Americas Gold And Silver Corporation · TSX:USA
Americas Gold And Silver — Investor Presentation (September 2020)
28 slides from Americas Gold And Silver's investor presentation, September 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 SEPTEMBER 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 gold mine is expected to be in commercial production in Q4-2020 • Significant silver optionality through re-start at
Slide 4: Relief Canyon Update
RELIEF CANYON UPDATE Nevada, USA • Ramp-up to commercial production expected by the end of Q4-2020 once the radial stacker is repaired and back in service • Since the start of pre‐production, approximately 10.6 million tonnes of material have been mined, including 9.0 million tonnes of waste and 1.6
Slide 5: Relief Canyon Project
RELIEF CANYON PROJECT • Project acquired at $1,180/oz gold • 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
Slide 6: Relief Canyon Land Position
RELIEF CANYON LAND POSITION NYSE American USAS | TSX USA 6
Slide 7: Increasing Leverage to Precious Metals
INCREASING LEVERAGE TO PRECIOUS METALS +250 increase in Precious Metals Reserves since 2018 drives 500% Increase in Precious Metals Production in 2021 Gold Equivalent Gold Equivalent Annual Production Reserves 2019 PRO FORMA 2021 2018 2020 ACTUAL ACTUAL PRECIOUS METALS = 75% ACTUAL PRECIOUS METALS =
Slide 8: Americas Upside Potential
AMERICAS UPSIDE POTENTIAL AMERICAS DISCONNECT FROM GOLD AND SILVER EQUITES PROVIDES OPPORTUNITY 1. Up to September 10, 2020. Premier and Wesdome converted from CAD to USD NYSE American USAS | TSX USA 8
Slide 9: Focus on Gold; Optionality to Silver
FOCUS ON GOLD; OPTIONALITY TO SILVER • Silver has outperformed gold in recent months and returned to historical multiples • Value Disparity: Comparison of Key Operating Metrics Americas produced 1.5 million silver ounces in 2019 • Several development scenarios available to increase silver production
Slide 10: Galena Complex 60/40 Joint Venture
GALENA COMPLEX 60/40 JOINT VENTURE Idaho, USA • Significant increase to mineral resources1 based on initial drilling (100% of asset) • P&P – 12 Moz Ag (-) • M&I – 37.3 Moz Ag (up 36%) • Inferred – 78.5 Moz Ag (up 100%) • Recapitalization plan that began in October 2019 is proceeding as expected with
Slide 11: 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 12: Galena Complex - Caladay Shaft
GALENA COMPLEX Idaho, USA Caladay Shaft #3 Shaft Galena Shaft Coeur Shaft Sea Level Grade Thickness Grade Thickness PlotPlot (AgEq-Width) AgEq (oz/ton) X Thickness (feet) >500 250 0 NYSE American USAS | TSX USA 12
Slide 13: Galena Complex - Planned Drilling
GALENA COMPLEX Idaho, USA Coeur Shaft Caladay Shaft #3 Shaft Galena Shaft AgEQ (oz/ton) X Thickness Sea Level (feet) Planned Not to scale No Drilling Down Plunge of Trend Drilling • Significant exploration potential at depth; planned drilling includes: • 72 Vein – commenced in June 2020 with 2.5 mon
Slide 14: Galena Complex Operations
COSALÁ OPERATIONS GALENA COMPLEX OPERATIONS DISTRICT District LandCONCESSIONS Holdings NYSE American USAS | TSX USA 14
Slide 15: Cosalá Operations
COSALÁ OPERATIONS • San Rafael mine built on-time and SR Upper Zone under budget High Grade Silver Low Grade Zinc & Lead • At full production, exceeding pre- feasibility targets • 2019 production of 0.6 million silver ounces • Working towards restarting operation before year end • Over 1 million sil
Slide 16: Cosalá Operations
COSALÁ OPERATIONS COSALÁ OPERATIONS DISTRICT District LandCONCESSIONS Holdings NYSE American USAS | TSX USA 16
Slide 17: +500% Increase in Precious Metals Production
+500% INCREASE IN PRECIOUS METALS PRODUCTION1 Significant Precious Metal Growth in the Near-term Close Acquisition Today 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 $2.90 Market Capitalization $336M Basic Common Shares 116M Options 7.2M Warrants 5.3M Full Diluted Shares 128.5M Reserves and Resources2 Top Shareholders P&P M&I Inferred Pierre Lassonde Eric Sprott Gold 610k oz 44k oz 27k oz Sandstor
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 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 22: 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. David Stewart 416-607-3082 H.C. Wainwright & Co. Heiko Ihle 212-356-0510 Laurentian Bank Barry Alla
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 Recapitalization Update
GALENA RECAPITALIZATION UPDATE Idaho, USA Three key areas of capital investment totalling $20 million • Infrastructure and mobile equipment ~$7.0 million • Exploration Drill • Mobile mining fleet upgrades • Galena hoist • Repair and development ~$5.5 million • 5200 decline • 5500 repair and developm
Slide 25: Galena Recapitalization Drilling
GALENA RECAPITALIZATION DRILLING Idaho, USA KEY INTERCEPTS FROM 5500 LEVEL DRILLING KEY INTERCEPTS FROM 5200 LEVEL DRILLING • 55-091(1): 725 g/t silver and 1.0% copper over 4.9 meters2 • 52-487: 312 g/t silver and 12.4% lead over 1.0 meters • 55-085(1): 618 g/t silver and 0.9% copper over 4.6 meters
Slide 26: Mineral Reserves and Resources
MINERAL RESERVES AND RESOURCES Proven and Probable Mineral Reserves - June 30, 2020 Inferred Mineral Resources - June 30, 2020 Gold and Silver Mineral Reserves Gold and Silver Mineral Resources Proven Probable Proven and Probable Inferred Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces T
Slide 27: 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, $45/tonne at El Cajón, $45/tonne at Zone
Slide 28: Contact
Stefan Axell VP, Corporate Development & Communication saxell@americas-gold.com 416-848-9503 Andrea Totino www.americas-gold.com Investor Relations atotino@americas-gold.com
Americas Gold and Silver — Investor Presentation (September 2020) on 6ix