Market Overview

Americas Silver Corporation Provides Second Quarter Production and Cost Update

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Americas Silver Corporation (TSX:USA) (NYSE:USAS) ("Americas
Silver" or the "Company") today announced production and operating cost
results for the second quarter of 2018 on a consolidated basis and
individually for its Cosalá Operations and Galena Complex. All figures
are in U.S. dollars unless otherwise indicated.

Second Quarter Highlights

  • Consolidated silver production for the quarter of approximately
    300,000 silver ounces and 1.5 million silver equivalent1
    ounces, representing decreases of 24% and 9%, respectively, when
    compared to Q1, 2018, and a decrease of 46% and an increase of 24%,
    respectively, year-over-year.
  • Consolidated cash costs2 for the quarter were approximately
    negative ($6.15) per silver ounce, a decrease of 125% when compared to
    Q1, 2018 and 185% year-over-year, while consolidated all-in sustaining
    costs2 ("AISC") were approximately $5.40 per silver ounce,
    a decrease of 13% when compared to Q1, 2018 and 49% year-over-year.
  • Cosalá Operations milled tonnage increased by 13% over Q1, 2018 as San
    Rafael continued to successfully ramp up both mining and milling rates
    in the second quarter of commercial production. As a result, silver
    production increased to approximately 90,000 silver ounces and 1.0
    million silver equivalent ounces during the quarter, representing
    increases of 19% and 10%, respectively, when compared to Q1, 2018.
    Cash costs were approximately negative ($60.13) per silver ounce and
    AISC were approximately negative ($41.66) per silver ounce
    representing a decrease of 15% when compared to Q1, 2018.
  • As previously announced, Galena Complex production for the quarter was
    negatively impacted by two separate issues at its No.3 Shaft that
    inhibited normal hoisting for approximately 27 days in total. As a
    result, the Complex produced approximately 210,000 silver ounces and
    420,000 silver equivalent ounces, representing decreases of 35% and
    37%, respectively, when compared to Q1, 2018, and decreases of 34% and
    31%, respectively, year-over-year. Cash costs were approximately
    $18.36 per silver ounce and AISC were approximately $26.77 per silver
    ounce. The issues impacting second quarter production are not expected
    to affect production in the second half of the year.
  • Guidance for 2018 remains unchanged at 1.6 – 2.0 million silver ounces
    and 7.2 – 8.0 million silver equivalent ounces at cash costs of
    negative ($10.00) to negative ($5.00) per silver ounce and AISC of
    negative ($1.00) to $4.00 per silver ounce. The Company expects to
    release its second quarter financial results on or before August 9,
    2018.
  • The Company had cash and cash equivalents of $7.8 million at June 30,
    2018.

"The San Rafael mine successfully increased mining and milling rates by
almost 15% during the quarter and we expect further increases in the
third quarter as it continues to ramp up the mill to capacity," said
Darren Blasutti, President & CEO of Americas Silver. "These increases
allowed the Company to continue to drive down its industry-leading cash
costs and AISC when compared to both last quarter and last year, despite
lower than expected production from the Galena Complex. Now that the
necessary repairs at Galena have been successfully completed in the
second quarter, we can continue to execute our operational plan for the
remainder of the year."

Consolidated Second Quarter Production Details

Consolidated silver production for the second quarter of 2018 was
301,711 silver ounces which represents a decrease of 24% over the
previous quarter and 46% year-over-year. Silver equivalent production
was approximately 1.5 million ounces, down 9% over the previous quarter
and up 24% year-over-year. The increase in the milling rate achieved at
Cosalá Operations was offset by the lower tonnage at the Galena Complex
during the quarter. Consolidated cash costs decreased 125% to negative
($6.15) per silver ounce comparted to previous quarter and 185%
year-over-year, and AISC decreased 13% to $5.40 per silver ounce
compared to the previous quarter and 49% year-over-year. Consolidated
zinc production increased by 19% compared to Q1, 2018 and 201% compared
to Q2, 2017; consolidated lead production decreased by 18% compared to
Q1, 2018. The decreases in silver, silver equivalent, silver grade, and
lead production compared to Q1, 2018 are primarily due the issues
associated with the No.3 Shaft at the Galena Complex.

