Financial Data and Key Metrics Changes - For the full year 2024, revenue increased to $100.2 million, up 5% from $95.2 million in 2023, driven by higher realized metal prices with silver averaging $28.13 per ounce and zinc at $1.26 per pound [26] - Consolidated attributable silver production was 1.7 million ounces, with approximately 3.7 million ounces of silver equivalent, including 31.5 million pounds of zinc and 15.8 million pounds of lead [26] - The company reported a net loss of $48.9 million for 2024, compared to a net loss of $38.2 million in 2023, primarily due to higher cost of sales and increased exploration costs [27] Business Line Data and Key Metrics Changes - The Galena Complex produced about 300 tonnes per day in 2024, significantly below its peak production of 600 tonnes per day in 2002, with a target to ramp up to 1,200 tonnes per day [18][19] - Cosalá operations delivered production of 2.4 million silver equivalent ounces, approximately 900,000 ounces of silver at a cash cost of $11 per ounce and an all-in sustaining cost of $21.48 per ounce [20] Market Data and Key Metrics Changes - The company expects to realize approximately 80% of its revenues from silver as production increases from higher-grade zones at both Galena and Cosalá [23] - The company has institutionalized over 50% of its shareholder register, a significant achievement compared to previous efforts [31] Company Strategy and Development Direction - The company is focused on unlocking the full potential of the Galena Complex through operational improvements and new equipment [10][11] - A substantial debt financial facility is being pursued to strengthen the balance sheet and provide financial flexibility [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the silver market, describing it as a strong bull market with significant growth potential [5][37] - The company is confident in increasing silver production steadily as it progresses with the EC120 project at Cosalá, which has already contributed $3.7 million to revenue in 2024 [28] Other Important Information - The company has ordered five new pieces of equipment to enhance safety and productivity [11] - An internal trade-off study is being conducted to establish the optimal path to ramp up mining operations [12] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session [39]

Core Viewpoint - Americas Gold and Silver (USAS) reported a wider adjusted net loss in 2024 compared to the previous year, primarily due to increased costs despite higher revenues from silver and zinc prices [1][2]. Financial Performance - The adjusted net loss for 2024 was $33.7 million, compared to a loss of $28.4 million in 2023 [1]. - The net loss for 2024 was $48.9 million, up from $38.2 million in 2023, influenced by higher foreign exchange losses and increased tax expenses [2]. - Adjusted loss per share was 13 cents, wider than the Zacks Consensus Estimate of 11 cents [1]. - The company posted a loss per share of 17 cents in 2024, compared to a loss of 16 cents per share in 2023 [3]. Revenue and Production - Revenues were approximately $100 million in 2024, a 5% increase from the prior year, driven by a 20% rise in silver prices and a 7% increase in zinc prices [4]. - The company’s attributable silver production was 1.7 million ounces in 2024, down 15% from 2023, with zinc and lead production also declining [6]. - Silver equivalent production was 3.7 million ounces, 19% higher than the previous year, mainly due to higher prices [6]. Operational Insights - The Galena Complex produced around 1.5 million ounces of silver in 2024, a decrease from 1.6 million ounces in 2023 [7]. - The Cosalá Operations saw a 25% year-over-year decline in silver production to 0.825 million ounces [8]. - The company expects an increase in silver production in 2025 as it progresses with the EC120 Project [10]. Cost Structure - Attributable cash costs were $17.41 per ounce of silver produced in 2024, up from $13.21 per ounce in 2023 [11]. - All-in-sustaining costs rose to $28.13 per ounce of silver produced compared to $20.44 per ounce in the prior year [11]. - Adjusted EBITDA was a loss of $1.5 million in 2024, slightly worse than the loss of $1.4 million in 2023 [12]. Cash Position - The company ended 2024 with cash and cash equivalents of $20 million and a working capital deficit of $28.7 million [13]. - Operating activities consumed $5.9 million in cash during the year [13]. Stock Performance - Shares of USAS surged 150% over the past year, contrasting with a 9.5% decline in the industry [14].

