Q1 2025 Americas Gold and Silver Corp Earnings Call

Good morning, and welcome to the Americas Gold and Silver first quarter 2025 conference call.

Unknown Attendee: Good morning and welcome to the Americas Gold and Silver first quarter 2025 conference call. This call will be recorded and will be available for viewing from the events page of our website later today.

This call will be recorded and will be available for viewing from the events page of our website later today.

Paul Hewitt: Now without further Ado I'll pass the call over to our chairman and CEO Paul Hewitt. So he can get started thank you action.

Paul Huet: Now without further ado, I'll pass the call over to our Chairman and CEO, Paul Huet, so he can get started. Thank you, Maxim. I'd like to welcome you to the first. quarter conference call. Please note, we will be referencing a slide deck which is being shared through the webcast of this call.

Okay.

Paul Hewitt: I would like to welcome you to the first.

Speaker Change: <unk> conference call.

Speaker Change: Please note, we will be referencing a slide deck, which is being shared through the webcast of this call before I begin the presentation I'd like to remind you to please review our cautionary statements.

Paul Huet: Before I begin the presentation, I'd like to remind you to please review our cautionary statements regarding forward-looking statements and non-IFRS measures. These statements can be found in our first quarter MD&A, our news release, and within our presentation.

Speaker Change: Regarding forward looking statements and.

Speaker Change: And non <unk> measures.

Speaker Change: These statements can be found in our first quarter MD&A, our news release and within our presentation.

Speaker Change: With me on today's call is worn barga, our chief Financial Officer, who will take us through the financial highlights for the quarter.

Paul Huet: With me on today's call is Warren Varga, our Chief Financial Officer, who will take us through the financial highlights for the quarter.

Speaker Change: Also with me on the call is Oliver Turner was heading up our corporate development and you will hear from Oliver as well.

Paul Huet: Also with me on the call is Oliver Turner, who is heading up our corporate development, and you will hear from Oliver as well.

Speaker Change: I'll start out by highlighting some key elements of our growth strategy before turning the call over to Juan.

Paul Huet: I'll start out by highlighting some key elements of our growth strategy before turning the call over to Warren. Let me start by sharing our optimism about where we are heading as a company and how we intend on getting In the last several months, the entire Americas team have been working diligently to methodically build the foundation for multi-year production and growth. As an organization, we are aligned in our efforts with a renewed focus on safely maximizing production from our existing asset base. Across our operation, we have been investing in our people and infrastructure, including the purchase of new mining equipment to modernize and grow our underground fleet, and obviously with the intent to become more productive.

Speaker Change: Let me start by sharing our optimism about where we are heading as a company and how we intend on getting there.

Speaker Change: In the last several months the entire Americas team have been working diligently to methodically build the foundation.

Speaker Change: For multi year production and growth.

Speaker Change: As an organization we are aligned in our efforts with the renewed focus on safely maximizing production from our existing asset base.

Speaker Change: Across our operation, we have been investing in our people and infrastructure, including the purchase of new mining equipment to modernize and grow our underground fleet and obviously with the intent to become more productive.

Speaker Change: We have also been actively drilling to bring on new high grade production areas and conducting exploration activities in under explored zone near existing mining infrastructure with some very encouraging.

Paul Huet: We have also been actively drilling to bring on new high-grade production areas and conducting exploration activities in underexplored zones near existing mining infrastructure with some very encouraging early results, hence that 34 vein that we hit at Galena that was quite exciting.

Speaker Change: Early results, hence that 34 veins that we hit it.

Speaker Change: Galena that was quite excited we've been very busy at the corporate level as well.

Paul Huet: We've been very busy at the corporate level as well. In late 2024, we strengthened our balance sheet in conjunction with the Galena consolidation transaction via the $50 million bought deal finance. which allowed us to both invest in our operations and significantly reduce our liabilities.

Speaker Change: In late 2024, we strengthened our balance sheet in conjunction with the Galena consolidation transaction.

