USA.TO · 2017-11-14 12:00:00

Americas Silver Corporation Reports Third Quarter 2017 Financial Results

Financials

AMERICAS SILVER CORPORATION REPORTS THIRD QUARTER 2017 FINANCIAL RESULTS

TORONTO, ONTARIO—November 14, 2017—Americas Silver Corporation (TSX: USA) (NYSE A m e r i c a n :

USAS) (“Americas Silver” or the “Company”) today reported consolidated financial and operational results

for the third quarter of 2017.

This earnings release should be read in conjunction with the Co mpany’s Third Quarter Production and Cost Update,

Management’s Discussion and Analysis, Financial Statements 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.

Third Quarter Highlights

 Revenues of $9.8 million in Q3, 2017, excluding $3.8 million of El Cajón and San Rafael pre‐production

revenues capitalized to development costs, compared with revenues of $16.8 million in Q3, 2016.

 Cash flow generated from operating activities1 in the first three quarters of 2017 of $5.9 million,

compared to cash generated from operating activities of approximately $5.2 million for the first three

quarters of 2016.

 A net loss of ($2.8) million or ($0.07) cents per share in Q3, 2017, compared with a net income of $1.0

million or $0.03 cents per share in Q3, 2016.

 The Company expects San Rafael to be the sole source of the mil l feed by the end of the week of

November 13, 2017 with commercial production expected before the end of the fourth quarter. The

project remains fully funded and initial capital is expected to be less than $17 million, lower than the

original April 2016 Pre‐feasibility Study estimate of $21 million.

 Previously announced, consolidated silver production for the quarter of approximately 565,000 silver

ounces and 1.1 million silver equivalent 2 ounces, representing a decrease of 5% and an increase of

1%, respectively, compared to Q3, 2016.

 Consolidated cash costs3 for the quarter were approximately $12.61 per silver ounce, an increase of

26% year‐over‐year, while consolidated all‐in sustaining costs 3 were approximately $15.92 per silver

ounce, an increase of 24% year‐over‐year. Including the El Cajón pre‐production by‐product revenues

net of direct mining, smelting and refining costs, cash costs and all‐in sustaining costs would have

been $11.77 and $14.18 per silver ounce, respectively.

 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 cost s at the high end of the $4.00 ‐ $5.00

per silver ounce and all‐in sustaining cash costs of $9.00 ‐ $1 0.00 per silver ounce ranges depending

on the timing of the declaration of commercial production at San Rafael.

 Cash balance at September 30, 2017 of $8.7 million with net wor king capital of approximately $14.9

million.

1 Cash flow generated from operating activities is a non‐IFRS fi nancial measure calculated as net cash flow 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.

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

during each respective period.

3 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.

“This event marks an exciting moment in the history of the Comp any,” said Americas Silver Corporation

President and CEO Darren Blasutti. “With San Rafael going into full production this week, coupled with

ten‐year historic prices for zinc and lead, we expect to drive significant earnings and cash flow for our

shareholders starting in Q1, 2018 and over the life of the mine.”

Consolidated Production and Operating Costs

Consolidated Production and Cost Details

Q3 2017 Q3 2016

Total ore processed (tonnes milled) 174,677 166,770

Silver produced (ounces) 564,833 596,855

Zinc produced (pounds) 1,433,961 2,183,814

Lead produced (pounds) 5,369,482 7,991,507

Copper produced (pounds) 507,285 326,639

Silver equivalent produced (ounces) 1,107,874 1,107,110

Silver recovery (percent) 90.9 89.7

Silver grade (grams per tonne) 111 124

Silver sold (ounces) 542,298 601,845

Zinc sold (pounds) 1,258,532 2,142,465

Lead sold (pounds) 5,224,322 7,976,671

Copper sold (pounds) 460,227 337,306

Cost of sales ($ per silver equivalent ounce)1 $9.17 $10.25

Silver cash cost ($ per silver ounce) 1 $12.61 $10.00

All‐in sustaining cost ($ per silver ounce) 1 $15.92 $12.86

1 Cost of sales per silver equiva lent ounce, cash costs per silver ounce, and all‐in sustaining costs per silver ounce in Q3, 2017

excludes contributions of 160,128 silver ounces and 238,919 silver equivalent ounces from El Cajón during its commissioning

period, and excludes pre‐production of 5,146 silver ounces and 30,161 silver equivalent ounces minded from San Rafael

during its commissioning period. Pre‐production revenue (net of cost of sales) from El Cajón and San Rafael are capitalized as

an offset to development costs.

Net loss of ($2.8) million was recorded for the quarter, compar ed to a net income of $1.0 million for the

third quarter of 2016. The Company also generated cash from operating activities before non‐cash

working capital items of $5.9 million in the first three quarte rs of 2017 compared to $5.2 million in the

first three quarters of 2016. The decrease in net income is primarily attributable to lower net revenue on

t i m i n g o f c o n c e n t r a t e s a l e s , l o w e r s i l v e r , z i n c a n d l e a d p r o d u ction, share‐based compensation, higher

marketing expenses to support the U.S. listing, and higher expl oration costs at Zone 120. This decrease

was partially offset by lower cost of sales, higher base metal prices, and lower interest and financing

expenses. Production for the quarter dropped due to lower grade s at Nuestra Señora compared to the

prior year due to the wind‐down of operations in Q3 and Q4, 201 7 and underperformance at the Galena

Complex in the quarter.

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, down 6% over t he previous quarter and up 1% year‐

over‐year. The decrease in silver and silver equivalent product ion is primarily due to lower tonnage and

grade at the Galena Complex, partially offset by the continuing strong production from the Nuestra Señora

an d E l Caj ón m i n e s as t h e Cosal á O p e r at i on s p r e p ar e s t o c om m en ce commercial production from San

Rafael later in the quarter.

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

Company’s third quarter Condensed Interim Consolidated Financial Statements for the nine months

ended September 30, 2017 and Management’s Discussion and Analys is for the three and nine months

ended September 30, 2017.

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 release. 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 thi ngs, the realization of operational and

development plans (including completion of the San Rafael Proje ct), 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 wor ds suggesting future outcomes, or other

expectations, beliefs, plans, objectives, assumptions, intentions, or statements about future events or

performance. Forward‐looking information is based on the opinio ns and estimates of the Company as of

the date such information is provided and is subject to known and unknown risks, 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 forward looking information. This

includes the ability to develop and operate the Cosalá and Gale na 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 iting 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 the Company has attempted

to identify important factors th at could cause actual results t o 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 undu e 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 various future events will not occur. The Company undertakes no obligation to update publicly or

otherwise revise any forward‐looking information whether as a r esult 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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