Americas Gold & Silver: Strategic Silver Producer Set to Capitalize on Record Metal Prices

• Americas Gold & Silver Corporation (TSX: USA | NYSE American: USAS) emerges as a compelling investment opportunity as silver reaches record highs amid market uncertainty
• The company operates as the largest U.S. antimony producer while maintaining 80% revenue exposure to silver through its flagship Galena Complex in Idaho's Silver Valley
• Recent strategic moves include the December 2025 acquisition of the Crescent Mine for $65 million, adding potential 1.4-1.6 million ounces of annual silver production
• With $300 million raised in equity and debt financing secured, the company has reduced liabilities by $35 million while implementing operational improvements that doubled hoisting capacity from 40 to 80 tonnes per hour
• Under new leadership led by Chairman and CEO Paul Huet, Americas Silver is positioned to scale high-grade silver production with attractive valuation metrics at 0.66x average broker NAV

As silver surges to record price levels driven by safe-haven demand and persistent supply deficits, Americas Gold & Silver Corporation stands uniquely positioned to benefit from this precious metals rally. The company's strategic focus on high-grade silver production in North America, combined with recent transformational acquisitions and operational enhancements, creates a compelling investment thesis for exposure to the silver market's structural demand drivers.

The timing appears particularly favorable as geopolitical tensions drive investors toward precious metals as portfolio hedges. Silver's dual role as both an industrial metal and store of value positions it to benefit from multiple demand streams, while supply constraints in traditional mining regions create additional price support.

Company Overview

Americas Gold & Silver operates as a North American precious metals producer with a concentrated focus on silver assets across Idaho's historic Silver Valley and Mexico's Sinaloa state. The company's flagship Galena Complex in Idaho represents one of the highest-grade active silver mines in the United States, currently producing approximately 496 grams per tonne silver year-to-date in 2025.

The company's asset portfolio spans multiple jurisdictions to provide geographic diversification while maintaining operational focus. The fully consolidated Galena Complex serves as the primary production hub, complemented by the recently acquired Crescent Mine and the cash-flow positive Cosalá Operations in Mexico. Through these assets, Americas Silver has established itself as the second-highest silver producer globally by revenue percentage, with silver comprising 80% of total revenue as of 2025.

The operational scale extends beyond precious metals into critical materials production. As the largest U.S. antimony producer, Americas Silver generated approximately 450,000 pounds of antimony and 620,000 pounds of copper in the first three quarters of 2025 as byproducts from its silver-focused operations. This diversification provides additional revenue streams while capitalizing on growing demand for strategic materials in domestic supply chains.

Management & Leadership

Under the leadership of Chairman and CEO Paul Huet, who brings over 35 years of senior mining experience including successful transformations at Karora Resources and Klondex Mines, the company has undergone significant operational and financial improvements throughout 2025. The management transition occurred following the October 2024 consolidation transaction, bringing proven expertise in mine optimization and corporate development.

"The massive opportunity at Galena Complex stems from recent tests showing proven modern processes can upgrade the antimony concentrate, create a marketable product, and unlock the value of existing operations."

The executive team includes experienced industry veterans positioned to execute the growth strategy. COO Mike Doolin contributes over 35 years in mining operations and management, having significantly increased throughput at previous positions including Karora Resources. CFO Warren Varga brings over 25 years of progressive financial leadership and senior management expertise, formerly serving as CFO of US Silver & Gold. VP of Sustainability and Communications Rob Buchanan adds over 30 years in investor relations and public affairs, previously serving as IR Director for Karora Resources.

Key Development: Crescent Mine Acquisition

The December 2025 acquisition of the Crescent Mine for $65 million represents a highly synergistic regional expansion within Idaho's Silver Valley. Located approximately nine miles from the Galena Complex, the Crescent Mine offers immediate production potential of 1.4-1.6 million ounces of silver annually, supported by existing infrastructure and full permitting on 100% privately owned land.

The acquisition structure demonstrates management's disciplined approach to capital allocation. The total consideration of approximately $65 million consists of $20 million in cash and approximately 11.1 million common shares valued at $45 million. This 85% equity structure minimizes immediate cash requirements while providing the seller with ongoing participation in the combined entity's success.

The acquisition includes significant underground development representing years of prior investment. Infrastructure encompasses approximately 12,000 feet of drifts, three adits, and comprehensive surface facilities including offices, warehouses, and a 2,000 kVA substation. Historical mineral resource estimates indicate 3.8 million ounces of silver in the Measured and Indicated category and 19.1 million ounces in the Inferred category, with grades averaging 655 grams per tonne silver.

The strategic value extends beyond production additions through operational synergies with the existing Galena Complex. The proximity enables shared underground operational capabilities, vendor contracts, equipment sharing, and integrated general and administrative functions including technical, geological, surveying, and engineering services. Management estimates potential cost savings through equipment sharing and administrative efficiencies while expanding the regional resource base.

Strategic Significance in Silver Markets

Americas Silver's positioning within Idaho's Silver Valley provides unique advantages in North America's premium silver production region. The Galena Complex ranks as the third-highest grade active silver mine globally according to industry data, while the recent Crescent acquisition strengthens the company's resource base with less than 5% of landholding explored and significant exploration growth potential.

The regional concentration strategy capitalizes on established infrastructure and expertise within one of the world's most prolific silver districts. Idaho's Silver Valley has produced over 1.2 billion ounces of silver historically, with ongoing production from multiple operations providing shared services, experienced labor, and established supply chains. This clustering effect reduces operational costs while providing access to specialized mining contractors and equipment suppliers.

