Stream Termination Could Strengthen Americas Gold & Silver's US Antimony Strategy

• Americas Gold & Silver eliminated its remaining 592,000-ounce silver delivery obligation to Sprott Mining through an equity conversion at US$5.57 per share, removing over $45 million in variable debt obligations and freeing cash flow for operational reinvestment. 
• Galena produced 561,000 pounds of antimony in 2025 as the largest active US producer, with a 51/49 joint venture with US Antimony Corporation targeting mid-2027 commissioning to capture downstream processing margins.
• The Galena Complex hosts over 200 million ounces of silver resources at 500 grams per tonne, ranking as the second-highest-grade silver mine globally, with production targeting 5 million ounces annually for the next couple of years.
• Daily tonnage throughput is ramping from 270 tonnes per day at management entry to a current 410 tonnes per day, with a year-end 2026 target of 650 tonnes per day driven by transition to long-hole stoping methods.
• Americas trades at 0.6 times net asset value compared to recent primary silver producer acquisitions at approximately 2 times NAV.

Americas Gold & Silver (TSX: USA, NYSE American: USAS) has eliminated its remaining silver delivery obligation to Sprott Mining Inc. through an equity conversion, removing what the company terms over $45 million in variable future debt obligations from its balance sheet. The May 22, 2026, agreement converts 592,000 ounces of deliverable silver into 7,956,696 common shares issued at a deemed price of US$5.57 per share, subject to Toronto Stock Exchange (TSX) approval and a four-month statutory hold period.

The transaction follows Americas' December 2024 consolidation of 100% ownership of the Galena Complex in Idaho, which positioned Eric Sprott as the company's largest shareholder. Sprott's conversion of stream obligations into additional equity at a price materially above his initial consolidation entry point signals continued institutional confidence in the asset base.

Balance Sheet Impact on Capital Deployment

The stream termination removes ongoing metal delivery requirements that previously diverted production revenue away from operational reinvestment. At current spot silver prices, the agreement represents a reduction in future cash debt service that the company states will be redirected toward operations.

Chairman and Chief Executive Officer of Americas Gold and Silver, Paul Andre Huet, connected the stream elimination to shareholder returns:

“The elimination of the silver stream agreement removes over $45 million in variable future debt obligations. By removing this encumbrance, we enable the strong progress of our operations to drive returns and silver price leverage for our shareholders directly to our bottom line. At current spot prices, this also represents a significant reduction of future cash debt service, allowing us to reinvest in operations for the benefit of our shareholders.”

The company holds US$122 million in cash, with US$50 million drawn from a US$100 million credit facility. Executive Vice President of Corporate Development, Oliver Turner, stated the company is generating strong cash flow at current metal prices and deploying capital into the ground to scale the asset:

"We're generating great cash at these prices and deploying it into the ground to scale this asset up as fast as we can."

US Antimony Production Scale

The Galena Complex produced approximately 561,000 pounds of antimony in 2025, establishing it as the largest active antimony operation in the United States. Antimony occurs within Galena's tetrahedrite mineralisation at an approximately 0.7 to 1 ratio relative to copper, meaning antimony production scales proportionally with silver mining rates without requiring dedicated capital allocation.

The company's renegotiated concentrate sales agreement with Teck Resources, effective January 2026, ensures Americas receives payment for both copper and antimony content in shipped concentrates. This contract modification converted antimony from an unrealised credit into reportable cash flow, with byproduct revenue supporting cost structure reduction across the operation.

Antimony Processing Integration & Critical Minerals Positioning

The stream termination occurs as Americas advances a 51/49 joint venture with US Antimony Corporation to construct an antimony processing facility at the Galena Complex, announced in February 2026. The facility is targeting mid-2027 commissioning with an 18-month construction timeline from announcement. The joint venture positions Galena to leach antimony from silver-copper concentrate on site and produce antimony flake metal product, creating what the company describes as a US mine-to-finished product antimony solution.

Turner outlined the facility's revenue impact:

“We'll be able to leach antimony out of our silver copper concentrate on site, turn that into a flake metal product and get paid more than we're currently being paid for.”

The processing facility removes reliance on third-party concentrate buyers for antimony revenue realisation. US Antimony will operate the facility while Americas maintains operational focus on scaling silver production, with antimony and copper extracted as byproducts from the same ore body.

Silver's addition to the US critical minerals list and stated US government interest in domestic antimony production create strategic alignment for Galena's dual-commodity profile. The company has submitted a white paper to the US government regarding the joint venture. Galena produces antimony, copper, and lead as byproducts from high-grade silver mining, with every additional ton mined for high-grade silver yielding additional high-grade copper and antimony at no incremental cost. The company maintains 75% to 80% revenue exposure to silver, with byproduct credits supporting cost structure reduction. 

Galena Complex Production Framework

The Galena Complex hosts over 200 million ounces of silver resources at 500 grams per tonne, ranking as the second-highest-grade silver mine globally. The operation is targeting 5 million silver ounces annually over the next couple of years, representing 30% growth over 2025 guidance. 

Daily tonnage throughput increased from 270 tonnes per day at management entry to a current 410 tonnes per day, with 650 tonnes per day targeted by year-end 2026 and over 1,000 tonnes per day projected within 2 years. The ramp is driven by a transition from conventional underhand cut-and-fill mining to predominantly long-hole stoping, which management stated has delivered over 300% productivity increases with 12 times faster cycling rates across 10 test panels.

Infrastructure upgrades include a modernised Number 3 shaft hoisting system and a paste backfill plant targeting mid-2027 commissioning to enable faster stope cycling. By year-end 2027, approximately 70% of mining is projected to utilise long-hole stoping methods.

Market Positioning and Valuation

Americas trades at approximately 0.6 times net asset value (NAV) using street consensus estimates, according to management, compared to recent primary silver producer acquisitions at approximately 2 times NAV. Daily trading volume increased from US$400,000 to US$500,000 at management entry to between US$70 million and US$75 million currently.

Eric Sprott framed his stream conversion as an expression of confidence in operational execution:

“I have been very pleased with the outperformance of my investment in Americas Gold & Silver following the consolidation of my ownership of Galena in late 2024. In converting my silver stream into additional Americas equity, I am looking forward to increased exposure to what I believe is one of the most prolific silver mines globally operated by a management team that knows how to mine, scale production, and drive productivity.”

The stream termination share issuance is subject to TSX approval with a four-month statutory hold period under applicable Canadian securities laws.

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