[Financial Statements](index=3&type=section&id=Financial%20Statements) [Management's Responsibility for Financial Reporting](index=1&type=section&id=Management's%20Responsibility%20for%20Financial%20Reporting) Management confirms its responsibility for preparing the consolidated financial statements in accordance with IFRS Accounting Standards and maintaining a system of internal control - Management is responsible for preparing the financial statements in accordance with **IFRS Accounting Standards**[2](index=2&type=chunk) - The Board of Directors, via the audit committee, approves the financial statements and oversees management's reporting responsibilities[3](index=3&type=chunk) [Independent Auditor's Report](index=2&type=section&id=Independent%20Auditor's%20Report) The auditor issued a qualified opinion highlighting substantial doubt about the company's ability to continue as a going concern due to its working capital deficit and net losses - The auditor's opinion is that the financial statements are **fairly presented** in all material respects in conformity with IFRS Accounting Standards[6](index=6&type=chunk) - A key audit matter highlights a material uncertainty that casts **substantial doubt on the Company's ability to continue as a going concern**, citing its working capital deficit and net losses[7](index=7&type=chunk) [Consolidated Statements of Financial Position](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) The company's financial position weakened, with a significant increase in liabilities leading to a working capital deficit of $28.7 million and a reduction in total equity Consolidated Financial Position Summary (in thousands of U.S. dollars) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $40,714 | $23,036 | | **Total Assets** | $192,640 | $180,488 | | **Total Current Liabilities** | $69,410 | $61,207 | | **Total Liabilities** | $139,191 | $108,288 | | **Total Equity** | $53,449 | $72,200 | - Cash and cash equivalents significantly increased to **$20.0 million** in 2024 from $2.1 million in 2023, primarily due to financing activities[13](index=13&type=chunk) - The company shifted from a working capital surplus to a **deficit of $28.7 million** as of December 31, 2024, as current liabilities exceeded current assets[13](index=13&type=chunk) [Consolidated Statements of Loss and Comprehensive Loss](index=4&type=section&id=Consolidated%20Statements%20of%20Loss%20and%20Comprehensive%20Loss) The company's net loss widened to $48.9 million, driven by a significant increase in the loss on the metals contract liability despite a slight rise in revenue Statement of Loss Summary (in thousands of U.S. dollars) | Metric | 2024 | 2023 (Revised) | | :--- | :--- | :--- | | Revenue | $100,188 | $95,160 | | Cost of sales | $(82,740) | $(80,658) | | Loss on metals contract liability | $(10,065) | $(3,396) | | **Net Loss** | **$(48,886)** | **$(38,173)** | | **Loss per share (Basic & Diluted)** | **$(0.17)** | **$(0.16)** | - The loss on the metals contract liability **nearly tripled**, contributing significantly to the increased net loss in 2024[15](index=15&type=chunk) [Consolidated Statements of Changes in Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity decreased by $18.8 million to $53.4 million, as the net loss and acquisition of non-controlling interests outweighed significant capital raised from equity financing - Equity was significantly impacted by the **net loss for the year ($44.9 million attributable to shareholders)**[18](index=18&type=chunk) - The company raised substantial capital through various equity issuances, including a **$33.4 million private placement** of subscription receipts and a **$9.2 million non-brokered private placement**[18](index=18&type=chunk) - The acquisition of the remaining 40% non-controlling interest in the Galena Complex **reduced equity by $19.2 million** attributable to shareholders and eliminated the $18.3 million non-controlling interest balance[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company's cash balance increased by $17.9 million, driven by $35.1 million in net financing activities that covered cash used in operations and investments Cash Flow Summary (in thousands of U.S. dollars) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(3,068) | $(1,013) | | Net cash used in investing activities | $(18,850) | $(18,133) | | Net cash generated from financing activities | $35,121 | $20,324 | | **Increase in cash and cash equivalents** | **$17,941** | **$97** | | **Cash and cash equivalents, end of year** | **$20,002** | **$2,061** | - Major financing inflows in 2024 included a **$33.4 million private placement** of subscription receipts, **$9.2 million** from non-brokered private placements, and **$9.4 million** from a new credit facility[20](index=20&type=chunk) [Notes to the Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) [1. Corporate Information](index=7&type=section&id=1.