Table 1

Consolidated Production Highlights

    Q2 2018   Q2 2017   Change   Q1 2018   Change
Processed Ore (tonnes milled) 164,313 179,427 -8% 163,875 1%
Silver Production (ounces) 301,711 557,892 -46% 397,035 -24%
Silver Equivalent Production (ounces) 1,462,170 1,175,836 24% 1,613,711 -9%
Silver Grade (grams per tonne) 77 107 -28% 95 -19%
Cost of Sales ($ per equiv. ounce silver) 1 $8.19 $11.00 -26% $8.14 1%
Cash Costs ($ per ounce silver) 1 ($6.15) $7.21 -185% ($2.73) -125%
All-in Sustaining Costs ($ per ounce silver) 1 $5.40 $10.65 -49% $6.17 -13%
Zinc Production (pounds) 8,756,201 2,904,374 201% 7,332,978 19%
Lead Production (pounds) 6,216,592 6,435,048 -3% 7,624,685 -18%
Copper Production (pounds) - 273,475 -100% - -

1 Cost of sales per silver equivalent ounce, cash costs per
silver ounce, and all-in sustaining costs per silver ounce for Q2, 2017
excludes pre-production of 22,549 silver ounces and 32,955 silver
equivalent ounces, respectively, mined from El Cajón during its
commissioning period. Pre-production revenue and cost of sales from El
Cajón are capitalized as an offset to development costs.

Cosalá Operations Production Details

The Cosalá Operations produced 94,231 ounces of silver during the second
quarter of 2018 and 1,041,246 ounces of silver equivalent during the
same period at cash costs of negative ($60.13) per silver ounce and AISC
of negative ($41.66) per silver ounce. Silver production increased 19%
over the previous quarter while silver equivalent production increased
10% over the previous quarter and 85% year-over-year. Cash costs and
AISC were down compared to the previous quarter from negative ($59.52)
per silver ounce and negative ($36.28) per silver ounce, respectively,
and down significantly year-over-year from negative ($2.81) per silver
ounce and negative ($2.81) per silver ounce, respectively. The improved
results at San Rafael relative to Q1, 2018 are a result of the increase
in milling rate (13%) as the process plant continued to ramp-up
operations to targeted levels during the quarter.

Table 2

Cosalá Operations Highlights

    Q2 2018   Q2 2017   Change   Q1 2018   Change
Processed Ore (tonnes milled) 138,708 134,778 3% 123,285 13%
Silver Production (ounces) 94,231 242,523 -61% 79,382 19%
Silver Equivalent Production (ounces) 1,041,246 564,112 85% 948,081 10%
Silver Grade (grams per tonne) 42 66 -36% 42 0%
Cost of Sales ($ per equiv. ounce silver) 1 $5.34 $7.57 -29% $5.92 -10%
Cash Costs ($ per ounce silver) 1 ($60.13) ($2.81) >-100% ($59.52) -1%
All-in Sustaining Costs ($ per ounce silver) 1 ($41.66) ($2.81) >-100% ($36.28) -15%
Zinc Production (pounds) 8,756,201 2,904,374 201% 7,332,978 19%
Lead Production (pounds) 2,982,316 1,351,258 121% 2,679,485 11%
Copper Production (pounds) - 273,475 -100% - -

1 Cost of sales per silver equivalent ounce, cash costs per
silver ounce, and all-in sustaining costs per silver ounce for Q2, 2017
excludes pre-production of 22,549 silver ounces and 32,955 silver
equivalent ounces, respectively, mined from El Cajón during its
commissioning period. Pre-production revenue and cost of sales from El
Cajón are capitalized as an offset to development costs.

Galena Complex Production Details

As previously announced on June 14, 2018, production at the Galena
Complex was negatively impacted by two issues affecting the No.3 Shaft:
a 10-day suspension of hoisting in late April to allow the repair of
steel sets in the shaft, and a 17-day shutdown of the hoist in June to
address a mechanical failure in the brake mechanism. The Complex was
temporarily considered to be on care and maintenance for the 17-day
shutdown as repairs were performed with certain costs excluded from the
cash costs and AISC calculations. Repairs were completed by the end of
June 2018 and these issues are not expected to impact production rates
for the remainder of the year.

