Americas Gold & Silver: Silver Rally Play

• Strategic transformation through Galena Complex consolidation and Crescent Mine acquisition positions company for projected 1.4-1.6 Moz annual silver production
• World's largest active U.S. antimony producer with 447,466 lbs year-to-date 2025 output, capturing critical minerals demand amid supply shortages
• Operational excellence demonstrated through 100% hoist rate increase, long hole stoping success, and 99%+ antimony recovery rates
• Attractive valuation at 0.66x broker NAV versus silver peers averaging 1.14x, offering significant upside potential
• Strong institutional backing with 70% shares held by management and institutions, including Eric Sprott's 14% stake

Introduction

Silver markets are experiencing unprecedented retail investor interest, with Americas Gold & Silver Corporation reporting record 2025 silver production of 2.65 million ounces, a 52% increase compared to 2024's 1.74 million ounces. This surge in precious metals output aligns with broader market dynamics where U.S. traders are buying silver ETFs faster than technology favorites, according to recent Vanda Research data showing individual investors net purchased $171 million of the iShares Silver Trust (SLV) in a single session.

Against this market context, Americas Gold & Silver Corporation (TSX: USA, NYSE American: USAS) emerges as a compelling investment opportunity. With silver prices reaching $115.93 per ounce as of January 27, 2026, the company has undergone significant transformation in 2024-2025, culminating in strategic acquisitions and operational improvements that position it as a premier North American silver producer.

The company's recent corporate evolution demonstrates management's ability to execute transformational strategies. Under the leadership of Chairman and CEO Paul Huet, who previously delivered successful mergers including Karora's C$2.1B Westgold transaction and Klondex's C$740M Hecla sale, Americas Gold & Silver has secured financing, consolidated operations, and acquired strategic assets to enhance its competitive position in North American silver production.

Company Overview

Americas Gold & Silver operates as a focused precious metals producer with assets strategically located in proven mining jurisdictions. The company's primary operations center on the Galena Complex in Idaho's historic Silver Valley, complemented by the Cosalá Operations in Mexico. This geographic diversification provides operational flexibility while maintaining concentrated exposure to high-grade silver resources.

The Galena Complex represents the cornerstone of the company's operations, featuring both the Galena mill (750 tpd capacity) and the Coeur mill (500 tpd capacity). The recent acquisition of the Crescent Mine, located just 9 miles from Galena, adds significant production potential with an estimated 1.4-1.6 Moz annual silver production capability. This proximity enables immediate operational synergies through shared infrastructure, equipment, and expertise.

The company's Mexican operations at Cosalá delivered record 2025 output of 1.19 million ounces, including a record fourth quarter with 463,000 ounces, supported by higher grades at San Rafael and the ramp-up of the new EC 120 mine. With proven and probable reserves containing 21 Moz silver equivalent across all operations, Americas Gold & Silver maintains a substantial resource base supporting long-term production growth.

Key Developments: Transformational Acquisitions

The company completed two pivotal transactions in 2024-2025 that fundamentally altered its operational profile. The Galena Complex consolidation, finalized in October 2024, unified ownership of this historic silver-producing asset under Americas Gold & Silver's control. The transaction involved Eric Sprott as the largest shareholder with approximately 14% ownership, alongside institutional investors whose holdings increased from 8% to 70%.

In December 2025, Americas Gold & Silver acquired the Crescent Mine for US$65M in cash and shares, representing a strategic addition to its Idaho operations. The acquisition provides immediate access to high-grade silver mineralization, with historical resources of 3.8 Moz silver in measured and indicated categories and 19.1 Moz in inferred resources. The mine's proximity to existing infrastructure enables rapid integration and cost-effective production expansion.

Paul Andre Huet, Chairman and CEO, mentioned:

"We capped off a highly successful and transformative 2025 with a 52% increase in attributable silver production to 2.65 million ounces – achieved in a robust and rising silver price environment that significantly amplifies the revenue and cash flow benefits of our expanded output."

Operational Excellence

Americas Gold & Silver has achieved significant operational improvements, with Q3 2025 consolidated silver production of 765,000 ounces, a 98% increase compared to 386,000 attributable ounces produced in Q3 2024. At the Galena Complex, the company successfully implemented Phase 1 of the No. 3 shaft upgrades, doubling the hoist rate from 40 to 80 tons per hour through upgraded motor capacity from 1,750hp to 2,250hp.

