Silver Surge Meets Strategic Opportunity: Americas Gold & Silver

• Americas Gold & Silver (NYSE: USAS) has transformed its balance sheet with $165 million in new financing while achieving 100% ownership of Idaho's Galena Complex, historically one of North America's largest silver producers.
• The company offers approximately 80% revenue exposure to silver, the highest among North American peers, precisely as silver enters rare backwardation with spot prices exceeding futures by $2.88 per ounce.
• Galena represents the only active U.S. mine producing antimony as a byproduct, positioning the company to capitalize on a critical minerals shortage with 90% of global supply controlled by China and Russia.
• Under CEO Paul Huet, who previously delivered 740% and 1,100% shareholder returns at Klondex and Karora respectively, the company targets 800% silver-equivalent production growth through operational improvements.
• Strategic partnerships with Teck Resources and Ocean Partners, combined with Eric Sprott's 20% ownership stake, validate the investment thesis while institutional ownership has surged from 8% to 60%.

Introduction: Convergence of Market Structure & Corporate Transformation

The silver market entered uncharted territory on October 12, 2025, when spot prices rose $2.88 above futures contracts, the deepest backwardation since the Hunt Brothers attempted to corner the market in 1980. This rare condition, where immediate delivery commands a premium over future contracts, typically signals acute physical shortages and often precedes substantial price appreciation. For investors seeking exposure to this potential revaluation, Americas Gold & Silver Corporation offers a compelling combination of operational leverage, strategic positioning, and transformational momentum.

The Vancouver-based miner has completed a remarkable corporate turnaround over the past 18 months, culminating in full ownership of the Galena Complex in Idaho's legendary Coeur d'Alene Mining District. With approximately 80% of projected 2025 revenue derived from silver, the company provides the highest silver exposure among comparable North American producers at a time when industrial demand, monetary concerns, and supply constraints are converging to create potentially historic price tension.

Beyond silver, Americas Gold & Silver has emerged as a critical player in U.S. antimony supply, operating the nation's only active mine producing this strategic mineral as a byproduct. With 90% of global antimony supply concentrated in China and Russia, and no primary U.S. production capacity, the company's position addresses a national security concern while creating an additional revenue stream that could significantly enhance project economics.

Company Overview: From Distress to Strategic Position

Americas Gold & Silver operates a diversified portfolio spanning the United States and Mexico, anchored by three core assets: the Galena Complex in Idaho, Relief Canyon in Nevada, and the Cosalá Operations in Sinaloa, Mexico. The company also holds the San Felipe development project in Sonora, Mexico. However, the corporate narrative centers on Galena, a storied operation that produced over 5 million ounces of silver annually at its peak in 2002 and has delivered more than 20 metric tons of antimony since 2001.

The transformation began in October 2024 when the company acquired the remaining 40% interest in Galena it did not already own, establishing 100% control of an asset with significant untapped potential. Billionaire resource investor Eric Sprott simultaneously increased his position to approximately 20% ownership, while institutional ownership surged from just 8% to 60%, signaling sophisticated capital's confidence in the restructuring thesis. This shareholder realignment accompanied a C$50 million equity financing that stabilized the balance sheet and funded initial operational improvements.

In June 2025, the company secured a transformational US$100 million debt facility alongside a US$15 million equity line, providing the capital necessary to accelerate Galena's revitalization. Critically, this financing package included offtake agreements with Teck Resources and Ocean Partners, validating both the production profile and the marketability of Galena's concentrates. The company now operates from a position of financial strength, with sufficient liquidity to execute its growth strategy while maintaining operational flexibility.

Leadership Team: Proven Track Record of Value Creation

CEO Paul André Huet assumed leadership with a resume that commands attention in mining circles. At Klondex Mines, Huet led a turnaround that culminated in acquisition by Hecla Mining for C$740 million, delivering substantial returns to shareholders. More recently, as CEO of Karora Resources, he orchestrated operational improvements and strategic positioning that resulted in a C$1.1 billion merger with Westgold Resources. These transactions represent not merely successful exits but demonstrated capability in operational optimization, cost discipline, and value realization.

Huet is supported by Chief Operating Officer Mike Doolin, Chief Financial Officer Warren Varga, and Vice President of Sustainability Rob Buchanan, collectively bringing decades of mining experience across development, production, and corporate finance. Importantly, the management team and board maintain significant personal investment in the company, aligning incentives with shareholders in a manner often lacking among junior and mid-tier producers. This insider ownership, combined with Eric Sprott's substantial stake, creates a powerful alignment around value creation.

