Americas Gold & Silver Reports Strong Q2 2025 Silver Production Growth Amid Strategic Transformation

• Americas Gold and Silver achieved consolidated silver production of 689,000 ounces in Q2 2025, representing a 36% year-over-year increase and 54% quarter-over-quarter growth driven by operational improvements at the Galena Complex.
• The company secured a $100 million senior secured term loan facility with SAF Group, receiving the first $50 million tranche in June 2025 to fund growth and development capital spending.
• Successful metallurgical testing demonstrated over 90% antimony recovery at Galena, positioning the company to potentially become the only current antimony producer in the United States.
• Revenue decreased 19% to $27.0 million compared to Q2 2024 due to lower zinc and lead production as operations transition from San Rafael to the higher-grade silver-copper EC120 Project.
• The company reported a net loss of $15.1 million for Q2 2025, primarily attributed to increasing precious metal prices impacting metals-based liabilities and non-recurring corporate expenses during the operational transition period.

Americas Gold and Silver Corporation (TSX: USA, NYSE American: USAS) is a growing North American precious metals producer operating mining complexes in Idaho and Mexico. The company focuses on silver production while extracting valuable by-products including zinc, lead, and copper from its Galena Complex in Idaho and Cosalá Operations in Mexico. During the second quarter of 2025, Americas Gold and Silver demonstrated significant operational progress while navigating a strategic transition that positions the company for enhanced silver production and expanded revenue streams.

The Q2 2025 results reflect a company in transformation, with substantial production increases in silver offset by temporary revenue pressures as operations transition from higher base metal content deposits to silver-rich projects. This strategic shift, combined with new financial resources and breakthrough metallurgical developments, establishes a foundation for sustained growth in the precious metals sector.

Production Performance & Operational Improvements

Strong Silver Production Growth

Americas Gold and Silver achieved notable production milestones during Q2 2025, with consolidated silver production reaching 689,000 ounces. This represents a substantial 36% increase compared to the same period in 2024 and an impressive 54% quarter-over-quarter growth. The company also produced approximately 839,000 silver equivalent ounces when including by-products of 1.5 million pounds of zinc and 1.9 million pounds of lead.

The production increases stem primarily from operational improvements and efficiency gains at the Galena Complex in Idaho, where management has implemented multiple initiatives to enhance productivity. Additionally, the positive development progress at the EC120 Project facilitated the processing of higher-grade development ore through the mill, contributing to the overall production increases.

Chairman and CEO Paul Andre Huet emphasized the strategic importance of these developments:

"During the first half of 2025, we've made significant progress and investments into our strategy to deliver materially increased silver production and lower costs over the coming years. Our teams have been strengthened and aligned in executing our operational growth plan at Galena and the transition from the San Rafael Mine to the higher grade silver-copper EC120 Project at Cosalá."

Galena Complex Enhancements

The Galena Complex experienced significant infrastructure and operational improvements during the quarter. Key developments included the expansion of the 55-179 decline to access multiple stopes and the successful development and mining of the first long-hole stope. The company also commissioned new underground loaders and trucks to enhance productivity and completed the first Alimak vent raise to improve ventilation systems.

A critical milestone was the arrival of components for the #3 shaft replacement hoist motor, with installation planned for Q4 2025. This upgrade is expected to materially boost hoisting capacity and address operational bottlenecks that have constrained production capacity.

Huet highlighted the operational significance of these improvements:

"Key developments during the quarter include the expansion of the 55-179 decline to access multiple stopes, the successful development and mining of the first long-hole stope as well as the commissioning of new underground loaders and trucks to enhance productivity. Significant ventilation improvements were achieved with the completion of the first Alimak vent raise, while the development of a second Alimak raise is underway."

Financial Performance & Market Conditions

Revenue Analysis

Despite strong silver production growth, consolidated revenue decreased to $27.0 million for Q2 2025, representing a 19% decline compared to $33.2 million in Q2 2024. This revenue reduction reflects the strategic transition from higher base metal content mining at San Rafael to the silver-copper focused EC120 Project, which temporarily reduced zinc and lead production.

The company benefited from higher realized silver prices, with an average price of $34.22 per ounce during the quarter. Pre-production sales of EC120 silver-copper concentrate contributed $8.3 million to revenue, demonstrating the potential value of the higher-grade deposit as it moves toward commercial production.

Cost metrics remained competitive, with cost of sales per silver equivalent ounce produced averaging $27.99, cash costs of $26.64 per silver ounce, and all-in sustaining costs of $32.89 per silver ounce produced during Q2 2025.

Financial Position & Funding

Americas Gold and Silver significantly strengthened its financial position during the quarter by securing a $100 million senior secured term loan facility with SAF Group. The company received the first $50 million tranche in June 2025, providing substantial capital for growth and development spending at the Galena Complex.

This financing arrangement improved the company's liquidity profile, with cash and cash equivalents reaching $61.7 million and working capital of $10.4 million as of June 30, 2025. This represents a significant improvement from the working capital deficit of $28.7 million at December 31, 2024.

The company reported a net loss of $15.1 million for Q2 2025, compared to a net loss of $4.0 million in Q2 2024. The increased loss was primarily attributed to the impact of rising precious metal prices on metals-based liabilities, non-recurring corporate expenses related to personnel additions and board reconstitution, and reduced base metals revenue during the operational transition.