As a result, the Galena Complex produced 207,480 ounces of silver and
420,924 ounces of silver equivalent during the second quarter of 2018 at
cash costs of $18.36 per silver ounce and AISC of $26.77 per silver
ounce. Silver and silver equivalent production decreased 35% and 37%,
respectively, compared to the previous quarter, and decreased 34% and
31%, respectively, year-over-year. Cash costs increased by 60% compared
to the prior quarter and 29% year-over-year, and AISC were up 60%
compared to the prior quarter and 34% year-over-year.

Table 3

Galena Complex Highlights

    Q2 2018   Q2 2017   Change   Q1 2018   Change
Processed Ore (tonnes milled) 25,605 44,649 -43% 40,590 -37%
Silver Production (ounces) 207,480 315,369 -34% 317,653 -35%
Silver Equivalent Production (ounces) 420,924 611,724 -31% 665,630 -37%
Silver Grade (grams per tonne) 263 231 14% 256 3%
Cost of Sales ($ per equiv. ounce silver) $15.23 $13.98 9% $11.31 35%
Cash Costs ($ per ounce silver) $18.36 $14.20 29% $11.46 60%
All-in Sustaining Costs ($ per ounce silver) $26.77 $20.03 34% $16.78 60%
Lead Production (pounds) 3,234,276 5,083,790 -36% 4,945,200 -35%

About Americas Silver Corporation

Americas Silver is a silver mining company focused on growth in precious
metals from its existing asset base and execution of targeted accretive
acquisitions. It owns and operates the Cosalá Operations in Sinaloa,
Mexico and the Galena Mine Complex in Idaho, USA. The Company holds an
option on the San Felipe development project in Sonora, Mexico.

Cautionary Statement on Forward-Looking Information:

This news release contains "forward‐looking information" within the
meaning of applicable securities laws. Forward‐looking information
includes, but is not limited to, the Company's expectations intentions,
plans, assumptions and beliefs with respect to, among other things, the
realization of exploration, operational, production, and development
plans, the Cosalá Operations and Galena Complex as well as the Company's
financing efforts. Often, but not always, forward‐looking information
can be identified by forward‐looking words such as "anticipate",
"believe", "expect", "goal", "plan", "intend", "estimate", "may",
"assume" and "will" or similar words suggesting future outcomes, or
other expectations, beliefs, plans, objectives, assumptions, intentions,
or statements about future events or performance. Forward‐looking
information is based on the opinions and estimates of the Company as of
the date such information is provided and is subject to known and
unknown risks, uncertainties, and other factors that may cause the
actual results, level of activity, performance, or achievements of the
Company to be materially different from those expressed or implied by
such forward looking information. This includes the ability to develop
and operate the Cosalá and Galena properties, risks associated with the
mining industry such as economic factors (including future commodity
prices, currency fluctuations and energy prices), ground conditions and
factors other factors limiting mine access, failure of plant, equipment,
processes and transportation services to operate as anticipated,
environmental risks, government regulation, actual results of current
exploration and production activities, possible variations in ore grade
or recovery rates, permitting timelines, capital expenditures,
reclamation activities, social and political developments and other
risks of the mining industry. Although the Company has attempted to
identify important factors that could cause actual results to differ
materially from those contained in forward-looking information, there
may be other factors that cause results not to be as anticipated,
estimated, or intended. Readers are cautioned not to place undue
reliance on such information. By its nature, forward-looking information
involves numerous assumptions, inherent risks and uncertainties, both
general and specific that contribute to the possibility that the
predictions, forecasts, and projections of various future events will
not occur. The Company undertakes no obligation to update publicly or
otherwise revise any forward-looking information whether as a result of
new information, future events or other such factors which affect this
information, except as required by law.

1 Silver equivalent production throughout this press release
was calculated based on silver, zinc, lead and copper realized prices
during each respective period.
2 Cash cost per ounce and
all-in sustaining cost per ounce are non-IFRS performance measures with
no standardized definition. For further information and detailed
reconciliations, please refer to the Company's 2017 year-end and
quarterly MD&A. The performance measures for the quarter ended June 30,
2018 are preliminary throughout this press release subject to refinement
from the Company's second quarter financial results to be released on or
before August 9, 2018.

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