%20Corporate%20information) Americas Gold and Silver Corporation is a Canadian mining company engaged in exploration, development, and production, with shares listed on the TSX and NYSE American - The company conducts mining exploration, development, and production in the Americas[22](index=22&type=chunk) - Common shares are listed on the TSX under 'USA' and NYSE American under 'USAS'[22](index=22&type=chunk) [2. Basis of Presentation and Going Concern](index=7&type=section&id=2.%20Basis%20of%20presentation%20and%20going%20concern) A material uncertainty exists regarding the company's ability to continue as a going concern due to a significant working capital deficit and insufficient liquidity for the next year - The company reported a **working capital deficit of $28.7 million** and a **net loss of $48.9 million** for the year ended December 31, 2024[25](index=25&type=chunk) - Management states the company **does not have sufficient liquidity** to fund its operations for the next twelve months and will require further financing[25](index=25&type=chunk) - Continuance as a going concern is dependent on achieving profitable operations and obtaining adequate equity or debt financing, creating a **material uncertainty**[26](index=26&type=chunk)[27](index=27&type=chunk) [3. Summary of Material Accounting Policies](index=8&type=section&id=3.%20Summary%20of%20material%20accounting%20policies) This section outlines key accounting policies, including revenue recognition for concentrate sales, depletion of mining interests, and impairment testing for assets - Revenue from concentrate sales is recognized at the time of delivery based on forward prices, with subsequent variations in metal prices treated as embedded derivative adjustments[35](index=35&type=chunk)[36](index=36&type=chunk) - Producing mining interests are depleted using the **unit-of-production method** based on estimated recoverable mineral reserves[60](index=60&type=chunk) - The company reviews property, plant, and equipment for impairment when indicators exist, with the recoverable amount determined as the higher of value in use or fair value less costs to dispose[68](index=68&type=chunk)[69](index=69&type=chunk) [4. Significant Accounting Judgments and Estimates](index=13&type=section&id=4.%20Significant%20accounting%20judgments%20and%20estimates) Management's key judgments and estimates involve mineral reserves, decommissioning provisions, deferred taxes, asset impairment, and the company's overall liquidity - Significant estimates are required for **mineral reserves**, which directly impact depletion and amortization calculations[83](index=83&type=chunk) - Accounting for **decommissioning provisions** requires estimates of the timing and future costs of rehabilitation work[85](index=85&type=chunk) - The ability to achieve positive cash flow from operations and maintain access to capital markets is a significant judgment affecting the company's **liquidity and going concern assessment**[91](index=91&type=chunk)[92](index=92&type=chunk) [6. Acquisition of Non-controlling Interests](index=15&type=section&id=6.%20Acquisition%20of%20non-controlling%20interests) The company acquired the remaining 40% non-controlling interest in the Galena Complex through a transaction involving shares, cash, and a future silver delivery obligation - On December 19, 2024, the company acquired the remaining **40% non-controlling interest** of the Galena Complex[94](index=94&type=chunk) Acquisition Consideration | Consideration Component | Value/Description | | :--- | :--- | | Common Shares Issued | 170,000,000 shares (valued at $64.5M) | | Cash Payment | $10 million | | Silver Delivery Obligation | 18,500 oz/month for 36 months starting Jan 2026 | | Working Capital Assumed | $1.3 million | - The acquisition was accounted for as an **equity transaction**, with $9.0 million in related expenses charged to retained earnings[96](index=96&type=chunk) [9. Property, Plant and Equipment](index=16&type=section&id=9.%20Property,%20plant%20and%20equipment) The carrying value of PP&E decreased to $147.4 million as depreciation and depletion charges of $24.1 million exceeded asset additions PP&E Carrying Value (in thousands of U.S. dollars) | Category | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Mining interests | $92,979 | $94,345 | | Plant and equipment | $38,967 | $42,788 | | **Total Carrying Value** | **$147,399** | **$153,101** | - Depreciation and depletion expense for 2024 was **$24.1 million**, an increase from $20.8 million in 2023[100](index=100&type=chunk) - In 2023, a **$6.0 million impairment charge** was recorded for the Relief Canyon Mine cash-generating unit due to its market capitalization being less than its net assets[101](index=101&type=chunk) [10. Precious Metals Delivery and Purchase Agreement](index=17&type=section&id=10.%20Precious%20metals%20delivery%20and%20purchase%20agreement) The fair value of the metals delivery liability increased to $40.9 million, resulting in a $10.1 million revaluation loss due to changes in commodity prices Metals Contract Liability Continuity (in thousands of U.S. dollars) | Description | 2024 | 2023 | | :--- | :--- | :--- | | Beginning Balance | $36,837 | $30,989 | | Advance increase (net) | $12,512 | $13,989 | | Delivery of metals purchased | $(18,564) | $(9,899) | | Revaluation (Loss) | $10,083 | $3,478 | | **Ending Balance** | **$40,868** | **$36,837** | - The company recognized a **$10.1 million loss** on the metals contract liability in 2024, compared to a $3.4 million loss in 2023[108](index=108&type=chunk) [11. Silver Metals Delivery Agreement](index=18&type=section&id=11.