Americas Gold and Silver Third Quarter 2026 Webcast - AMERICAS GOLD & SILVER CORP

Financial Performance:

• Consolidated Q3 2026 revenue reached $51 million (a 70% increase from Q3 2025), driven by higher realized metal prices and record production; year-to-date revenue totaled $167 million (up 106% YoY).
• Silver production hit a company record of just over 800,000 ounces sold in Q3 (860,000 ounces sold total), contributing to a net loss of $5.6 million versus $16 million in Q3 2025, primarily due to the elimination of metal contract liabilities.
• Adjusted EBITDA improved to $9.3 million ($0.03 per share) from $1.9 million in Q3 2025; adjusted EPS was a loss of $0.02.
• All-in sustaining costs (AISC) averaged $43 per silver ounce sold in Q3, with cash costs declining significantly to approximately $14.50 per ounce from $25.00 in the prior year quarter, attributed to increased copper by-product credits.
• Year-to-date AISC averaged $39 per ounce; cash and equivalents stood at $63 million with $23 million in working capital at period-end.
• Liquidity position is strong with $63 million in cash plus an additional $15 million available under an existing term loan facility, totaling $113 million in available liquidity.

Guidance and Future Outlook:

• On pace to achieve the lower end of the full-year production guidance of 3.2 to 3.6 million ounces of silver, driven by operational momentum at Cosola.
• Cosola is projected to shatter last year's annual production record, having already exceeded the prior year's performance within the first 10 months of 2026.
• Long-term strategy focuses on sustaining high-rate production at Galena and accelerating growth at Cosola, with plans to integrate new high-grade zones (San Rafael Upper and EC-120) into the mine plan for 2027 and beyond.
• Management expects future resource and reserve updates to reflect significant upside from recent drilling results that were excluded from the 2025 estimates.
• The company aims to become a leading North American silver producer and strategic supplier of critical minerals (silver, copper, antimony) to support electrification, AI infrastructure, and national security.

Business Segments and Product Lines:

• Cosola (Mexico): Produced ~420,000 silver ounces in Q3 (up 23% QoQ, 28% YoY); copper production increased 30% YoY to 736,000 pounds. Drilling results at EC-120 revealed grades 5x higher than modeled resources, with intercepts up to 654 g/t Ag and 1.5% Cu, signaling massive resource growth potential.
• Galena (USA): Produced just under 400,000 silver ounces, recovering from Q2 interruptions while prioritizing infrastructure modernization. Key upgrades include a new leaky feeder communication system, mechanized long-hole mining, and modernized underground fleet (remote control trucks).
• Exploration: Six new high-grade silver discoveries identified at Galena in the last 18 months, including the 034 vein which moved from discovery to active mining in under 16 months due to existing permitted infrastructure.
• Product Mix: Diversifying beyond silver to include significant copper and antimony production, leveraging the antimony joint venture with U.S. Antimony.

Market and Competitive Landscape:

• Market performance remains strong despite external price fluctuations, with the company executing record-breaking production volumes independent of short-term silver price movements.
• The company was added to the TSX-30 index for 2026, recognizing it as one of the best-performing companies over a three-year period.
• Competitive advantage stems from world-class ore body width (8-10x wider than Galena) and grade at Cosola, combined with the revitalization of a 100-year-old asset (Galena) that was previously starved of capital.
• Strategic positioning as a critical supplier of materials essential for advanced manufacturing and national security.

Risks and Challenges:

• Execution risks associated with the complex modernization of Galena, including the need to complete the new processing plant (Phase III) and expand waste development to sustain long-term production.
• Operational complexities in transitioning to long-hole mining at Galena require precise geological domain identification to manage dilution, a process that is fluid and evolving.
• Capital intensity of the turnaround strategy requires sustained cash flow generation from Cosola to fund Galena's multi-year infrastructure investments.
• Potential delays in infrastructure projects (e.g., processing plant timeline) could impact short-term production targets, though the focus remains on long-term sustainability over quarterly "flash in the pan" results.

Management Commentary and Tone:

• Tone is highly confident, enthusiastic, and optimistic, with CEO Paul Hewitt emphasizing that Q3 was a "tremendous milestone" in the company's 28-year history.
• Management displayed strong operational pride, highlighting a 15-month period with zero lost-time accidents across both sites.
• CEO explicitly stated he is "never felt better" about the company's future, citing a marathon strategy rather than a sprint, with a focus on sustainable, long-term value creation.
• Emphasis placed heavily on the success of the "flywheel" approach to continuous improvement and the strategic shift from variable metal price obligations to a streamlined capital structure.

Analyst Questions and Answers:

• Galena Bottlenecks: Analyst asked about key improvements; CEO identified shaft upgrades (increasing capacity from 40 to 100+ tons/hour), new leaky feeder communications, and rock fragmentation management (grizzlies, rock breakers) as critical success factors.
• Future Milestones: To translate investment into higher production, management identified the completion of the Phase III processing plant (targeting end of Q1/Q2 start) and increased waste development rates as the next critical hurdles.
• Long-Hole Dilution: CEO confirmed that while dilution is managed by adjusting drilling/blast patterns based on geological domains, initial results show no additional dilution compared to previous methods, with rapid cycle times (reducing stope time from 12 months to ~30 days).
• Higher-Grade Transition: Management noted that new discoveries (like vein 034) are already in production, allowing for the rapid replacement of lower-grade material with high-grade ore, accelerating the timeline from discovery to mill feed to months rather than years.
• Cost Structure: Explained that higher Q3 OPEX per ton at Galena was due to a deliberate capital-intensive development push; costs are expected to stabilize or decrease as infrastructure projects complete and waste development continues.

Other Key Points:

• The company settled all remaining precious metals delivery obligations in Q2 2026, removing significant variable price-linked liabilities and simplifying the capital structure.
• Inaugural Corporate Sustainability Report published in October to enhance ESG measurement and reporting, aiming to attract broader institutional allocation.
• Recognition of the 100-year history of the Galena district and the critical need for sustained capital investment to modernize the "starved for capital" asset.
• The company operates with a dual-focus strategy: generating immediate cash flow from Cosola to fund the multi-year turnaround at Galena.