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Why Americas Gold & Silver Is Positioned to Capture the Coming Precious Metals Surge

Americas Gold & Silver transforms Galena Complex with 80% silver revenue exposure as analysts forecast silver at $65/oz by 2026, positioning for significant upside.

  • Americas Gold & Silver achieved 100% ownership of Idaho's Galena Complex in October 2024, consolidating control of one of North America's premier silver assets with over 5 million ounces produced annually at peak and 60 million ounces in total reserves and resources.
  • With approximately 80% of 2025 revenue derived from silver, the company offers top-tier exposure among North American peers, positioning shareholders to benefit directly from bullish $65/oz silver forecasts for 2026 from major financial institutions.
  • Galena represents the only active U.S. mine producing antimony as a by-product, with over 20 metric tons produced since 2001 and 99% recovery rates, addressing America's strategic mineral supply gap as 90% of global antimony comes from China and Russia.
  • The company secured C$50 million in equity financing in October 2024 and a US$100 million debt facility plus US$15 million equity facility in June 2025, providing substantial capital for operational improvements and growth initiatives.
  • CEO Paul Huet previously led successful exits at Klondex Mines (sold to Hecla for C$740 million) and Karora Resources (merged with Westgold for C$1.1 billion), demonstrating expertise in operational turnarounds and value creation.

Introduction: A Silver Story at the Perfect Moment

As Bank of America became the first major financial institution to raise its 2026 silver forecast to $65 per ounce in October 2025, one North American mining company stands uniquely positioned to capitalize on this bullish outlook. Americas Gold & Silver, trading on the TSX under the symbol USA and on NYSE American as USAS, has executed a dramatic two-year transformation centered on Idaho's historic Galena Complex, achieving 100% ownership in October 2024 and securing approximately 80% revenue exposure to silver among the highest of any publicly traded North American miner.

The timing appears prescient. Analyst forecasts reflect fundamental drivers including fiscal deficits and silver's fifth consecutive year of structural supply deficit according to the Silver Institute, with industrial demand from solar manufacturing reaching 232 million ounces in 2024 alone. Despite these tailwinds, Americas Gold & Silver trades at approximately 1.0 times price-to-net asset value compared to a peer average of 1.22 times, suggesting 22% upside to sector multiples before accounting for operational improvements driven by C$50 million in equity financing and a US$100 million debt facility that fund hoist upgrades, equipment modernization, and cost-reduction initiatives.

The company benefits from proven leadership under CEO Paul Huet, who previously orchestrated successful exits at Klondex Mines (C$740 million sale) and Karora Resources (C$1.1 billion merger), while institutional ownership surged from 8% to 60% including prominent precious metals investor Eric Sprott at approximately 20%. With spot silver recently touching record highs near $51.70 per ounce and operational improvements materializing at Galena, including 447,466 pounds of antimony production in the first three quarters of 2025, the convergence of macro tailwinds and company-specific catalysts creates a compelling investment case as the precious metals sector enters what analysts characterize as a multi-year bull market.

Company Overview: From Diversified Miner to Silver Champion

Americas Gold & Silver operates a portfolio spanning the United States and Mexico, but the Galena Complex in Idaho's historic Coeur d'Alene Mining District represents the cornerstone asset. The company achieved a transformational milestone in October 2024 by increasing ownership from 60% to 100%, eliminating minority interests and consolidating cash flows. This transaction coincided with prominent precious metals investor Eric Sprott increasing his position to approximately 20% ownership, while institutional ownership surged from 8% to 60%.

The company's portfolio includes the Relief Canyon project in Nevada, the Cosalá Operations in Mexico's Sinaloa state, and the San Felipe development project in Sonora. However, the strategic focus centers squarely on Galena and Cosalá, which together are projected to deliver approximately 80% of 2025 revenue from silver among the highest exposure ratios of any publicly traded North American miner. This concentration provides direct leverage to silver price movements, amplifying shareholder returns in a rising price environment.

Galena itself boasts impressive credentials. Since 2000, the complex has produced over 5 million ounces of silver annually at peak production, with historical output exceeding 240 million ounces of silver and 1.7 billion pounds of lead. Current processing capacity exceeds 1,100 tonnes per day, with targets to reach 1,000 tonnes per day of consistent throughput as operational improvements take hold. The geological potential remains substantial, with large unmined zones identified to the east and at depth, supported by recent exploration success including intercepts of 3.4 meters grading 983 grams per tonne silver in the 034 Vein.

