Americas Silver Scales High-Grade Idaho Production

• Americas Gold and Silver closed the US$65 million Crescent Mine acquisition in December 2025, adding potential production of 1.4 to 1.6 million ounces of silver annually from a fully permitted operation located nine miles from the existing Galena Complex.
• The company produces approximately 450,000 pounds of antimony annually from its Galena Complex, positioning it as the largest active U.S. antimony producer, with new January 2026 offtake agreement converting antimony to payable byproduct at approximately US$50,000 per tonne.
• Recent operational improvements doubled hoisting capacity at Galena's No. 3 Shaft from 40 to 80 tons per hour, while metallurgical testing achieved 99% antimony recovery from copper concentrate, unlocking previously uncaptured byproduct revenue.
• Silver represents more than 80% of company revenue, with Galena Complex achieving average head grades of 496 grams per tonne year-to-date in 2025, providing direct operational leverage to silver prices that reached US$59.165 per ounce on COMEX in December 2025.
• Strong institutional ownership exceeding 60% of shares includes Eric Sprott at approximately 20%, while the company secured US$100 million in long-term debt financing in June 2025 to fund operational improvements and reduced liabilities by over US$35 million.

The global silver market experienced exceptional volatility in late 2025, with prices climbing to fresh all-time highs on multiple exchanges. On December 3, 2025, silver futures for March 2026 delivery reached ₹184,727 per kilogram on India's Multi-Commodity Exchange, while COMEX January 2026 contracts traded at US$59.165 per troy ounce. This price environment creates compelling opportunities for established silver producers with operational scale and near-term production growth potential.

Americas Gold and Silver Corporation operates at the intersection of rising precious metals demand and critical minerals supply constraints. The company's Galena Complex in Idaho's Silver Valley produces high-grade silver alongside antimony and copper byproducts, positioning it uniquely within North America's mining sector. With production facilities in both the United States and Mexico, the company maintains geographic diversification while focusing on jurisdictions with established mining infrastructure.

The November 2025 acquisition of the Crescent Mine represents a strategic expansion within the Coeur d'Alene Mining District. Located approximately nine miles from the company's existing Galena Complex, Crescent offers near-term production potential of 1.4 to 1.6 million ounces of silver annually from a fully permitted operation with existing underground infrastructure. This acquisition materializes as silver supply constraints intensify globally, with reduced inventories in major consuming countries contributing to price pressure.

Company Overview

Americas Gold and Silver Corporation (TSX: USA, NYSE American: USAS) operates two primary mining complexes generating more than 80% of revenue from silver production. The Galena Complex in Idaho includes both the Galena Mine and the recently acquired Crescent Mine, while Cosalá Operations in Sinaloa, Mexico comprises the San Rafael Mine, EC120 Mine, and Los Braceros processing facility. This operational footprint positions the company as a mid-tier precious metals producer with significant antimony byproduct exposure.

The company's leadership team brings extensive experience from successful mining ventures. Chairman and CEO Paul Huet previously led a major gold producer through its C$2.1 billion merger in 2024, having also served as President and CEO of another mining company before its US$740 million sale in 2018. Chief Operating Officer Mike Doolin significantly increased a previous employer's throughput from 340 thousand tonnes per annum to 1.6 million tonnes per annum while serving as Senior Vice President of Technical Services. This management team joined Americas in late 2024 and early 2025, implementing operational improvements that have already demonstrated measurable results.

Production metrics from the first three quarters of 2025 indicate operational momentum at both complexes. Galena produced approximately 450,000 pounds of antimony and 620,000 pounds of copper as byproducts alongside silver production. Cosalá Operations generated 0.73 million ounces of silver year-to-date through Q3 2025, representing year-over-year production growth of 98%. The company currently utilizes approximately 408 tonnes per day of available processing capacity from a total of 1,558 tonnes per day across its mill facilities, representing only 26% capacity utilization.

Key Development: Crescent Mine Acquisition

Americas Gold and Silver announced on November 13, 2025 the acquisition of the Crescent Mine for total consideration of approximately US$65 million, comprising US$20 million in cash and approximately 11.1 million common shares valued at US$45 million. The transaction closed in early December 2025, adding a high-grade silver asset with historical mineral resource estimates totaling 3.8 million ounces of silver in the Measured and Indicated category at 19.1 ounces per tonne, plus 19.1 million ounces in the Inferred category at 19.4 ounces per tonne.

"The Crescent Mine is fully permitted and located on 100% privately owned land, with existing infrastructure including mine, corporate offices, shops, warehouses, access road, core shed, and permanent power. The deal capitalizes on spare milling capacity at Galena and Coeur mills."

The Crescent Mine occupies a strategic land position between two major historic producers in Idaho's Silver Valley. The property includes approximately 12,000 feet of underground drifts, three adits, decline and portal infrastructure, plus on-site facilities including offices, warehouses, and a 2,000 kVA substation. Less than 5% of the landholding has been explored, with only two veins (Alhambra and Southern Vein) having been targeted for production historically. Underground development extends to a shaft depth of 5,800 feet, with significant depth potential remaining open for exploration.

