustaining costs were $5.40/oz. silver, representing year‐over‐year decreases

of 25%, 185% and 49%, respectively. These improvements were a result of the significant increase in zinc

production (201%) from the San Rafael mine compared to Q2, 2017 when the Cosalá Operations previous

mine, Nuestra Señora, was in production. The zinc production increase combined with increased realized

prices for both zinc and lead substantially lowered these consolidated operating metrics for both Q2, 2018

and first half of 2018, despite the 27‐day shutdown of the Galena mine.

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

Company’s second quarter Condensed Interim Consolidated Financial Statements for the six months

ended June 30, 2018 and Management’s Discussion and Analysis for the three and six months ended June

30, 2018.

Q2 2018 Earnings Conference Call

President & CEO Darren Blasutti will be hosting a Q2, 2018 earn ings conference call on Tuesday, August

14, 2018 at 8:30am EDT. A copy of the presentation will be mad e available on the company’s website at

www.americassilvercorp.com.

Step 1: Dial‐In

Canada and USA Toll‐Free 1‐800‐584‐1507

International Toll Number +1‐416‐620‐9188

Step 2: Online Login

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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. 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, production, and development plans, the Cosalá Oper ations 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 o utcomes, or other expectations, beliefs,

plans, objectives, assumptions, i ntentions, or statements about future events or performance. Forward‐

looking information is based on the opinions and estimates of t h e C o m p a n y a s o f t h e d a t e s u c h

information is provided and is subject to known and unknown ris ks, 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 fo rward 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 p rices, 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, government

regulation, actual results of current exploration and 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 t he Company has attempted to identify

important factors that could cause actual results to differ mat erially 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 ris ks 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‐looking information whether as a result of new informat ion, 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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