Americas Gold and Silver Corporation Q2 2026 Earnings Call Summary

Operational Transformation and Strategic De-leveraging

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• Performance at the Cosala mine was driven by entering the high-grade heart of the EC120 ore body, resulting in a 26% year-over-year production increase.

• Cosala cash costs decreased to $16.91 per ounce, primarily attributed to higher grades, improved metallurgical recoveries, and significant copper byproduct credits.

• The Galena complex underwent a critical infrastructure transition, doubling hoisting throughput from 42 to a sustained 85 tonnes per hour following the Phase 2 shaft modernization.

• Management successfully eliminated over $76 million in variable metal price-linked debt obligations, reducing annual debt servicing by $28 million to increase silver price exposure.

• Exploration drilling at San Rafael is yielding silver grades 2 to 5 times higher than previously modeled, providing immediate opportunities for mine plan integration in 2027.

• Operational safety remains a core pillar, with the company achieving zero lost time accidents across all U.S. and Mexico operations for over one year.

H2 Production Weighting and Modernization Roadmap

• Management reiterated full-year 2026 production guidance of 3.2 to 3.6 million silver ounces, with approximately 60% of production expected in the second half of the year.

• The transition to long-hole stoping at Galena is targeted to reach 30-40% of production by year-end 2026, scaling to 50-60% in 2027 to replace slower manual methods.

• Commissioning of the new paste fill plant in 2027 is expected to reduce stope filling cycles from 10 days to approximately 36 hours, significantly increasing mining velocity.

• Capital expenditure is expected to be slightly higher in Q4 compared to Q3 as final invoices for major projects like the paste fill plant and shaft relining are processed.

• The company is advancing an antimony strategy with joint venture partners to position itself within the U.S. critical mineral supply chain.

Strategic Settlements and Risk Management

• Settled remaining silver and gold delivery obligations with Sprott Mining and Royal Gold for 3.3% shareholder dilution, removing future mark-to-market volatility.

• A minor fire at Galena in Q2 temporarily displaced production from high-grade areas, but management confirmed no injuries and a full return to the area for H2 production.

• Investment in fiber optic and communications infrastructure is underway to support real-time equipment tracking and future underground automation.

• An external study for the Relief Canyon asset is currently in progress to evaluate future potential, with results expected later in the year.