Americas Silver Corporation Reports First Quarter 2019 Financial Results

Americas Silver Corporation (TSX: USA) (NYSE American: USAS) (“Americas Silver” or the “Company”) today reported consolidated financial and operational results for the first quarter of 2019.

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 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.americassilvercorp.com. All figures are in U.S. dollars unless otherwise noted.

First Quarter Highlights

• Production of 1.8 million consolidated silver equivalent ounces¹, an increase of 9% year-over-year, including 0.4 million silver ounces.
• Revenue of $17.8 million and net loss of $2.8 million for the quarter or ($0.06) per share, a decrease of $2.6 million in revenue and an increase in the net loss of $3.3 million compared to Q1-2018 due primarily to lower metal prices and non-reoccurring expenses associated with the Pershing Gold acquisition.
• Consolidated by-product production totalling 11.3 million pounds of zinc and 8.2 million pounds of lead, representing increases of 54% and 8%, respectively.
• Cost of sales of $7.11/oz. equivalent silver, by-product cash cost² of negative ($0.50)/oz. silver, and all-in sustaining cost² (“AISC”) of $5.54/oz. silver for the quarter, representing year-over-year decreases of 13% and 10% in cost of sales per equivalent silver ounce and AISC per ounce, respectively, and an increase of 82% in by-product cash cost per ounce.
• The Company had a cash balance of $3.4 million and working capital balance of $5.2 million as at March 31, 2019.

Subsequent to First Quarter Highlights

• Completion of the acquisition of Pershing Gold Corporation (“Pershing”) on April 3, 2019.
• Entered into financing agreements with Sandstorm Gold Ltd. (“Sandstorm”) for gross proceeds of approximately $42.5 million to fully fund the development of mining and heap leaching operations at the Relief Canyon Project (“Relief Canyon”).
• Board approval to commence construction of the Relief Canyon with first gold pour expected in late Q4-2019.
• Preliminary feasibility study and initial mineral reserve estimate for a combined operation at its 100% owned El Cajón and Zone 120 silver-copper deposits highlighted by a probable mineral reserve of 2.9 million tonnes containing 14.5 million ounces of silver and 26.5 million pounds of copper.
• The Company agreed to sell its option for the right to acquire a 100% interest of the San Felipe property to Premier Gold Mines Ltd. for total consideration of $10.8 million.

The Company’s net loss was impacted by lower silver, zinc and lead prices and by non-reoccurring charges associated with the Pershing Gold Acquisition, specifically transaction costs ($1.0 million), and incremental interest and financing costs related to the convertible loans payable and promissory note ($0.5 million) associated with the acquisition. Timing of metal sales relative to production further contributed to the net loss compared to prior year. The Company also had unrealized losses on non-hedge zinc forward contracts ($1.2 million) during the quarter. Adjusting for these items, the net loss would have been approximately $0.1 million. The Company generated cash from operating activities before non-cash working capital items of $2.6 million for the first quarter of 2019 compared to $3.7 million in the same period in 2018.