Americas Gold & Silver Posts 71% Revenue Growth as Cosalá Strength & Galena Upgrades Support 2026 Ramp

• Americas Gold & Silver Corporation reported second-quarter revenue of US$46 million, up 71% year over year. 
• Consolidated silver production reached 665,000 ounces, while Cosalá silver production increased 26% year over year to approximately 337,000 ounces. 
• Phase 2 of the Galena No. 3 Shaft modernization increased total hoisting capacity by approximately 150% and skipped payloads by 40%. 
• The company settled approximately US$76 million in variable silver and gold debt obligations, strengthening its balance sheet and increasing its exposure to silver prices. 
• Americas maintained 2026 guidance of 3.2 million to 3.6 million ounces of silver at an all-in sustaining cost (AISC) of US$30 to US$35 per ounce, with production expected to be weighted toward the second half

Revenue Growth Masks a Mixed Production Quarter

Americas Gold & Silver (TSX: USA | NYSE American: USAS) reported consolidated net revenue of US$46 million for the second quarter of 2026, up 71% from US$27 million in the same period of 2025. First-half revenue reached US$114 million, a 126% increase from US$50.5 million in the first half of 2025, primarily driven by higher realized prices.

Consolidated silver production was 665,000 ounces during the quarter. Production was affected by the extended Phase 2 Galena shaft upgrade program and a minor electrical fire in June, which deferred access to a planned higher-grade stope into the third quarter. Minor repairs in the affected area have been completed.  Despite the lower consolidated production, Americas remains on track for its full-year target of 3.2 million to 3.6 million ounces of silver. Production is expected to be weighted toward the second half as operations ramp up in Idaho.

Cosalá Delivers Higher Silver Production

Cosalá was the strongest production contributor during the quarter, delivering approximately 337,000 ounces of silver, a 26% increase from the second quarter of 2025. Americas attributed the improvement to higher silver grades per tonne as the company enters the heart of the EC120 orebody, its flagship operation at Cosalá.

Commercial production at EC120 was declared effective January 1, 2026. Americas said the operation has higher silver grades and recoveries than the San Rafael orebody, based on its mineralogy. Mining has ceased at the San Rafael Main Central orebody, although mining continues in the higher-grade silver Upper Zone orebody.  Cash costs at Cosalá decreased to US$16.91 per ounce of silver sold from US$30.61 per ounce in the second quarter of 2025. The company attributed the reduction primarily to higher copper by-product credits. 

Galena Completes Key Infrastructure Upgrade

The Galena Complex produced approximately 328,000 ounces of silver during the second quarter, compared with approximately 420,000 ounces in the prior-year period. Cash costs increased to US$35.26 per silver ounce sold from US$23.39 per ounce, with the company citing the impact of the extended shaft upgrade, the electrical fire, and lower silver sold. 

The more significant development was the completion of Phase 2 of the Galena No. 3 Shaft modernization program. Hoisting throughput increased from approximately 42 short tonnes per hour to a sustained rate of 85 short tonnes per hour, with peak performance reaching 105 short tonnes per hour, representing a 150% improvement. 

Phase 1 increased the skip payload from 5 to 7 tonnes and added a 2,250 horsepower hoist motor. Phase 2 added a new braking system alongside mechanical, electrical, and control-system improvements. The upgraded shaft is expected to deliver approximately 1,350 tonnes per day of hoisting capacity, roughly 50% above the previous capacity, while the Phase 2 investment totaled approximately US$1.1 million.

Balance Sheet Exposure Shifts Toward Silver

Americas settled approximately US$76 million of variable silver and gold debt obligations during the quarter. The transactions fully settled the company's remaining precious metals delivery obligations, simplifying and strengthening its capital structure while increasing its exposure to future silver prices. 

On May 20, 2026, the company settled its remaining obligation to deliver silver to Eric Sprott in exchange for 7,956,696 common shares. On June 10, 2026, Americas settled its remaining obligation to deliver gold to Royal Gold through delivery of 5,000 ounces of gold and issuance of 2,652,532 common shares.

The settlement also eliminates future mark-to-market adjustments in instrument valuations arising from changes in forward gold and silver prices. Americas ended June with US$88.9 million of cash and cash equivalents and US$48.6 million of working capital.

Costs & Production Remain the Second-Half Test

Consolidated cash costs were US$25.68 per silver ounce sold during the second quarter, while AISC was US$40.63 per ounce. For the first six months, cash costs averaged US$24.48 per ounce, and AISC averaged US$36.92 per ounce. The company said the first half was in line with plan and remains on track to achieve its full-year AISC guidance of US$30 to US$35 per ounce of silver sold. 

The company's 2026 guidance calls for 3.2 million to 3.6 million ounces of silver production, US$30 million to US$40 million of sustaining capital, and US$60 million to US$80 million of growth capital, for a total capital investment of US$90 million to US$120 million. Exploration capital is targeted at US$15 million to US$20 million. 

The key second-half test is whether the infrastructure investment at Galena translates into substantially and sustainably higher production rates, with costs moving toward the full-year target. Continued EC120 performance provides a second operating driver as Americas works toward its 2026 production guidance.

Key Takeaways for Investors

Americas Gold & Silver is entering the second half of 2026 with stronger revenue, improving performance at Cosalá, and a completed Galena shaft modernization program. EC120 is contributing higher silver production, while the Galena upgrades are designed to support higher underground mining rates and future production growth. The remaining test is execution, with first-half AISC of US$36.92 per ounce above the US$30 to US$35 per ounce full-year guidance range and Galena production temporarily constrained by the shaft upgrade and a minor electrical fire. With 2026 guidance maintained at 3.2 million to 3.6 million ounces of silver, the key catalysts are the Galena production ramp, continued EC120 performance, and progress toward the AISC target, while the principal risks remain Galena execution, cost control, and realizing the anticipated benefits of the infrastructure investment. The settlement of the remaining precious metals delivery obligations also gives the Americas greater direct exposure to future silver prices.

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