%20Silver%20metals%20delivery%20agreement) A new silver delivery agreement was established as part of the Galena Complex acquisition, creating a financial liability with an initial fair value of $19.8 million - A new silver delivery agreement was established with Mr. Eric Sprott, requiring delivery of **18,500 oz of silver per month for 36 months**, beginning January 2026[114](index=114&type=chunk) - The agreement resulted in the recognition of a financial liability measured at fair value, initially valued at **$19.8 million**[114](index=114&type=chunk) [12. Convertible Debenture](index=18&type=section&id=12.%20Convertible%20debenture) The outstanding convertible debenture of $16.8 million CAD was fully converted into common shares subsequent to the year-end - The outstanding principal of the convertible debenture was **$16.8 million CAD ($11.7 million USD)** at year-end 2024, down from $24.0 million CAD ($18.1 million USD) in 2023[124](index=124&type=chunk) - The debenture was **fully converted** into 32,307,692 common shares on January 31, 2025, subsequent to the reporting period[124](index=124&type=chunk) [14. Credit Facility](index=20&type=section&id=14.%20Credit%20facility) The company secured a new $15 million credit facility to fund the EC120 project, of which $10.0 million was drawn as of year-end - A new secured credit facility of up to **$15 million** was signed with Trafigura on August 14, 2024[127](index=127&type=chunk) - The facility is intended to fund the development of the EC120 silver-copper project and was drawn for **$10.0 million** in August 2024[127](index=127&type=chunk) [19. Share Capital](index=22&type=section&id=19.%20Share%20capital) The company's share capital increased substantially through multiple equity offerings and the issuance of shares for an acquisition, raising the share count to 594.5 million Issued Common Shares | Date | Number of Shares | Value (in thousands of U.S. dollars) | | :--- | :--- | :--- | | Dec 31, 2023 | 218,689,766 | $455,548 | | Dec 31, 2024 | 594,450,243 | $573,532 | - Completed a bought deal private placement of subscription receipts for gross proceeds of **$50 million CAD ($35.1 million USD)**, issuing 125,000,000 common shares[145](index=145&type=chunk) - Issued **170,000,000 common shares** as part of the consideration for the acquisition of the remaining 40% of the Galena Complex[145](index=145&type=chunk) [21. Non-controlling Interests](index=25&type=section&id=21.%20Non-controlling%20interests) The 40% non-controlling interest in the Galena Complex was acquired, resulting in the derecognition of the $18.3 million carrying amount and reducing the balance to zero - On December 19, 2024, the company acquired the remaining **40% non-controlling interest** in the Galena Complex[160](index=160&type=chunk) - The **$18.3 million carrying amount** of the non-controlling interest was derecognized upon completion of the acquisition, resulting in a nil balance at year-end[160](index=160&type=chunk) [22. Revenue](index=26&type=section&id=22.%20Revenue) Net revenue increased to $100.2 million, with silver and zinc sales being the primary contributors, while treatment and selling costs decreased Revenue by Commodity (in thousands of U.S. dollars) | Commodity | 2024 | 2023 (Revised) | | :--- | :--- | :--- | | Silver | $62,378 | $63,106 | | Zinc | $38,864 | $38,746 | | Lead | $18,207 | $25,457 | | Other by-products | $1,402 | $1,240 | | **Gross Revenue** | **$120,851** | **$128,549** | | Treatment and selling costs | $(24,341) | $(33,577) | | **Net Revenue** | **$100,188** | **$95,160** | [27. Financial Risk Management](index=29&type=section&id=27.%20Financial%20risk%20management) The company faces significant liquidity risk, along with market risks from interest rates, foreign currency fluctuations, and commodity price volatility - **Liquidity risk** is a key concern, managed through cash reserves, operational cash flow, and access to debt and equity markets[172](index=172&type=chunk) - The company is exposed to **currency risk** from financial assets and liabilities denominated in Canadian dollars (CAD) and Mexican pesos (MXN)[177](index=177&type=chunk) - **Commodity price risk** exists for concentrate sales that are provisionally priced; a 10% fluctuation in metal prices would affect trade receivables by approximately $0.4 million[180](index=180&type=chunk) [28. Segmented and Geographic Information, and Major Customers](index=32&type=section&id=28.