This press release constitutes a "designated
news release" for the purposes of the Company's prospectus
supplement dated May 17, 2021, to its short form base shelf
prospectus dated January 29, 2021
Americas Gold and Silver Corporation (TSX: USA) (NYSE American:
USAS) (“Americas” or the “Company”), a growing North American
precious metals producer, is pleased to report production for the
first quarter ended March 31, 2022. Production results, outlook and
costs throughout this release production results are based on the
Company’s 100% interest in the Cosalá Operations and 60% interest
in the Galena Complex.
Highlights
● For Q1-2022, consolidated attributable
production totalled approximately 300,000 silver ounces and
1,274,000 silver equivalent1 ounces. This represents a 45% increase
in silver production and an 80% increase in silver equivalent
production compared with Q4-2021.
● The Company estimates consolidated Q1-2022
cash cost2 per silver ounce of negative $9.55 per ounce and
consolidated Q1-2022 all-in sustaining cost2 per silver ounce of
$0.42 per ounce.
● Silver production is expected to continue
to increase into the second half of 2022 as production ramps-up
into the higher-silver grade Upper Zone of the San Rafael deposit
at the Cosalá Operations and the Galena Hoist project at the Galena
Complex is completed.
● The Company’s silver equivalent production
guidance remains at 4.8 to 5.2 million ounces in 2022 with further
increases forecast at 7.0 to 7.4 million ounces in 2024, increases
of approximately 240% and 375%, respectively, compared with
2021.
● The balance sheet continues to improve with
the resumption of mining at the Cosalá Operations in Q4-2021 and
stronger metal prices. The Company has a cash and cash equivalents
balance of $7.1 million as of March 31, 2022, compared with a cash
and cash equivalents balance of $2.9 million as of December 31,
2022. The working capital deficit is estimated to also have
improved since December 31, 2021 as a result of increased
production and cash flows from the Cosalá Operations and
notification of loan forgiveness under the U.S. CARES Act.
“The Company had a strong start to the 2022 and we expect that
trend to continue as silver production ramps-up at both our Cosalá
Operations in Sinaloa and the Galena Complex in Idaho over the rest
of the year,” stated Americas President and CEO Darren Blasutti.
“The Company’s balance sheet is steadily improving with the strong
current silver, zinc and lead prices. Current spot silver and zinc
are trading over 10% and 20% higher, respectively, than the average
realized price the Company received this quarter. Strong metal
prices and increasing silver production are expected to generate
improved cash flow in the coming quarters.”
Consolidated Quarterly Production*
Q1 – 2022
Q4 – 2021
% Increase
(Q-over-Q)
Silver Production (ounces)
300,316 oz
206,548 oz
45%
Zinc Production (million pounds)
9.6 Mlbs
4.2 Mlbs
129%
Lead Production (million pounds)
6.4 Mlbs
4.6 Mlbs
39%
Silver Equivalent Production
(ounces)
1,274,470 oz
707,876 oz
80%
* Silver equivalent ounces for Q1-2022 and Q4-2021 were
calculated based on silver, zinc and lead realized prices during
each respective period throughout this press release.
Cosalá Operations
The Cosalá Operations benefitted from its first full quarter of
production in Q1-2022 following the resolution of the illegal
blockade in Q4-2021. The operation had a successful quarter despite
some minor ramp-up challenges including a 5-day period during the
quarter without production. The Cosalá Operations produced 127
thousand ounces of silver, 3.9 million pounds of lead and 9.6
million pounds of zinc in Q1-2022. Cash costs per silver ounce and
all-in sustaining costs per silver at the Cosalá Operations
benefitted from strong current zinc and lead prices which have
increased into Q2-2022.
The Cosalá Operations is expected to increase silver production
through 2022 due to the growing contribution from higher-grade
silver areas in the Upper Zone of the San Rafael mine in the second
half of 2022. Silver production from the Cosalá Operations for the
year continues to be estimated at 0.7 to 0.9 million ounces. Zinc
production from the Cosalá Operations is expected to be
approximately 36 to 40 million pounds while lead production is
expected to be 13 to 15 million pounds.
Galena Complex
The Galena Complex attributable production was approximately 174
thousand ounces of silver and 2.5 million pounds of lead in
Q1-2022. Silver production is estimated to increase in H2-2022 from
a combination of mining higher tonnage in higher-grade silver
copper stopes. The Company aims to complete the Galena Hoist
project in Q4-2022 which will increase hoisting capacity at the
operation in Q4-2022 and beyond. Cash costs per ounce and all-in
sustaining costs per ounce at the Galena Complex are also
anticipated to improve with the completion of the Galena Hoist
project given that most of the operations costs are fixed and are
expected to decrease on a per silver ounce basis assuming expected
higher silver and lead production beyond 2022.
Attributable metal production from the Galena Complex in 2022 is
estimated to be 0.7 to 0.9 million silver ounces and 9 to 11
million pounds of lead.
About Americas Gold and Silver Corporation
Americas Gold and Silver Corporation is a growing 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.
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 Gold and
Silver’s 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; the
recapitalization plan at the Galena Complex, including the expected
production levels and potential additional mineral resources
thereat; the expected timing and completion of the Galena Hoist
project and the anticipated benefits thereof including increased
hoisting capacity at the operations and expected improvements to
cash costs per ounce and all-in sustaining costs per ounce
following such completion; the expected continuity of full
production levels at the Cosalá Operations and the continuity of
legal access for employees and contractors; the expectations
regarding the level of support from the Mexican government with
respect to the long-term stability of Cosalá Operations, and its
ability to maintain such support in the near- and long-term.
