Americas Gold And Silver Corporation · TSX:USA
Americas Gold And Silver — Investor Presentation (February 2023)
27 slides from Americas Gold And Silver's investor presentation, February 2023
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 February 2023
Slide 2: Forward-Looking Statements, Safe Harbour 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, Silver Focused Company
A HIGH-GROWTH, SILVER FOCUSED COMPANY SEVERAL OPERATIONS IN NORTH AMERICA Significant Exposure to Silver • Multiple North American precious metal assets • Projecting significant increase in silver and silver equivalent production over next several years • Silver optionality through fully built and f
Slide 4: Leverage to Silver
LEVERAGE TO SILVER • Significant leverage to silver based 140 on production outlook and silver resources 120 • Attractive current valuation compared to silver producing peers 100 • Americas Gold and Silver currently Current Au / Ag Ratio =85:1 trading 80 • $0.53 per silver resource ounce[1] in produ
Slide 5: 2022 Production Results
2022 PRODUCTION RESULTS Value Disparity: Comparison of Key Operating Metrics 2021 2022 % Increase Actual[1] Actual[1] (Y-over-Y) Silver Production (ounces) 0.67 Moz 1.31 Moz 96% Zinc Production (million pounds) 4.2 Mlbs 39.3 Mlbs 844% Lead Production (million pounds) 12.9 Mlbs 24.6 Mlbs 91% Silver E
Slide 6: 2023 Guidance and 2024 Outlook
2023 GUIDANCE AND 2024 OUTLOOK • Continued Value production Disparity:growth in both silver and silver equivalent expected Comparison of Key Operating Metrics 2022 Actual[1] 2023 Guidance[1] 2024 Outlook[1] Silver Production (ounces) 1.31 Moz 2.2 – 2.6 Moz 3.5 – 4.0 Moz Zinc Production (million poun
Slide 7: Achievements & Near-Term Catalysts
ACHIEVEMENT & NEAR-TERM CATALYSTS • 2022 Achievements Value Disparity: Comparison of Key Operating Metrics • Exceeded the silver equivalent guidance range of 4.8 – 5.2 million ounces • Cosalá Operations ramp up to 1,800 tpd and free cash flow generation in Q1-2022 • Galena Complex: • Increased silve
Slide 8: Cosalá Operations
COSALÁ OPERATIONS • Cosalá Operation operating at full SR Upper Zone production rate of ~1,800 tpd High Grade Silver Low Grade Zinc & Lead • At current silver and zinc prices, significant monthly free cash flow • Mining of SR Upper Zone delayed in 2022 to maximize revenue mix given prevailing prices
Slide 9: Cosalá Operations Exploration
COSALÁ OPERATIONS EXPLORATION • Cosalá Operations property underexplored since acquisition of Scorpio Mining Cosalá North • Recently reinterpreted historic geophysical information San • Identified several geomagnetic Rafael targets on property near San Rafael and EC120 EC120 • The initial study iden
Slide 10: Cosalá Operations District Land Holdings
COSALÁ OPERATIONS COSALÁ OPERATIONS DISTRICT District LandCONCESSIONS Holdings NYSE American USAS | TSX USA 10
Slide 11: Galena Complex 60/40 Joint Venture
GALENA COMPLEX 60/40 JOINT VENTURE Idaho, USA • Significant increase to mineral resources1 based Resource Growth Since Start of Recapitalization on initial drilling (100% of asset) year over year Plan 120 612% •P&P – 20.9 Moz Ag (up 35% since 2018) Increase •M&I – 77.3 Moz Ag (up 221% since 2018) 10
Slide 12: Galena Complex
GALENA COMPLEX Idaho, USA East Coeur Silver Vein 360 Complex 72 Vein • Significant exploration potential at depth; planned drilling includes: • Early drilling success achieved from 5500 Level drill station targeting extension of prolific Silver Vein • 360 Complex – Drilling as 5500 Level advances ea
Slide 13: Silver Valley Potential at Depth
SILVER VALLEY POTENTIAL AT DEPTH Idaho, USA GALENA COMPLEX ONE OF THE SHALLOWEST OPERATIONS IN THE SILVER VALLEY • Depth of development not impacted by faulting or other geologic structures; development and drilling stopped due to lack of capital amid silver price bear market NYSE American USAS | TS
