Americas Gold and Silver Corporation (TSX: USA) (NYSE American: USAS) a growing North American precious metals producer, reports consolidated financial and operational results for the year ended December 31, 2024.

This earnings release should be read in conjunction with the Company’s Management’s Discussion and Analysis, Financial Statements and Notes to Financial Statements for the corresponding period, which have been posted on the Americas Gold and Silver Corporation SEDAR+ profile at www.sedarplus.ca, and on its EDGAR profile at www.sec.gov, and which are also available on the Company’s website at www.americas-gold.com. All figures are in U.S. dollars unless otherwise noted.

2024 Highlights

• Increased ownership in the Galena Complex to 100% through the acquisition of Eric Sprott’s 40% interest in the Galena Complex (“Acquisition”) completed on December 19, 2024.
• Completed a C$50 million concurrent bought deal private placement of subscription receipts at an issue price of C$0.40 per subscription receipt in support of the recapitalization of the Company as part of the consolidation transaction.
• Mr. Paul Andre Huet was appointed Chief Executive Officer effective November 11, 2024, and Chairman on December 19, 2024. Mr. Huet’s focus is on building a strong, experienced technical team to unlock the dormant value of the Galena Complex and Cosalá Operations in pursuit of increased shareholder returns.
• Benefits of the Consolidation Transaction:
  • Consolidation of Galena Complex in Idaho’s Silver Valley aimed at strengthening the Company’s position during a strong silver market environment.
  • Leadership transition with Mr. Huet bringing extensive experience in underground mining and a track record of operational excellence with long-standing industry connections.
  • The financial backing of, and strategic partnership with Mr. Eric Sprott and additional institutional investors provides both a strong capital foundation and increased market recognition.
• Increase in fiscal 2024 revenue due to higher realized prices. Revenue increased to $100.2 million for 2024 or 5% compared to $95.2 million for 2023, with higher realized silver ^[1] and realized zinc ^[1] during the period.
• Consolidated attributable silver production of 1.7 million ounces with approximately 3.7 million ounces of silver equivalent ^[2], including 31.5 million pounds of zinc and 15.8 million pounds of lead.
• Cost of sales ^[3] per silver equivalent ounce produced, cash costs ^[3] and all-in sustaining costs ^[3] per silver ounce produced averaged $18.12, $17.41 and $28.13, respectively, in 2024.
• Net loss of $48.9 million for 2024 (2023 net loss of $38.2 million), primarily attributable to higher cost of sales, depletion and amortization, exploration costs, foreign exchange loss, loss on fair value of metals contract liability, and income tax expense, offset in part by higher revenue, and a prior period impairment.
• Adjusted earnings ^[3] for 2024 was a loss of $33.7 million (adjusted loss of $28.4 million for 2023) primarily due to higher depletion, amortization, and exploration costs.
• Adjusted EBITDA ^[3] for 2024 was a loss of $1.5 million for 2024 (adjusted EBITDA loss of $1.4 million for 2023), primarily due to higher depletion, amortization, and loss on metals contract liabilities.
• Silver production is expected to increase in 2025 as the development into EC120 Project progresses and mine continues to batch higher development grade ore through the mill, and operational improvements begin to be realized at the Galena Complex. Pre-production sales of EC120 silver-copper concentrate contributed $3.7 million to net revenue during 2024.
• Credit and Offtake Agreement with Trafigura for EC120 Project. On August 14, 2024, the Company signed a $15 million secured Credit and Offtake Agreement for the capital requirements of the Board-approved EC120 Project at its Cosalá Operations with the goal of solely producing higher-grade silver-copper concentrates in Q3-2025.

Paul Andre Huet, Chairman and CEO, commented: “At Americas Gold and Silver we have an excellent platform from which to build substantial shareholder value. We have the people, assets, and financial strength to succeed.

The consolidation of the Galena Complex in Idaho’s prolific Silver Valley region is a major milestone for Americas Gold and Silver. The Galena consolidation not only increased the Company’s ownership of the asset to 100%, but it also aligned the interests of our shareholders with the addition of legendary mining investor Eric Sprott as the Company’s single largest shareholder with a 20%+ interest. In my view, Mr. Sprott’s willingness to convert his 40% interest in Galena into shares of the Company demonstrates his confidence in the value creation potential we have in front of us.

To further strengthen our balance sheet and to support growth related capital investments, we are in advanced discussions regarding a debt financing facility with a preferred lending partner. Increased financial flexibility will be a key pillar of our turnaround plans at the Galena Complex. Since the closing of the consolidation transaction late last year, we have reduced liabilities by over US$35 million, placing us in a much stronger position as we execute our strategy. At the operations, we have been working diligently at developing our redesigned operating plans across the business and in the coming weeks we will be providing full year 2025 consolidated production guidance to the market, outlining our plans this year at both Galena and Cosalá.

I am proud to be leading our revitalized senior management with a proven track record of turning around operations and maximizing value for shareholders. New senior leadership at our Galena operations is already in place and the detailed evaluation of the path towards increasing mining rates and hoisting capacity to take full advantage of existing mill capacity is well underway. Galena has substantial infrastructure already in place to exploit a large Mineral Resource; an excellent starting point to bring the operation towards its full potential as a very profitable and long-lived cornerstone asset.

