Americas Silver Adds High-Grade Crescent Mine to Idaho Complex

• Americas Gold and Silver completed the US$65M acquisition of the Crescent Silver Mine in December 2025, positioned nine miles from its flagship Galena Complex in Idaho's historic Silver Valley
• The company generates over 80% of revenue from silver as of 2025, ranking second globally among active silver mines by resource grade at 496 g/t year-to-date
• Galena produced approximately 450,000 pounds of antimony and 620,000 pounds of copper in the first three quarters of 2025, with metallurgical testing demonstrating 99%+ antimony recovery from concentrate
• Phase 1 upgrades to the Galena No. 3 Shaft doubled skipping capacity from 40 to 80 tonnes per hour, with successful introduction of long hole stoping mining methods
• Trading at 0.66x price-to-net asset value compared to intermediate silver producers averaging 1.14x, with institutional ownership at 47% and Eric Sprott holding approximately 14%

The silver mining sector faces a structural shift as commodity index rebalancing creates near-term volatility while underlying supply constraints support longer-term fundamentals. Against this backdrop, Americas Gold and Silver Corporation has positioned itself as a pure-play silver producer with strategic exposure to critical minerals, completing its acquisition of the Crescent Silver Mine on announce November 13, 2025 and completed December 12, 2025, for total consideration of approximately US$65M consisting of US$20M cash and 11.1 million common shares valued at US$45M.

The transaction represents a consolidation play in Idaho's Silver Valley, one of North America's most prolific historic mining districts. The Crescent Mine, located approximately nine miles from Americas' fully-owned Galena Complex, contains a historical mineral resource estimate of 3.8 million ounces of silver in the Measured and Indicated category grading 19.1 g/t silver and 655 g/t silver, with an additional 19.1 million ounces in the Inferred category at similar grades.

This analysis examines the strategic rationale for the Crescent acquisition, the company's operational improvements at Galena, its emerging antimony revenue stream, and the investment implications for precious metals portfolios seeking leverage to silver prices with diversified byproduct exposure.

Company Overview

Americas Gold and Silver Corporation (TSX: USA, NYSE American: USAS) operates as a growing mid-tier precious metals producer with assets concentrated in Idaho's Silver Valley and Mexico's Sinaloa state. The company achieved full consolidation of the Galena Complex in October 2024 through a C$50M concurrent bought deal financing, with Eric Sprott emerging as the largest shareholder at approximately 14% of outstanding shares.

The management team brings proven mine-building credentials from previous ventures. Chairman and CEO Paul Andre Huet led Karora Resources through its C$2.1B merger with Westgold Resources in 2024, having previously served as President & CEO of Klondex Mines, which was acquired by Hecla Mining for C$740M in 2018. Chief Operating Officer Mike Doolin 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.

Paul Huet, Chairman and CEO of Americas Gold & Silver stated:

"The Crescent acquisition represents a transformational opportunity to consolidate high-grade silver assets in Idaho's Silver Valley while establishing Americas as the leading U.S. antimony producer at a time of critical supply constraints."

The company's portfolio includes the Galena Complex (which now incorporates the Crescent Mine) in Idaho and the Cosalá Operations in Sinaloa, Mexico. At Cosalá, the company operates the San Rafael Mine at full production rate of approximately 1,800 tonnes per day and is advancing the EC120 Mine toward commercial production expected by year-end 2025.

The Crescent Mine Acquisition

The Crescent Mine represents a highly synergistic regional acquisition that leverages existing infrastructure at the Galena Complex. Located on 100% privately owned land with full permitting and existing infrastructure including mine workings, corporate offices, shops, warehouses, access roads, and permanent power, the asset offers potential to process ore through either the Galena mill (750 tonnes per day current capacity) or the Coeur mill (500 tonnes per day capacity).

