Americas Gold And Silver Corporation · TSX:USA
Americas Gold And Silver — Investor Presentation (April 2020)
27 slides from Americas Gold And Silver's investor presentation, April 2020
Slide 1: A High-Growth, Low-Cost Precious Metals Company in North America
A High-Growth, Low-Cost PRECIOUS METALS Company in North America CORPORATE PRESENTATION APRIL 2020
Slide 2: Forward-Looking Statements and Other Disclosures
FORWARD-LOOKING FORWARD-LOOKING STATEMENTS STATEMENTS SAFE HARBOUR Safe Harbour ANDDisclosures and Other OTHER DISCLOSURES This presentation contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information includes, but is not limited to, Americas
Slide 3: A High-Growth, Low-Cost Precious Metals Company in North America
A HIGH-GROWTH, LOW-COST PRECIOUS METALS COMPANY IN NORTH AMERICA +500% Increase in Precious Metals Production by 20211 • Multiple North American precious metal assets • Relief Canyon has completed initial construction within budget, poured first gold, and commercial production is expected before the
Slide 4: COVID-19 Update
COVID-19 UPDATE • Americas Gold & Silver is closely monitoring developments surrounding the outbreak of COVID-19 • Our priority is to protect the health and safety of our employees and to provide a safe work environment • Our Company is following government guidelines and protocols at our three oper
Slide 5: Relief Canyon Update
RELIEF CANYON UPDATE Nevada, USA • Relief Canyon open-pit still operating during COVID-19, some impact in getting key personnel to site • Ramp-up to commercial production by end of Q2 proceeding • Mined tonnage at Relief Canyon is ahead of schedule and the ore stacking rate is ramping up • Nearly 25
Slide 6: Relief Canyon Project
RELIEF CANYON PROJECT • First gold pour achieved February 2020 • Initial capital to first gold within budget of US$28-30 million • Expected annual production of ~90,000 oz Au at AISC of ~$800/oz over an ~6 year initial mine life1 • At current gold prices, Relief Canyon is a very high return project
Slide 7: Relief Canyon Land Position
RELIEF CANYON LAND POSITION NYSE American USAS | TSX USA 7
Slide 8: Increasing Leverage to Precious Metals
INCREASING LEVERAGE TO PRECIOUS METALS +500% Increase in Precious Metals Production by 2021 Precious Metals Precious Metals Revenue Reserves 2019 2021 OUTLOOK 2018 2020 ACTUAL ACTUAL PRECIOUS METALS = 76% ACTUAL PRECIOUS METALS = 80% 24% 20% 23% 45% 55% 77% 76% 80% Precious Metals Base Metals Precio
Slide 9: Value Proposition
VALUE PROPOSITION Value Disparity: Comparison of Key Operating Metrics1 200 135 140 2021E Consensus 100 Production (kozs AuEq) Wesdome McEwen Premier Americas Mining Gold (2021) $1,060 $1,000 $950 $950 2021E Consensus AISC (US$/oz AuEq) Wesdome McEwen Premier Americas Mining Gold (2021) $926 Basic M
Slide 10: Disconnect Between Gold
DISCONNECT BETWEEN GOLD 2020 Year-to-date Performance 20% Value Disparity: Comparison of Key Operating Metrics 10% Gold 0% GDXJ -10% Wesdome -20% Premier -30% McEwen -40% -50% Americas Gold -60% -70% 1. Up to April 6, 2020. Premier and Wesdome converted from CAD to USD NYSE American USAS | TSX USA 1
Slide 11: Cosalá Operations
COSALÁ OPERATIONS 19,000 contiguous hectares 46 historic high-grade, at surface, starter pits 19 quality exploration targets EC120 • 2.5 million oz Ag, 4.6 million lb Cu expected avg. annual production San Rafael • 3.25 million silver equivalent ounces1 • Built on-time and under budget for US$16M •
Slide 12: Cosalá Operations District Land Holdings
COSALÁ OPERATIONS COSALÁ OPERATIONS DISTRICT District LandCONCESSIONS Holdings NYSE American USAS | TSX USA 12
Slide 13: Cosalá Operations: San Rafael Mine and EC120 Reserve
COSALÁ OPERATIONS San Rafael Mine and EC120 Reserve High Grade Silver Low Grade Zinc and Lead High Grade Silver Low Grade Silver Low Grade Copper High Grade Zinc and Lead Optionality Across Multiple Metals with the Ability to Adjust Quickly to Changing Commodity Markets NYSE American USAS | TSX USA
Slide 14: Galena Complex Joint Venture
