Americas Silver Corporation Reports First Quarter 2016 Financial Results

TORONTO, ONTARIO--(Marketwired - May 12, 2016) - Americas Silver Corporation (TSX:USA) (OTCQX:USAPF) ("Americas Silver" or the "Company") today reported financial and operational results for the first quarter of 2016.

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 SEDAR at www.sedar.com and are also available on the Company's website at www.americassilvercorp.com. All figures are in U.S. dollars unless otherwise noted.

First Quarter Highlights

• Quarterly revenues of $14.9 million and a net loss of ($1.7) million or ($0.01) cents per share in Q1, 2016 compared with revenues of $13.9 million and a net loss of ($5.9) million or ($0.02) cents per share in Q1, 2015.
• Consolidated silver production for the quarter increased 12% compared with Q4, 2015 to approximately 672,000 silver ounces, and silver equivalent¹ production rose 7% to 1.28 million ounces.
• Adjusted earnings from mining operations were approximately $2.6 million.²
• Consolidated cash costs³ decreased 32% to $9.82 per silver ounce compared with Q4, 2015 and fell 21% year-over-year; while all-in sustaining costs³ decreased 35% to $12.02 per silver ounce compared with Q4, 2015 and fell 30% year-over-year.
• Consolidated guidance for 2016 remains at 2.5 - 3.0 million silver ounces and 5.0 - 5.6 million silver equivalent ounces at cash costs of $9.00 - $10.00 per ounce and all-in sustaining costs of $11.75 - $12.75 per ounce.
• On April 29, 2016, the Company published pre-feasibility study results on its zinc-silver-lead San Rafael property at the Cosalá Operations, which is expected to produce approximately 5.5 million ounces of silver, 250 million pounds of zinc and 100 million pounds of lead over an initial 5.5 year mine life at negative all-in sustaining costs per silver ounce. The Company is reviewing its financing options for the project and expects to provide a further update by the end of Q3, 2016.
• Cash balance at March 31, 2016 of $2.8 million with net working capital of approximately $5.4 million.

"During the first quarter, our mines generated positive operating cash flow through the reduction of operating costs, thereby delivering on expectations for lower cash and all-in sustaining costs while still progressing our development projects," said Americas Silver Corporation President and CEO Darren Blasutti. "Management will continue to focus on this for the remainder of the year in addition to advancing discussions with potential funding partners for the San Rafael project at our Cosalá Operations."