The historical mineral resource estimate indicates potential for 1.4-1.6 million ounces of annual silver production. The Crescent deposit contains predominantly tetrahedrite material similar to that at Galena, providing high-grade feed to supplement existing mills. Processing by flotation produces silver-copper-antimony concentrate, with recovery rates of approximately 95% in sulfide zones and approximately 85% in oxide zones.

The transaction was funded through a heavily oversubscribed bought deal financing, with 85%+ participation from new shareholders, demonstrating institutional appetite for the combined asset base. The acquisition unlocks near-term ore to fill Galena and Coeur mills while providing exploration upside, with less than 5% of the landholding explored and only two veins (South and Alhambra) targeted for production to date.

Strategic Significance

The Crescent acquisition advances Americas' strategy of building a dominant position in Idaho's Silver Valley, one of the shallowest high-grade mining districts globally with significant remaining depth potential. Among Silver Valley mines, Galena and Crescent rank among the shallowest with approximately twice the remaining depth potential compared to Galena's current 5,800-foot shaft depth.

This depth advantage translates into lower hoisting costs and extended mine life potential. The Galena Complex has historically produced over 200 million ounces of silver since 2000, with peak production in 2002 of 5.2 million ounces at 729 g/t grade and 592 tonnes per day throughput.

The consolidated Idaho operations position Americas as a significant antimony producer at a time of supply constraints. Antimony was historically recovered and processed at the Sunshine Electrolytic Antimony Plant located just four miles west of Galena until its closure in the early 2000s. With current antimony prices at approximately US$50,000 per tonne, the company identifies significant revenue potential from byproduct production.

Operational Performance at Galena

The company achieved significant operational milestones at Galena in 2025. The first three-foot-wide long hole stope was successfully mined in Q2 2025, representing the first successful blast of this type in years. This reintroduction enables potential rapid scale-up of ore production, leveraging existing infrastructure and a planned paste fill plant.

Phase 1 upgrades to the No. 3 Hoisting Shaft included upgrading the hoist motor from 1,750 horsepower to 2,250 horsepower, adding a spare motor for backup capacity, installing a new load weight measuring system, and increasing skipping speed from approximately 40 tonnes per hour to approximately 80 tonnes per hour from the deepest loading pockets.

Phase 2 planned upgrades include a new hoisting control console with advanced technology, brake and hoist pad upgrades to boost skipping speed from 690 feet per minute up to 1,200-1,400 feet per minute, and new radio communication and semi-automated cages. The expected skipping increase would reach over 100 tonnes per hour, with total spending for all upgrades of approximately US$8M.

New mobile equipment has been deployed, with over 10 new pieces including long hole drills now operational at Galena. Recent exploration success includes the discovery of the 034 Vein, with key intercepts including 1,624 g/t silver and 1.23% copper over 0.53 meters, 1,171 g/t silver and 0.80% copper over 1.46 meters, and 983 g/t silver and 0.74% copper over 3.44 meters.

Antimony Revenue Opportunity

Metallurgical testing conducted in May and September 2025 demonstrated breakthrough results with 90-96% flotation recovery to concentrate from ore grading approximately 1% antimony and 99%+ antimony recovery from concentrate grading approximately 19% antimony. These results reinforce Americas as a key U.S. antimony producer.

The company produced approximately 450,000 pounds of antimony in the first three quarters of 2025 as a byproduct. At current antimony prices of approximately US$50,000 per tonne, this production represents approximately US$5.6M in quarterly revenue potential. Recent tests show proven modern processes can upgrade the antimony concentrate, create a marketable product, and unlock the value of existing operations.

Refining antimony locally in the U.S. could yield higher revenue from antimony byproduct production. The massive opportunity at Galena Complex lies in monetizing antimony production that has historically generated limited revenue due to low concentrate quality, with byproduct antimony becoming payable under a new offtake agreement.

Mexico Operations

At the Cosalá Operations in Sinaloa, Mexico, the company operates a cash-flow positive operation. The portfolio includes 100% ownership, with production transitioning from the San Rafael mine at approximately 1,800 tonnes per day to EC120 at approximately 1,550 tonnes per day.