The team's stated objective is ambitious yet grounded in their previous achievements: 800% silver-equivalent production growth through optimization of Galena and ramp-up of the Cosalá Operations in Mexico. While such targets invite skepticism, the leadership's prior success in similar turnaround situations lends credibility to the plan. Investors should monitor execution against stated milestones, including throughput targets, cost improvements, and resource expansion, as tangible evidence of progress.

Galena Complex: Revitalizing a Historic Silver Producer

The Galena Complex occupies prime real estate in Idaho's Coeur d'Alene Mining District, one of the world's most prolific silver-producing regions. Historical production demonstrates the asset's potential, having delivered peak output exceeding 5 million ounces of silver annually in 2002. However, years of underinvestment and operational challenges relegated Galena to a shadow of its former productivity, setting the stage for the current revitalization effort.

The operational improvement plan centers on several key initiatives. The mine is receiving a major hoist upgrade, expanding capacity to 2,250 horsepower and implementing new skip loading systems that increase efficiency and reduce downtime. Underground, the company is deploying semi-automated equipment and reintroducing long-hole stoping methods that reduce mining costs by approximately 60% compared to previous techniques. Processing capacity targets exceed 1,100 tons per day, with intermediate goals to reach 1,000 tons per day as throughput steadily increases.

Recent exploration results validate the geological potential that management believes remains substantially untapped. Drilling on the 034 Vein intersected 3.4 meters grading 983 grams per ton silver, while the 149 Vein returned an extraordinary 0.21 meters at 24,913 grams per ton silver with 16.9% copper. These high-grade intercepts demonstrate that significant mineralization persists beyond currently defined resources. The company has identified large unmined zones to the east and at depth, suggesting considerable resource expansion potential that could extend mine life and improve project economics.

Antimony: Strategic Value Beyond Silver

Galena's antimony production represents a strategic differentiator that transcends typical byproduct credits. The United States currently produces no primary antimony despite its classification as a critical mineral essential for defense applications, flame retardants, and battery technologies. With China controlling approximately 60% of global supply and Russia contributing another 30%, supply chain vulnerability has become a national security concern attracting government attention and potential policy support.

Americas Gold & Silver has produced over 20 metric tons of antimony since 2001, establishing operational experience and metallurgical knowledge that few North American competitors possess. Metallurgical testing completed in 2025 demonstrated 99% antimony recovery from concentrates grading approximately 19%, confirming commercial viability. Phase 2 testing concluded in September 2025, advancing toward production optimization and potential capacity expansion.

The antimony market has experienced significant price appreciation amid supply concerns and growing industrial demand. While silver remains the primary revenue driver, antimony could contribute meaningfully to project economics, potentially reducing all-in sustaining costs below the peer average of $10.80 per ounce of silver. This dual commodity exposure creates optionality, allowing the company to benefit from strength in either metal while providing downside protection if silver prices moderate.

Silver Market Context: Backwardation & Industrial Demand

The silver market's October 2025 backwardation represents more than statistical anomaly; it signals fundamental tightness that could presage substantial price appreciation. Backwardation occurs when spot prices exceed futures prices, contrary to normal market structure where futures trade at a premium due to storage costs and interest rates. Deep backwardation suggests either acute physical shortage or expectations of imminent supply constraints, conditions historically associated with explosive price moves.

The $2.88 premium of spot over futures exceeds even the approximately $2.50 spread observed during the 1980 Hunt Brothers episode, when silver briefly touched $48 per ounce. While past performance never guarantees future results, the comparison provides context for the current market structure's rarity. Adjusted for inflation, the 1980 peak would represent approximately $200 per ounce in current dollars under certain ratio assumptions, though investors should treat such projections as illustrative rather than predictive.

Industrial demand provides fundamental support beyond speculative dynamics. Solar panel manufacturing consumed approximately 232 million ounces of silver in 2024, with electronics and battery applications adding substantial additional demand. Unlike gold, which serves primarily monetary and jewelry functions, silver's industrial applications create price-insensitive demand that persists regardless of investment flows. This dual nature as monetary hedge and industrial commodity distinguishes silver within the precious metals complex and potentially amplifies supply-demand imbalances.

