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Americas Gold and Silver Corporation Provides Q3-2023 Production Results With an Increase of 17% in Attributable Silver Production

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Americas Gold and Silver Corporation Provides Q3-2023 Production Results With an Increase of 17% in Attributable Silver Production

 

 

 

 

 

Americas Gold and Silver Corporation (TSX: USA) (NYSE American: USAS) a growing North American precious metals producer, is pleased to provide its Q3-2023 production results.

  • Q3-2023 consolidated attributable silver production rose 17% totalling approximately 0.39 million ounces compared with approximately 0.33 million ounces in Q3-2022.
  • Consolidated attributable silver equivalent1 production in Q3-2023 was approximately 1.0 million ounces compared with approximately 1.3 million ounces in Q3-2022. The reported silver equivalent production was impacted by higher silver prices and lower zinc prices in Q3-2023 versus Q3-2022 as the Company uses realized quarterly prices in its calculations. These price changes negatively impacted the silver equivalent production calculation by approximately 0.3 million ounces in Q3-2023 compared to Q3-2022.
  • Production was negatively impacted early in the quarter by a 5-day electrical shutdown at the Galena Complex to allow necessary hoist switchgear upgrades, as well as mobile equipment availability. The Cosalá Operations had various mill outages totalling 14 days due to heavy rain and tailings work.
  • The Cosalá Operations has grown its ore stockpile to approximately 25,000 tonnes from zero at the beginning of the year. Further, mining has begun in the transition zone between the San Rafael Upper Zone and Zone 120 with approximately 10,000 tonnes mined to-date. The Company expects to realize an increase in silver production in the near term due the higher-grade silver areas in the Upper Zone and the transition zone.
  • Production is expected to be the highest in Q4-2023 for calendar 2023 with both operations now accessing their highest silver grades for the year.
  • Production guidance for 2023 remains unchanged but the Company expects to be at lower end of both the consolidated attributable silver production range of 2.2 and 2.6 million ounces and consolidated attributable silver equivalent production range of 5.5 and 6.0 million ounces.

 

“October production has started out strongly and the Company is confident that Q4-2023 will be its strongest silver production quarter following a challenging operating quarter in Q3-2023,” stated Americas President and CEO Darren Blasutti. “The Company is undertaking numerous operating decisions to increase both its overall silver production and its percentage of revenue generated from silver at the two operations in the coming quarters as it is anticipating much stronger silver prices in 2024.”

 

Consolidated Attributable Production*

 

Q3-2023 Q3-2022 % Increase
(Decrease)
(Y-over-Y)
Silver Production (ounces) 0.39 Moz 0.33 Moz 17%
Zinc Production (pounds) 9.0 Mlbs 9.4 Mlbs (5%)
Lead Production (pounds) 4.7 Mlbs 5.9 Mlbs (20%)
Silver Equivalent Production (ounces) 1.0 Moz 1.3 Moz (26%)
* Silver equivalent ounces for Q3-2023 and Q3-2022 were calculated based on silver, zinc and lead realized prices during each respective period throughout this press release. Guidance numbers were based on $22.00/oz silver, $1.45/lb zinc and $1.00/lb lead.

 

 

Attributable production from the 60% owned Galena Complex was approximately 209,000 ounces of silver and 1.8 million pounds of lead in Q3-2023, compared to approximately 145,000 ounces of silver and 2.1 million pounds of lead in Q3-2022. Towards the end of Q3-2023, the Galana Complex was unable to maintain targeted ore production due to mine mobile equipment availability. The issue has been largely resolved and, while improvements were too late to positively impact Q3-2023 results, October has had a strong start. The Company has found a specialized contractor that it will engage in November to repair the badly damaged few hundred feet of the Galena shaft.

 

The Cosalá Operations produced approximately 178,000 ounces of silver, 2.8 million pounds of lead and 9.0 million pounds of zinc in Q3-2023, compared with approximately 186,000 ounces of silver, 3.8 million pounds of lead and 9.4 million pounds of zinc in Q3-2022. Production during the quarter was negatively impacted by a cumulative 14 days of lost mill operating time due to heavy rainfall and tailings maintenance. The majority of the decrease in silver equivalent production compared to the prior year period is a result of 25% higher realized silver prices and 25% lower realized zinc prices, impacting the calculation by 0.3 million ounces. Production is expected to increase in Q4-2023 benefiting from the higher-grade silver areas in the Upper Zone of the San Rafael mine and stockpiled production from the Zone 120 deposit.

 

The Company’s production is expected to come in at the lower of end of 2023 guidance of attributable consolidated silver equivalent production between 5.5 and 6.0 million ounces and attributable consolidated silver production between 2.2 and 2.6 million ounces.

 

In connection with contemplated amendments to the existing convertible debentures held by funds managed by Delbrook Capital Advisors (“Debentures”) to provide an additional $2,000,000 in principal amount, the Company has agreed to amend the terms of its existing warrants held by funds managed by Delbrook Capital Advisors and affiliates (an aggregate of 3,500,000 common share purchase warrants, “Warrants”) to amend the exercise price from C$0.80 per warrant to C$0.55 per Warrant, a premium of 25% to October 27, 2023 closing price of C$0.44. The Warrants expire on June 21, 2026, and contain customary anti-dilution provisions, as well as customary blocker language regarding becoming a control person without required shareholder and TSX approvals. The amendments will be effective upon the entry into definitive documentation, and no earlier than November 13, 2023.

 

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.

 

Posted October 30, 2023

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