Americas Gold & Silver: Pure Play on Silver's $95 Record Breakout

• Americas Gold & Silver operates the largest active antimony mine in the US at Galena Complex, with 80%+ revenue from silver production
• Recent high-grade discoveries include 034 Vein with 983 g/t silver over 3.4m and 149 Vein with 24,913 g/t silver
• Strategic Crescent Mine acquisition adds potential 1.4-1.6 Moz annual silver production, located 9 miles from Galena
• Company trades at 0.66x price-to-NAV versus silver peer average of 1.14x, offering valuation discount
• Silver's breakout to record $95.88 per ounce with 140-150% gains through 2025 positions company for leveraged upside exposure

Silver's historic surge to a record high of $95.88 on January 22nd, 2026, has created a compelling backdrop for silver-focused mining companies. Americas Gold & Silver Corporation (TSX: USA, NYSE: USAS) emerges as a prime beneficiary, operating high-grade silver assets in Idaho's prolific Silver Valley while trading at a significant discount to peers. The company's transformation into a pure silver play coincides with unprecedented precious metals momentum driven by geopolitical tensions and safe-haven demand.

With silver posting gains ranging from 120% to 150% through 2025 according to various market analytics and maintaining current trading levels around $95 per ounce, Americas Gold & Silver represents a leveraged exposure to the precious metals rally. The company's operational improvements, strategic acquisitions, and exploration success position it to capitalize on sustained silver strength while building long-term production growth in one of North America's most prolific mining districts.

Company Overview

Americas Gold & Silver has strategically transformed into North America's premier silver-focused producer through targeted acquisitions and operational excellence. The company operates the Galena Complex in Idaho's historic Silver Valley and Cosalá Operations in Mexico, generating approximately 80% of revenue from silver production as of 2025. This focused approach differentiates the company from diversified miners and provides pure exposure to silver price appreciation.

Under Chairman and CEO Paul Huet's leadership, the company consolidated control of the historic Galena Complex in October 2024, acquiring Eric Sprott's 14% stake and adding institutional investors including BlackRock, Manulife, and Sprott Asset Management. The leadership team brings proven track records from previous successes at Karora Resources, which delivered an 804% return versus the GDXJ gold miners ETF, and Klondex Mines, which generated a 490% return following the team's operational improvements.

The December 2025 acquisition of the Crescent Mine for US$65 million represents a strategic expansion within the Silver Valley district. The fully permitted operation sits just 9 miles from existing Galena infrastructure with potential for 1.4-1.6 million ounces of annual silver production. This acquisition demonstrates the company's disciplined approach to value-accretive growth within its core operating region, leveraging existing infrastructure and expertise.

Key Developments: High-Grade Discovery Program

Americas Gold & Silver's systematic exploration program at Galena has yielded exceptional high-grade intercepts that significantly expand the mine's resource base and extend mine life. The 034 Vein discovery delivered 3.4 meters grading 983 g/t silver, while the 149 Vein intersection returned an extraordinary 24,913 g/t silver over 0.21 meters, highlighting the district's continued potential for high-grade mineralization.

These discoveries represent more than isolated intercepts, extending known mineralization patterns and opening new mining areas within existing underground infrastructure. The 034 Vein preliminary estimates indicate 100-120k tonnes containing 311-467 g/t silver, potentially adding 1.2-1.5 million ounces of silver resources. The 149 Vein discovery confirms the presence of bonanza-grade mineralization at depth, with additional mineralization visible in both hanging wall and footwall positions.

"The 034 Vein discovery at 983 g/t silver over 3.4 meters opens a new high-grade mining zone adjacent to existing infrastructure, demonstrating the continued exploration potential within our expanded land position at Galena."

Drilling results demonstrate the Silver Valley district's continued exploration potential, with less than 5% of Galena's expanded landholding systematically explored. The company's brownfield exploration strategy leverages existing underground access points and processing infrastructure to maximize discovery value while minimizing exploration costs. Recent surface drilling has identified multiple untested vein extensions and parallel structures, providing a robust pipeline of future drill targets.

Strategic Significance: Antimony Critical Minerals

Galena operates as the largest active antimony producer in the United States, producing approximately 450,000 pounds in the first three quarters of 2025. This positions the company strategically within critical minerals supply chains, with antimony classified as essential for defense applications including flame retardants, ammunition, and electronic components. The strategic importance of domestic antimony production has increased significantly amid global supply chain concerns.

Recent metallurgical testing achieved breakthrough results with 99%+ antimony extraction from copper concentrate, demonstrating the potential to monetize antimony as a valuable byproduct rather than waste material. At current antimony prices near US$50,000 per tonne, the company's historical antimony production represents approximately US$500 million in uncaptured revenue potential from past operations when antimony was not economically recovered.

The dual focus on silver production and antimony byproducts provides revenue diversification and strategic exposure to critical minerals demand growth. Long-term offtake agreements secured through 2030 provide cash flow visibility for the antimony business segment, while potential domestic refining capabilities could capture additional value-added processing margins. The company's unique position as the largest US antimony producer creates optionality for government contracts and strategic partnerships.

