Americas Gold & Silver: High-Grade Idaho Operations Positioned for Major Silver Production Growth

• Americas Gold and Silver successfully consolidated 100% ownership of Idaho's historic Galena Complex in December 2024, then acquired the adjacent high-grade Crescent Mine in November 2025 for US$65 million, creating immediate synergies with potential for 1.4-1.6 million ounces of annual silver production.
• The company completed Phase 1 hoisting upgrades at Galena, doubling skipping capacity from 40 to 80 tonnes per hour, while successfully introducing long hole stoping mining methods that reduce costs by approximately 60% compared to traditional methods.
• Metallurgical testing achieved 99%+ antimony recovery from tetrahedrite concentrate, positioning Galena as the largest active antimony producer in the United States with approximately 450,000 pounds produced in the first three quarters of 2025.
• Galena ranks as the third-highest grade active silver mine globally at 496 grams per tonne year-to-date in 2025, while the portfolio includes high-grade discoveries including the 034 Vein at 983 g/t silver and the 149 Vein at 24,913 g/t silver.
• Trading at 0.76x price-to-net asset value versus peer average of 0.88x, the company is led by Paul Huet and a management team that previously delivered an 804% return with Karora Resources' merger.

Why Americas Gold & Silver Deserves Investor Attention Now

The precious metals sector is entering 2026 with bullish forecasts creating renewed investor interest in silver producers. A recent forecast revision increased the 2026 gold price target to US$4,450 per ounce with a projected trading range of US$3,950-US$4,950, reflecting stabilizing investment flows and sustained official-sector demand. This structural shift in precious metals markets creates particularly favorable conditions for companies with high-grade silver assets and operational leverage.

Americas Gold and Silver Corporation (TSX: USA, NYSE American: USAS) has positioned itself strategically within this environment through recent transformational acquisitions and operational improvements at its Idaho Silver Valley operations. The company now controls neighboring high-grade silver mines in one of North America's most prolific silver districts, providing both immediate production growth and significant exploration upside.

With over 60% of shares held by institutions and insiders, including 20% ownership by largest shareholder Eric Sprott, and coverage from five research firms with price targets ranging from C$6.85 to C$9.60, Americas Gold and Silver has attracted sophisticated investor attention. The combination of operational improvements, strategic acquisitions, and favorable commodity price forecasts creates a compelling investment case for investors seeking exposure to North American silver production.

Company Overview: Building a Concentrated Silver Platform

Americas Gold and Silver operates a focused portfolio of precious metals assets spanning Idaho and Mexico. The company generates over 80% of its revenue from silver as of 2025, providing investors with direct exposure to silver price movements. This represents the second-highest silver revenue concentration among North American peers.

The Idaho operations form the core of the company's strategy, centered on the fully consolidated Galena Complex and the recently acquired Crescent Mine, located approximately nine miles apart in Idaho's historic Silver Valley. These neighboring properties benefit from shared infrastructure, technical expertise, and processing capabilities through the existing 750 tonnes-per-day Galena mill and the 500 tonnes-per-day Coeur mill.

In Mexico, the company operates the Cosalá Operations in Sinaloa, which includes the producing San Rafael mine transitioning to the El Cajón Mine. The Cosalá Operations generated approximately 0.73 million silver-equivalent ounces in the first three quarters of 2025 and provides stable cash flow supporting the Idaho growth initiatives.

The Galena Complex: Top-Tier Grade Drives Economics

The Galena Complex represents one of the highest-grade active silver operations globally, achieving an average head grade of 496 grams per tonne silver year-to-date in 2025. This places Galena as the third-highest grade among active silver mines worldwide and the highest among Americas Gold and Silver's peer group in North America.

High grades translate directly into superior project economics. The Galena operation achieved this production profile while processing ore through its 750 tonnes-per-day mill, with current utilization at approximately 408 tonnes per day. The mine produced approximately 450,000 pounds of antimony and 620,000 pounds of copper as byproducts in the first three quarters of 2025.

The company completed significant operational improvements in 2025 that position Galena for production growth. Phase 1 upgrades to the No. 3 hoisting shaft increased capacity from 1,750 horsepower to 2,250 horsepower, enabling skip loading from deeper levels and boosting skipping speed from approximately 40 tonnes per hour to 80 tonnes per hour. A spare 2,250 horsepower motor was added, significantly de-risking operations by providing backup capacity.

Long Hole Stoping: A Game-Changing Mining Method

Americas Gold and Silver achieved a significant operational milestone in Q2 2025 by successfully mining the first three-foot-wide long hole stope at Galena. This reintroduction of long hole stoping mining methods represents a transformational advancement for the Galena operation, offering substantial advantages over the previous underhand cut-and-fill method.