The introduction of long hole stoping at Galena marks a significant technological advancement, with the first 3-foot wide stope successfully mined in Q2 2025. This mining method offers approximately 60% lower costs compared to traditional cut-and-fill operations while enabling rapid scale-up of ore production.

Recent exploration success has identified two high-grade vein discoveries at Galena. The 034 vein returned 3.4m at 983 g/t silver, while the 149 vein intersected 0.21m at 24,913 g/t silver and 16.9% copper, demonstrating continued exploration potential within existing operations.

Strategic Significance: Silver Market Positioning

The company ranks among the top-5 highest-grade active silver mines globally, with Galena Complex achieving 496 g/t average head grade year-to-date. This positions Americas Gold & Silver third globally behind Hecla Mining's Keno Hill (941 g/t) and Buenaventura's Julcani (523 g/t). High-grade operations provide superior economics and cash flow generation compared to lower-grade competitors.

According to the U.S. Geological Survey's 2025 Mineral Commodity Summary, domestic silver mine production increased by 6% in 2024, with Idaho ranking as the second-leading silver-producing state after Alaska. Americas Gold & Silver's Idaho operations benefit from this established mining infrastructure and jurisdictional stability.

Resource expansion opportunities exist across the company's portfolio, with significant exploration potential remaining at both Idaho and Mexican operations. Less than 5% of the Crescent Mine landholding has been explored, while the Galena Complex continues to demonstrate strike extension potential through recent high-grade discoveries.

Current Activities

Americas Gold & Silver ended 2025 with an unaudited cash balance of approximately US$130 million, strengthened by a US$132.25 million bought deal private placement, providing substantial financial resources for growth initiatives. Phase 2 of the Galena No. 3 shaft upgrades is advancing, targeting increased skipping capacity from 80 to over 100 tons per hour.

The company has deployed over 10 new pieces of mobile equipment at Galena, including long hole drills commissioned to improve mining productivity underground. This equipment modernization supports the transition to more efficient mining methods and enhanced operational capabilities.

At Cosalá Operations, the EC 120 mine reached commercial production on January 1, 2026, featuring attractive silver-copper grades of 157 g/t silver and 0.42% copper across a probable mineral reserve of 2.9 million tonnes. This transition utilizes existing infrastructure to minimize capital requirements while maximizing production efficiency.

The Investment Thesis for Americas Gold & Silver

• Consider accumulating shares while silver maintains above $100/oz levels, targeting 2-3% portfolio allocation given current market momentum
• Monitor antimony price developments above $40,000/tonne for byproduct revenue acceleration opportunities as critical minerals demand strengthens
• Evaluate position sizing increase if Crescent Mine integration achieves projected 1.4-1.6 Moz annual production by mid-2026
• Diversify precious metals exposure through mid-cap silver producers as sector rotation continues from technology stocks to commodities
• Consider covered call strategies on positions exceeding 2% allocation to capture volatility premiums during silver price consolidation periods
• Monitor Eric Sprott's ownership changes as indicator of management confidence and strategic direction validation

Americas Gold & Silver represents a compelling investment opportunity within the precious metals sector, offering leveraged exposure to silver price appreciation through high-grade operations and strategic asset consolidation. With silver prices reaching unprecedented levels above $115 per ounce, the company's transformation under experienced management leadership positions it to benefit from sustained precious metals demand.

The confluence of record silver prices, strategic antimony byproduct revenue potential, and attractive valuation metrics creates a favorable investment backdrop. With shares trading at 0.66x broker NAV compared to peer averages of 1.14x, the company offers significant upside potential as operational improvements and acquisition synergies materialize.

Management's execution capability is demonstrated through the successful 52% production increase to 2.65 million ounces in 2025, providing confidence in the company's ability to capitalize on favorable silver market dynamics while building a sustainable platform for long-term growth.

TL;DR

Americas Gold & Silver offers leveraged silver exposure through strategic acquisitions, operational improvements, and antimony byproduct potential, with verified 2025 production of 2.65 million ounces (+52% YoY) trading at attractive 0.66x NAV valuation amid record silver prices above $115/oz.

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