Current Activities: Operational Optimization

The company has implemented comprehensive infrastructure upgrades at Galena's No. 3 Shaft, successfully doubling hoisting capacity from 40 to 80 tonnes per hour through Phase 1 improvements completed in September 2025. Phase 2 upgrades targeting over 100 tonnes per hour capacity are advancing with US$8 million in planned investments, including new hoisting control systems with advanced automation capabilities and brake upgrades to improve operational efficiency.

Long hole stoping introduction has demonstrated significant operational advantages, with approximately 60% lower costs per tonne at similar dilution levels compared to traditional cut-and-fill methods. The first 3-4 foot wide stope was successfully mined in Q2 2025, validating the technique's applicability to Galena's narrow vein systems. This mining method enables potential rapid scale-up of ore production while leveraging existing infrastructure and planned paste fill plant development.

Processing capacity utilization reached 408 tonnes per day in Q3 2025 against total available capacity of 1,150 tonnes per day across Galena and Coeur mills, indicating substantial room for production growth. The Crescent Mine acquisition provides additional high-grade feed sources to optimize mill utilization and reduce per-ounce processing costs through economies of scale. Recent equipment deployments include over 10 new pieces of mobile mining equipment, enhancing underground productivity and operational flexibility.

Market Position & Competitive Advantages

Americas Gold & Silver has established itself as the third-highest grade active silver mine globally at 496 g/t year-to-date, providing exceptional leverage to silver price movements compared to lower-grade operations. This grade advantage translates directly to superior unit economics, with higher margins and greater cash flow generation per ounce produced. The company's position in Idaho's Silver Valley places it within one of the world's most prolific silver districts, with over 1.2 billion ounces of historical production.

The company's processing infrastructure provides strategic advantages through multiple mill circuits capable of handling diverse ore types. The Galena mill operates at 750 tonnes per day capacity while the Coeur mill adds 500 tonnes per day, with the flexibility to process ore from multiple sources including the newly acquired Crescent Mine. This infrastructure advantage reduces capital requirements for expansion and provides processing optionality for toll milling arrangements.

Operational improvements have delivered measurable results, with Q3 2025 showing 98% year-over-year silver production growth. The company reported first-time antimony and copper production year-to-date, demonstrating successful diversification into byproduct revenues. These operational achievements validate management's systematic approach to mine optimization and provide a foundation for sustained production growth as silver prices remain elevated.

Financial Position & Capital Structure

Americas Gold & Silver trades at 0.66x price-to-net asset value compared to the average of 1.14x for intermediate to senior silver producers, according to December 2025 market data. This valuation discount exists despite the company ranking among the highest-grade active silver operations globally and operating the largest US antimony mine. The disconnect between operational performance and market valuation creates significant re-rating potential as silver maintains momentum above $90 per ounce.

The company maintains a supportive shareholder base with 70% of shares held by management, institutions and strategic investors, including Eric Sprott's 14% position acquired through the Galena consolidation transaction. Institutional holders include BlackRock, Sprott Asset Management, Manulife, and other quality long-term focused investors, providing stability and alignment with operational execution. This shareholder base reduces volatility and supports patient capital allocation decisions.

Recent financing activities demonstrate access to capital markets with US$300+ million raised in equity and debt financings to complete strategic transactions and operational improvements. The June 2025 US$100 million debt financing secured favorable terms for Galena expansion while the Crescent acquisition was funded through a heavily oversubscribed bought deal financing with 85%+ participation from new shareholders, indicating strong institutional demand for the company's growth story.

The Investment Thesis for Americas Gold & Silver

• Concentrate investments in silver-focused miners with 80%+ revenue exposure if silver maintains momentum above $90/oz
• Target highest-grade operations like Galena (496 g/t) for maximum leverage to silver price appreciation
• Consider undervalued miners trading below 0.70x P/NAV when sector averages exceed 1.10x
• Diversify into antimony-producing assets as strategic mineral premiums expand beyond traditional metals
• Increase positions in companies completing major capacity expansions during favorable commodity cycles
• Focus on companies controlling large land packages with less than 10% exploration completion in historic mining districts

Americas Gold & Silver represents a compelling pure-play opportunity on silver's historic breakout to record highs of $95.88 per ounce, combining operational leverage through the highest-grade active silver mine in North America with strategic exposure to critical antimony production. The company's significant valuation discount to peers, proven management team with track records of delivering multi-hundred percent returns, and substantial exploration upside create multiple paths to value creation in a favorable commodity environment.

Recent operational improvements including doubled hoisting capacity, successful long hole stoping implementation, and strategic Crescent Mine acquisition position the company to capitalize on sustained silver strength while building long-term production growth. The convergence of exceptional grades, infrastructure advantages, exploration potential, and favorable market conditions with silver's 140-150% gains through 2025 creates an asymmetric risk-reward profile for investors seeking leveraged exposure to silver's continued advance above $95 per ounce.

TL;DR

‍Americas Gold & Silver offers leveraged exposure to silver's record $95.88 breakout through the highest-grade active silver mine in the US, trading at a discount to peers despite recent high-grade discoveries and strategic antimony production.

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