Americas Gold & Silver Says Cosalá Cash Supports Galena's Upgrades; Fourth Quarter Tests It

• Americas Gold and Silver produced a record 800,458 ounces of silver in the third quarter of 2026, with Cosalá at 415,879 ounces and Galena at 384,579 ounces.
• Management attributes the faster pace of Galena infrastructure work to the cash generation of its Mexican operation.
• Cash was US$63 million at September 30, 2026, with US$113 million of available liquidity, including US$50 million on the existing credit facility.
• Production is 2.3 million ounces for the first 3 quarters, against 2026 guidance of 3.2 million to 3.6 million ounces at all-in sustaining costs of US30toUS35 per ounce.
• The company's guidance assumes no further adverse impacts to Cosalá from blockades or work stoppages, and that the Galena shaft repair and rehabilitation will be completed on schedule and within budget.

Cosalá Produced More Silver Than Galena in the Third Quarter

Americas Gold and Silver (TSX: USA | NYSE American: USAS) reported record consolidated silver production of 800,458 ounces for the third quarter of 2026 and record sales of 860,850 ounces. Cosalá in Sinaloa, Mexico, produced 415,879 ounces, a 23% increase from the second quarter, as mining entered the EC120 orebody. The Galena Complex in Idaho produced 384,579 ounces.

Executive Vice President of Corporate Development Oliver Turner said mining near the surface in Mexico gives a lower cost structure and a very significant margin on those ounces. Cosalá's 2025 all-in sustaining costs (AISC) were US$26.52 per silver ounce produced, versus consolidated 2025 AISC of US$32.95 per ounce, and the company describes Cosalá as a cash-flow-positive operation. Silver realized at US$60.54 per ounce in the third quarter, against 2026 AISC guidance of US$30 to US$35 per ounce for the consolidated company.

Growth Capital Is Tied to Galena Projects

Capital guidance for 2026 totals US$90 million to US$120 million, split between sustaining capital of US$30 million to US$40 million and growth capital of US$60 million to US$80 million. The company assigns the growth budget to Galena objectives: higher throughput, more hoisting capacity, lower costs, and a base for sustained production growth. A separate exploration budget of US$15 million to US$20 million accompanies about 64,000 meters of infill and exploration drilling across Idaho and Mexico, with capitalized infill drilling included in sustaining capital.

Phases 1 and 2 of the No. 3 Shaft hoisting upgrades are complete, and the skipping rate has risen from 40 to 105 tons per hour. The company is targeting 1,350 short tons per day of hoisting and a mill increase from about 750 to 1,200 short tons per day, with new flotation cells due for delivery in the fourth quarter of 2026 and a paste fill plant under construction.

Chairman and Chief Executive Officer of Americas, Paul Andre Huet, tied the pace of that work to Mexico:

"I am very pleased with our progress and the acceleration of our optimization work which has been supported by the strong cash generation of our Mexican operation."

Legacy Obligations Were Settled With Shares in the Second Quarter

Agreements with Sprott Mining Inc. on May 22, 2026 and Royal Gold on May 26, 2026 eliminated a remaining 592,000-ounce silver delivery obligation and a remaining 8,861-ounce gold delivery obligation. The company issued 7.96 million common shares to Sprott Mining and 2.65 million to Royal Gold, and the Royal Gold agreement also included a 5,000-ounce gold cash purchase offset by about US$7 million of in-the-money instruments. Both settlements closed on June 11, 2026, and the company states they removed US$76 million of future obligations and more than US$28 million of annual debt service for about 3.3% dilution.

Unaudited cash was US$63 million as of September 30, 2026, which the company called in line with expectations, and available liquidity was US$113 million, including US$50 million available on the credit facility with SAF. Huet said the cash balance is tracking directly in line with budgeted spend.

Huet said the funding approach is meant to limit further share issuance:

"We generate enough cash flow to support the operations and spend the capital on the growth at the same time. So this is very critical to prevent future dilution."

What the Fourth Quarter Has to Show

Silver production was 786.9 thousand ounces in the first quarter, 664.9 thousand ounces in the second quarter, and 800,458 ounces in the third quarter, and the company reports year-to-date production of 2.3 million ounces against guidance of 3.2 million to 3.6 million ounces. Huet said the second quarter included a planned 1-month shutdown of the Galena shaft. AISC was US$34.12 per ounce in the first quarter and US$40.63 in the second quarter, or US$36.92 for the first half, above the US$30 to US$35 guidance range, and the company is targeting second-half-weighted production with lower associated costs.

Huet has called the batch plant one of the biggest items still ahead. Galena's fourth-quarter silver production and its effect on consolidated AISC are the 2 figures that show whether the upgrades are lifting output and costs.

Risks to the Cash Support From Cosalá

The company's guidance assumes no further adverse impacts to Cosalá from blockades or work stoppages, and that the Galena shaft repair and rehabilitation will be completed on schedule and within budget. The company also states that if it has negative operating cash flows in future periods, it may need to raise additional funds by issuing equity or debt securities.

EC120 has a 7-year mine life ahead of it, according to Turner. Resource conversion drilling at San Rafael Upper and the 120 zones is averaging 2 to 3 times the previously reported Inferred Mineral Resource grades, and management is targeting the upper San Rafael areas connected to EC120 for inclusion in mine plans in the second half of 2027. Inferred Mineral Resources are not Mineral Reserves and carry no demonstrated economic viability.

The Investment Thesis for Americas Gold & Silver

• Americas Gold and Silver produced a record 800,458 ounces of silver in the third quarter of 2026 and sold a record 860,850 ounces, with Galena at 384,579 ounces and Cosalá at 415,879 ounces.
• Cosalá's output rose 23% from the second quarter as mining entered the EC120 orebody, which Turner says has a 7-year mine life.
• Cosalá's 2025 all-in sustaining costs of US$26.52 per ounce sit below the consolidated US$32.95, and Turner says near-surface mining in Mexico gives a lower cost structure and a very significant margin on those ounces.
• Phases 1 and 2 of the No. 3 Shaft hoisting upgrades at Galena are complete, and the skipping rate has risen from 40 to 105 tons per hour, with the company targeting a mill increase from about 750 to 1,200 short tons per day.
• Management says the acceleration of its Galena optimization work has been supported by the strong cash generation of its Mexican operation, and that funding operations and growth capital from operating cash flow is meant to prevent future dilution.
• The settlements that closed on June 11, 2026 removed US$76 million of future obligations and more than US$28 million of annual debt service for about 3.3% dilution, and cash was US$63 million as of September 30, 2026.

Both operations are producing; Cosalá is delivering strong grades and cash flow, and Galena's upgrades are advancing with legacy obligations settled. Management is targeting second-half-weighted production with lower associated costs, so the fourth quarter is the first look at whether Galena's output and costs move toward the 3.2 million to 3.6 million ounce guidance.

TL;DR

Americas Gold and Silver produced a record 800,458 ounces of silver in the third quarter, with Cosalá ahead of Galena, and management says Cosalá's cash is supporting the Galena upgrades. Cash was US$63 million, and liquidity was US$113 million as of September 30, 2026, after second-quarter settlements removed US$76 million of future obligations. Production was 2.3 million ounces for the first 3 quarters versus 3.2 million to 3.6 million ounce guidance, so the fourth quarter must show Galena's output and AISC moving toward guidance.

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