Speaker Change: The $50 million bought deal financing.

Speaker Change: Which allowed us to both invest in our operations and significantly reduce our liabilities there is more to come.

Paul Huet: There is more to come. We are in the late stages of negotiating a right-sized debt facility to support the acceleration of our growth initiatives in 2025 and 2026. ensuring we have the financial flexibility required to execute our ambitious plan.

Speaker Change: We are in the late stages of negotiating a right sized debt facility to support the acceleration of our growth initiatives in 'twenty five 'twenty six.

Speaker Change: Ensuring we have the financial flexibility required to execute our ambitious plans.

Speaker Change: Switching to production on a consolidated basis, we produced 446000 silver ounces.

Paul Huet: Switching to production on a consolidated basis, we produced 446,000 silver ounces. That's about 80,000 ounce increase compared to the last quarter. We expect to continue to see incremental silver production increases over the course of the year and beyond as we begin to fully implement our growth plan.

Speaker Change: It's about 80000 ounce increase compared to the last quarter.

Speaker Change: We expect this to continue to see incremental silver production increases over the course of the year and beyond as we begin to fully implement our growth plan.

Speaker Change: Now I'll briefly focus on our progress and the path forward.

Paul Huet: Now I'll briefly focus on our progress and the path forward at the Galena Complex. Building a culture that always prioritizes safety in everything we do is of the utmost importance to the Americas team. I'm proud of our team at Galena for taking this message to heart and demonstrating a strong trend of improving safety performance.

Speaker Change: At the Galena complex building, a culture that always prioritizes safety in everything we do is utmost important to the Americas team.

Speaker Change: I am proud of our team at Galena for taking this message to heart and demonstrating a strong trend of improving safety performance.

Speaker Change: I'd like to also congratulate the Galena team for a strong showing at the 2025 enforcement mine rescue competition, which took place in March.

Paul Huet: I'd like to also congratulate the Galena team for a strong showing at the 2025 Enforcement Mine Rescue Competition, which took place in March. The Galena team's results included a first-place finish and two second-place finishes within various aspects of the competition. Well done to our entire team.

The Galena team's results included a first place finish and to second place finishes within various aspects of the competition.

Speaker Change: Well done to our entire team operating results to cleanup, we're in line with our expectations for the first quarter with production.

Paul Huet: Operating results at Galena were in line with our expectations for the first quarter with production of 314,000 silver ounces. Our Galena team is focused on mine development activities that are critical to our growth. And to that end, we've been making significant progress on important infrastructure projects that support the advance of the 55-179 decline. These projects will support our new and larger 20-ton haul trucks and the installation of the required ventilation upgrades. The 55-179 decline will provide access to higher grade silver lead and silver copper veins in the central and lower country lead zones of the mine.

Speaker Change: 314000 silver ounces.

Speaker Change: Our Galena team is focused on mine development activities that are critical to our growth.

Speaker Change: And to that end, we've been making significant progress on important infrastructure projects that support the advance of the 55 179 client.

Speaker Change: These projects will support our new and bigger 20 ton haul truck and the installation of their required ventilation upgrades.

<unk> 55, $1 79 decline will provide access to higher grade silver lead and silver copper veins in the central and lower <unk>.

Speaker Change: <unk> zones of the mine.

Speaker Change: We believe the complex host multiple high priority drill targets near existing infrastructure.

Paul Huet: The Galena Complex hosts multiple high priority drill targets near existing infrastructure and vein systems that remain open for drill testing. Our recent discovery of the high-grade silver copper 34 vein that I just talked about earlier is an excellent example of near-term mining opportunity. The 34 vein has returned several high-grade intercepts including 983 gram per tonne silver at over 3.44 metres. Based on 40 holes drilled to date, we've estimated an initial exploration target in that range of 1.2 to 1.5 million silver ounces and between 750 to 800,000 pounds of copper. And what's even better, this is absolutely just the beginning.

Speaker Change: <unk> systems that remain open for drill testing.