The company's dual-asset approach balances high-grade silver production from Idaho operations with steady cash flow generation from the Cosalá Operations in Mexico. The Mexican assets provide geographic diversification and consistent revenue streams, with reported production of 1.1 million ounces silver equivalent in 2023 and 0.8 million ounces in 2024. The transition from San Rafael mine production to the developing EC120 project maintains operational continuity while accessing new ore bodies with expected silver production of approximately 2.5 million ounces over five years.

Operational Excellence & Improvements

Recent operational improvements demonstrate management's focus on productivity enhancement and cost reduction across the asset base. Phase 1 upgrades at the Galena Complex successfully doubled the No. 3 Shaft hoisting capacity from 40 to 80 tonnes per hour, directly increasing mining productivity and reducing per-unit costs. The $8 million investment in hoisting infrastructure improvements generated immediate throughput benefits while establishing foundation for future expansion.

The introduction of long hole stoping mining methods represents a significant technological advancement over traditional techniques. Management reports the first 3-foot wide long hole stope was successfully mined in Q2 2025, marking years since the last successful blast at Galena. The new mining method enables potential rapid scale-up of ore production while leveraging existing infrastructure and the planned paste fill plant. Cost savings of approximately 60% per ton are expected at similar dilution levels compared to underhand cut and fill methods.

Equipment modernization continues across the operation with over 10 new pieces of mobile equipment commissioned and deployed at Galena. The equipment acquisition supports improved mining productivity underground while providing backup capacity to minimize operational disruptions. Long hole drills have been disassembled, lowered underground, reassembled, and commissioned to support the new mining methods.

Financial Strength and Capital Structure

Americas Silver has strengthened its balance sheet substantially throughout 2025, positioning the company for sustained growth and operational flexibility. The company secured over $300 million in combined equity and debt financing to support development activities, while simultaneously reducing total liabilities by $35 million. This dual approach of capital raising and debt reduction provides both growth capital and improved financial stability.

The financing strategy demonstrates management's access to capital markets and investor confidence in the operational turnaround. The October 2024 subscription receipt financing of $50 million provided initial capital for consolidation and early improvements. Additional financing rounds throughout 2025 supported equipment purchases, mine development, and the Crescent acquisition while maintaining reasonable dilution levels.

Operational cash flow generation provides additional financial stability through the commodity cycle. The Cosalá Operations in Mexico continue generating positive cash flow with reported production levels supporting ongoing development activities. Management expects the EC120 project to reach commercial production by Q4 2025, providing additional cash flow generation to support Idaho operations development.

Market Position & Competitive Advantages

Americas Silver's market position reflects both operational scale and strategic asset quality within the global silver production landscape. The company ranks among the highest-grade silver producers globally, with Galena Complex grades of 496 grams per tonne year-to-date significantly exceeding industry averages. This grade advantage translates directly into operational margins and cash flow generation at prevailing silver prices.

The company's revenue concentration in silver provides direct exposure to metal price movements while maintaining diversification through byproduct credits. Antimony production of approximately 450,000 pounds in the first three quarters of 2025 generated significant byproduct revenue, while copper production of approximately 620,000 pounds provided additional cash flow. Recent metallurgical testwork achieving 99% antimony extraction rates from copper concentrate unlocks additional revenue potential from existing operations.

Valuation metrics suggest attractive entry points relative to peer companies and asset quality. Management reports the company trades at 0.66x average broker research NAV, compared to intermediate to senior silver producers averaging approximately 1.14x. The valuation discount may reflect operational improvements still materializing or market recognition lagging behind operational improvements implemented throughout 2025.

The Investment Thesis for Americas Gold & Silver

• Increase silver exposure through Americas Silver as metal prices reach record levels driven by safe-haven demand and industrial consumption
• Target mid-cap silver producers like Americas with proven high-grade assets when silver-to-gold ratios compress below historical averages
• Diversify into North American silver assets as geopolitical tensions increase focus on domestic critical mineral production
• Consider position sizing at 2-3% of precious metals allocation given operational leverage to silver price movements above $30/ounce
• Monitor quarterly production reports for evidence of sustained throughput improvements above 400 tonnes per day at Galena
• Evaluate additional accumulation if management successfully extends mine life through continued exploration success below current resource estimates

Americas Gold & Silver presents a unique opportunity for direct exposure to North America's highest-grade silver production during a period of unprecedented metal price strength. The combination of operational improvements, strategic acquisitions, and experienced management provides multiple catalysts for value creation independent of commodity price appreciation.

The company's attractive valuation at 0.66x average broker research NAV suggests significant upside potential as operational enhancements materialize and silver markets remain constructive. With 70% of shares held by management, institutions, and insiders, the company maintains strong alignment between ownership and operational performance. Analyst coverage includes research from SCP Resource Finance, Cormark, Haywood, Desjardins, and HCW with price targets ranging from $6.85 to $11.00 CAD.

Key catalysts for share price appreciation include continued operational improvements at Galena, successful integration of Crescent Mine production, exploration success expanding resource bases, and sustained silver price strength above $30 per ounce. The company's strategic positioning within Idaho's Silver Valley provides long-term competitive advantages while byproduct revenue from antimony and copper adds cash flow stability.

TL;DR

‍Americas Gold & Silver operates high-grade North American silver assets with recent strategic acquisitions and operational improvements positioning the company to benefit from record silver prices. The combination of experienced management, attractive valuation, and production growth potential creates compelling investment opportunity in the precious metals sector.

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