%20Segmented%20and%20geographic%20information,%20and%20major%20customers) The company's revenue is generated by its Cosalá and Galena segments and is highly concentrated, with two major customers accounting for 91% of total revenue Segment Revenue (in thousands of U.S. dollars) | Segment | 2024 Revenue | 2023 Revenue | | :--- | :--- | :--- | | Cosalá Operations | $54,111 | $50,871 | | Galena Complex | $46,077 | $44,173 | | Relief Canyon | $- | $116 | | **Total** | **$100,188** | **$95,160** | - The company relies heavily on **two major customers**, who accounted for **91% of consolidated revenue** in 2024 (45% from Cosalá, 46% from Galena)[195](index=195&type=chunk) [30. Contingencies](index=34&type=section&id=30.%20Contingencies) The company has a contingent liability related to a 2007 tax reassessment in Mexico, with a disputed amount of $5.0 million and an accrued liability of $1.0 million - The company is involved in a tax dispute in Mexico from a 2007 reassessment, with a remaining disputed amount of **$5.0 million** (MXN 102.2 million)[200](index=200&type=chunk) - A liability of **$1.0 million** has been accrued for this contingency as of December 31, 2024, representing the probable obligation[200](index=200&type=chunk)

Group 1 - The investment group focuses on gold and silver mining ideas, indicating a potential breakout in both silver and silver miners after a prolonged trading range since 2013 [1] - The author is recognized as an expert in gold and silver mining stocks, with a significant following on social media and various platforms [2] - The article expresses a beneficial long position in USAS shares, highlighting the author's personal investment stance [3]

Core Insights - Americas Gold and Silver (USAS) has completed the acquisition of the remaining 40% interest in the Galena Complex in Idaho, enhancing its position in the silver market [1][3] - The company has arranged a private placement to raise C$40 million ($28 million), with $10 million allocated for the acquisition and plans to restructure existing debt [2] - Silver prices have increased by 24.6% this year, with global industrial demand projected to rise by 7% in 2024, indicating a continued deficit in the silver market [5] Company Developments - The Galena Complex is situated in Idaho's Silver Valley, known for its rich silver, lead, zinc, and copper production [3] - In the third quarter of 2024, the Galena Complex produced approximately 323,000 ounces of silver, a 7% decrease year-over-year, and 2.6 million pounds of lead, down 15% from the previous year [18] - The completion of the hoist project at the Galena Complex is anticipated to enhance production capabilities in 2025 [11] Financial Performance - Shareholders of Sprott affiliates received around 170 million common shares of USAS and $10 million in cash, along with a commitment for monthly silver deliveries of 18,500 ounces for 36 months starting January 2026 [9] - USAS shares have appreciated by 75.2% over the past year, significantly outperforming the industry, which saw a decline of 21.7% [17]

[Condensed Interim Consolidated Financial Statements](index=1&type=section&id=Condensed%20Interim%20Consolidated%20Financial%20Statements) [Statement of Financial Position](index=1&type=section&id=Condensed%20interim%20consolidated%20statements%20of%20financial%20position) As of September 30, 2024, the company's total assets were $179.4 million, a slight decrease from $180.5 million at year-end 2023, while total liabilities increased significantly to $126.3 million from $108.3 million, primarily driven by a rise in metals contract liability and a new credit facility, resulting in a decrease in total equity from $72.2 million to $53.1 million and a working capital deficit of $36.5 million Financial Position Summary (in thousands of U.S. dollars) | Metric | Sep 30, 2024 | Dec 31, 2023 | Change | | :--- | :--- | :--- | :--- | | **Total Current Assets** | $26,789 | $23,036 | +$3,753 | | **Total Assets** | $179,366 | $180,488 | -$1,122 | | **Total Current Liabilities** | $63,258 | $61,207 | +$2,051 | | **Total Liabilities** | $126,311 | $108,288 | +$18,023 | | **Total Equity** | $53,055 | $72,200 | -$19,145 | - The company had a working capital deficit of **$36.5 million** as of September 30, 2024, with cash and cash equivalents of **$7.2 million**[10](index=10&type=chunk) [Statement of Loss and Comprehensive Loss](index=2&type=section&id=Condensed%20interim%20consolidated%20statements%20of%20loss%20and%20comprehensive%20loss) For the nine months ended September 30, 2024, revenue increased to $72.1 million from $64.6 million year-over-year, but the net loss widened significantly to $36.3 million from $28.1 million in the prior year period, primarily driven by a $10.0 million loss on the metals contract liability and higher interest expenses, resulting in a basic and diluted loss per share of $0.14 compared to $0.12 in 2023 Performance Summary (in thousands of U.S. dollars, except per share data) | Metric | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | **Revenue** | $72,133 | $64,572 | | **Cost of Sales** | $(58,607) | $(56,284) | | **Loss on metals contract liability** | $(10,044) | $534 | | **Net Loss** | $(36,319) | $(28,090) | | **Loss per share (Basic & Diluted)** | $(0.14) | $(0.12) | Q3 Performance Summary (in thousands of