Speaker Change: Our recent discovery of the high grade silver copper 34 band that I just talked about earlier is an excellent example of near term mining opportunity. The 34 vein has returned several high grade intercepts, including 983 gram per ton silver at over $3.

Speaker Change: <unk> four meters.

Speaker Change: Based on 40 holes drilled to date, we've estimated an initial exploration target in that range.

Speaker Change: One two to $1 5 million silver ounces and between 750 to 800000 pounds of copper.

Speaker Change: And what's even better this is absolutely just the beginning.

Speaker Change: The 34 vein remains completely open up dip and at depth. Another Great example of high priority target for 2025 at the Galena complex.

Paul Huet: The 34 vein remains completely open, uptip, and at depth.

Paul Huet: Another great example of high priority targeted for 2025 at the Galena Complex is the core mine. Our drill plan will target four silver copper veins where we have high-grade intercepts from historical wide-space drilling. The historical results include intercepts of 4,313 g per tonne silver and 5% copper over 0.32 metres and 1,982 g and 3.2% copper over 1.3 metres wide. And when you consider the last 15, 20 years of our careers, our team are experts at mining this narrow stuff. So this narrow stuff, 1.3 metres wide, 5 feet wide, that is very exciting and encouraging for us with these types of grades.

Speaker Change: Is the core mine.

Speaker Change: Our drill plan will target for silver copper veins, where we have high grade intercepts from historical wide spaced drilling.

Speaker Change: The historical results include intercepts of board.

Speaker Change: 313 gram per ton silver and 5% copper over three two meters and 1982 Gram and three 2% copper over $1 three meters wide.

Speaker Change: When you consider the last 15 20 years of our careers. Our team are experts at mining this narrow stuff. So this narrow stuff one three meters wide five feet wide that is very exciting and encouraging for us with the types of grades.

Speaker Change: The core mine was previously developed down to the 3700 level at much lower metal prices, but has seen very limited mining.

Paul Huet: The core mine was previously developed down to the $3,700 level at much lower metal prices, but has seen very limited mining and remains completely open at depth. It is important to note that the targeted core veins all have significant antimony potential, which represents yet another important value driver for America's shareholder. We look forward to providing updates on our drilling progress at the 34 vein. and the core mine as the year progresses.

Speaker Change: It remains completely open at depth.

Speaker Change: It is important to note that the targeted core veins all have significant antimony potential which represents yet another important value driver for Americas shareholders.

Speaker Change: We look forward to providing updates on our drilling progress at the 34 vein.

Speaker Change: And the core mine as the year progresses beyond these near term priorities multiple there are multiple blue sky opportunities that exist.

Paul Huet: Beyond these near-term priorities, multiple, there are multiple blue sky opportunities that exist at the Galena complex, including at depth, near surface, and along strike. Look, let's face it, this is just the beginning. We've been here just over 100 days.

Speaker Change: The galena complex, including at depth near surface and along strike.

Speaker Change: Let's face. It. This is just the beginning we've been here just over 100 days.

Speaker Change: At our cost of operations in Mexico, we have a highly skilled team led by our general manager Gabriel So Joe who consistently fosters a strong culture of safety.

Paul Huet: At our coastal operations in Mexico, we have a highly skilled team led by our general manager, Gabriel Soto, who consistently fosters a strong culture of safety and productivity. During the quarter, silver production was approximately 132,000 ounces and zinc and lead were 6.7 and 1.6 million pounds, respectively. Silver was lower than the same period last year as the majority of the silver produced. for the quarter was sourced from the San Rafael main central area which is fully developed but contains lower grade silver with higher zinc value. The team at COSLA is focused on several initiatives, including development of the EC-120 to the bottom upper west block of the 120 deposit.

Speaker Change: And productivity.

Speaker Change: During the quarter silver production was approximately 132000 ounces and zinc and.

Speaker Change: And led were $6, seven and $1 6 million pounds, respectively.

Speaker Change: Silver was lower than the same period last year as the majority of the silver produced.