"The first 3 ft. wide Long Hole Stope was successfully mined in Q2 2025, many years since the last successful blast at Galena. This enables potential rapid scale-up of ore production, leveraging existing infrastructure and the planned paste fill plant."

Long hole stoping delivers approximately 60% lower cost per tonne at similar dilution levels compared to traditional methods. The safety profile improves substantially, with top-drift drilling and off-shift blasts minimizing risk, while an entire 120-foot by 60-foot stope can be mined in under one month using long hole stoping versus approximately one year for the same size stope with the underhand cut-and-fill cycle.

The successful implementation required careful technical review and optimization work. The company deployed over 10 new pieces of mobile equipment, with long hole drills now operational at Galena to improve mining productivity underground. The equipment has been disassembled, lowered down, reassembled, and commissioned, demonstrating the company's ability to execute complex underground logistics.

Antimony: The Hidden Value Driver

While silver drives headline production figures, antimony has emerged as a significant value component at Galena that remains largely unrecognized by the market. The operation produced approximately 450,000 pounds of antimony in the first three quarters of 2025, making Galena the largest active antimony producer in the United States. At current antimony prices of approximately US$50,000 per tonne, this production represents uncaptured revenue of approximately US$500 million.

Breakthrough metallurgical testwork completed in May and September 2025 demonstrated the technical solution to unlock this value. Phase 1 testing on copper concentrate achieved flotation recovery to concentrate of 90-96% from ore grading approximately 1% antimony. Phase 2 testing demonstrated antimony recovery from concentrate of 99%+ from concentrate grading approximately 19% antimony.

The strategic significance extends beyond immediate revenue. Antimony is classified as a critical mineral by the United States government due to its essential applications in defense, electronics, and flame retardants, with limited domestic production sources. By successfully commercializing antimony production, Americas Gold and Silver positions itself to fulfill U.S. critical minerals needs while generating substantial byproduct revenue.

Crescent Mine Acquisition: Immediate Production Growth

The November 2025 acquisition of the Crescent Mine for total consideration of approximately US$65 million represents a highly synergistic regional acquisition that provides immediate silver production growth. Located approximately nine miles from the Galena Complex, Crescent offers potential to add 1.4-1.6 million ounces of annual silver production annually.

The acquisition delivers multiple strategic advantages beyond production growth. Crescent provides near-term ore to fill both the Galena and Coeur mills, maximizing use of available processing capacity. The mine is fully permitted and located on 100% privately owned land, eliminating permitting risks. Existing infrastructure includes mine facilities, corporate offices, shops, warehouses, access roads, and permanent power via a 2,000 kVA substation.

Exploration upside represents significant additional value. Less than 5% of Crescent's landholding has been explored, while only two veins have been targeted for production historically. The property includes over 2,100 feet of potential strike extent to the west that remains open at depth. Americas Gold and Silver plans a US$3.5 million exploration drilling program in 2026 targeting these underexplored areas.

Recent High-Grade Discoveries Expand Resource Base

Americas Gold and Silver announced two significant high-grade vein discoveries at Galena in 2025 that materially expand the known mineralized system and demonstrate the district's ongoing exploration potential. These discoveries occurred in areas adjacent to existing infrastructure, enabling rapid evaluation and potential incorporation into mine plans.

The 034 Vein discovery announced in April 2025 intersected high-grade silver-copper mineralization from drilling at the 5200 Level. Key intercepts reported with true widths include 1,624 g/t silver and 1.23% copper over 0.53 meters, and 983 g/t silver and 0.74% copper over 3.44 meters. Preliminary estimates indicate an overall exploration target of 100,000-120,000 tonnes grading 311-467 g/t silver.

The 149 Vein discovery announced in August 2025 identified a high-grade copper-silver-antimony vein extension from drilling at the 4300 Level. The standout intercept of 24,913 g/t silver and 16.9% copper over 0.21 meters represents exceptionally high grades even by Silver Valley standards. Both discoveries demonstrate visible mineralization in both the hanging wall and footwall, suggesting additional mineralization beyond the reported intercepts.

Management Team: Proven Track Record of Value Creation

Americas Gold and Silver assembled an experienced leadership team with demonstrated success in operational turnarounds and value creation. Paul Andre Huet serves as Chairman and CEO, bringing over 35 years of senior leadership and mining experience. His track record includes serving as Chairman and CEO of Karora Resources, which merged with Westgold Resources in a C$2.1 billion transaction that delivered an 804% return versus GDXJ.