U.S. dollars) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | **Revenue** | $21,018 | $18,257 | | **Net Loss** | $(16,159) | $(10,475) | [Statement of Changes in Equity](index=3&type=section&id=Condensed%20interim%20consolidated%20statements%20of%20changes%20in%20equity) Total equity decreased by $19.1 million during the first nine months of 2024, from $72.2 million to $53.1 million, primarily due to a net loss of $36.3 million, partially offset by a $5.0 million equity offering and a $5.6 million retraction of convertible debentures settled in shares Equity Movement for Nine Months Ended Sep 30, 2024 (in thousands of U.S. dollars) | Description | Amount | | :--- | :--- | | **Balance at January 1, 2024** | **$72,200** | | Net loss for the period | $(36,319) | | Equity offering | $5,026 | | Retraction of convertible debenture | $5,550 | | Other comprehensive income & other items | $5,598 | | **Balance at September 30, 2024** | **$53,055** | [Statement of Cash Flows](index=4&type=section&id=Condensed%20interim%20consolidated%20statements%20of%20cash%20flows) For the nine months ended September 30, 2024, the company generated $2.4 million in cash from operating activities, a significant improvement from a $3.6 million use of cash in the same period of 2023, while cash used in investing activities was $13.6 million, primarily for property, plant, and equipment, and financing activities provided $15.5 million in cash, largely from a new $10.0 million credit facility and a $5.0 million equity offering, leading to an overall increase in cash and cash equivalents by $5.2 million to end the period at $7.2 million Cash Flow Summary for Nine-Month Periods (in thousands of U.S. dollars) | Cash Flow Activity | Ended Sep 30, 2024 | Ended Sep 30, 2023 | | :--- | :--- | :--- | | **Net cash from operating activities** | $2,400 | $(3,556) | | **Net cash used in investing activities** | $(13,575) | $(14,996) | | **Net cash from financing activities** | $15,484 | $17,770 | | **Increase (decrease) in cash** | $5,154 | $(1,074) | | **Cash, end of period** | $7,215 | $890 | [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20condensed%20interim%20consolidated%20financial%20statements) [Basis of Presentation and Going Concern](index=5&type=section&id=2.%20Basis%20of%20presentation%20and%20going%20concern) The financial statements are prepared on a going concern basis, but management has identified material uncertainties that cast substantial doubt on this assumption, as the company had a working capital deficit of $36.5 million and does not have sufficient liquidity to fund operations for the next twelve months, with continuance dependent on achieving profitable operations and securing additional financing, including a significant financing agreement completed subsequent to the reporting period in October 2024 - The company reported a working capital deficit of **$36.5 million** and a net loss of **$36.3 million** for the nine-month period ended September 30, 2024[10](index=10&type=chunk) - Material uncertainties exist that cast substantial doubt on the going concern assumption, including the need to achieve cash flow positive production and raise additional funds[12](index=12&type=chunk) - Subsequent to the period end, on October 9, 2024, the company completed a financing agreement raising gross proceeds of **$50 million CAD**, held in escrow, and an additional **$2.9 million CAD** for bridge financing[11](index=11&type=chunk) [Property, Plant and Equipment (PP&E)](index=6&type=section&id=7.%20Property,%20plant%20and%20equipment) The carrying value of property, plant, and equipment decreased to $148.1 million as of September 30, 2024, from $153.1 million at the end of 2023, primarily due to depreciation and depletion charges of $18.6 million, partially offset by asset additions of $14.1 million, with no impairments identified during the period, and the Relief Canyon Mine, which is under care and maintenance, having a carrying value of approximately $24.7 million PP&E Carrying Value (in thousands of U.S. dollars) | Date | Carrying Value | | :--- | :--- | | December 31, 2023 | $153,101 | | September 30, 2024 | $148,094 | - Depreciation and depletion for the nine-month period ended September 30, 2024, amounted to **$18.6 million**[20](index=20&type=chunk) - The carrying amount of assets at the Relief Canyon Mine, which is under care and maintenance, totaled approximately **$24.7 million** as of September 30, 2024[21](index=21&type=chunk) [Liabilities and Financing](index=7&type=section&id=Liabilities%20and%20Financing) The company manages a complex capital structure with various debt and financing instruments, including a metals contract liability that increased to $49.9 million, resulting in a $10.0 million fair value loss, an amended convertible debenture with reduced outstanding principal, and a new $15 million secured credit facility with Trafigura, of which $10.0 million was drawn in August 2024, alongside ongoing obligations under promissory notes and a royalty agreement - The metals contract liability with Sandstorm increased to **$49.9 million**, with a **$10.0 million** fair value loss recorded in the first nine months of 2024 due to changes in forward commodity prices[25](index=25&type=chunk)[30](index=30&type=chunk) - The convertible debenture was amended in August 2024, changing the conversion price to **$0.52 CAD** and increasing the monthly retraction option, with the outstanding principal at **$17.9 million CAD** as of September 30, 2024[38](index=38&type=chunk)[39](index=39&type=chunk) - In August 2024, the company secured a new credit facility of up to **$15 million** with Trafigura to fund development at the EC120 project, drawing an initial **$10.0 million**[43](index=43&type=chunk) [Share Capital](index=10&type=section&id=14.