Americas Gold And Silver Corporation Reports First Quarter 2020 Results

Americas Gold and Silver Corporation ("Americas" or the "Company") (TSX: USA; NYSE American: USAS), a growing North American precious metals producer, today reported consolidated financial and operational results for the first quarter of 2020.

This earnings release should be read in conjunction with the Company's Management's Discussion and Analysis, Financial Statements and Notes to Financial Statements for the corresponding period, which have been posted on the Americas Gold and Silver Corporation SEDAR profile at www.sedar.com, on its EDGAR profile at www.sec.gov, and are also available on the Company's website at www.americas-gold.com. All figures are in U.S. dollars unless otherwise noted.

Operational and First Quarter Financial Highlights

• Relief Canyon continues to ramp-up following first gold pour in February and the Company is focused on achieving commercial production by late Q2-2020 or early Q3-2020.
• Subsequent to Q1-2020, the Company closed a bought deal public offering for gross proceeds of approximately C$28.75 million which provides the Company with available capital to address working capital needs including bringing Relief Canyon into commercial production, particularly in the COVID-19 environment.
• As a result of Relief Canyon being in pre-commercial production, the Cosal¡ Operations producing for less than a month during the quarter, and the exclusion of operating metrics from the Galena Complex during the Galena recapitalization plan ("Recapitalization Plan"), Q1-2020 revenue was $7.3 million resulting in a net loss of $4.1 million or ($0.03) per share.
• Cosal¡ production for the first 26 days of Q1-2020 yielded 420 gold equivalent ounces1 or 0.3 million silver equivalent ounces2 at cost of sales of $7.19/oz equivalent silver, by-product cash cost3 of negative ($11.32/oz) silver, and all-in sustaining cost3 of negative ($0.83/oz) silver.
• The Galena Recapitalization Plan is proceeding better than expected with the Company seeing both increased production and encouraging exploration results.
• Outlook for 2021 continues to be 90,000 to 110,000 gold equivalent ounces at expected all-in sustaining costs4 of $900 to $1,100 per gold equivalent ounce.
• At March 31, 2020, the Company had a cash balance of approximately $16.4 million.
• The Company has chosen not to host a conference call to discuss the Q1-2020 results given the limited production and the extensive operations update released on May 4, 2020. The Company will resume the quarterly conference calls following its Q2-2020 results.

"The Company is in a great position to benefit from the strong gold price environment moving forward as we addressed common start-up challenges at Relief Canyon and it continues to ramp-up," said Americas President & CEO Darren Blasutti.  "All operating aspects at Relief Canyon are trending positively, the Cosal¡ Operations should be able to resume production early in the second half of 2020 as we have had several encouraging developments in Mexico and the Galena Recapitalization Plan is proceeding better than expected.  The recently completed financing provides the Company with sufficient working capital to bring Relief Canyon to commercial production."

Relief Canyon

The Company issued a press release on May 4, 2020 providing details of the Relief Canyon ramp-up.  The Company continues to target commercial production by late Q2-2020 or early Q3-2020 and will be providing more regular updates regarding the operation between now and then.

Since the start of pre-production, approximately 5.2 million tonnes of material have been mined, including 4.2 million tonnes of waste and 1.0 million tonnes of ore.  Waste movement is ahead of budget and the operation currently has an ore stockpile of approximately 0.2 million tonnes ahead of the crusher waiting to be placed on the leach pad.

Approximately 0.8 million tonnes of ore have been stacked on the leach pad.  Solution flow rates from the pad have continued to increase since the update on May 4, 2020 as the surface area available for leach irrigation has increased.

Cosal¡ Operations
The Cosal¡ Operations operated for the first 26 days of the quarter as the operation was negatively impacted by the previously announced illegal blockade since the end of January 2020.  As a result, operating results year-over-year were negatively impacted and not generally comparable.

On March 31, 2020, the Government of Mexico issued a national COVID-19 related decree for the temporary suspension of all non-essential businesses in the country, including all mining operations.  This week the Government of Mexico issued a number of statements that are expected to allow for the re-opening of mining operations starting in June 2020.  The Company believes this will provide a pathway for the Cosal¡ Operations to resume production early in the second half of 2020, including a legal and legitimate labour representative for its workers, allowing for a resolution to the current illegal blockade.  The Company's priority continues to be the safety of its workers and the community of Cosal¡ that have been negatively impacted “ first by the illegal blockade and now by COVID-19.

Galena Complex

In addition to providing an update regarding the ramp-up of Relief Canyon, the Company also provided an extensive update regarding the Galena Recapitalization Plan in the May 4, 2020 update, including information regarding the rehabilitation development , equipment purchases, and early drill results from the 39,000-meter drill program.

The Company has suspended disclosure of certain operating metrics such as cash costs, and all-in sustaining costs for the Galena Complex until the Recapitalization Plan is substantially completed; the Galena Complex results are not included in the Consolidated Results.

Consolidated Financial and Consolidated Production5 Results

Consolidated operating results from Q1-2020 are generally not comparable to Q1-2019 due to the illegal blockade temporarily halting mining and processing at the Cosal¡ Operations, and the exclusion of operating results from the Galena Complex as a result of the Recapitalization Plan.  Consolidated operating results include only 26 days of production from the Cosal¡ Operations.  

Gross revenue decreased by $10.5 million during Q1-2020 compared to Q1-2019 primarily due to the illegal blockade.  This decrease was offset by a $0.9 million increase in silver and lead revenue at the Galena Complex from increased production in the early stages of the Recapitalization Plan.

Consolidated cost of sales was $7.19/oz equivalent silver representing an increase year-over-year, while by-product cash cost was negative ($11.32/oz) silver, and all-in sustaining cost was negative ($0.83/oz) silver, representing increases year-over-year, respectively.

Further information concerning the consolidated and individual mine operations is included in the Company's first quarter Condensed Interim Consolidated Financial Statements for the three months ended March 31, 2020 and Management's Discussion and Analysis for the three months ended March 31, 2020.

About Americas Gold and Silver Corporation

Americas Gold and Silver Corporation is a high-growth precious metals mining company with multiple assets in North America.  The Company's newest asset, Relief Canyon in Nevada, USA, has poured first gold and is expected to ramp up to full production over the course of 2020.  The Company also owns and operates the Cosal¡ Operations in Sinaloa, Mexico and manages the 60%-owned Galena Complex in Idaho, USA.  The Company also holds an option on the San Felipe development project in Sonora, Mexico.  For further information, please see SEDAR or www.americas-gold.com.

Qualified Persons

Darren Dell, P.Eng., Chief Operating Officer and Niel de Bruin, Director of Geology, who are each employees of the Company and a "qualified person" under National Instrument 43-101, have approved the applicable contents of this news release.

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