The Antimony Wildcard: Strategic Value Beyond Silver

While silver provides the primary investment thesis, Galena's antimony potential represents a significant strategic wildcard that has now transitioned from potential to proven production. The complex stands as the only producing antimony mine in the United States, having delivered 447,466 pounds of antimony alongside 615,817 pounds of copper in the first three quarters of 2025. This marks the first time under new management that the company has reported antimony production, reflecting what CEO Paul Huet describes as "a new era where the antimony and copper from our tetrahedrite ore have the potential to drive significant future revenues."

Quarterly production demonstrates consistency with 130,649 pounds in Q1, 173,393 pounds in Q2, and 143,424 pounds in Q3, maintaining a stable antimony-to-copper ratio of approximately 0.73, slightly above the historical 0.69-to-1 ratio from metallurgical test work. The antimony and copper come from tetrahedrite ore, a silver-copper-antimony ore that contains the sulfosalt mineral tetrahedrite with approximately 1% antimony content along with copper and higher-grade silver compared to standard galena ore. Recent metallurgical breakthroughs achieved 99% antimony extraction from flotation concentrate grading approximately 19% antimony, with potential to realize commercial recovery and marketable antimony products using proven metallurgical processes.

This matters because antimony has emerged as a critical mineral with acute supply chain vulnerabilities. Approximately 90% of global antimony supply originates from China and Russia, while the United States currently has no primary antimony production. Antimony's applications in flame retardants, batteries, and defense materials make it strategically important, creating potential for premium pricing or government off-take agreements as Washington seeks to secure domestic critical mineral supplies. As management focuses on increasing production of high-grade silver tetrahedrite ore, the primary host for antimony and copper at Galena, antimony output is expected to scale alongside silver production growth, potentially restoring historical production levels while simultaneously addressing America's critical minerals gap.

Operational Transformation: From Underperformer to Growth Asset

Under CEO Paul Huet's leadership since late 2023, Americas Gold & Silver has implemented aggressive operational improvements designed to unlock Galena's latent potential. The company invested in hoist shaft upgrades, increasing capacity to 2,250 horsepower, and deployed new skip loading systems to improve material handling efficiency. Perhaps most significantly, management reintroduced long-hole stoping mining methods, which have demonstrated potential to reduce costs by approximately 60% compared to previous approaches while mining stopes as narrow as three feet wide.

Equipment modernization extends beyond the hoist system. The company has acquired semi-automated mining equipment designed to improve productivity and safety while reducing labor intensity. Upgraded power infrastructure and improved ventilation systems address historical bottlenecks that constrained production rates. These capital investments, funded through the October 2024 C$50 million financing and June 2025 US$100 million debt facility, represent the foundation for sustainable production growth rather than short-term fixes.

The operational gameplan extends through multiple phases with antimony production now demonstrating tangible results. Mine optimization initiatives focus on productivity improvements and cost reduction while increasing production of high-grade silver tetrahedrite ore that hosts antimony and copper. Exploration activities target reserve expansion in the identified unmined zones. By-product development, particularly for antimony and copper, has transitioned from testing to active production with 447,466 pounds of antimony delivered year-to-date through Q3 2025, aiming to diversify revenue streams and improve all-in sustaining costs. Together, these initiatives position Galena not merely as a turnaround story but as a growth asset with multi-year expansion potential as silver prices trend higher.

The Cosalá Catalyst: Diversification & Scale

While Galena captures headlines, the company's Cosalá Operations in Mexico provide important diversification and near-term production growth. The EC120 Mine boasts exceptionally low all-in sustaining costs of approximately $10.80 per ounce of silver equivalent, among the lowest in the industry. With 15 million ounces of silver reserves and a production target of 1,800 tonnes per day by the end of 2025, Cosalá represents a stable, high-margin complement to Galena's higher-grade but more complex operations.

Cosalá benefits from existing infrastructure including the San Rafael and Los Braceros processing plants, minimizing capital requirements for expansion. Recent geophysics studies identified seven new exploration targets including La Cobriza and EC120 extensions, suggesting potential for reserve additions that could extend mine life and support sustained production. The combination of low costs, expansion potential, and near-term production ramp creates a valuable hedge against operational challenges at Galena while providing steady cash flow.

The geographic diversification also matters from a risk management perspective. Operating in both the United States and Mexico spreads political and regulatory risk across jurisdictions while leveraging different cost structures. As Cosalá reaches full production by year-end 2025, the combined output from both operations should position Americas Gold & Silver as a meaningful mid-tier silver producer with the scale and cost structure to remain profitable across a range of silver price scenarios.