Processing synergies represent a key value driver for the acquisition. Crescent ore will be processed through either the Galena mill, which operates at approximately 750 tonnes per day current capacity, or the Coeur mill at approximately 500 tonnes per day capacity. The predominantly tetrahedrite material from Crescent aligns with Galena's existing ore characteristics, leveraging underground operational capabilities, vendor contracts, equipment sharing arrangements, and geological expertise already deployed across the Idaho operations. The company plans a US$3.5 million exploration drilling program at Crescent in 2026 to target vein extensions with over 2,100 feet of potential strike extent to the west that remains open at depth.

Strategic Significance

The antimony production at Galena positions Americas Gold 7 Silver as the largest active antimony mine in the United States during a period of heightened supply concern. The company produced approximately 450,000 pounds of antimony in the first three quarters of 2025, with an average antimony-to-copper ratio of approximately 0.7 reinforcing the antimony-rich nature of the tetrahedrite ore. Historical production over the past two decades exceeded 20 million pounds of antimony, establishing Galena as the largest U.S. site over that period. At current antimony prices of approximately US$50,000 per tonne, this byproduct stream represents significant revenue potential that previously went uncaptured due to low concentrate quality.

Recent metallurgical testing completed in May and September 2025 demonstrated critical processing improvements. Phase 1 flotation recovery testing achieved 90% to 96% recovery of antimony from ore grading approximately 1% antimony, while antimony recovery from copper concentrate reached 99% in Phase 2 testing completed in September. This breakthrough enables the company to produce a marketable antimony product under a new offtake agreement, with antimony becoming a payable byproduct starting January 2026. The company anticipates this will unlock untapped revenue from current production, with longer-term potential for commercial antimony recovery testwork and evaluation of domestic refining options to capture higher margins.

The silver market rally amplifies the strategic value of Americas' high-grade resource base. Galena Complex achieved an average head grade of 496 grams per tonne year-to-date in 2025, ranking among the highest-grade active silver operations globally. Recent drilling from the 5200 Level at Galena defined a new high-grade silver-copper vein (034 Vein) with key intercepts including 983 grams per tonne silver over 3.44 meters. Another discovery at the 149 Vein identified 24,913 grams per tonne silver and 16.9% copper over 0.21 meters at the 4300 Level, demonstrating continued exploration upside within existing infrastructure.

Current Activities

Operational improvements at Galena demonstrate the impact of the new management team's focus on productivity and cost reduction. Phase 1 upgrades to the No. 3 Shaft, completed in September 2025, doubled hoisting capacity from approximately 40 tons per hour to approximately 80 tons per hour from the deepest loading pockets. The company upgraded the hoist motor from 1,750 horsepower to 2,250 horsepower, added a spare motor of equivalent capacity to de-risk operations, and installed a new load weight measuring system to optimize skip capacity and hoisting efficiencies. These improvements enable increased production from deeper, higher-grade zones while enhancing operational safety through backup capacity.

The successful introduction of long hole stoping at Galena in Q2 2025 represents a fundamental shift in mining methodology. The company blasted its first approximately three- to four-foot wide long hole stope after many years without successful blasting at the operation. This mining method offers approximately 60% cost savings compared to traditional underhand cut-and-fill at similar dilution levels, while minimizing risk through top-drift drilling and off-shift blasting. The entire 120x60 foot stope was mined in under one month using long hole stoping compared to one year for the same size stope with the underhand cut-and-fill cycle. Phase 2 upgrades to the No. 3 Shaft are advancing, with planned improvements to brake systems, hoist pad components, and hoisting console, targeting a skipping rate increase from approximately 80 tons per hour to approximately 100 tons per hour.

Cosalá Operations in Mexico provides cash flow stability while advancing development at the EC120 Mine. The operation transitioned from the San Rafael Mine at full production rate of 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 the company planning to increase annual silver production to approximately 2.5 million ounces over five years at a targeted all-in sustaining cost of US$10 to US$12 per silver ounce. The EC120 Mine contains attractive silver-copper grades of 157 grams per tonne silver and 0.42% copper in a Probable Mineral Reserve of 2.9 million tonnes. Drilling is planned to extend San Rafael and EC120 mine life, with exploration targeting identified in the underexplored Cosalá North property.

Financial Position & Shareholder Base

Americas Gold & Silver secured significant financial resources during 2025 to fund operational improvements and the Crescent acquisition. In June 2025, the company closed a US$100 million long-term debt package alongside a US$11.5 million equity investment. The debt financing provides capital for paste fill plant development, long hole stoping implementation, new equipment deployment, and No. 3 Shaft upgrades at Galena, plus metallurgical antimony testwork. The company has reduced liabilities by over US$35 million to date through this financing structure, strengthening the balance sheet during a period of operational transition.

The shareholder composition reflects strong institutional support and insider alignment. Eric Sprott holds approximately 20% of shares as the largest shareholder, following the October 2024 consolidation transaction that made the company 60% owner and operator of Galena. Institutional investors and insiders collectively control over 60% of shares outstanding. Management and directors own 10% of shares, demonstrating significant insider alignment with shareholder interests. The company has approximately 274 million common shares outstanding, plus 9 million options, 8 million warrants, and 14 million deferred share units and restricted share units, totaling 305 million fully diluted shares outstanding.

