Americas Gold & Silver Clears US$85M Legacy Debt Overhang to Unlock Full Silver Price Leverage at Galena

• Americas Gold & Silver closed two agreements on June 11, 2026, eliminating fixed silver and gold delivery obligations to Sprott Mining Inc. and International Royalty Corporation through a combination of share issuances and the delivery of 5,000 ounces of gold, thereby restoring full spot-price exposure at Galena.
• The Galena Complex hosts 87.9 million ounces of measured and indicated (M&I) silver at 501 grams per tonne and 105.7 million ounces inferred at 498 grams per tonne, ranking among the highest-grade producing silver operations globally.
• A 64,000-metre drill program has defined four new high-grade vein complexes since August 2025, including intercepts within 25 metres of existing underground infrastructure, supporting low-capital resource expansion.
• The US$65 million acquisition of the Crescent Silver Mine targets approximately 1.5 million ounces of additional mill feed per year, leveraging the existing 1,558 tonnes-per-day processing capacity, with a restart planned for the second half of 2026.
• The stock trades at 0.60 times net asset value (NAV) versus a 1.06 times peer average, while US$122.4 million in cash fully covers the 2026 capital program, with valuation discounting execution risk despite multiple funded growth catalysts.

Clearing the Legacy Liabilities

Americas Gold & Silver (TSX: USA | NYSE American: USAS) entered 2026 with two fixed precious metals delivery contracts that required set quantities of silver and gold to be delivered regardless of prevailing spot prices, thereby capping the revenue benefit of price appreciation for that portion of production. On June 11, 2026, the company closed two agreements to extinguish both obligations.

The first agreement terminated a 592,000-ounce silver delivery obligation owed to Sprott Mining Inc., settled through the issuance of 7,956,696 common shares at a deemed price of US$5.57 per share. The second settled a gold delivery obligation - originally a 2019 Precious Metals Delivery Agreement with Sandstorm Gold Ltd., which transferred to International Royalty Corporation, an affiliate of Royal Gold, Inc., following Royal Gold's October 2025 acquisition of Sandstorm - requiring delivery of 8,861 ounces of gold between June 2026 and December 2027. This obligation was resolved through the immediate physical delivery of 5,000 ounces of gold and the issuance of 2,652,532 common shares at a deemed price of US$5.86 per share. 

Executive Vice President of Corporate Development of Americas Gold & Silver, Oliver Turner, described the financial drag of both instruments:

"We've got these unrealised liabilities that move with the Sandstorm agreement from Relief Canyon and the Silver Stream. But we're in an extremely robust situation, and we're obviously generating great cash at these prices and deploying it into the ground to scale this asset up as fast as we can to take advantage of this market that we're in."

The company closed the first quarter of 2026 with US$122.4 million in cash, fully covering the 2026 consolidated capital expenditure (capex) guidance of US$90 million to US$120 million without requiring additional equity financing beyond the shares already issued in the two settlements.

Galena Resource Scale & Exploration Upside

The Galena measured and indicated (M&I) silver resource stands at 87.9 million ounces grading 501 grams per tonne, a 19 % increase in ounces and a 21% increase in grade versus the 2024 mineral resource estimate (MRE), while inferred resources total 105.7 million ounces grading 498 grams per tonne within the same Idaho district operation. Galena ranked second globally by average silver head grade among producing mines in 2025 at 473 grams per tonne, behind Hecla Mining’s Keno Hill at 994 grams per tonne, with inferred resources remaining subject to infill drilling before conversion to reserves and without demonstrated economic viability. 

A 64,000-metre drill program is advancing resource conversion and new high-grade structures, including discoveries within 25 metres of existing underground infrastructure that reduce incremental development capital requirements, with drilling since August 2025 defining four new high-grade vein complexes and highlight intercepts including 3.44 metres at 983 grams per tonne silver, 0.21 metres at 24,913 grams per tonne silver, 1.1 metres at 619 grams per tonne silver, and 1.9 metres at 1,392 grams per tonne silver, all reported in estimated true widths.

Turner contextualised the resource scale relative to the company's organic growth plan:

"We've got over 200 million ounces at Galena at 500 grams per tonne. It's the second-highest-grade silver mine in the world right now. So we're using our own resource to drive this plan forward."

Crescent Integration & Processing Capacity

The Galena Complex operates two surface mills, the Galena Mill, approximately 750 tonnes per day, and the Coeur Mill, approximately 500 tonnes per day, against the current underground throughput of approximately 410 tonnes per day. This spare processing capacity enables the integration of ore from the Crescent Silver Mine without requiring new milling infrastructure.

Americas Gold & Silver acquired Crescent on December 12, 2025, for approximately US$65 million, comprising US$20 million in cash and approximately 11.1 million common shares valued at US$45 million at closing. Located 9 miles from Galena, Crescent includes approximately 12,000 feet of existing underground development. Infrastructure upgrades have reduced power costs from approximately US$0.55 to US$0.07 per kilowatt-hour through a grid connection, while compressed air lines and 11 pieces of underground equipment have been commissioned. The company is targeting a restart in the second half of 2026, with Crescent expected to provide high-grade silver, copper, and antimony mill feed to support annual silver production of approximately 1.5 million ounces at the Galena facility.