Current Activities & Operational Progress

The company is executing against clearly defined milestones that provide tangible evidence of progress. At Galena, hoist upgrades continue on schedule, with the new 2,250 horsepower system expected to enable the targeted throughput increases. Underground mining improvements, including semi-automated equipment deployment and long-hole stoping implementation, are reducing costs while improving safety and efficiency. Processing optimization work targets the 1,000 tons per day threshold as an intermediate goal toward eventual capacity exceeding 1,100 tons per day.

Exploration continues to expand the resource base, with drilling focused on high-grade zones like the 034 and 149 Veins while also testing extensions of known mineralization at depth and along strike. The company added approximately 6.95 million ounces of silver resources at Galena between 2019 and 2024, demonstrating consistent resource growth despite limited drilling budgets during the period of financial constraint. With improved capital availability, exploration intensity should increase, potentially accelerating resource expansion and extending mine life beyond current projections.

At Cosalá, the operational focus centers on achieving the 1,800 tons per day production target by year-end 2025. The EC120 Mine's low all-in sustaining costs of approximately $10.80 per ounce provide cash flow that supports both corporate overhead and capital allocation to Galena, creating a virtuous cycle where Mexican operations fund Idaho growth. The seven newly identified exploration targets represent medium-term upside that could extend mine life and potentially increase throughput if warranted by resource growth and metal prices.

The Investment Thesis for Americas Gold & Silver

• At approximately 80% of projected 2025 revenue, Americas Gold & Silver offers the highest silver concentration among North American peers, providing maximum operating leverage to silver price appreciation.
• Trading at 1.0x price-to-net asset value compared to the peer average of 1.22x, the company offers a 20% valuation discount despite comparable asset quality and superior silver exposure.
• As the only active U.S. antimony producer, the company addresses critical mineral supply constraints while generating byproduct revenue that enhances silver project economics and provides exposure to a supply-constrained strategic metal.
• CEO Paul Huet's track record delivering returns of 740% at Klondex and 1,100% at Karora reduces execution risk and increases the probability of value realization through operational improvement and strategic transactions.
• The $165 million in combined equity and debt financing since October 2024 eliminates near-term refinancing risk while providing growth capital to fund throughput expansion, equipment upgrades, and exploration programs.
• Eric Sprott's 20% ownership position, 60% institutional ownership, and strategic offtake partnerships with Teck Resources and Ocean Partners validate the turnaround thesis and provide operational credibility.

Americas Gold & Silver represents a leveraged bet on silver price appreciation at a moment of rare market structure suggesting potential for substantial upside. The company's 80% silver revenue exposure, the highest among North American peers, provides maximum operating leverage to commodity price movements. If silver's current backwardation signals the beginning of a major revaluation, as occurred in 1980 and during other periods of physical market tightness, shareholders could experience dramatic returns that significantly outpace the underlying metal's performance.

The investment thesis extends beyond near-term silver price speculation to encompass operational improvement, resource expansion, and byproduct diversification through antimony production. CEO Paul Huet's proven capability in similar turnaround situations at Klondex and Karora reduces execution risk, though never eliminates it entirely. The antimony optionality addresses U.S. critical minerals vulnerability while potentially enhancing project economics through byproduct credits that could lower all-in sustaining costs and improve margins even in moderate silver price environments.

Strategic partnerships with Teck Resources and Ocean Partners validate the production profile and reduce marketing risk, while Eric Sprott's substantial ownership stake and the surge in institutional holdings from 8% to 60% demonstrate sophisticated capital's conviction. The Global X Silver Miners ETF's 22% position provides index-related demand and improved liquidity. For investors seeking pure-play silver exposure with substantial operational leverage, clear catalysts, and proven leadership, Americas Gold & Silver warrants serious consideration as the convergence of market structure, corporate transformation, and critical minerals positioning creates conditions where significant value creation becomes possible.

TL;DR

Americas Gold & Silver is revitalizing Idaho's historic Galena Complex to become a leading North American silver producer just as the silver market enters rare backwardation, potentially signaling major price appreciation. With 80% silver revenue exposure, the only active U.S. antimony production, proven turnaround leadership, and a fortified balance sheet, the company offers leveraged exposure to both industrial silver demand and critical minerals scarcity. Trading at 1.0x price-to-NAV versus peer average of 1.22x, USAS represents compelling value for investors seeking pure-play silver exposure amid structural market tightness.

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