Analyst coverage from five firms provides price targets ranging from C$6.85 to C$9.60 per share, with an average target of approximately C$7.90. The company's current valuation stands at 0.76 times price-to-net asset value, compared to an average of approximately 0.88 times for intermediate to senior silver producers. The market capitalization of approximately US$1.1 billion as of November 2025 positions Americas as a mid-cap silver producer with valuation upside relative to comparable companies when adjusted for silver exposure and high-grade resource profile.

Market Context & Commodity Outlook

The December 3, 2025 silver price rally to record highs on India's MCX reflects multiple converging factors supporting precious metals. Silver futures for March 2026 delivery climbed to ₹184,727 per kilogram, representing an increase of approximately ₹3,126 or 1.72% on the session. The May 2026 silver futures contract surged to ₹187,125 per kilogram, while gold futures for February 2025 delivery rose by ₹1,010 to reach ₹130,769 per 10 grams. International markets mirrored this strength, with COMEX January 2026 silver contracts rallying to US$59.165 per troy ounce.

Market participants attribute the silver price surge to several fundamental drivers. Weakness in the domestic Indian rupee against the U.S. dollar amplifies the local currency price of dollar-denominated commodities. Market expectations of a rate cut by the Federal Reserve at its upcoming meeting support precious metals by reducing the opportunity cost of holding non-yielding assets. Speculation around domestic monetary policy decisions by India's central bank adds further uncertainty favoring safe-haven positioning. Reduced silver inventories in major consuming countries create supply constraints that amplify price moves during periods of increased demand.

The convergence of global macroeconomic factors and local currency movements highlights the interconnectedness of commodity markets and financial conditions. Recent market reports indicate strong annual silver price performance reflecting sustained buying interest across both investment and industrial demand categories. The scale and pace of recent price increases signal heightened market interest in silver as both a monetary asset and industrial commodity, potentially increasing capital inflows into silver-related equities as investors seek leveraged exposure to continued price appreciation.

The Investment Thesis for Americas Gold & Silver

• The company generates more than 80% of revenue from silver, providing direct exposure to price appreciation with high-grade resources averaging 496 grams per tonne at Galena in 2025.
• New offtake agreement starting January 2026 unlocks previously uncaptured revenue from 450,000 pounds annual antimony production at approximately US$50,000 per tonne pricing.
• Crescent Mine acquisition adds potential 1.4 to 1.6 million ounces annual silver production using existing mill capacity, with minimal capital requirements for restart.
• Current 408 tonnes per day utilization represents only 26% of total 1,558 tonnes per day available capacity, enabling production scaling without major mill expansion capital.
• Leadership team delivered C$2.1 billion merger and US$740 million asset sale at previous employers, now implementing similar operational improvements at Americas.
• Trading at 0.76 times price-to-net asset value compared to 0.88 times average for silver producers, with superior silver exposure profile and high-grade resource base.

Americas Gold & Silver Corporation has positioned itself to capitalize on exceptional silver market conditions through strategic asset acquisition, operational improvement initiatives, and antimony byproduct monetization. The Crescent Mine transaction adds high-grade silver ounces within trucking distance of existing processing infrastructure, enabling rapid production ramp-up with minimal capital intensity. Operational improvements already implemented at Galena demonstrate management's ability to enhance productivity, with hoisting capacity doubling from 40 to 80 tons per hour and long hole stoping methodology reducing mining costs by approximately 60% compared to previous methods.

The antimony dimension adds a unique element to the investment thesis. As the largest active U.S. antimony producer, Americas benefits from supply constraints in a critical mineral market while the primary silver production remains the dominant revenue driver. The achievement of 99% antimony recovery from concentrate positions the company to capture byproduct revenue that previously went unrealized, with the new January 2026 offtake agreement converting antimony from a non-payable component to a revenue-generating byproduct stream. This operational milestone materially impacts the economics of Galena production without requiring changes to mining or milling operations.

The combination of rising silver prices, high-grade resource base, near-term production growth from Crescent, and antimony byproduct value realization creates multiple paths to value creation. Strong institutional ownership exceeding 60% of shares and Eric Sprott's approximately 20% position provide validation of the opportunity while ensuring alignment between management and shareholders through the 10% insider ownership position. For investors seeking leveraged exposure to silver price appreciation combined with operational improvement upside, Americas Gold and Silver offers a compelling risk-reward profile within the mid-cap precious metals sector.

TL;DR

‍Americas Gold & Silver acquired Idaho's Crescent Mine for US$65M, adding 1.4-1.6 Moz annual silver production potential as silver prices hit record US$59/oz on COMEX. The company produces 450,000 lbs antimony annually as largest U.S. producer, with new January 2026 offtake unlocking byproduct revenue. Management doubled hoisting capacity at Galena and achieved 99% antimony recovery, while maintaining 80% silver revenue exposure with high-grade 496 g/t resources.

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