Americas Gold and Silver Corporation (TSX: USA) (NYSE American:
USAS) (“Americas” or the “Company”), a growing North American
precious metals producer, is pleased to provide its Q2-2024
production results.
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Consolidated Quarterly Attributable
Silver Production *Based on the attributable ownership of each
operating asset (100% Cosalá Operations and 60% Galena Complex)
(Graphic: Americas Gold and Silver Corporation)
- Q2-2024 consolidated attributable silver production of 0.51
million ounces compared with approximately 0.48 million ounces in
Q1-2024. The Company also produced 8.9 million attributable pounds
of zinc and 4.4 million attributable pounds of lead during
Q2-2024.
- Galena Complex quarterly production was the highest on record
since 2013 with silver production of 560,000 ounces on a 100% basis
and attributable production of 336,000 ounces as the operation
benefitted from contributions to production from new mining areas
in the Upper Country Lead Zone between 2400 and 2800 levels and a
strong quarter from the 52-198 Silver Hanging Wall Vein.
- The Cosalá Operations focused on mining the Main Zone at the
San Rafael mine given its higher-grade zinc stopes to take
advantage of the Q2-2024 increase in zinc prices. The Cosalá
Operations produced approximately 170,000 ounces of silver, 8.9
million pounds of zinc and 2.6 million pounds of lead during the
quarter, including preproduction contribution from the 100%-owned
El Cajón and Zone 120 silver-copper project (“EC120 Project”). As
the operation transitions to higher-grade silver zones through the
rest of the year, silver production from the Cosalá Operations is
expected to increase quarter-over-quarter.
- Preliminary cash costs[1] and all-in sustaining costs
(“AISC”)[1] for Q2-2024 are estimated to be approximately $12.40
per silver ounce and $19.60 per silver ounce, respectively. These
figures compare with cash costs and all-in sustaining costs of
$20.57 per silver ounce and $30.04 per silver ounce in Q1-2024
representing decreases of ~40% and ~35% quarter-over quarter,
respectively.
- The Company has an agreement in principle with a metal trader
to provide concentrate prepayment financing for the entire initial
capital requirement at its EC120 Project. The Company expects to
close on this financing in the next few weeks with the goal of
producing higher-grade silver-copper concentrates from the EC120
Project in early 2025.
“The Galena Complex had a terrific operating quarter with silver
production at the highest level in over 10 years.” stated Americas
President and CEO Darren Blasutti. “In just one quarter, the
Company saw an average increase of ~$6 per silver ounce in its
realized silver price and an estimated $10 per silver ounce
reduction in AISC, significantly improving the Company’s operating
margin with silver prices continuing to move higher into early
Q3-2024. We are in the final stretch of signing a non-dilutive
financing with a metal trader to provide concentrate prepayment for
the capital requirements at the EC120 Project with higher-grade
silver-copper production from the Cosalá Operations expected at the
beginning of 2025, coinciding perfectly with the recent and
expected further increase in silver and copper prices.”
Consolidated Quarterly Attributable* Silver
Production
Consolidated attributable silver production in Q2-2024 was
approximately 506,000 ounces compared with approximately 484,000
ounces in Q1-2024. Quarterly silver production in Q2-2024 remained
on a steady upward trend that has been evident for the last three
years and is expected to continue with increased working faces at
the Galena Complex as well as the exploitation of EC120 Project at
the Cosalá Operations starting at the beginning of 2025 which
contains high-grade silver and copper mineralization. The Company
also produced 8.9 million attributable pounds of zinc and 4.4
million attributable pounds of lead during Q2-2024. The Company’s
stated goal is to generate more than 80% of its revenue from silver
production by the end of 2025 which would be among the silver
industry leaders in percentage revenue from silver.
Preliminary cash costs and all-in sustaining costs for Q2-2024
are estimated to be approximately $12.40 per silver ounce and
$19.60 per silver ounce, respectively. These figures compare with
cash costs and all-in sustaining costs of $20.57 per silver ounce
and $30.04 per silver ounce in Q1-2024, representing a decrease of
~40% in cash costs and ~35% in AISC, respectively,
quarter-over-quarter. Galena Complex cash costs per silver ounce
benefitted from the significant increase in silver production as
most costs at the Galena Complex are fixed. Cash costs per silver
ounce at the Cosalá Operations were reduced because of increased
by-product credits from the increased zinc production and
prices.