Speaker Change: For the quarter was sourced from the San Rafael main central area, which is fully developed but contains lower grade silver with higher zinc values.

Speaker Change: The team at <unk> is focused on several initiatives, including development of the E. C 120.

Speaker Change: To the bottom upper west block of the 120 deposits.

Speaker Change: Starting the development and the rehab of the alcohol and mine with a contract or bringing in a raise for a contractor to complete ventilation raises and completing the infill drilling program to support the life of mine plan.

Paul Huet: Starting the development and the rehab of the El Cajon mine with a contractor, bringing in a raise for a contractor to complete ventilation raises, and completing the infill drilling program to support the life of mine plant. We expect to ramp up to full production rate by probably right around mid June, July, which will drive quarterly production increases over the course of the year as more EC120 ore is processed through our own milling facility. Pre-production sales of silver copper concentrate from EC-120 have already contributed $2.3 million to our revenue in Q1-25, with approximately 59,000 ounces of silver produced from the project this quarter.

Speaker Change: We expect to ramp up to full production rate by.

Speaker Change: Probably right around mid June July, which will drive quarterly production increases over the course of the year as more <unk> 'twenty or is processed through our own milling facility.

Speaker Change: Preproduction sales of silver copper concentrate from <unk> have already contributed $2 $3 million to our revenue in Q1, 'twenty five with approximately 59000 ounces of silver produced from the project this quarter.

Speaker Change: We remain on track to reach commercial production at <unk> by the end of 2025, which will significantly boost our silver output and our free cash flow.

Paul Huet: we remain on track to reach commercial production at EC20 by the end of 2025, which will significantly boost our silver output and our free cash flow. While EC120 is ramping up, we will continue to mine the remaining developed stoves at the San Rafael mine, which are able to cover all our fixed costs at our operation.

Speaker Change: While <unk> is ramping up we will continue to mine the remaining develop stopes at the San Raphael mines, which are able to cover all our fixed costs at our operation that's quite a unique situation that we find ourselves.

Paul Huet: That's quite a unique situation that we find ourselves in.

Speaker Change: A quick summary overall.

Paul Huet: in a quick summary overall. I'm extremely pleased with the advancements we're making across our portfolio, including the significant progress made at Galena, where we're driving operational efficiencies and production growth. with both operations positioned to capitalize on strong silver price. were well-placed to deliver value in this exciting silver market.

Speaker Change: I am extremely pleased with the advancements, we're making across our portfolio, including the significant progress made at Galena.

Speaker Change: We're driving operational efficiencies and production growth.

Speaker Change: With both operations positioned to capitalize on strong silver prices.

Speaker Change: We are well placed to deliver value in this exciting silver market.

Speaker Change: I'll now turn the call over to warrant to go over some of the financial highlights.

Warren Varga: I'll now turn the call over to Warren to go over some of the financial highlights. Thank you Paul and good morning everyone. This morning we released our Q1 2025 financial results. Our unaudited, condensed, interim, consolidated financial statements and MD&A for the three months ended March 31st 2025 are available on our website and on CDAR Plus. In the first quarter of this year, revenue increased by 12% to $23.5 million, compared to $20.9 million in Q1 2024. This growth was driven by higher realized metal prices, with silver averaging just over $32 per ounce and zinc at $1.27 per pound.

Speaker Change: Thank you Paul and good morning, everyone. This morning, we released our Q1 2025 financial results are unaudited condensed interim consolidated financial statements and MD&A for the three months ended March 31, 2025 are available on our website and on SEDAR plus.

Speaker Change: In the first quarter. This year revenue increased by 12% to $23 5 million compared to $20 9 million in Q1 2024.

Speaker Change: This growth was driven by higher realized metal prices with silver averaging just over $30 per ounce and zinc at about <unk> 27 per pound.

Speaker Change: Produced 446 ounces of silver and approximately 838000 ounces of silver equivalent.