I have been very pleased with our team running our Cosalá operations. Our team has demonstrated a strong commitment to safe and profitable production, delivering strong operating results of over 2.5 million silver equivalent ounces in 2024 at a cash cost of US$17.41 per ounce and an AISC of US$28.13 per ounce. We expect to see increased production and lower costs at Cosalá in 2025 as we develop into the higher-grade silver – copper ore in the EC120 mine, where we expect to reach full production later this year. We look forward to continued production growth and lower costs at Cosalá as we execute our multi-year plan for the operation.

We are also very happy to announce the appointment of Rob Buchanan as Vice President, Sustainability and Communications. Rob was a key driver of our sustainability and communication strategies throughout many successful years at Karora, and we are looking forward to developing our sustainability action plan at Americas over the course of this year.

Overall, I am very excited as I embark on my first full year leading the Americas Gold and Silver team. With 2024 in the rear-view mirror, 2025 will be a year of investment into our flagship Galena mine as we lay the foundations for future growth, and I look forward to unlocking the massive potential across our asset base for our shareholders in what is certainly a positive silver price environment.”

Consolidated Production

Consolidated attributable silver production during 2024 was lower than 2023 with approximately 1.7 million ounces and 2.0 million ounces, respectively. Consolidated attributable silver equivalent production during 2024 decreased by 19% compared to 2023 due to higher silver prices in 2024 compared to 2023 as the Company uses realized quarterly prices in its equivalency calculations. These price changes negatively impacted the silver equivalent production calculation by approximately 0.4 million ounces in 2024 relative to 2023.

Consolidated attributable cash costs and all-in sustaining costs for 2024 were $17.41 per silver ounce and $28.13 per silver ounce, respectively. Cash costs per silver ounce increased during the year due primarily to decreased silver production and lower by-product credits from lower zinc and lead production during the year.

Galena Complex

The Galena Complex produced approximately 1.5 million ounces of silver in 2024 compared to approximately 1.6 million ounces of silver in 2023 (a 5% decrease in silver production), and 10.0 million pounds of lead in 2024, compared to 15.1 million pounds of lead in 2023 (a 34% decrease in lead production). Cash costs increased to $23.07 per ounce silver in 2024 from $18.72 per ounce silver in 2023 due to decreased silver production and lower by-product credits from lower lead production during the year, with an increase in all-in sustaining costs due to an increase in capital expenditures.

Tonnage and silver production during 2024 were both comparable to 2023 with an increase of 5% and a decrease of 5%, respectively. Development during 2024 included horizontal development work in the Upper Country Lead Zone between the 2400 and 2800 Levels which allowed the operation to access additional working areas, and continued work on the 55-179 decline to develop deeper higher-grade production stopes which will drive long-term production goals. During the year, tons moved were negatively impacted by the build-up of waste rock caused by continued hoisting limitations due to the delay in repairs to the Galena shaft. The Company is currently evaluating optimization of the No. 3 shaft, where numerous high-impact solutions have been identified, for increased hoisting capacity during 2025.

Cosalá Operations

The Company focused on silver production while maintaining base metal production from the San Rafael Main and Upper Zones to maximize its revenue and cash flow generation to benefit from the increase in silver and zinc prices during the period. A portion of installed mining and milling capacity during the year was used to prepare for its next evolution of operations into the EC120 silver-copper deposit, with pre-production sales of EC120 silver-copper concentrate contributing $3.7 million to net revenue during the 2024 calendar year.

Silver production decreased in 2024 by 25% to approximately 825,000 ounces of silver compared to approximately 1,099,000 ounces of silver in 2023 primarily due to lower recoveries. Production of base metals decreased to 31.5 million pounds of zinc and 9.7 million pounds of lead in 2024, compared to 34.1 million pounds of zinc, and 11.5 million pounds of lead in 2023. Production during the year was impacted by heavy rains and intermittent security concerns in nearby areas which caused the mill to be temporarily shut down on isolated occasions. Silver production is expected to increase steadily as the development into EC120 Project progresses and mine continues to batch higher development grade ore through the mill.

Cash costs per silver ounce increased during the year to $11.13 per ounce from $8.47 per ounce in 2023 due primarily to decreased silver production and lower by-product credits from lower zinc and lead production during the year.

About Americas Gold and Silver Corporation

Americas Gold and Silver is a growing precious metals mining company with multiple assets in North America. The Company owns and operates the Cosalá Operations in Sinaloa, Mexico. In December 2024, the Company acquired 100% ownership in the Galena Complex (located in Idaho, USA) in a transaction with Sprott and a Paul Huet-led management team, further strengthening its position as a leading silver producer. Sprott is now the largest shareholder in the company, holding a ~20% interest. With these strategically positioned assets, Americas Gold and Silver is focused on becoming one of the top North American silver-focused producers with an objective of over 80% of its revenue generated from silver by the end of 2025.