Americas Gold and Silver Reports Strong Growth in Q3 2025 as Company Executes Strategy at Galena

Americas Gold and Silver Corporation reported its Q3 2025 financial and operational results. - Production: Consolidated silver production was 765,000 ounces, confirming the strong results pre-announced on October 20, 2025. This represents a 98% increase year-over-year. The Galena Complex produced 440,000 silver ounces, and the Cosalá Operations produced 325,000 silver ounces. - Financials: The company generated revenue of $30.6 million but recorded a net loss of $15.7 million. Adjusted EBITDA was positive at $1.86 million. - Costs: All-In Sustaining Costs (AISC) per silver ounce were $30.06, and cash costs were $24.11 per silver ounce. - Balance Sheet: The company ended the quarter with a cash balance of $39.1 million. - Operations: The company highlighted ongoing capital initiatives aimed at increasing production and lowering costs. It also announced a new 5-year collective bargaining agreement with hourly staff at the Galena Complex and reported a high-grade drill intercept of 24,913 g/t Ag over 0.21 metres.

This news is a routine but positive confirmation that the company's operational turnaround strategy is progressing as planned.

Positives: - Production Growth Confirmed: The production figure of 765,000 ounces was already released on October 20 and was very strong, so this news confirms the operational momentum. - Improving Cost Trend: AISC of $30.06/oz shows a positive sequential improvement from $32.89/oz in Q2 and $35.67/oz in Q1 2025. This indicates that the significant capital investments are beginning to yield efficiencies, a key component of management's promise. - Labor Stability: The 5-year agreement at Galena de-risks a critical part of the operation and provides long-term stability, which is essential for a mine undergoing a major revitalization.

Negatives & Key Risks: - High Cash Burn: The most critical new data point is the cash position. The balance fell from $61.7 million at the end of Q2 to $39.1 million at the end of Q3, a burn of $22.6 million in a single quarter. While this is driven by the company's planned capital spending, it is an aggressive rate that highlights the financial risk. At this pace, the current cash balance provides less than two quarters of liquidity. - Persistent Losses: A net loss of $15.7 million demonstrates that despite higher production and slightly lower costs, the company is not yet profitable. The AISC of over $30/oz leaves very little, if any, margin at current silver prices. - Market Expectations: The strong production was already priced in following the October 20th release. The new information—the financials—reveals that while the operational story is improving, the financial reality remains challenging.

Overall, the report reinforces the narrative of a "transformational investment year." Management is successfully executing on the production growth side of its plan and is making headway on cost reduction. However, the company is still far from being a profitable, self-sustaining operation. The high cash burn is a major red flag and puts a clear timeline on the company's need to achieve positive cash flow before its liquidity is exhausted. The rating is positive because it shows progress, but it is routine because it is an expected step in a long, expensive, and high-risk turnaround.

Americas Gold and Silver Corporation is a precious metals mining company with two producing assets: the 100%-owned Galena Complex in Idaho, USA, and the Cosalá Operations in Sinaloa, Mexico. The company underwent a significant transformation in late 2024 with the appointment of a new CEO, Paul Andre Huet, and the consolidation of 100% ownership of its flagship Galena Complex in a transaction with Eric Sprott. The current strategy is focused on a capital-intensive revitalization of the Galena Complex to increase production, significantly lower costs, and unlock value from by-products, particularly antimony, a critical mineral for which Galena is the only producing mine in the United States. The Cosalá Operations are also being optimized by transitioning to the higher-grade EC120 silver-copper deposit.