Slide 14: Success at Galena; More Expected
SUCCESS AT GALENA; MORE EXPECTED Significant Resource Growth from the Recapitalization Plan: • Updated resource estimate increased mineral reserves 200 Mineral Inventory and a global resource of over 200 Moz 180 • Silver at a discovery cost of <$0.10 per ounce Recent Drill Results: 160 • Encouraging
Slide 15: Galena Hoist
GALENA HOIST • Hoist installed in December 2022 Value Disparity: Comparison of Key Operating Metrics • Electrical work and commissioning commenced • Shaft repair will start following completion of repair and commissioning • Project timeline and costs impacted by exceptionally long lead times and lac
Slide 16: Galena Valuation Potential
GALENA VALUATION POTENTIAL GALENA SIGNIFICANTLY UNDERVALUED COMPARED TO BOTH DEVELOPERS AND PRODUCERS EV / AgEq oz (US$/oz) (LHS) AgEq Grade (g/t) (RHS) $10.00 1,000.0 $8.00 800.0 Silver Equivalent Resource Grade (g/t) $6.82 $6.00 600.0 EV/oz (US$/oz) $4.29 $4.00 400.0 $3.08 $1.94 $2.00 $1.77 200.0
Slide 17: Galena Complex Operations District Land Holdings
COSALÁ OPERATIONS GALENA COMPLEX OPERATIONS DISTRICT District LandCONCESSIONS Holdings NYSE American USAS | TSX USA 17
Slide 18: Relief Canyon Update
RELIEF CANYON UPDATE Nevada, USA • On August 13, 2021, the Company temporarily suspended mining operations at Relief Canyon in order to prioritize capital for the Cosalá Operations re-start • Gold continues to be produced through re-leaching activities • Agreement with Sandstorm to defer the 2023 go
Slide 19: Relief Canyon Land Position
RELIEF CANYON LAND POSITION NYSE American USAS | TSX USA 19
Slide 20: Capital Structure
CAPITAL STRUCTURE Share Ownership Capital Structure Recent Price1 USD$0.50 Market Capitalization USD$100M Basic Common Shares2 199.2M Options 12.2M Warrants 1.5M Full Diluted Shares 212.7M Attributable Reserves and Resources3 Top Shareholders P&P M&I Inferred Pierre Lassonde Eric Sprott Silver 35M o
Slide 21: Why Invest?
WHY INVEST? Creating a High-Growth, Silver Leveraged Company Focused North American Re-Valuation Large North Potential American Resource Base Significant Proven leverage to Management Silver Team NYSE American USAS | TSX USA 21
Slide 22: Appendix
Appendix NYSE American USAS | TSX USA 22
Slide 23: Executive Management and Board of Directors
EXECUTIVE MANAGEMENT AND BOARD OF DIRECTORS Management Board of Directors Darren Blasutti Daren Dell Alex Davidson Alan Edwards President and Chief Operating Chairman of the Board Director Chief Executive Officer Officer President and Director Former Barrick Gold Former Barrick Gold Executive, Forme
Slide 24: Analysts
ANALYSTS FIRM ANALYST CONTACT Alliance Global Partners Jake Sekelsky 646-983-4000 Clarus Securities Inc. Varun Arora 416-365-8093 Cormark Securities Richard Gray 416-943-6407 Desjardin Securities Inc. Jonathan Egilo 647-207-3961 H.C. Wainwright & Co. Heiko Ihle 212-356-0510 Laurentian Bank Barry All
Slide 25: Attributable Mineral Reserves and Resources
ATTRIBUTABLE MINERAL RESERVES AND RESOURCES Proven and Probable Mineral Reserves Silver Mineral Reserves Proven Probable Proven and Probable Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces (kt) (g/t) (koz) (kt) (g/t) (koz) (kt) (g/t) (koz) Total Silver 954 214 6,550 4,532 193 28,162 5,48
Slide 26: Notes for Mineral Reserves and Resources Estimates
NOTES FOR MINERAL RESERVES AND RESOURCES ESTIMATES Mineral Reserve estimates were prepared by Company personnel under the supervision of Daren Dell, P.Eng., the Company’s Chief Operating Officer. Mineral Resource estimates and technical or scientific information in this presentation were prepared in
Slide 27: Stefan Axell, VP Corporate Development & Communication
Stefan Axell VP, Corporate Development & Communication saxell@americas-gold.com 416-848-9503 www.americas-gold.com
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