%20Share%20capital) The company actively raised capital through equity instruments in 2024, completing an equity offering of units that raised gross proceeds of $5.8 million in March, and additional non-brokered private placements that raised $0.4 million, resulting in 266.8 million common shares issued and outstanding as of September 30, 2024, alongside 14.9 million stock options and 37.8 million warrants outstanding with various exercise prices and expiry dates - In March 2024, the company completed an equity offering of **26 million** units at **$0.30 CAD** per unit, raising total gross proceeds of **$5.8 million**[49](index=49&type=chunk) - During fiscal 2024, non-brokered private placements raised an additional **$0.4 million** through the issuance of **1.6 million** common shares[50](index=50&type=chunk) Outstanding Options and Warrants as of Sep 30, 2024 | Instrument | Number Outstanding (thousands) | | :--- | :--- | | Stock Options | 14,945 | | Warrants | 37,760 | [Revenue](index=13&type=section&id=17.%20Revenue) For the nine months ended September 30, 2024, total revenue was $72.1 million, up from $64.6 million in the prior-year period, primarily derived from the sale of silver, zinc, and lead, with silver sales accounting for $48.1 million, zinc for $30.3 million, and lead for $14.3 million before treatment and selling costs Revenue by Commodity for Nine Months Ended Sep 30 (in thousands of U.S. dollars) | Commodity | 2024 | 2023 | | :--- | :--- | :--- | | Silver | $48,124 | $44,163 | | Zinc | $30,321 | $30,232 | | Lead | $14,327 | $20,065 | | Other by-products | $1,114 | $981 | | **Gross Revenue** | **$93,886** | **$95,441** | | **Net Revenue** | **$72,133** | **$64,572** | [Financial Risk Management](index=15&type=section&id=21.%20Financial%20risk%20management) The company is exposed to credit, liquidity, and market risks, with significant liquidity risk evidenced by $67.1 million in financial liabilities contractually due within one year, and market risks including interest rate risk on variable-rate debt, currency risk from CAD and MXN denominated assets and liabilities, and commodity price risk on provisionally priced concentrate sales, where a 10% change in commodity prices would impact trade receivables by approximately $0.4 million - The company faces significant liquidity risk, with total contractual undiscounted financial liabilities of **$137.8 million**, of which **$67.1 million** is due in less than one year[75](index=75&type=chunk) - The company is exposed to currency risk from its net liability positions in Canadian dollars (CAD) and Mexican pesos (MXN), where a **+/- 10%** change in the CAD/USD exchange rate would impact net loss by approximately **$1.2 million**[80](index=80&type=chunk) - Commodity price risk exists for provisionally priced concentrate sales, where a **+/- 10%** fluctuation in silver, zinc, lead, and gold prices would affect trade receivables by approximately **$0.4 million**[83](index=83&type=chunk) [Segmented Information and Major Customers](index=19&type=section&id=22.%20Segmented%20and%20geographic%20information,%20and%20major%20customers) The company operates through four segments: Cosalá Operations, Galena Complex, Relief Canyon, and Corporate, with Cosalá Operations generating a net income of $0.2 million on revenue of $37.5 million for the nine months ended September 30, 2024, in contrast to the Galena Complex reporting a net loss of $6.9 million on revenue of $34.6 million, and the Corporate segment incurring a loss of $24.2 million, which includes significant financing costs and fair value adjustments, while two major customers accounted for approximately half of the revenues from both the Cosalá and Galena operations Segment Performance for Nine Months Ended Sep 30, 2024 (in thousands of U.S. dollars) | Segment | Revenue | Net Income (Loss) | | :--- | :--- | :--- | | Cosalá Operations | $37,537 | $237 | | Galena Complex | $34,596 | $(6,894) | | Relief Canyon | $ - | $(5,498) | | Corporate and Other | $ - | $(24,164) | | **Total** | **$72,133** | **$(36,319)** | - For the nine-month period of 2024, two major customers accounted for **50%** of revenues from Cosalá Operations and **48%** of revenues from Galena Complex[97](index=97&type=chunk) [Subsequent Events](index=22&type=section&id=24.