Leadership & Execution: The Huet Factor

CEO Paul Huet brings a track record that directly addresses investor concerns about execution risk in mining turnarounds. As former head of Karora Resources and Klondex Mines, Huet orchestrated two successful value creation stories: Klondex sold to Hecla Mining for C$740 million, and Karora merged with Westgold Resources for C$1.1 billion. These exits demonstrated his ability to identify undervalued assets, implement operational improvements, and create shareholder value through both organic growth and strategic transactions.

The management team Huet assembled reinforces this operational focus. COO Mike Doolin, CFO Warren Varga, and VP Sustainability Rob Buchanan bring complementary expertise in mine operations, financial management, and environmental stewardship. The board includes veterans from Inco, Edgewater Capital, and Cullco Metals, balancing technical mining knowledge with financial and capital markets experience. Importantly, management and the board maintain significant personal investments in the company, aligning interests with public shareholders.

The target Huet has articulated, 800% silver equivalent growth through Galena and Cosalá optimization, appears ambitious but not unrealistic given the operational leverage available and proven antimony production now delivering results. Speaking about the recent antimony production announcement, Huet emphasized the strategic importance:

"Highlighting Galena as the only producing antimony mine in the United States, I am thrilled to announce both antimony and copper production from our Galena Complex. Year-to-date we have produced 447,466 pounds of antimony and 615,817 pounds of copper. This is the first time under our new management that we are reporting antimony production, reflecting a new era where the antimony and copper from our tetrahedrite ore have the potential to drive significant future revenues."

Galena alone added approximately 6.95 million ounces of silver resources between 2019 and 2024, demonstrating exploration success. As operational improvements materialize, antimony production scales, and silver prices trend toward analyst forecasts of $65 per ounce, the company's current market valuation at 1.0 times net asset value suggests substantial upside potential if management executes on stated objectives.

The Silver Thesis: Supply, Demand, & Structural Deficits

Major financial institutions' bullish silver forecasts rest on fundamental supply-demand dynamics that strongly favor producers like Americas Gold & Silver. Industrial demand, particularly from solar panel manufacturing and electronics, reached record levels with 232 million ounces consumed by the solar sector alone in 2024. Meanwhile, the Silver Institute projects the market's fifth consecutive year of structural deficit, meaning consumption exceeds newly mined supply plus recycling.

The $65 per ounce average price forecast for 2026 from leading analysts represents substantial upside from current levels near $50, even after silver's recent rally to record highs around $51.70. Research analysis points to macro drivers including large fiscal deficits, rising government debt, and efforts to reduce the U.S. current account deficit, factors that support precious metals broadly but particularly silver given its dual role as both industrial commodity and monetary metal.

Near-term volatility remains possible. Analysts caution that market dislocations, including tightness in London silver markets and elevated lease rates following speculative positioning around tariffs, could normalize and create short-term price pressure. However, the structural supply deficit provides a floor beneath prices while expanding industrial applications, particularly in green energy technologies, support long-term demand growth. For a company with 80% revenue exposure to silver, this setup offers asymmetric upside with limited downside given profitable operations even at materially lower silver prices.

Financial Strength: Capital for Growth

The October 2024 C$50 million equity financing marked a turning point, repairing the balance sheet and reducing historical liabilities that had constrained operational flexibility. This capital infusion, supported by Eric Sprott's increased investment, provided immediate liquidity while signaling institutional confidence in the turnaround strategy. The subsequent June 2025 US$100 million debt facility and US$15 million equity facility further strengthened the financial position, providing growth capital without excessive dilution.

Strategic partnerships enhance financial flexibility. Off-take agreements with Teck Resources and Ocean Partners provide revenue visibility and potentially favorable terms for concentrate sales. These relationships, established alongside the debt facility, demonstrate commercial validation of production plans and product quality. Research coverage from Desjardins, Cormark, Haywood Securities, and HC Wainwright provides market visibility and helps build institutional following as operational milestones are achieved.

The company's shareholder base has transformed dramatically, with institutional and insider ownership reaching 60%. Eric Sprott controls approximately 20%, while the SIL ETF holds 22% and other institutions account for 33%. This concentrated, quality shareholder base provides stability and reduces volatility while suggesting sophisticated investors see compelling value at current levels. Share trading volume increased thirteen-fold year-over-year, indicating growing market interest as the transformation story gains traction.