GALENA COMPLEX JOINT VENTURE Idaho, USA • Galena Complex has a large resource base1 to be exploited (based on 100% of asset): • P&P reserves – 12.4M oz Ag • M&I resources – 27.4M oz Ag • Inferred Resources – 39.0M oz Ag • Recapitalization plan that began in October 2019 is progressing well and has p
Slide 15: Galena Operations District Land Holdings
COSALÁ OPERATIONS GALENA OPERATIONS DISTRICT District LandCONCESSIONS Holdings NYSE American USAS | TSX USA 15
Slide 16: 2021 Outlook
2021 OUTLOOK 2019 ACTUALS 2021 OUTLOOK1 Gold Production (ounces) - 80 – 90 koz Silver Production (ounces)2 1.2 Moz 1.0 – 1.5 Moz Gold Equivalent Production (ounces)3 14 koz 90 – 110 koz All-in Sustaining Cost ($ per equivalent gold ounce) $1,100/oz $850 – 1,050/oz Cost of Sales ($ per equivalent gol
Slide 17: Development: +500% Increase in Precious Metals Production
+500% INCREASE IN PRECIOUS METALS PRODUCTION1 Significant Precious Metal Growth in the Near-term Today Close Acquisition and Financing First Gold Pour Commercial Production RELIEF Construction Ramp-Up Steady-State Operations and Exploration CANYON PRODUCTION SAN RAFAEL Steady-State / Optimization Be
Slide 18: Capital Structure
CAPITAL STRUCTURE Share Ownership Capital Structure Recent Price1 $2.14 27% Other Institutional Market Capitalization $185M Eric Sprott Sandstorm Basic Common Shares 86.6M 50% Pierre Lassonde Options 8.0M 8% Other Insiders Warrants 5.2M Retail 7% Full Diluted Shares 99.8M 1% 7% Reserves and Resource
Slide 19: Why Invest?
WHY INVEST? Creating a High-Growth, Low-Cost, North American Precious Metal Company Increasing Leading Precious Gold Exposure Metals Growth Proven Low Cost Operations Management Team Large North American Re-Valuation Potential Resource Base NYSE American USAS | TSX USA 19
Slide 20: Appendix
Appendix NYSE American USAS | TSX USA 20
Slide 21: Executive Management and Board of Directors
EXECUTIVE MANAGEMENT AND BOARD OF DIRECTORS Management Board of Directors Darren Blasutti Daren Dell Alex Davidson President and Chief Operating Alan Edwards Chairman of the Board Chief Executive Officer Officer Director Former Barrick Gold Former Barrick Gold Executive, Former Barrick Gold Senior P
Slide 22: Analysts
ANALYSTS FIRM ANALYST CONTACT Alliance Global Partners Bhakti Pavani 949-296-3196 Clarus Securities Inc. Varun Arora 416-365-8093 Cormark Securities Richard Gray 416-943-6407 H.C. Wainwright & Co. Heiko Ihle 212-356-0510 Laurentian Bank Barry Allan 416-865-5798 ROTH Capital Partners Jake Sekelsky 64
Slide 23: Sandstorm Gold Financing Package
SANDSTORM GOLD FINANCING PACKAGE Total Financing Package of US$42.5 million to Fully Fund Development of Relief Canyon Repayable by approximately 32,000 gold Gold Purchase Agreement US$25M ounces, at spot prices, over a period of 66 months after production start-up Convertible 6% coupon, 4-year term
Slide 24: Galena Re-Capitalization Update
GALENA RE-CAPITALIZATION UPDATE Idaho, USA Three key areas of capital investment totalling $20 million • Infrastructure and mobile equipment ~$7.0 million • Exploration Drill – Q4-2019 • Mobile mining fleet upgrades Q1-2019/Q1-2020 • Galena hoist Q3-2020 • Repair and development ~$5.5 million • 5200
Slide 25: Mineral Reserves and Resources
MINERAL RESERVES AND RESOURCES MINERAL RESERVE AND MINERAL RESOURCE STATEMENT - JUNE 30, 2019 Proven and Probable Mineral Reserves - June 30, 2019 Inferred Mineral Resources - June 30, 2019 Gold and Silver Mineral Reserves Gold and Silver Mineral Resources Inferred Proven Probable Proven and Probabl
Slide 26: Notes for Mineral Reserves and Resources Estimates
NOTES FOR MINERAL RESERVES AND RESOURCES ESTIMATES CIM (2014) Definition and Standards were followed for Mineral Reserve and Mineral Resource Estimates. Mineral Reserves are estimated at a net smelter return (“NSR”) cut-off value of US$50/tonne at San Rafael, $40/tonne at El Cajón, $40/tonne at Zone
Slide 27: Contact
Stefan Axell VP, Corporate Development & Communications saxell@americas-gold.com Jack Perkins Investor Relations 416-848-9503 jperkins@americas-gold.com www.americas-gold.com Andrea Totino Investor Relations atotino@americas-gold.com
Americas Gold and Silver — Investor Presentation (April 2020) on 6ix