Warren Varga: We've produced 446 ounces of silver and approximately 838,000 ounces of silver equivalent, including 6.7 million pounds of zinc and 3.8 million pounds of lead. Our cost metrics for the quarter included cost of sales per silver equivalent ounce produced of $25.23, cash costs at just over $25 per silver ounce, and all in sustaining costs at $35.67 per silver ounce. We anticipate ongoing reductions in unit costs as silver production increases at both operations over the next several quarters. We recorded a net loss of $19 million for Q1 2025, compared to a net loss of $16 million last year.

Speaker Change: Ounces of silver equivalent, including $6 7 million pounds of zinc and $3 8 million pounds of lead.

Speaker Change: Our cost metrics for the quarter included cost of sales per silver equivalent ounce produced.

Speaker Change: $25 23.

Cash costs at just over $25 per silver ounce and all in sustaining cost at $35 67 per silver ounce.

Speaker Change: We anticipate ongoing reductions in unit cost silver production increases at both operations over the next several quarters.

Speaker Change: We recorded a net loss of 19 million for Q1 2025 compared to a net loss of $16 million last year the.

Speaker Change: The increased loss was primarily due to the impact of metal prices on our metal based liabilities and higher corporate G&A expenses.

Warren Varga: The increased loss was primarily due to the impact of metal prices on our metal-based liabilities and higher corporate G&A expenses. These were partially offset by higher net revenue, lower care maintenance costs, foreign exchange gains, and a gain on disposal of assets. Adjusted earnings for the quarter were a loss of $11.5 million and adjusted EBITDA was a loss of $5.5 million.

Speaker Change: These were partially offset by higher net revenue lower care and maintenance costs foreign exchange gains and a gain on disposal of assets.

Adjusted earnings for the quarter were a loss of $11 million $11 5 million and adjusted EBITDA was a loss of $5 5 million.

Speaker Change: Turning to our balance sheet, we've made significant strides this since the December transaction, reducing total liabilities by approximately $34 million through the repayment of metal liabilities royalties, the promissory note and transaction related payables.

Warren Varga: Turning to our balance sheet, we've made significant strides since the December transaction, reducing total liabilities by approximately $34 million through the repayments of metal liabilities, royalties, the promissory note, and transaction-related payables. full conversion of our convertible debenture into common shares has also streamlined our capital structure. Looking ahead, we expect silver production to grow as we progress with the EC-120 project at Kosawa and implement operational improvements at the Glen Accomplice. We're confident in our ability to strengthen our financial position and deliver on our growth objectives.

Speaker Change: The full conversion of our convertible debenture into common shares is also streamlined our capital structure.

Speaker Change: Looking ahead, we expect silver production to grow as we progress with the EC 120 project Echostar and implement operational improvements at the Atlantic complex.

Speaker Change: We're confident in our ability to strengthen our financial position and deliver on our growth objectives.

Speaker Change: With that I'll turn the call over to Oliver Turner.

Oliver Turner: With that, I'll turn the call over to Oliver Turner. Thank you, Warren, and hello and good morning, everyone. Certainly some great financial highlights there. So I'm pleased on my behalf to share some significant developments in our corporate strategy that are enhancing America's visibility in the market and positioning us for continued growth in the investment community. So as we announced last month and as of May 1st, 2025, America's Gold and Silver was included in the Selective Global Miners Silver Total Return Index, commonly known as the SIL, a leading silver miner ETF. This inclusion resulted in the ETF acquiring approximately 11.2 million shares of America's Gold and Silver, significantly increasing our visibility amongst large institutional investors who focus on index constituents.

Speaker Change: And Hello, and good morning, everyone certainly some great financial highlights there. So I'm pleased on my behalf will share some significant developments in our corporate strategy that are enhancing America's visibility in the market and positioning us for continued growth and the investment community. So as we announced last month and agile named <unk> 2025.

Speaker Change: Marcus Golden Silver was included in our selected global miners Silver total return index, commonly known as the S. I L. A leading silver miners ETF mis inclusion resulted in the ETF acquiring approximately 11 2 million shares of Americans Golden silver significantly increasing our visibility.