Full EC120 Mine production is expected by year-end 2025, with plans to increase annual silver production to approximately 2.5 million ounces over five years at targeted all-in sustaining cost of US$10-12 per ounce. The EC120 Mine features silver-copper grades of 157 g/t silver and 0.42% copper in a Probable Mineral Reserve of 2.9 million tonnes containing 14.5 million ounces of silver and 26.5 million pounds of copper.

The operation benefits from resilient low-cost production with expected cash costs of approximately US$9.60 per silver ounce and average all-in sustaining costs of US$10.80 per silver ounce, utilizing existing infrastructure to minimize capital requirements and accelerate commercial production.

Valuation & Peer Comparison

Americas Gold and Silver trades at a significant discount to silver-producing peers based on price-to-net asset value multiples. As of December 16, 2025, the company maintains a market capitalization of US$1.5B with 319 million common shares outstanding and 349 million fully diluted shares outstanding.

The company trades at 0.66x price-to-net asset value compared to silver-producing peers including First Majestic Silver at 2.01x, Hecla Mining at 1.82x, Fresnillo PLC at 1.58x, and Coeur Mining at 1.26x. The intermediate to senior silver producer peer group trades at an average of approximately 1.14x.

Analyst coverage includes SCP Resource Finance with a C$11.00 target price, Cormark with a C$9.50 target, Haywood with a C$9.00 target, Desjardins with a C$7.50 target, and HCW with a C$6.85 target. The company benefits from a supportive shareholder base with 70% of shares held by management, institutions, and insiders.

The Investment Thesis for Americas Gold and Silver

• January rebalancing flows creating potential 9% pressure on silver futures open interest may present tactical buying opportunity if shares decline in sympathy with metal
• Company's 450,000-pound quarterly production rate at current US$50,000/tonne pricing contributes approximately US$5.6M quarterly revenue not captured in historical models
• Skipping capacity increase to 100+ tonnes per hour in 2026 would support production ramp toward 1,100+ tonnes per day from current approximately 408 tonnes per day
• Closure of 34% discount to peer group average 1.14x multiple on US$1.5B market cap implies approximately US$510M potential appreciation
• Historical 3.8 Moz M&I and 19.1 Moz Inferred at 655 g/t converting to current reserves could support 8-12 year mine life at 1.5 Moz/year
• 99%+ antimony recovery and emerging copper credits provide silver price hedge if antimony, copper remain elevated

Americas Gold and Silver has assembled a strategic portfolio concentrated in Idaho's Silver Valley and Mexico's Cosalá district, positioning shareholders for leverage to silver prices with diversified exposure to critical minerals including antimony and copper. The US$65M Crescent acquisition adds approximately 1.5 million ounces of annual silver production while leveraging existing infrastructure at the adjacent Galena Complex.

Operational improvements at Galena demonstrate execution capability, with Phase 1 hoist upgrades doubling skipping capacity and successful reintroduction of long hole stoping. Recent high-grade discoveries including 983 g/t silver over 3.44 meters and 24,913 g/t silver with 16.9% copper validate exploration potential across the consolidated land package with less than 5% of Crescent explored to date.

For investors seeking silver exposure with operational torque and critical minerals optionality, Americas Gold and Silver presents a consolidation story in one of North America's highest-grade historic mining districts, trading at a discount to peers while advancing multiple production growth initiatives across its Idaho and Mexico portfolios.

TL;DR

Americas Gold and Silver completed its US$65M Crescent Mine acquisition in November 2025, consolidating Idaho Silver Valley assets with potential to add 1.4-1.6 Moz annual silver production. The company generates 80%+ revenue from silver while emerging as the largest U.S. antimony producer with 450,000 pounds quarterly output. Recent high-grade discoveries, operational improvements, and institutional backing support growth trajectory. Trading at 0.66x P/NAV versus peer average 1.14x creates potential rerating opportunity.

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