Risk Considerations & Volatility Management

Mining investments carry inherent risks that investors must weigh against potential returns. Operational challenges at Galena, including the complexity of narrow-vein mining and historical variability in grades, could delay production improvements or increase costs beyond current projections. The company's geographic concentration in Idaho and Mexico exposes shareholders to jurisdiction-specific political, regulatory, and labor risks that could impact operations or profitability.

The balance sheet, while improved, still carries substantial debt following the US$100 million facility. If silver prices decline materially from current levels or operational problems emerge, servicing this debt could pressure cash flows and potentially require additional equity raises that would dilute shareholders. The company's transformation remains early-stage, with many operational improvements yet to be validated through sustained production results, though antimony production results through Q3 2025 demonstrate tangible progress.

Market volatility presents both risk and opportunity. Analyst notes about near-term correction potential in precious metals reflect overbought technical conditions and positioning that could unwind. However, for long-term investors with conviction in the structural silver deficit thesis, volatility may provide attractive entry points. Dollar-cost averaging into positions rather than investing lump sums can mitigate timing risk while building exposure to the silver price appreciation story.

The Investment Thesis for Americas Gold & Silver

  • With 80% of 2025 revenue from silver, the company offers direct leverage to analyst price targets of $65/oz, potentially generating 30% upside from current silver prices.
  • Trading at 1.0× price-to-net asset value versus peer average of 1.22×, the stock offers 22% upside to sector multiples before accounting for operational improvements.
  • As the only active U.S. antimony producer with 99% recovery rates, government support or strategic partnerships could unlock substantial value beyond base case silver scenarios.
  • Management's 800% silver equivalent growth target, combined with 60% cost reductions from long-hole stoping, should drive margin expansion as improvements materialize over the next 12-18 months.
  • CEO Paul Huet's track record of C$740 million and C$1.1 billion exits at previous companies provides credibility for value creation through operational excellence or strategic transaction.
  • If silver reaches $65/oz as analysts forecast, allocate 3-5% of precious metals portfolio to Americas Gold & Silver to capture operational leverage unavailable in larger, diversified miners with lower silver exposure percentages.

Americas Gold & Silver represents a focused bet on silver's structural supply deficit and rising prices, amplified by operational improvements under proven leadership. The company's 80% revenue exposure to silver provides direct leverage to analyst forecasts of $65 per ounce for 2026, while antimony by-product potential offers strategic value that could attract government support or premium pricing. With 100% ownership of Galena secured, a fortified balance sheet, and institutional ownership reaching 60%, the fundamental pieces are in place for value creation.

The investment case rests on execution. Management must deliver on operational improvements, cost reductions, and production targets while navigating inherent mining risks and market volatility. However, CEO Paul Huet's track record of successful turnarounds at Klondex and Karora, combined with a quality shareholder base including Eric Sprott's 20% stake, provides confidence in the strategy. For investors seeking exposure to silver's supply-demand imbalance through a company with operational leverage and critical minerals optionality, Americas Gold & Silver offers a compelling risk-reward profile at current valuations, particularly if precious metals continue their ascent toward bullish 2026 targets from leading financial institutions.

TL;DR

Americas Gold & Silver has transformed into a pure-play silver producer with 80% revenue exposure to precious metals, completing a C$50 million refinancing and US$100 million debt facility while achieving 100% ownership of Idaho's Galena Complex. With major analysts forecasting silver at $65/oz by 2026 (up from current levels around $50), the company's operational improvements, antimony by-product potential, and proven management team position it to capitalize on structural supply deficits in both silver and critical minerals markets.

FAQs (AI-Generated)

What percentage of Americas Gold & Silver's revenue comes from silver production? +

Approximately 80% of the company's 2025 revenue is projected to come from silver, providing among the highest silver exposure ratios of North American precious metals producers.

Who is the CEO and what is his track record? +

Paul Huet serves as Chairman and CEO, having previously led Klondex Mines to a C$740 million sale to Hecla and Karora Resources to a C$1.1 billion merger with Westgold.

What makes Galena's antimony production strategically important? +

Galena is the only producing antimony mine in the United States, delivering 447,466 pounds of antimony through Q3 2025 with 99% recovery rates, addressing critical supply chain vulnerabilities as 90% of global antimony comes from China and Russia.

How much capital has the company raised and for what purpose? +

The company secured C$50 million in October 2024 and US$100 million plus US$15 million in facilities during June 2025, allocated to operational improvements, equipment upgrades, and growth initiatives.

What is the company's current valuation relative to peers? +

Americas Gold & Silver trades at approximately 1.0× price-to-net asset value compared to a peer group average of 1.22×, suggesting potential valuation upside as operations improve.

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