Production from the 60% owned Galena Complex was approximately
560,000 ounces of silver and 3.0 million pounds of lead with
attributable production of approximately 336,000 ounces of silver
and 1.8 million pounds of lead in Q2-2024. This compares favorably
with attributable production of approximately 187,000 ounces of
silver and 1.1 million pounds of lead in Q1-2024. Attributable
silver production increased by approximately 80%
quarter-over-quarter. The Galena Complex benefitted from the recent
horizontal development work in the Upper Country Lead Zone between
the 2400 and 2800 Levels which allowed the operation to access
additional working areas which is expected to continue to benefit
the operation in subsequent quarters and a strong contribution from
the 52-198 Silver Hanging Wall Vein. Development work on the 3700
Level is expected to be completed by the end of July 2024 and is
expected to contribute to silver-copper production immediately
thereafter and benefit production beginning in Q3-2024.
The Cosalá Operations produced approximately 170,000 ounces of
silver, 2.6 million pounds of lead and 8.9 million pounds of zinc
in Q2-2024 compared with 297,000 ounces of silver, 2.8 million
pounds of lead and 8.0 million pounds of zinc in Q1-2024 which
includes preproduction from the EC120 Project. With the recent
increase in zinc prices, the Company focused on mining higher grade
zinc and lower grade silver areas of the San Rafael Main and Upper
Zones to maximize its revenue mix as it continues to advance the
financing for the EC120 Project which led to lower
quarter-over-quarter silver production.
The Company has an agreement in principle with an international
metals trader to provide concentrate prepayment financing options
for the capital requirements at the EC120 Project. The Company is
completing final documentation and expects to close on this
financing in the next few weeks with the goal of completing the
required development and preparations to be producing higher-grade
silver-copper concentrates from the Cosalá Operations at the
beginning of 2025.
About Americas Gold and Silver Corporation
Americas Gold and Silver Corporation is a high-growth precious
metals mining company with multiple assets in North America. The
Company owns and operates the Cosalá Operations in Sinaloa, Mexico,
manages the 60%-owned Galena Complex in Idaho, USA, and is
re-evaluating the Relief Canyon mine in Nevada, USA. The Company
also owns the San Felipe development project in Sonora, Mexico. For
further information, please see SEDAR+ or
www.americas-gold.com.
Technical Information and Qualified Persons
The scientific and technical information relating to the
operation of the Company’s material operating mining properties
contained herein has been reviewed and approved by Chris McCann,
P.Eng., VP Technical Services of the Company. The Company’s current
Annual Information Form and the NI 43-101 Technical Reports for its
other material mineral properties, all of which are available on
SEDAR+ at www.sedarplus.ca, and EDGAR at www.sec.gov, contain
further details regarding mineral reserve and mineral resource
estimates, classification and reporting parameters, key assumptions
and associated risks for each of the Company’s material mineral
properties, including a breakdown by category.
All mining terms used herein have the meanings set forth in
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects (“NI 43-101”), as required by Canadian securities
regulatory authorities. These standards differ from the
requirements of the SEC that are applicable to domestic United
States reporting companies. Any mineral reserves and mineral
resources reported by the Company in accordance with NI 43-101 may
not qualify as such under SEC standards. Accordingly, information
contained in this news release may not be comparable to similar
information made public by companies subject to the SEC’s reporting
and disclosure requirements.