%20Subsequent%20events) Subsequent to the reporting period, on October 9, 2024, the company entered into a significant agreement with Mr. Eric Sprott to acquire the remaining 40% non-controlling interest in the Galena Complex, with consideration including 170 million company shares, $10 million in cash, and monthly silver deliveries for 36 months starting around January 2026, and concurrently arranged a financing deal for gross proceeds of $50 million CAD through a private placement of subscription receipts to fund the acquisition and for other purposes - On October 9, 2024, the company agreed to acquire the remaining **40%** non-controlling interest of the Galena Complex from Mr. Eric Sprott[100](index=100&type=chunk) - The acquisition consideration consists of **170 million** common shares, **$10 million** cash, and monthly deliveries of **18,500 ounces** of silver for **36 months** beginning in or around January 2026[100](index=100&type=chunk) - To finance the acquisition, the company completed a bought deal private placement of subscription receipts, raising gross proceeds of **$50 million CAD**, which are currently held in escrow[100](index=100&type=chunk)

Group 1 - Momentum investing contrasts with the traditional strategy of "buy low and sell high," focusing instead on "buying high and selling higher" [1] - Identifying the right entry point for fast-moving stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] - Investing in bargain stocks that have recently shown price momentum may be a safer strategy [2] Group 2 - Americas Gold and Silver Corporation (USAS) has shown significant price momentum, with a four-week price change of 30.9% [3] - USAS has gained 11.1% over the past 12 weeks, indicating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.29, suggesting it moves 29% higher than the market in either direction, reflecting fast-paced momentum [4] Group 3 - USAS has a Momentum Score of B, indicating a favorable time to invest in the stock [5] - The stock has earned a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investor interest [6] - USAS is trading at a Price-to-Sales ratio of 0.90, suggesting it is undervalued at 90 cents for each dollar of sales [6] Group 4 - USAS appears to have significant growth potential and is part of a broader list of stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria [7] - There are over 45 Zacks Premium Screens available to help identify winning stock picks based on various investing styles [8]

Financial Performance - Americas Gold and Silver (USAS) reported a second-quarter 2024 loss per share of 2 cents, which was better than the Zacks Consensus Estimate of a loss of 4 cents, and an improvement from a loss of 3 cents per share in the same quarter of 2023 [1] - Revenues for the quarter were approximately $31.6 million, reflecting a 31% increase year-over-year, driven by higher silver output and increased prices for silver, zinc, and lead [2] - The company's attributable cash costs rose to $12.42 per ounce of silver produced, compared to $10 per ounce in the second quarter of 2023, while all-in-sustaining costs increased to $19.58 per ounce from $16.78 [6] Production Metrics - Attributable silver production was 0.51 million ounces, down 12% from the second quarter of 2023, with zinc production decreasing by 7% to 8.87 million pounds and lead production down 25% to 4.4 million pounds [3] - The Galena Complex achieved silver production of around 5.6 million ounces, marking a 41% year-over-year increase and the highest output since 2013 [4] - The Cosalá Operations saw a significant decline in silver production, down 49% year-over-year to 1.7 million ounces, as the company shifted focus to higher-grade zinc mining [5] Cash Position - The company ended the second quarter with cash and cash equivalents of $3.6 million and a working capital deficit of $38.8 million, generating $2.3 million in cash from operating activities compared to a usage of $5.9 million in the same quarter of 2023 [7] Market Performance - Shares of USAS have decreased by 33.2% over the past year, contrasting with a 1% decline in the industry [8]

EX-99.1 2 usas_ex991.htm INTERIM FINANCIAL STATEMENTS AMERICAS GOLD AND SILVER CORPORATION Condensed Interim Consolidated Financial Statements For the three and six months ended June 30, 2024 and 2023 (In thousands of U.S. dollars, unless otherwise stated, unaudited) Notice of No Auditor Review of Condensed Interim Consolidated Financial Statements Under National Instrument 51-102, Part 4, subsection 4.3(3) (a), if an auditor has not performed a review of the interim financial statements; they must be accom ...

EX-99.1 2 usas_ex991.htm FINANCIAL STATEMENTS EXHIBIT 99.1 For the three months ended March 31, 2024 and 2023 (In thousands of U.S. dollars, unless otherwise stated, unaudited) Notice of No Auditor Review of Condensed Interim Consolidated Financial Statements Under National Instrument 51-102, Part 4, subsection 4.3(3) (a), if an auditor has not performed a review of the interim financial statements; they must be accompanied by a notice indicating that the financial statements have not been reviewed by an au ...