Some large institutional investors, who focus on indexed institutions being part of the S. IL underscores our growing prominence of our silver focused producer and validates the strategic progress. We've made looking ahead to later this year, we see strong potential for inclusion in the Xanax Junior gold miners ETF on the Gtx Jay.

Oliver Turner: Being part of the SIL underscores our growing prominence as a silver focused producer and validates the strategic progress we've made. Looking ahead to later this year, we see strong potential for inclusion in the VanEck Junior Gold Miners ETF or the GDXJ, and which would be another big milestone for our company. So these developments are critical steps in strengthening our shareholder base and exposing us to much larger institutions that only purchase companies that are part of these indexes. So since closing of the Galena CompEx consolidation transaction in December, we've significantly expanded our investor base. In just four months, America's percentage of tightly held shares has grown from about 8% to over 60%, with large institutions such as Merck, Dellbrook, Conwave, CQS, McKenzie and many others building substantial positions.

Speaker Change: And which would be another big milestone for our company.

Speaker Change: These developments are critical steps in strengthening our shareholder base and exposing us to much larger institutions that all need purchase companies that our partner <unk>.

Speaker Change: <unk> since closing of the Galena contacts consolidation transaction in December we significantly expanded our industrials in just four months Americans percentage are tightly held shares has grown from about 8% to over 16% with large institutions, such as Merck Delbruck Conway Cts Mackenzie.

Speaker Change: And many others building substantial positions.

Speaker Change: Many of these groups are strong past supporters sharing the successes of Cora and climbed ups and we're encouraged by the continuous support here in Americas gold and silver.

Oliver Turner: Many of these groups are strong past supporters, sharing the successes of Karora and Quanvex, and we're encouraged by their continued support here at America's Gold and Silver. Looking ahead, we're continuing our aggressive investor marketing campaign in earnest. We will be attending the One-to-One Mining Investment Conference in London next week, where we have a fully booked schedule of UK-based institutional and high net worth investors. This will be our first concentrated effort in London since the consolidation transaction, and we're looking forward to connecting with new and reconnecting with prior shareholders.

Speaker Change: Looking ahead, we are continuing our aggressive industrial marketing campaign in earnest, we will be attending the <unk> mining investment conference in London next week, where we have a follow up schedule of UK based institutional and high net worth investors. This will be our first concentrated effort in London since the consolidation transaction and we're looking forward to connecting with new.

Speaker Change: And reconnecting with prior shareholders.

Paul Hewitt: So with that I'll turn the call back over to Paul for some closing remarks.

Paul Huet: So with that, I'll turn the call back over to Paul for some closing remarks. Look, what can I say? This is really just the beginning. We've been here for approximately 100 days firing on all cylinders. We must remain laser-like focused on delivering our plan as we continue to grow. There's still a lot of work ahead of ourselves, but we're not afraid to roll up our sleeves and do that work, as most of you are aware.

Speaker Change: Look.

Speaker Change: What can I say.

Speaker Change: This is really just the beginning we've been here for approximately 100 days firing on all cylinders.

Speaker Change: We must remain laser like focused on delivering our plan as we continue to grow there is still a lot of work ahead of ourselves, but we're not afraid to roll up our sleeves and do that work as most of you are aware I just want to thank Oliver and Warren I want to thank all our employees.

Paul Huet: I just want to thank Oliver and Warren. I want to thank all our employees at both our operations in Mexico, at Galena. Most importantly, I want to say thank you to our shareholders, those who believe us, and all the analysts that cover us. Thank you very much and have a great day to everyone.

Speaker Change: At both our operations in Mexico.

Speaker Change: At Galena.

Speaker Change: Most importantly, I want to say, thank you to our shareholders those who believe us and all of the analysts that cover us.

And thank you very much and have a great day to everyone. Thanks for taking the time to join US on this call.

Unknown Attendee: Thanks for taking the time to join us on this call.