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, Americas’
expectations, intentions, plans, assumptions and beliefs with
respect to, among other things, estimated and targeted production
rates and results for gold, silver and other metals, the expected
prices of gold, silver and other metals, as well as the related
costs, expenses and capital expenditures; production from the
Galena Complex and Cosalá Operations, including the expected number
of producing stopes and production levels; the expected timing and
completion of required development work and the expected
operational and production results therefrom, including the
anticipated improvements to production rates and cash costs per
silver ounce and all-in sustaining costs per silver ounce; and
statements relating to Americas’ EC120 Project, including expected
prepayment financing availability and timing and capital
expenditures required to develop such project and reach production
thereat. Guidance and outlook references contained in this press
release were prepared based on current mine plan assumptions with
respect to production, development, costs and capital expenditures,
the metal price assumptions disclosed herein, and assumes no
further adverse impacts to the Cosalá Operations from blockades or
work stoppages, and completion of the shaft repair and shaft rehab
work at the Galena Complex on its expected schedule and budget, the
realization of the anticipated benefits therefrom, and is subject
to the risks and uncertainties outlined below. The ability to
maintain cash flow positive production at the Cosalá Operations,
which includes the EC120 Project, through meeting production
targets and at the Galena Complex through implementing the Galena
Recapitalization Plan, including the completion of the Galena shaft
repair and shaft rehab work on its expected schedule and budget,
allowing the Company to generate sufficient operating cash flows
while facing market fluctuations in commodity prices and
inflationary pressures, are significant judgments in the
consolidated financial statements with respect to the Company’s
liquidity. Should the Company experience negative operating cash
flows in future periods, the Company may need to raise additional
funds through the issuance of equity or debt securities. Often, but
not always, forward-looking information can be identified by
forward-looking words such as “anticipate”, “believe”, “expect”,
“goal”, “plan”, “intend”, “potential’, “estimate”, “may”, “assume”
and “will” or similar words 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 opinions and estimates of Americas 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 Americas to be materially different from those expressed or
implied by such forward-looking information. With respect to the
business of Americas, these risks and uncertainties include risks
relating to widespread epidemics or pandemic outbreak, actions that
have been and may be taken by governmental authorities to contain
such epidemic or pandemic or to treat its impact and/or the
availability, effectiveness and use of treatments and vaccines
(including the effectiveness of boosters); interpretations or
reinterpretations of geologic information; unfavorable exploration
results; inability to obtain permits required for future
exploration, development or production; general economic conditions
and conditions affecting the industries in which the Company
operates; the uncertainty of regulatory requirements and approvals;
potential litigation; fluctuating mineral and commodity prices; the
ability to obtain necessary future financing on acceptable terms or
at all; the ability to operate the Company’s projects; and risks
associated with the mining industry such as economic factors
(including future commodity prices, currency fluctuations and
energy prices), ground conditions, illegal blockades and other
factors limiting mine access or regular operations without
interruption, 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 and construction
expenditures, reclamation activities, labor relations or
disruptions, social and political developments, risks associated
with generally elevated inflation and inflationary pressures, risks
related to changing global economic conditions, and market
volatility, risks relating to geopolitical instability, political
unrest, war, and other global conflicts may result in adverse
effects on macroeconomic conditions including volatility in
financial markets, adverse changes in trade policies, inflation,
supply chain disruptions 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. Additional information regarding the factors that may
cause actual results to differ materially from this forward‐looking
information is available in Americas’ filings with the Canadian
Securities Administrators on SEDAR+ and with the SEC. Americas does
not undertake any 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. Americas does not give any
assurance (1) that Americas will achieve its expectations, or (2)
concerning the result or timing thereof. All subsequent written and
oral forward‐looking information concerning Americas are expressly
qualified in their entirety by the cautionary statements above.
1 This metric is a non-GAAP financial measure or ratio. The
Company uses the financial measures “Cash Cost”, “Cash Cost/Ag Oz
Produced”, “All-In Sustaining Cost”, and “All-In Sustaining Cost/Ag
Oz Produced” in accordance with measures widely reported in the
silver mining industry as a benchmark for performance measurement
and because it understands that, in addition to conventional
measures prepared in accordance with IFRS, certain investors and
analysts use this information to evaluate the Company’s underlying
cash costs and total costs of operations. Cash costs are determined
on a mine-by-mine basis and include mine site operating costs such
as mining, processing, administration, production taxes and
royalties which are not based on sales or taxable income
calculations, while all-in sustaining costs is the cash costs plus
all development, capital expenditures, and exploration spending. A
full reconciliation of these non-GAAP financial measures will be
provided when the Company reports its quarterly results on or
before August 14, 2024.
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version on businesswire.com: https://www.businesswire.com/news/home/20240717934551/en/
For more information: Stefan Axell VP, Corporate
Development & Communications Americas Gold and Silver
Corporation 416-874-1708
Darren Blasutti President and CEO Americas Gold and Silver
Corporation 416‐848‐9503
Americas Gold and Silver (AMEX:USAS)
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