The Cosalá Operations in Sinaloa, Mexico, are expected to contribute to the balance of 2026 consolidated silver production guidance of 3.2 to 3.6 million ounces at an all-in sustaining cost (AISC) of US$30 to US$35 per ounce, representing 30% growth from 2025 production of 2.65 million ounces. The first quarter of 2026 consolidated production totalled 786,900 ounces of silver at an AISC of US$34.12 per ounce, tracking within full-year guidance.

Antimony Supply Chain Economics

The tetrahedrite mineralisation at Galena produces antimony at a consistent antimony-to-copper ratio of approximately 0.7:1 as a byproduct of primary silver mining, requiring no incremental mining cost. The Galena Complex produced approximately 561,000 pounds of antimony in 2025, making it the largest active antimony producer in the United States, with recoveries exceeding 99% to concentrate and 90% to 96% from approximately 1% antimony ore.

In February 2026, Americas Gold & Silver announced a 51% owned joint venture (JV) with United States Antimony Corporation to build an antimony processing hub at the Galena site, targeting completion within 18 months. The facility will produce on-site flake metal rather than shipping concentrate to third-party smelters, enabling capture of downstream refining margins on approximately 561,000 pounds of annual production without changes to the mining operation.

Execution Risk & Valuation Disconnect

The stock trades at 0.60 times net asset value (NAV) versus a peer average of approximately 1.06 times NAV and approximately 2 times NAV for recent primary silver acquisitions. The discount reflects execution risk rather than funding or resource quality, with US$122.4 million in cash fully covering the US$90 million to US$120 million 2026 capex range. Key execution factors include mechanised long-hole stoping initiated in 2024; current throughput of approximately 410 tonnes per day at Galena versus a 2026 exit target of 650 tonnes per day; a Crescent restart that has not yet commenced; and an antimony processing hub still in pre-commissioning.

Investment Thesis for Americas Gold & Silver

• Legacy Liability Removal: June 11, 2026, closure of fixed precious metals delivery agreements with Sprott Mining Inc. and International Royalty Corporation removes all variable delivery contracts, restores full silver and gold spot price exposure at Galena, and was settled through issuance of 7,956,696 and 2,652,532 common shares at US$5.57 and US$5.86 per share, plus 5,000 ounces of gold.
• Resource Scale & Grade: Galena hosts 87.9 million ounces of measured and indicated silver at 501 grams per tonne and 105.7 million ounces of inferred silver at 498 grams per tonne, ranking second globally among producing mines, with an average grade of 473 grams per tonne in 2025.
• Organic Exploration Delivery: The 64,000-metre drill program has outlined four new high-grade vein complexes since August 2025, including intercepts within 25 metres of existing underground infrastructure, reducing incremental development requirements pending infill drilling.
• Processing Capacity Utilisation: The US$65 million Crescent acquisition targets approximately 1.5 million ounces of annual silver production through existing Galena milling capacity of 1,558 tonnes per day versus current throughput of approximately 410 tonnes per day, with restart targeted for the second half of 2026.
• Antimony Margin Capture: The 51%-owned joint venture with United States Antimony Corporation aims to convert approximately 561,000 pounds of annual antimony production into on-site flake metal within 18 months, capturing downstream refining margins without additional mining capital.
• Funded Re-rating Pathway: The stock trades at 0.60 times net asset value versus a 1.06 times peer average and approximately 2 times for recent primary silver acquisitions, with US$122.4 million cash fully covering the 2026 capital expenditure range of US$90 million to US$120 million.

The combination of balance sheet de-risking, top-tier grade profile, near-infrastructure exploration success, latent processing capacity, antimony margin capture, and fully funded growth program collectively defines a clear set of catalysts against a persistent valuation discount.

TL;DR

Americas Gold & Silver closed two agreements on June 11, 2026, converting a 592,000-ounce silver obligation to Sprott Mining Inc. into 7,956,696 shares at US$5.57 per share and an 8,861-ounce gold obligation from a 2019 Sandstorm Gold agreement into 2,652,532 shares at US$5.86 per share plus 5,000 ounces of gold, eliminating legacy delivery contracts and restoring full spot exposure at Galena. The Galena Complex hosts 87.9 million ounces of M&I silver at 501 grams per tonne and 105.7 million ounces inferred at 498 grams per tonne, while a 64,000-metre drill program has defined four new high-grade vein complexes since August 2025, including near existing infrastructure. Growth includes the US$65 million Crescent Silver Mine acquisition targeting approximately 1.5 million ounces per year using 1,558 tonnes per day of processing capacity, with a restart planned for the second half of 2026, plus a 51% antimony JV targeting on-site flake production within 18 months. The stock trades at 0.60 times net asset value versus a 1.06 times peer average, with US$122.4 million in cash fully funding the 2026 capital program.

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