Americas Gold And Silver Corporation · TSX:USA
Americas Gold And Silver — Investor Presentation (July 2020)
29 slides from Americas Gold And Silver's investor presentation, July 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 JULY 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 in Q3-2020
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 • Ramp-up to commercial production in Q3-2020 proceeding • Mined tonnage at Relief Canyon is on schedule and the ore stacking rate is ramping up • Since the start of pre‐production, approximately 7.5 million tonnes of material have been mined, including 6.3 million t
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 2021 Gold Equivalent Gold Equivalent Annual Production1 Reserves2 2019 PRO FORMA 2021 2018 CURRENT ACTUAL PRECIOUS METALS = 76% ACTUAL PRECIOUS METALS = 80% 24% 20% 23% 45% 55% 77% 76% 80% Precious Metals Base Metals
Slide 9: Americas Upside Potential
AMERICAS UPSIDE POTENTIAL 2020 Year-to-date Performance 60% GDX 40% GDXJ 20% Premier Wesdome 0% Gold -20% McEwen Americas -40% Gold -60% -80% 31-Dec-19 31-Jan-20 29-Feb-20 31-Mar-20 30-Apr-20 31-May-20 30-Jun-20 31-Jul-20 AMERICAS DISCONNECT FROM GOLD AND GOLD EQUITES PROVIDES OPPORTUNITY 1. Up to J
Slide 10: Focus on Gold; Optionality to Silver
FOCUS ON GOLD; OPTIONALITY TO SILVER • Silver significantly underperforming gold; gold silver ratio well above 20 year average Value Disparity: Comparison of Key Operating Metrics • Americas produced 1.5 million ounces in 2019 from P&P reserves1 of 32 Moz and M&I resources1 of 48 Moz • Several devel
Slide 11: Cosalá Operations
COSALÁ OPERATIONS • SR mine built on-time and under SR Upper Zone budget High Grade Silver Low Grade Zinc & Lead • At full production, exceeding pre- feasibility targets • 2019 production of 0.6 million silver ounces • Currently negatively impacted by illegal blockade and COVID-19 shutdown • Product
Slide 12: Cosalá Operations District Land Holdings
COSALÁ OPERATIONS COSALÁ OPERATIONS DISTRICT District LandCONCESSIONS Holdings NYSE American USAS | TSX USA 12
Slide 13: 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 proceeding better than exp
Slide 14: 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 NYSE American USAS | TSX USA 14
Slide 15: Galena Complex: Caladay Shaft
GALENA COMPLEX Idaho, USA Caladay Shaft #3 Shaft Galena Shaft Coeur Shaft Sea Level Grade Thickness Plot (AgEq-Width) >500 250 0 NYSE American USAS | TSX USA 15
Slide 16: Galena Complex: Planned Drilling
GALENA COMPLEX Idaho, USA Caladay Shaft #3 Shaft Galena Shaft Coeur Shaft Sea Level 72 Vein 360 Triple Planned Point Complex Drilling No Drilling Down Plunge of Trend • Significant exploration potential at depth; planned drilling includes: • 72 Vein – commenced in June with 2.5 months of drilling pl
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: 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 19: +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 20: Capital Structure
CAPITAL STRUCTURE Share Ownership Capital Structure Recent Price1 $3.35 Market Capitalization $355M Basic Common Shares 106M Options 7.2M Warrants 5.3M Full Diluted Shares 118.5M Reserves and Resources2 Top Shareholders P&P M&I Inferred Eric Sprott Pierre Lassonde Gold 653k oz 47k oz 27k oz Sandstor
Slide 21: 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 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 President and Chief Operating Alex Davidson Alan Edwards Chief Executive Officer Officer Chairman of the Board Director Former Barrick Gold Executive, Former Barrick Gold Senior Former Barrick Gold P
Slide 24: 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 Desjardin Securities Inc. David Stewart 416-607-3082 H.C. Wainwright & Co. Heiko Ihle 212-356-0510 Laurentian Bank Barry Alla
Slide 25: 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 26: 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 27: 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 28: 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 29: Contact
Stefan Axell VP, Corporate Development & Communications saxell@americas-gold.com 416-848-9503 Andrea Totino www.americas-gold.com Investor Relations atotino@americas-gold.com
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