Mike Doolin serves as Chief Operating Officer with over 35 years in mining operations and management. He significantly increased Karora's throughput from 340,000 tonnes per annum to 1.6 million tonnes per annum while serving as Senior Vice President of Technical Services through to its merger. As COO of Klondex until its acquisition by Hecla, he boosted gold production from 8,000 ounces per year to 200,000 ounces per year.

Warren Varga serves as Chief Financial Officer, formerly the CFO of US Silver & Gold, bringing over 25 years of progressive financial leadership and senior management expertise. This combination of operational, financial, and strategic expertise positions the management team to execute the company's growth strategy.

Comparative Valuation & Peer Positioning

Americas Gold and Silver trades at attractive valuation metrics relative to silver producing peers. The company's market capitalization of approximately US$1.1 billion represents a price-to-net asset value ratio of 0.76x compared to the intermediate to senior silver producer peer average of approximately 0.88x. This 14% valuation discount exists despite Galena ranking as the third-highest grade active silver mine globally.

The company's 87% silver revenue concentration as of Q3 2025 provides the second-highest silver exposure among North American peers. This concentrated exposure appeals to investors seeking pure-play silver investment vehicles. Peers with comparable silver concentration trade at higher valuation multiples despite lower average grades.

The operational transformation underway at Galena, combined with the Crescent acquisition, positions Americas Gold and Silver for significant production growth. The company targets scaling Idaho production from current levels toward the potential 1.4-1.6 million ounces annually from Crescent, while simultaneously growing Galena production through long hole stoping, hoist upgrades, and high-grade vein discoveries.

Future Catalysts & Newsflow Expectations

Multiple near-term catalysts could drive investor interest in Americas Gold and Silver through 2026. The completion of Phase 2 hoisting upgrades at Galena, expected to increase skipping capacity from 80 to 100 tonnes per hour, will demonstrate continued operational improvement. Production results showing quarter-over-quarter growth in silver, antimony, and copper output will validate the long hole stoping transition.

The antimony commercialization pathway represents a significant potential catalyst. Completion of Phase 3 commercial recovery testwork, securing of offtake arrangements making antimony payable, and initiation of consistent antimony revenue recognition would materially impact financial results. At current antimony prices and historical production rates, full commercialization could add tens of millions in annual revenue.

The US$3.5 million Crescent exploration drilling program planned for 2026 provides multiple discovery catalysts. Drilling will target the underexplored western extensions with over 2,100 feet of potential strike extent, test depth extensions below current infrastructure, and evaluate other veins beyond the historically mined areas.

The Investment Thesis for High-Grade Silver Producers

• Prioritize producers with 400+ g/t silver grades in favorable jurisdictions, as high-grade deposits deliver superior economics even during moderate price environments
• Evaluate antimony byproduct potential worth US$50,000/tonne as critical mineral designation creates supply security premiums
• Favor companies with institutional ownership above 30% and insider ownership above 10%, signaling informed capital allocation
• Target silver-focused producers generating 70%+ revenue from silver rather than diversified miners for direct price exposure
• Consider valuation discounts below 0.80x P/NAV for operational turnaround stories with proven management teams
• Assess infrastructure leverage where existing mills operate below 60% capacity for production growth with minimal capital

Americas Gold and Silver has assembled a compelling investment proposition through strategic acquisitions, operational improvements, and favorable commodity price forecasts. The company controls high-grade silver assets in tier-one jurisdictions, led by a management team with proven value creation track records. The Galena Complex ranks among the highest-grade active silver mines globally, while the Crescent acquisition provides immediate production growth and significant exploration upside.

The operational transformation at Galena demonstrates tangible progress, with long hole stoping successfully introduced, hoisting capacity doubled, and metallurgical breakthroughs achieving 99%+ antimony recovery. These improvements position the operation for substantial production growth and margin expansion. The antimony opportunity represents significant additional revenue potential as commercialization advances.

For investors seeking exposure to silver price appreciation with operational leverage, Americas Gold and Silver offers an attractive risk-reward profile. The company trades at a valuation discount to peers despite superior grade and growth profile, provides concentrated silver exposure with 80%+ revenue from silver, and maintains strong institutional and insider ownership. The combination of operational improvements, strategic acquisitions, and favorable commodity forecasts creates multiple pathways for value creation through 2026 and beyond.

TL;DR

‍Americas Gold and Silver has transformed its Idaho operations through the Galena consolidation and strategic Crescent Mine acquisition, positioning the company as a top-tier North American silver producer with 80%+ revenue from silver, significant antimony byproduct potential, and a proven management team delivering operational turnarounds.

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