Strategic Developments & Future Opportunities

Antimony Recovery Breakthrough

A significant strategic development emerged from successful metallurgical testing at the Galena Complex, which demonstrated over 90% antimony recovery rates. The company commissioned SGS Canada Inc. to conduct flotation tests on current mill feed, with results indicating that marketable antimony concentrate production is feasible using modern metallurgical processes.

This breakthrough positions Americas Gold and Silver to potentially become the only current antimony producer in the United States, representing a new revenue stream from what was previously considered a penalty element in the ore processing. The antimony recovery capability adds strategic value given antimony's classification as a critical mineral with limited domestic production.

Huet expressed enthusiasm about this development:

"We're also very excited about the metallurgical testing completed on Galena concentrate that confirmed high recoveries of both antimony and copper, with modern processes enabling the potential extraction of antimony from the tetrahedrite. The test work is a key step in establishing Americas as the only current antimony producer in the U.S., unlocking a potential new revenue stream."

Processing & Marketing Agreements

The company secured a multi-metal offtake agreement with Ocean Partners for treatment of up to 100% of polymetallic concentrates from the Galena Complex at Teck Resources Limited's Trail Operations in British Columbia. This agreement guarantees processing capacity at a nearby smelter, which management considers critical for executing plans to significantly increase silver and by-product metal production.

The processing agreement also transforms previously penalized metals, including copper and antimony, into potential revenue streams, providing additional economic benefits beyond guaranteed capacity.

Exploration Success & Resource Expansion

Strong exploration results from the Galena Complex highlighted significant potential for resource expansion. Notable results included an intersection of 983 g/t silver over 3.4 meters in the new 034 vein, with an initial vein target of 1.2-1.5 million silver ounces. The company continues its near-mine exploration program targeting high-grade mining areas with near-term mining potential.

EC120 Project Transition

Development Progress

The Cosalá Operations advanced toward mining the higher-grade silver-copper EC120 orebody, with commercial production targeted for the end of 2025. The development team continues concurrent mining at San Rafael while advancing EC120, focusing on higher-grade silver areas in late Q3 and early Q4 2025.

The EC120 Project represents a strategic shift toward higher-grade silver and copper production compared to the zinc and lead-focused San Rafael operations. Early examples during Q2 2025 demonstrated the positive impact of EC120 on silver grades, indicating the potential for improved economics as the project reaches full production.

Huet emphasized the strategic importance of this transition:

"The Cosalá Operations are advancing well towards mining the higher-grade silver-copper EC120 orebody, where we are aiming to be in commercial production by the end of 2025. The team is mining concurrently at San Rafael during the development of EC120, with a focus on mining higher-grade silver areas in late Q3 and early Q4 2025."

Market Recognition & Corporate Governance

Americas Gold and Silver achieved inclusion in the Solactive Global Silver Miners Index, announced on May 1, 2025. This inclusion validates the company's position as a growing silver-focused producer and increases exposure to institutional investors who track silver mining indices.

The company also strengthened its board of directors with the appointment of Shirley In't Veld, bringing extensive experience as a senior executive and director in mining, renewables, and energy sectors. This addition supports the company's strategic development during its growth phase.

Investment Outlook & Strategic Positioning

Growth Trajectory

Americas Gold and Silver has positioned itself for sustained multi-year production growth through strategic investments in operational improvements, new equipment, and higher-grade deposit development. The combination of Galena Complex enhancements and EC120 Project advancement creates a foundation for increased silver production and improved economics.

The company's unique position as a potential antimony producer adds strategic value given the mineral's critical status and limited domestic supply. This capability, combined with guaranteed processing capacity and improved base metal recovery, diversifies revenue streams and reduces operational risks.

Operational Transformation

The current period represents a transformational investment year for Americas Gold and Silver, with management implementing operational adjustments, productivity improvements, and cost reduction initiatives. These investments are designed to create a stronger operational platform supporting continued production growth at both the Galena Complex and Cosalá Operations.

Huet summarized the company's strategic position:

"Overall, I am very pleased with our progress as we leverage the strength of our expanded and strengthened team as well as our bolstered balance sheet to build a strong foundation for our strategy to deliver sustained multi-year production growth, unlocking the massive potential across our asset base for all our stakeholders."

For Investors

Americas Gold and Silver Corporation presents a compelling investment opportunity in the precious metals sector, combining demonstrated production growth with strategic positioning for future expansion. The company achieved significant operational milestones in Q2 2025, including 36% year-over-year silver production growth and successful metallurgical breakthroughs that position it as a potential domestic antimony producer.

While the company experienced temporary revenue pressures during its strategic transition from base metal-focused operations to higher-grade silver projects, the long-term outlook appears favorable. The $100 million financing facility provides necessary capital for continued development, while operational improvements at Galena and advancement of the EC120 Project create a foundation for sustained production growth.

The combination of increased silver production capabilities, potential antimony revenue streams, guaranteed processing capacity, and inclusion in major silver indices positions Americas Gold and Silver for enhanced market recognition and institutional investment interest. Investors should monitor the company's progress in executing its operational improvements, achieving commercial production at EC120, and realizing the economic benefits of its strategic transformation initiatives.