Guidance and outlook contained in this press release was prepared
based on current mine plan assumptions with respect to production,
costs and capital expenditures, the metal price assumptions
disclosed herein, and assumes no adverse impacts to operations from
the COVID 19 pandemic and no further adverse impacts to the Cosalá
Operations from blockades and is subject to the risks and
uncertainties outlined below. 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 Gold and Silver 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 Gold and Silver to be materially different from those
expressed or implied by such forward-looking information. With
respect to the business of Americas Gold and Silver, these risks
and uncertainties include risks relating to widespread epidemics or
pandemic outbreak including the COVID-19 pandemic; the impact of
COVID-19 on our workforce, suppliers and other essential resources
and what effect those impacts, if they occur, would have on our
business, including our ability to access goods and supplies, the
ability to transport our products and impacts on employee
productivity, the risks in connection with the operations, cash
flow and results of the Company relating to the unknown duration
and impact of the COVID-19 pandemic; 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;
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
and other risks of the mining industry. The potential effects of
the COVID-19 pandemic on our business and operations are unknown at
this time, including the Company’s ability to manage challenges and
restrictions arising from COVID-19 in the communities in which the
Company operates and our ability to continue to safely operate and
to safely return our business to normal operations. The impact of
COVID-19 on the Company is dependent on a number of factors outside
of its control and knowledge, including the effectiveness of the
measures taken by public health and governmental authorities to
combat the spread of the disease, global economic uncertainties and
outlook due to the disease, and the evolving restrictions relating
to mining activities and to travel in certain jurisdictions in
which it operates. 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.
The 2022 and 2024 production outlook expectations set out in
this press release are considered forward-looking statements and
represent management’s good faith estimates or expectations of
future production results as of the date hereof. Outlook is based
upon certain assumptions, including, but not limited to, metal
prices, certain exchange rates, the completion of the
Recapitalization Plan at the Galena Complex on time and on budget,
including the completion of the Galena hoist project and related
engineering by Q4-2022, the Cosalá Operations remaining at full
production and not experiencing any unanticipated work stoppages or
interruptions, the Cosalá Operations accessing higher-grade silver
areas in the Upper Zone of the San Rafael mine staring in the
second half of 2022 and other assumptions. For example, 2022
production outlook includes actual results through March 31, 2022.
Production estimates include the Galena Complex and assumes the
completion of the Recapitalization Plan on time and on budget.
Assumptions used for purposes of production outlook may prove to be
incorrect and actual results may differ from those anticipated.
Production outlook cannot be guaranteed. As such, investors are
cautioned not to place undue reliance upon production outlook and
forward-looking statements as there can be no assurance that the
plans, assumptions, or expectations upon which they are placed will
occur.
Additional information regarding the factors that may cause
actual results to differ materially from this forward‐looking
information is available in Americas Gold and Silver’s filings with
the Canadian Securities Administrators on SEDAR and with the SEC.
Americas Gold and Silver 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 Gold and Silver does not give any assurance (1) that
Americas Gold and Silver will achieve its expectations, or (2)
concerning the result or timing thereof. All subsequent written and
oral forward‐looking information concerning Americas Gold and
Silver are expressly qualified in their entirety by the cautionary
statements above.
Non-IFRS Financial Measures
This press release makes reference to certain non-IFRS measures,
including certain metrics specific to the industry in which we
operate. These measures are not recognized measures under
International Financial Reporting Standards as issued by the
International Accounting Standards Board (“IFRS”), do not have a
standardized meaning prescribed by IFRS and, therefore, may not be
comparable to similar measures presented by other companies.
Rather, these measures are provided as additional information to
complement those IFRS measures by providing further understanding
of our results of operations from management’s perspective.
Accordingly, these measures are not intended to represent, and
should not be considered as alternatives to net income or other
performance measures derived in accordance with IFRS as measures of
operating performance or operating cash flows or as a measure of
liquidity. In addition to our results determined in accordance with
IFRS, we use non-IFRS measures including cash costs per ounce, all
in sustaining costs per ounce and average realized silver, zinc and
lead prices. We believe these non-IFRS measures provide useful
information to both management and investors in measuring our
financial performance and condition and highlight trends in our
core business that may not otherwise be apparent when relying
solely on IFRS measures. For further information regarding these
non-IFRS measures, please refer to “Non-GAAP and Other Financial
Measures” in our management’s discussion and analysis for the
financial year ended December 31, 2021 (the “FY2021 MD&A”),
which is incorporated by reference herein and is available on our
SEDAR profile at www.SEDAR.com or the Company’s website at
www.americas-gold.com.
1Silver equivalent ounces for the 2022 guidance, and 2023 and
2004 outlook references were calculated based on $22.00/oz silver,
$0.95/lbs lead and $1.30/lbs zinc throughout this press release.
Silver equivalent ounces for Q4-2021 and full year 2021 were
calculated based on silver, zinc and lead realized prices during
each respective period throughout this press release.
2This 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 cost is 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 cost is the cash cost 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 May 12, 2022.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220419005413/en/
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 (TSX:USA)
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